Document:

Unassociated Document

     

    STRUCTURED
      ASSET MORTGAGE INVESTMENTS II INC.,

    DEPOSITOR

     

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    TRUSTEE

     

    and

     

    EMC
      MORTGAGE CORPORATION

    SELLER
      AND MASTER SERVICER 

    

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of November 1, 2006

     

     

    Structured
      Asset Mortgage Investments II Inc.

    

    Prime
      Mortgage Trust, Certificates

    

     

    Series
      2006-2

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF
      CONTENTS 

     

    

      
        	
                ARTICLE
                  I 

              	
                Definitions

              
	
                Section
                  1.01

              	
                Definitions.

              
	
                Section
                  1.02

              	
                Calculation
                  of LIBOR.

              
	 	 
	
                ARTICLE
                  II 

              	
                Conveyance
                  of Mortgage Loans; Original Issuance of Certificates

              
	
                Section
                  2.01

              	
                Conveyance
                  of Mortgage Loans to Trustee.

              
	
                Section
                  2.02

              	
                Acceptance
                  of Mortgage Loans and Underlying Certificates by
                  Trustee.

              
	
                Section
                  2.03

              	
                Assignment
                  of Interest in the Mortgage Loan Purchase Agreement.

              
	
                Section
                  2.04

              	
                Substitution
                  of Mortgage Loans.

              
	
                Section
                  2.05

              	
                Issuance
                  of Certificates.

              
	
                Section
                  2.06

              	
                Representations
                  and Warranties Concerning the Depositor.

              
	
                Section
                  2.07

              	
                Representations
                  and Warranties of EMC.

              
	
                Section
                  2.08

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

              
	 	 
	
                ARTICLE
                  III

              	
                Administration
                  of the Trust Fund and Servicing of Mortgage Loans

              
	
                Section
                  3.01

              	
                Master
                  Servicer.

              
	
                Section
                  3.02

              	
                REMIC-Related
                  Covenants.

              
	
                Section
                  3.03

              	
                Monitoring
                  of Servicers.

              
	
                Section
                  3.04

              	
                Fidelity
                  Bond.

              
	
                Section
                  3.05

              	
                Power
                  to Act; Procedures.

              
	
                Section
                  3.06

              	
                Due-on-Sale
                  Clauses; Assumption Agreements.

              
	
                Section
                  3.07

              	
                Release
                  of Mortgage Files.

              
	
                Section
                  3.08

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

              
	
                Section
                  3.09

              	
                Standard
                  Hazard Insurance and Flood Insurance Policies.

              
	
                Section
                  3.10

              	
                Presentment
                  of Claims and Collection of Proceeds.

              
	
                Section
                  3.11

              	
                Maintenance
                  of the Primary Mortgage Insurance Policies.

              
	
                Section
                  3.12

              	
                Trustee
                  to Retain Possession of Certain Insurance Policies and
                  Documents.

              
	
                Section
                  3.13

              	
                Realization
                  Upon Defaulted Mortgage Loans.

              
	
                Section
                  3.14

              	
                Compensation
                  for the Master Servicer.

              
	
                Section
                  3.15

              	
                REO
                  Property.

              
	
                Section
                  3.16

              	
                Annual
                  Statement as to Compliance.

              
	
                Section
                  3.17

              	
                Assessments
                  of Compliance and Attestation Reports.

              
	
                Section
                  3.18

              	
                Reports
                  Filed with Securities and Exchange Commission.

              
	
                Section
                  3.19

              	
                Intention
                  of the Parties and Interpretation.

              
	
                Section
                  3.20

              	
                UCC.

              
	
                Section
                  3.21

              	
                Optional
                  Purchase of Defaulted Mortgage Loans.

              
	 	 
	
                ARTICLE
                  IV 

              	
                Accounts

              
	
                Section
                  4.01

              	
                Protected
                  Accounts.

              
	
                Section
                  4.02

              	
                Master
                  Servicer Collection Account.

              
	
                Section
                  4.03

              	
                Permitted
                  Withdrawals and Transfers from the Master Servicer Collection
                  Account.

              
	
                Section
                  4.04

              	
                Distribution
                  Account.

              
	
                Section
                  4.05

              	
                Permitted
                  Withdrawals and Transfers from the Distribution
                  Account.

              
	 	 
	
                ARTICLE
                  V 

              	
                Certificates

              
	
                Section
                  5.01

              	
                Certificates.

              
	
                Section
                  5.02

              	
                Registration
                  of Transfer and Exchange of Certificates.

              
	
                Section
                  5.03

              	
                Mutilated,
                  Destroyed, Lost or Stolen Certificates.

              
	
                Section
                  5.04

              	
                Persons
                  Deemed Owners.

              
	
                Section
                  5.05

              	
                Transfer
                  Restrictions on Residual Certificates.

              
	
                Section
                  5.06

              	
                Restrictions
                  on Transferability of Non-Offered Certificates.

              
	
                Section
                  5.07

              	
                ERISA
                  Restrictions.

              
	
                Section
                  5.08

              	
                Rule
                  144A Information.

              
	 	 
	
                ARTICLE
                  VI 

              	
                Payments
                  to Certificateholders

              
	
                Section
                  6.01

              	
                Distributions
                  on the Certificates.

              
	
                Section
                  6.02

              	
                [Reserved.]

              
	
                Section
                  6.03

              	
                Allocation
                  of Losses.

              
	
                Section
                  6.04

              	
                Payments.

              
	
                Section
                  6.05

              	
                Statements
                  to Certificateholders.

              
	
                Section
                  6.06

              	
                Monthly
                  Advances.

              
	
                Section
                  6.07

              	
                Compensating
                  Interest Payments.

              
	 	 
	
                ARTICLE
                  VII

              	
                The
                  Master Servicer

              
	
                Section
                  7.01

              	
                Liabilities
                  of the Master Servicer.

              
	
                Section
                  7.02

              	
                Merger
                  or Consolidation of the Master Servicer.

              
	
                Section
                  7.03

              	
                Indemnification
                  of the Trustee and the Master Servicer

              
	
                Section
                  7.04

              	
                Limitations
                  on Liability of the Master Servicer and Others.

              
	
                Section
                  7.05

              	
                Master
                  Servicer Not to Resign.

              
	
                Section
                  7.06

              	
                Successor
                  Master Servicer.

              
	
                Section
                  7.07

              	
                Sale
                  and Assignment of Master Servicing.

              
	 	 
	
                ARTICLE
                  VIII

              	
                Default

              
	
                Section
                  8.01

              	
                Events
                  of Default.

              
	
                Section
                  8.02

              	
                Trustee
                  to Act; Appointment of Successor.

              
	
                Section
                  8.03

              	
                Notification
                  to Certificateholders.

              
	
                Section
                  8.04

              	
                Waiver
                  of Defaults.

              
	
                Section
                  8.05

              	
                List
                  of Certificateholders.

              
	 	 
	
                ARTICLE
                  IX

              	
                Concerning
                  the Trustee

              
	
                Section
                  9.01

              	
                Duties
                  of Trustee.

              
	
                Section
                  9.02

              	
                Certain
                  Matters Affecting the Trustee.

              
	
                Section
                  9.03

              	
                Trustee
                  Not Liable for Certificates or Mortgage Loans.

              
	
                Section
                  9.04

              	
                Trustee
                  May Own Certificates.

              
	
                Section
                  9.05

              	
                Trustee’s
                  Fees and Expenses.

              
	
                Section
                  9.06

              	
                Eligibility
                  Requirements for Trustee.

              
	
                Section
                  9.07

              	
                Insurance.

              
	
                Section
                  9.08

              	
                Resignation
                  and Removal of the Trustee.

              
	
                Section
                  9.09

              	
                Successor
                  Trustee.

              
	
                Section
                  9.10

              	
                Merger
                  or Consolidation of Trustee.

              
	
                Section
                  9.11

              	
                Appointment
                  of Co-Trustee or Separate Trustee.

              
	
                Section
                  9.12

              	
                Federal
                  Information Returns and Reports to Certificateholders; REMIC
                  Administration.

              
	 	 
	
                ARTICLE
                  X 

              	
                Termination

              
	
                Section
                  10.01

              	
                Termination
                  Upon Repurchase by the Depositor or its Designee or Liquidation
                  of the
                  Mortgage Loans.

              
	
                Section
                  10.02

              	
                [Reserved].

              
	
                Section
                  10.03

              	
                Additional
                  Termination Requirements with respect to the
                  Certificates.

              
	 	 
	
                ARTICLE
                  XI 

              	
                Miscellaneous
                  Provisions

              
	
                Section
                  11.01

              	
                Intent
                  of Parties.

              
	
                Section
                  11.02

              	
                Amendment.

              
	
                Section
                  11.03

              	
                Recordation
                  of Agreement.

              
	
                Section
                  11.04

              	
                Limitation
                  on Rights of Certificateholders.

              
	
                Section
                  11.05

              	
                Acts
                  of Certificateholders.

              
	
                Section
                  11.06

              	
                Governing
                  Law.

              
	
                Section
                  11.07

              	
                Notices.

              
	
                Section
                  11.08

              	
                Severability
                  of Provisions.

              
	
                Section
                  11.09

              	
                Successors
                  and Assigns.

              
	
                Section
                  11.10

              	
                Article
                  and Section Headings.

              
	
                Section
                  11.11

              	
                Counterparts.

              
	
                Section
                  11.12

              	
                Notice
                  to Rating Agencies.

              

      

    

     

    EXHIBITS
      

     

    
      	
              Exhibit
                A-1

            	
              -

            	
              Form
                of Class A Certificates

            
	
              Exhibit
                A-2

            	
              -

            	
              Form
                of Class B Certificates

            
	
              Exhibit
                A-3

            	
              -

            	
              Form
                of Class PO Certificates

            
	
              Exhibit
                A-4

            	
              -

            	
              Form
                of Class R Certificates

            
	
              Exhibit
                A-5

            	
              -

            	
              Form
                of Class X Certificates

            
	
              Exhibit
                B

            	
              -

            	
              Mortgage
                Loan Schedule

            
	
              Exhibit
                C

            	
              -

            	
              Reserved

            
	
              Exhibit
                D

            	
              -

            	
              Request
                for Release of Documents

            
	
              Exhibit
                E

            	
              -

            	
              Form
                of Affidavit pursuant to Section 860E(e)(4)

            
	
              Exhibit
                F-1

            	
              -

            	
              Form
                of Investment Letter

            
	
              Exhibit
                F-2

            	
              -

            	
              Form
                of Rule 144A and Related Matters Certificate

            
	
              Exhibit
                F-3

            	
              -

            	
              Form
                of Rule 144A Global Certificate to Regulation S Global
                Certificate

            
	
              Exhibit
                F-4

            	
              -

            	
              Form
                of Regulation S Global Certificate to Rule 144A Global
                Certificate

            
	
              Exhibit
                G

            	
              -

            	
              Form
                of Custodial Agreement

            
	
              Exhibit
                H

            	
              -

            	
              Form
                of Mortgage Loan Purchase Agreement

            
	
              Exhibit
                I-1

            	
              -

            	
              Chevy
                Chase Servicing Agreement

            
	
              Exhibit
                I-2

            	
              -

            	
              EMC
                Servicing Agreement

            
	
              Exhibit
                I-3

            	
              -

            	
              Wells
                Fargo Servicing Agreement

            
	
              Exhibit
                J-1

            	
              -

            	
              Chevy
                Chase Assignment Agreement

            
	
              Exhibit
                J-2

            	
              -

            	
              EMC
                Assignment Agreement

            
	
              Exhibit
                J-3

            	
              -

            	
              Wells
                Fargo Assignment Agreement

            
	
              Exhibit
                K

            	
              -

            	
              Form
                of Back-Up Certification

            
	
              Exhibit
                L

            	
              -

            	
              Servicing
                Criteria to Be Addressed in Assessment of Compliance

            
	
              Exhibit
                M

            	
              -

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

            
	
              Exhibit
                N

            	
              -

            	
              Additional
                Disclosure Notification

            
	
              Exhibit
                O

            	
              -

            	
              Aggregate
                Planned Principal Schedules

            
	
              Exhibit
                P

            	
              -

            	
              Form
                of Trustee Limited Power of Attorney

            
	
              Exhibit
                Q

            	
              -

            	
              Form
                of Certification to be provided by the Trustee to the
                Depositor

            
	
              Exhibit
                R

            	
              -

            	
              Form
                of the Master Servicer’s Data Layout
                Report

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    POOLING
      AND SERVICING AGREEMENT

     

    Pooling
      and Servicing Agreement dated as of November 1, 2006, among Structured Asset
      Mortgage Investments II Inc., a Delaware corporation, as depositor (the
“Depositor”), U.S. Bank National Association, as trustee (the “Trustee”) and EMC
      Mortgage Corporation, as seller (in such capacity, the “Seller”) and as master
      servicer (in such capacity, the “Master Servicer”).

     

    PRELIMINARY
      STATEMENT

     

    On
      or
      prior to the Closing Date, the Depositor acquired the Mortgage Loans from the
      Seller. On the Closing Date, the Depositor will sell the Mortgage Loans and
      certain other property to the Trust Fund and receive in consideration therefor
      the Certificates, together evidencing the entire beneficial ownership interest
      in the Trust Fund.

     

    The
      Trustee on behalf of the Trust shall make an election for the assets
      constituting REMIC I to be treated for federal income tax purposes as a REMIC.
      On the Startup Day, the REMIC I Regular Interests will be designated the
“regular interests” in such REMIC, and the Class R-1 Certificates will be
      designated the sole class of “residual interests” in such REMIC.

     

    The
      Trustee on behalf of the Trust shall make an election for the assets
      constituting REMIC II to be treated for federal income tax purposes as a REMIC.
      On the Startup Day, the REMIC II Regular Interests will be designated the
“regular interests” in such REMIC, and the Class R-2 Certificates will be
      designated the sole class of “residual interests” in such REMIC. 

     

    The
      Trustee on behalf of the Trust shall make an election for the assets
      constituting REMIC III to be treated for federal income tax purposes as a REMIC.
      On the Startup Day, the Regular Certificates will be designated the “regular
      interests” in such REMIC, and the Class R-3 Certificates will be designated the
      sole class of “residual interests” in such REMIC.

    

    The
      Mortgage Loans will have an Outstanding Principal Balance as of the Cut-off
      Date, after deducting all Scheduled Principal due on or before the Cut-off
      Date,
      of $281,849,595,74. The initial principal amount of the Certificates will not
      exceed such Outstanding Principal Balance.

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      I

    Definitions

     

    Section
      1.01 Definitions.

     

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

     

    Accepted
      Master Servicing Practices:
      With
      respect to any Mortgage Loan, as applicable, either (x) those customary mortgage
      servicing practices of prudent mortgage servicing institutions that master
      service mortgage loans of the same type and quality as such Mortgage Loan in
      the
      jurisdiction where the related Mortgaged Property is located, to the extent
      applicable to the Trustee or the Master Servicer (except in its capacity as
      successor to a Servicer), or (y) as provided in the applicable Servicing
      Agreement, to the extent applicable to any Servicer, but in no event below
      the
      standard set forth in clause (x).

     

    Account:
      The
      Master Servicer Collection Account, the Distribution Account and the Protected
      Accounts as the context may require.

     

    Accrued
      Certificate Interest:
      For any
      Certificate (other than the Class PO Certificates) or any Component (other
      than
      the Class PO Components) for any Distribution Date, the interest accrued during
      the related Interest Accrual Period at the applicable Pass-Through Rate on
      the
      Current Principal Amount, or Notional Amount in the case of any Interest Only
      Certificate or any Class X Components, of such Certificate or Component
      immediately prior to such Distribution Date, less (i) in the case of a Senior
      Certificate (other than the Class PO Certificates or Class X Certificates)
      and
      the Class X Components, such Certificate’s share of any Net Interest Shortfall
      from the Mortgage Loans in the related Loan Group and, after the Cross-Over
      Date, the interest portion of any Realized Losses on the Mortgage Loans in
      the
      related Loan Group allocated thereto in accordance with Section 6.03(e) and
      (ii)
      in the case of a Subordinate Certificate, such Certificate’s share of any Net
      Interest Shortfall from the Mortgage Loans and the interest portion of any
      Realized Losses on the Mortgage Loans allocated thereto in accordance with
      Section 6.03(e). All calculations of interest on the Certificates will be made
      on the basis of a 360-day year consisting of twelve 30-day months.

     

    Additional
      Disclosure:
      As
      defined in Section 3.18.

     

    Additional
      Form 10-D Disclosure:
      As
      defined in Section 3.18.

     

    Additional
      Form 10-K Disclosure:
      As
      defined in Section 3.18.

     

    Affiliate:
      As to
      any Person, any other Person controlling, controlled by or under common control
      with such Person. “Control” means the power to direct the management and
      policies of a Person, directly or indirectly, whether through ownership of
      voting securities, by contract or otherwise. “Controlled” and “Controlling” have
      meanings correlative to the foregoing. The Trustee may conclusively presume
      that
      a Person is not an Affiliate of another Person unless a Responsible Officer
      of
      the Trustee has actual knowledge to the contrary.

     

    Aggregate
      Planned Principal Amount: With
      respect to the Class I-A1-1 Certificates and Class I-A1-3 Certificates and
      any
      Distribution Date, the
      amount set forth in Exhibit O attached hereto opposite that Distribution
      Date.

     

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

     

    Annual
      Statement of Compliance:
      As
      defined in Section 3.16.

     

    Allocable
      Share:
      With
      respect to any Class of Subordinate Certificates on any Distribution Date will
      generally equal such Class’s pro rata share (based on the Current Principal
      Amount of each Class entitled thereto) of the sum of each of the components
      of
      the definition of Subordinate Optimal Principal Amount; provided, that except
      as
      described in the succeeding sentence, no Class of Subordinate Certificates
      (other than the Class of Subordinate Certificates outstanding with the lowest
      numerical designation) shall be entitled on any Distribution Date to receive
      distributions pursuant to clauses (2), (3) and (5) of the definition of
      Subordinate Optimal Principal Amount unless the Class Prepayment Distribution
      Trigger for the related Class is satisfied for such Distribution Date. If on
      any
      Distribution Date the Current Principal Amount of any Class of Subordinate
      Certificates for which the Class Prepayment Distribution Trigger was satisfied
      on such Distribution Date is reduced to zero, any amounts distributable to
      such
      Class pursuant to clauses (2), (3) and (5) of the definition of Subordinate
      Optimal Principal Amount, to the extent of such Class’s remaining Allocable
      Share, shall be distributed to the remaining Classes of Subordinate Certificates
      in reduction of their respective Current Principal Amounts, sequentially, in
      the
      order of their numerical Class designations.

     

    Applicable
      Credit Rating:
      For any
      long-term deposit or security, a credit rating of AAA in the case of each of
      S&P and Fitch or Aaa in the case of Moody’s. For any short-term deposit or
      security, a rating of A-l+ in the case of S&P, F-1+ in the case of Fitch or
      P-1 in the case of Moody’s.

     

    Applicable
      State Law:
      For
      purposes of Section 9.12(d), the Applicable State Law shall be (a) the law
      of
      the State of New York and (b) such other state law whose applicability shall
      have been brought to the attention of the Trustee by either (i) an Opinion
      of
      Counsel reasonably acceptable to the Trustee delivered to it by the Master
      Servicer or the Depositor, or (ii) written notice from the appropriate taxing
      authority as to the applicability of such state law.

     

    Appraised
      Value:
      For any
      Mortgaged Property related to a Mortgage Loan, the amount set forth as the
      appraised value of such Mortgaged Property in an appraisal made for the mortgage
      originator in connection with its origination of the related Mortgage
      Loan.

     

    Assessment
      of Compliance:
      As
      defined in Section 3.17.

     

    Attesting
      Party:
      As
      defined in Section 3.17.

     

    Attestation
      Report:
      As
      defined in Section 3.17.

     

    Assignment
      Agreements:
      The
      agreements attached hereto as Exhibit J, whereby the Servicing Agreements were
      assigned to the Trustee for the benefit of the Holders of the
      Certificateholders.

     

    Assumed
      Final Distribution Date:
      With
      respect to the Certificates, the Distribution Date occurring in November
      2036.

     

    Available
      Funds:
      For any
      Distribution Date and each Loan Group, an amount which generally includes,
      (1)
      all previously undistributed payments on account of principal (including the
      principal portion of Monthly Payments, Principal Prepayments and the principal
      amount of Net Liquidation Proceeds) with regard to the Mortgage Loans and all
      previously undistributed payments on account of interest received after the
      Cut-Off Date and on or prior to the related Determination Date, in each case,
      from the Mortgage Loans in the related Loan Group, (2) any Monthly Advances
      made
      by the Master Servicer or a Servicer for such Distribution Date in respect
      of
      the Mortgage Loans in the related Loan Group, (3) any Compensating Interest
      made
      by a Servicer for such Distribution Date in respect of the Mortgage Loans in
      the
      related Loan Group and (4) any amounts reimbursed by the Master Servicer or
      the
      Trustee in connection with losses on certain eligible investments, net of all
      fees payable to, and amounts reimbursable to, the Servicers, the Master
      Servicer, the Trustee and the Custodian as provided in this Agreement and the
      Custodial Agreement and investment earnings on amounts on deposit in the Master
      Servicer Collection Account and the Distribution Account.

     

    Average
      Loss Severity Percentage:
      With
      respect to any Distribution Date, the percentage equivalent of a fraction,
      the
      numerator of which is the sum of the Loss Severity Percentages for each Mortgage
      Loan which had a Realized Loss and the denominator of which is the number of
      Mortgage Loans which had Realized Losses.

     

    Bankruptcy
      Code:
      The
      United States Bankruptcy Code, as amended as codified in 11 U.S.C. §§
101-1330.

     

    Bankruptcy
      Loss:
      With
      respect to any Mortgage Loan, any Deficient Valuation or Debt Service Reduction
      related to such Mortgage Loan as reported by the applicable Servicer to the
      Master Servicer.

     

    Book-Entry
      Certificates:
      Initially, all Classes of the Senior Certificates and the Offered Subordinate
      Certificates.

     

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday, or (ii) a day on which the New York
      Stock
      Exchange or Federal Reserve is closed or on which banking institutions in the
      jurisdiction in which the Trustee, the Master Servicer or any Servicer is
      located are authorized or obligated by law or executive order to be
      closed.

     

    Certificate:
      Any one
      of the Certificates executed and countersigned by the Trustee substantially
      in
      the form of Exhibits A-1 through A-5 attached hereto.

     

    Certificates
      Distribution Report:
      The
      report prepared by the Trustee with respect to the Certificates and the Mortgage
      Loans pursuant to Section 6.05(a).

     

    Certificateholder:
      A
      Holder of a Certificate.

     

    Certificate
      Owner:
      Any
      Person who is the beneficial owner of a Certificate registered in the name
      of
      the Depository or its nominee.

     

    Certificate
      Register:
      The
      register maintained pursuant to Section 5.02.

     

    Chevy
      Chase:
      Chevy
      Chase Bank, F.S.B., or its successor in interest.

     

    Chevy
      Chase Servicing Agreement:
      The
Purchase,
      Warranties and Servicing Agreement, dated as of July 1, 2001, between the Seller
      and Chevy Chase, as amended by Amendment No. 1, dated as of January 13, 2003
      and
      by Amendment No. 2, dated as of January 31, 2006, attached hereto as Exhibit
      I-1, and as modified by the related Assignment Agreement. 

     

    Class:
      With
      respect to the Certificates, I-A1-1, I-A1-2, I-A1-3, I-A1-4, I-A1-5, I-A2-1,
      I-A2-2, II-A1-1, II-A2-1, B-1, B-2, B-3, B-4, B-5, B-6, X, BX, PO, R-1, R-2
      and
      R-3, and with respect to the Components, I-PO, II-PO, I-X and II-X.

     

    Class
      A Certificates:
      Any of
      the Class I-A1-1, Class I-A1-2, Class I-A1-3, Class I-A1-4, Class I-A1-5, Class
      I-A2-1, Class I-A2-2, Class II-A1-1 and Class II-A2-1 Certificates.

     

    Class
      B Certificates:
      Any of
      the Class BX, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class
      B-6 Certificates.

     

    Class
      PO Certificate Cash Shortfall:
      For any
      Distribution Date and the Class PO Components, the difference between (i)
      principal distributable to the Class PO Components in accordance with priority
      fourth
      of
      clause (i) under subsection 6.01(a), and (ii) principal actually distributed
      to
      the Class PO Components after giving effect to clause (iii) under subsection
      6.01(a).

     

    Class
      PO Certificate Deferred Amount:
      As to
      the Class PO Components and each Distribution Date through the Cross-Over Date,
      the aggregate of all amounts allocable on such dates to the Class PO Components
      in respect of the principal portion of Realized Losses in respect of Discount
      Mortgage Loans in Subgroup I-1 and Subgroup II-1 and the Class PO Certificate
      Cash Shortfall and all amounts previously allocated in respect of such losses
      and such shortfalls to the Class PO Components, and not distributed on prior
      Distribution Dates.

     

    Class
      PO Certificate:
      Any Certificate designated as a “Class PO Certificate” on the face thereof,
      evidencing the ownership of the Class I-PO Component and the Class II-PO
      Component.

     

    Class
      PO Certificate Principal Distribution Amount:
      The
      Class PO Components shall be entitled to distributions from Subgroup I-1 and
      Subgroup II-1. For each of the Class PO Components with respect to each
      Distribution Date, an amount equal to the sum of:

     

    (i) the
      PO
      Percentage of all scheduled payments of principal due on each Discount Mortgage
      Loan in the related Subgroup on the related Due Date as specified in the
      amortization schedule at the time applicable thereto (after adjustment for
      previous principal prepayments but before any adjustment to such amortization
      schedule by reason of any bankruptcy or similar proceeding or any moratorium
      or
      similar waiver or grace period);

     

    (ii) the
      PO
      Percentage of the Scheduled Principal Balance of each Discount Mortgage Loan
      in
      the related Subgroup which was the subject of a prepayment in full received
      by
      the related Servicer during the applicable Prepayment Period;

     

    (iii) the
      PO
      Percentage of all partial prepayments of principal of each Discount Mortgage
      Loan in the related Subgroup received during the applicable Prepayment
      Period;

     

    (iv) the
      lesser of (a) the PO Percentage of the sum of (A) all Net Liquidation Proceeds
      and Subsequent Recoveries allocable to principal on each Discount Mortgage
      Loan
      in the related Subgroup which became a Liquidated Mortgage Loan during the
      related calendar month (other than a Discount Mortgage Loan described in clause
      (B)) and (B) the Scheduled Principal Balance of each such Discount Mortgage
      Loan
      in the related Subgroup purchased by an insurer from the Trustee during the
      related Prepayment Period pursuant to the related Primary Mortgage Insurance
      Policy, if any, or otherwise; and (b) the PO Percentage of the sum of (A) the
      Scheduled Principal Balance of each Discount Mortgage Loan in the related
      Subgroup which became a Liquidated Mortgage Loan during the related calendar
      month (other than a Discount Mortgage Loan described in clause (B)) and (B)
      the
      Scheduled Principal Balance of each such Discount Mortgage Loan in the related
      Subgroup that was purchased by an insurer from the Trustee during the related
      Prepayment Period pursuant to the related Primary Mortgage Insurance Policy,
      if
      any, or otherwise; and

     

    (v) the
      PO
      Percentage of the sum of (a) the Scheduled Principal Balance of each Discount
      Mortgage Loan which was repurchased by the Seller in connection with such
      Distribution Date and (b) the difference, if any, between the Scheduled
      Principal Balance of a Discount Mortgage Loan that has been replaced by the
      Seller with a substitute Discount Mortgage Loan pursuant to the Agreement in
      connection with such Distribution Date and the Scheduled Principal Balance
      of
      such substitute Discount Mortgage Loan.

     

    Class
      PO Component:
      The
      Class I-PO Component or the Class II-PO Component.

    

    Class
      Prepayment Distribution Trigger:
      For a
      Class of Subordinate Certificates for any Distribution Date, the Class
      Prepayment Distribution Trigger is satisfied if the fraction (expressed as
      a
      percentage), the numerator of which is the aggregate Current Principal Amount
      of
      such Class and each Class of Subordinate Certificates subordinate thereto,
      if
      any, and the denominator of which is the Scheduled Principal Balance of all
      of
      the Mortgage Loans as of the beginning of the related Due Period, equals or
      exceeds such percentage calculated as of the Closing Date.

     

    Class
      R Certificates:
      The
      Class R-1, Class R-2 and Class R-3 Certificates.

     

    Class
      X Certificate:
      Any
      Certificate designated as a “Class X Certificate” on the face thereof,
      evidencing the ownership of the Class I-X Component and the Class II-X
      Component.

     

    Class
      X Component:
      The
      Class I-X Component or the Class II-X Component.

     

    Clearing
      Agency:
      An
      organization registered as a “clearing agency” pursuant to Section 17A of the
      Securities and Exchange Act of 1934, as amended, which initially shall be DTC,
      Clearstream, Luxembourg and Euroclear.

     

    Clearstream,
      Luxembourg:
      Clearstream Banking, a société anonyme, a limited liability company organized
      under the laws of Luxembourg.

     

    Closing
      Date:
      November 30, 2006.

     

    Code:
      The
      Internal Revenue Code of 1986, as amended.

     

    Company:
      EMC
      Mortgage Corporation, in its capacity as servicer.

     

    Compensating
      Interest Payment:
      As
      defined in Section 6.07.

     

    Component:
      Any of
      the Class I-X, Class II-X, Class I-PO or Class II-PO Components.

     

    Corporate
      Trust Office:
      The
      office of the Trustee at which at any particular time its corporate trust
      business is administered, which office, at the date of the execution of this
      Agreement, is located at US Bank Corporate Trust Services, One Federal Street,
      3rd
      Floor,
      Boston, Massachusetts 02110, Attention: Corporate Trust Services/PRIME 2006-2,
      or such other address as the Trustee may designate from time to time.

     

    Corresponding
      Interests:
      With
      respect to each REMIC II Regular Interest, the Class with the same
      designation.

     

    Credit
      Support Depletion Date:
      The
      first Distribution Date on which the related Subgroup Senior Percentage equals
      100%.

     

    Cross-Over
      Date:
      The
      Distribution Date on which the Current Principal Amounts of the Subordinate
      Certificates are reduced to zero.

     

    Current
      Principal Amount:
      With
      respect to any Certificate (other than an Interest Only Certificate and the
      Class PO Certificates) or any Class PO Component as of any Distribution Date,
      the initial principal amount of such Certificate or Component plus any
      Subsequent Recoveries added to the Current Principal Amount of such Certificate
      or Component pursuant to Section 6.01(g), and reduced by (i) all amounts
      distributed on previous Distribution Dates on such Certificate or Component
      with
      respect to principal, (ii) the principal portion of all Realized Losses
      allocated prior to such Distribution Date to such Certificates or Components,
      taking account of the Loss Allocation Limitation and (iii) in the case of a
      Subordinate Certificate, such Certificate’s pro rata share, if any, of the
      applicable Subordinate Certificate Writedown Amount for previous Distribution
      Dates. With respect to any Class of Certificates (other than an Interest Only
      Certificate and Class PO Components), the Current Principal Amount thereof
      will
      equal the sum of the Current Principal Amounts of all Certificates or Components
      in such Class. Notwithstanding the foregoing, solely for purposes of giving
      consents, directions, waivers, approvals, requests and notices, each of the
      Residual Certificates after the Distribution Date on which they each receive
      the
      distribution of the last dollar of their respective original principal amount
      shall be deemed to have Current Principal Amounts equal to their respective
      Current Principal Amounts on the day immediately preceding such Distribution
      Date.

     

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

     

    Custodial
      Agreement:
      An
      agreement, dated as of the Closing Date among the Depositor, the Master
      Servicer, the Trustee and the Custodian in substantially the form of Exhibit
      G
      hereto.

     

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

     

    Cut-off
      Date:
      November 1, 2006.

     

    Cut-off
      Date Balance:
      An
      amount equal to $281,849,595,74. 

     

    Debt
      Service Reduction:
      Any
      reduction of the Scheduled Payments which a Mortgagor is obligated to pay with
      respect to a Mortgage Loan as a result of any proceeding under the Bankruptcy
      Code or any other similar state law or other proceeding.

     

    Deficient
      Valuation:
      With
      respect to any Mortgage Loan, a valuation of the Mortgaged Property by a court
      of competent jurisdiction in an amount less than the then outstanding
      indebtedness under the Mortgage Loan, which valuation results from a proceeding
      initiated under the Bankruptcy Code or any other similar state law or other
      proceeding.

     

    Delinquent:
      A
      Mortgage Loan is “delinquent” if any payment due thereon is not made pursuant to
      the terms of such Mortgage Loan by the close of business on the day such payment
      is scheduled to be due. A Mortgage Loan is “30 days delinquent” if such payment
      has not been received by the close of business on the last day of the month
      in
      which such payment was due. For example, a Mortgage Loan with a payment due
      on
      December 1 that remained unpaid as of the close of business on December 31
      would
      then be considered to be 30 to 59 days delinquent. Similarly for “60 days
      delinquent,” “90 days delinquent” and so on. 
      The
      determination as to whether a Mortgage Loan falls into these categories is
      made
      as of the close of business on the last Business Day of each month. This
      method of determining delinquencies is also referred to as the MBA
      method.

     

    Depositor:
      Structured Asset Mortgage Investments II Inc., a Delaware corporation, or its
      successors in interest.

     

    Depositor
      Information:
      As
      defined in Section 3.18(c).

     

    Depository:
      The
      Depository Trust Company, the nominee of which is Cede & Co., or any
      successor thereto.

     

    Depository
      Agreement:
      The
      meaning specified in Subsection 5.01(a) hereof.

     

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

     

    Designated
      Depository Institution:
      A
      depository institution (commercial bank, federal savings bank, mutual savings
      bank or savings and loan association) or trust company (which may include the
      Trustee), the deposits of which are fully insured by the FDIC to the extent
      provided by law.

     

    Determination
      Date:
      With
      respect to each Mortgage Loan, the Determination Date as defined in the related
      Servicing Agreement.

     

    Discount
      Mortgage Loan:
      Any
      Group I Mortgage Loan with a Net Mortgage Rate less than 6.250% per annum.
      Any
      Group II Mortgage Loan with a Net Mortgage Rate less than 5.500% per
      annum.

     

    Disqualified
      Organization:
      Any of
      the following: (i) the United States, any State or political subdivision
      thereof, any possession of the United States, or any agency or instrumentality
      of any of the foregoing (other than an instrumentality which is a corporation
      if
      all of its activities are subject to tax and, except for the Freddie Mac or
      any
      successor thereto, a majority of its board of directors is not selected by
      such
      governmental unit), (ii) any foreign government, any international organization,
      or any agency or instrumentality of any of the foregoing, (iii) any organization
      (other than certain farmers’ cooperatives described in Section 521 of the Code)
      which is exempt from the tax imposed by Chapter 1 of the Code (including the
      tax
      imposed by Section 511 of the Code on unrelated business taxable income), (iv)
      rural electric and telephone cooperatives described in Section 1381(a)(2)(C)
      of
      the Code or (v) any other Person so designated by the Trustee based upon an
      Opinion of Counsel that the holding of an ownership interest in a Residual
      Certificate by such Person may cause any REMIC contained in the Trust or any
      Person having an Ownership Interest in the Residual Certificate (other than
      such
      Person) to incur a liability for any federal tax imposed under the Code that
      would not otherwise be imposed but for the transfer of an Ownership Interest
      in
      a Residual Certificate to such Person. The terms “United States,” “State” and
“international organization” shall have the meanings set forth in Section 7701
      of the Code or successor provisions.

     

    Distribution
      Account:
      The
      trust account or accounts created and maintained pursuant to Section 4.04,
      which
      shall be denominated “U.S. Bank National Association, as Trustee, f/b/o holders
      of Structured Asset Mortgage Investments II Inc., Prime Mortgage Trust,
      Certificates, Series 2006-2 - Distribution Account.” The Distribution Account
      shall be an Eligible Account.

     

    Distribution
      Account Deposit Date:
      The
      Business Day prior to each Distribution Date.

     

    Distribution
      Date:
      The
      25th day of any month, beginning in December 2006, or, if such 25th day is
      not a
      Business Day, the immediately following Business Day.

     

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

     

    DTC
      Custodian:
      U.S.
      Bank National Association, or its successors in interest as custodian for the
      Depository.

     

    Due
      Date:
      With
      respect to each Mortgage Loan, the date in each month on which its Scheduled
      Payment is due if such due date is the first day of a month and otherwise is
      deemed to be the first day of the following month or such other date specified
      in the related Servicing Agreement.

     

    Due
      Period:
      With
      respect to any Distribution Date and each Mortgage Loan, the period commencing
      on the second day of the month preceding the month in which the Distribution
      Date occurs and ending at the close of business on the first day of the month
      in
      which the Distribution Date occurs.

     

    EDGAR:
      As
      defined in Section 3.18.

     

    Eligible
      Account:
      Any
      of (i) a segregated account or accounts maintained with a federal or state
      chartered depository institution or trust company, the long-term unsecured
      debt
      obligations and short-term unsecured debt obligations of which (or, in the
      case
      of a depository institution or trust company that is the principal subsidiary
      of
      a holding company, the debt obligations of such holding company, so long as
      Moody’s is not a Rating Agency) are rated by each Rating Agency in one of its
      two highest
      long-term and its highest short-term rating categories, respectively, at the
      time any amounts are held on deposit therein, or (ii) a segregated account
      or accounts in a depository institution or trust company in which such accounts
      are insured by the FDIC (to the limits established by the FDIC) and the
      uninsured deposits in which accounts are otherwise secured such that, as
      evidenced by an Opinion of Counsel (obtained by the Person requesting that
      the
      account be held pursuant to this clause (ii)) delivered to the Trustee and
      to
      each Rating Agency, the Certificateholders have a claim with respect to the
      funds in such account or a perfected first priority security interest against
      any collateral (which shall be limited to Permitted Investments, each of which
      shall mature not later than the Business Day immediately preceding the
      Distribution Date next following the date of investment in such collateral
      or
      the Distribution Date if such Permitted Investment is an obligation of the
      institution that maintains the Distribution Account) securing such funds that
      is
      superior to claims of any other depositors or creditors of the depository
      institution or trust company in which such account is maintained, or (iii)
      a
      segregated trust account or accounts maintained with the corporate trust
      department of a federal or state chartered depository institution or trust
      company having capital and surplus of not less than $50,000,000, acting in
      its
      fiduciary capacity or (iv) any other segregated account acceptable to the
      Rating Agencies, as evidenced in writing. Eligible Accounts may bear interest,
      and may include, if otherwise qualified under this definition, accounts
      maintained with the Trustee.

     

    EMC:
      EMC
      Mortgage Corporation.

     

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

     

    EMC
      Servicing Agreement:
      With
      respect to the Mortgage Loans serviced by the Company, the Servicing Agreement
      dated as of November 1, 2006, between the Depositor and the Company, attached
      hereto as Exhibit I-2 and as modified by the related Assignment
      Agreement.

     

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

     

    Euroclear:
      Euroclear Clearance System, Société Cooperative, a Belgium cooperative
      cooperation.

     

    Euroclear
      Operator:
      Euroclear Bank S.A./N.V., as operator of the Euroclear system.

     

    Event
      of Default:
      An
      event of default described in Section 8.01.

     

    Excess
      Liquidation Proceeds:
      To the
      extent that such amount is not required by law to be paid to the related
      Mortgagor, the amount, if any, by which Liquidation Proceeds with respect to
      a
      Liquidated Mortgage Loan exceed the sum of (i) the Outstanding Principal Balance
      of such Mortgage Loan and accrued but unpaid interest at the related Mortgage
      Interest Rate through the last day of the month in which the related Liquidation
      Date occurs, plus (ii) related Liquidation Expenses.

     

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

     

    Exchange
      Act Reports:
      Any
      reports required to be filed pursuant to Section 3.18 of this
      Agreement.

     

    Fannie
      Mae:
      Federal
      National Mortgage Association or any successor thereto.

     

    FDIC:
      Federal
      Deposit Insurance Corporation or any successor thereto.

     

    Final
      Certification:
      The
      certification substantially in the form of Exhibit Three to the Custodial
      Agreement.

     

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

     

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

     

    Form
      8-K Disclosure Information:
      As
      defined in Section 3.18(a)(ii)(A).

     

    Form
      10-K Filing Deadline:
      As
      defined in Section 3.18.

     

    Fractional
      Undivided Interest:
      With
      respect to any Class of Certificates, the fractional undivided interest
      evidenced by any Certificate of such Class, the numerator of which is the
      Current Principal Amount, or Notional Amount in the case of the Interest Only
      Certificates, of such Certificate and the denominator of which is the Current
      Principal Amount, or Notional Amount in the case of the Interest Only
      Certificates, of such Class. With respect to the Certificates in the aggregate,
      the fractional undivided interest evidenced by (i) the Residual Certificates
      will be deemed to equal 0.25%, (ii) each Class of Interest Only Certificates
      will be deemed to equal 1.0% multiplied by a fraction, the numerator of which
      is
      the Notional Amount of such Certificate and the denominator of which is the
      aggregate Notional Amount of its respective Class and (iii) a
      Certificate of any other Class will be deemed to equal the fractional undivided
      interest remaining after taking into account clauses (i) and (ii) multiplied
      by
      a fraction,
      the
      numerator of which is the Current Principal Amount of such Certificate and
      the
      denominator of which is the aggregate Current Principal Amount of all the
      Certificates; provided, however, the percentage in clause (iii) above shall
      be
      increased by 1.0% upon the retirement of each Class of Interest Only
      Certificates.

     

    Freddie
      Mac:
      Freddie
      Mac, formerly the Federal Home Loan Mortgage Corporation, or any successor
      thereto.

     

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

     

    Holder:
      The
      Person in whose name a Certificate is registered in the Certificate Register,
      except that, subject to Subsections 11.02(b) and 11.05(e), solely for the
      purpose of giving any consent pursuant to this Agreement, any Certificate
      registered in the name of the Depositor, the Master Servicer or the Trustee
      or
      any Affiliate thereof shall be deemed not to be outstanding and the Fractional
      Undivided Interest evidenced thereby shall not be taken into account in
      determining whether the requisite percentage of Fractional Undivided Interests
      necessary to effect any such consent has been obtained.

     

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

     

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

     

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

     

    Initial
      Certification:
      The
      certification substantially in the form of Exhibit One to the Custodial
      Agreement.

     

    Institutional
      Accredited Investor:
      Any
      Person meeting the requirements of Rule 501(a)(l), (2), (3) or (7) of Regulation
      D under the Securities Act or any entity all of the equity holders in which
      come
      within such paragraphs.

     

    Insurance
      Policy:
      With
      respect to any Mortgage Loan, any standard hazard insurance policy, flood
      insurance policy or title insurance policy.

     

    Insurance
      Proceeds:
      Amounts
      paid by the insurer under any Insurance Policy covering any Mortgage Loan or
      Mortgaged Property other than amounts required to be paid over to the Mortgagor
      pursuant to law or the related Mortgage Note or Security Instrument and other
      than amounts used to repair or restore the Mortgaged Property or to reimburse
      insured expenses.

     

    Interest
      Accrual Period:
      For
      each Class of Certificates (other than the Class
      I-A1-1, Class I-A1-2, Class I-A2-1, Class I-A2-2 Certificates)
      and the
      Class X Components and for any Distribution Date, the calendar month preceding
      the month in which such Distribution Date occurs. For the Class I-A1-1, Class
      I-A1-2, Class I-A2-1, Class I-A2-2 Certificates, the period from and including
      the preceding Distribution Date (or from the Closing Date, in the case of the
      first Distribution Date) to and including the day prior to the current
      Distribution Date. All calculations of interest on the Certificates will be
      made
      on the basis of a 360-day year consisting of twelve 30-day months.

     

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

     

    Interest
      Only Certificates:
      The
      Class I-A1-2, Class I-A2-2, Class X and Class BX Certificates.

     

    Interest
      Shortfall:
      With
      respect to any Distribution Date and each Mortgage Loan that during the related
      Prepayment Period was the subject of a Principal Prepayment or constitutes
      a
      Relief Act Mortgage Loan, an amount determined as follows:

     

    (A) Partial
      principal prepayments received during the relevant Prepayment Period: The
      difference between (i) one month’s interest at the applicable Net Mortgage Rate
      on the amount of such prepayment and (ii) the amount of interest for the
      calendar month of such prepayment (adjusted to the applicable Net Mortgage
      Rate)
      received at the time of such prepayment;

     

    (B) Principal
      prepayments in full received during the relevant Prepayment Period: The
      difference between (i) one month’s interest at the applicable Net Mortgage Rate
      on the Scheduled Principal Balance of such Mortgage Loan immediately prior
      to
      such prepayment and (ii) the amount of interest for the calendar month of such
      prepayment (adjusted to the applicable Net Mortgage Rate) received at the time
      of such prepayment; and

     

    (C) As
      to any
      Relief Act Mortgage Loan, the excess of (i) 30 days’ interest (or, in the case
      of a principal prepayment in full, interest to the date of prepayment) on the
      Scheduled Principal Balance thereof (or, in the case of a principal prepayment
      in part, on the amount so prepaid) at the related Net Mortgage Rate over (ii)
      30
      days’ interest (or, in the case of a principal prepayment in full, interest to
      the date of prepayment) on such Scheduled Principal Balance (or, in the case
      of
      a Principal Prepayment in part, on the amount so prepaid) at the Net Mortgage
      Rate required to be paid by the Mortgagor as limited by application of the
      Relief Act.

     

    Interim
      Certification:
      The
      certification substantially in the form of Exhibit Two to the Custodial
      Agreement.

     

    Investment
      Letter:
      The
      letter to be furnished by each Institutional Accredited Investor which purchases
      any of the Class B-4, Class B-5 or Class B-6 Certificates in connection with
      such purchase, substantially in the form set forth as Exhibit F-1
      hereto.

     

    Issuing
      Entity:
      Prime
      Mortgage Trust 2006-2.

     

    Lender-Paid
      PMI Rate:
      With
      respect to each Mortgage Loan covered by a lender-paid primary mortgage
      insurance policy, the amount payable to the related insurer, as stated in the
      Mortgage Loan Schedule.

     

    LIBOR:
      With
      respect to any Distribution Date, the arithmetic mean of the London interbank
      offered rate quotations for one-month U.S. Dollar deposits, expressed on a
      per
      annum basis, determined in accordance with Section 1.02.

     

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

     

    Liquidated
      Mortgage Loan:
      Any
      defaulted Mortgage Loan as to which the related Servicer or the Master Servicer
      has determined that all amounts it expects to recover from or on account of
      such
      Mortgage Loan have been recovered.

     

    Liquidation
      Date:
      With
      respect to any Liquidated Mortgage Loan, the date on which the Master Servicer
      or the related Servicer has certified that such Mortgage Loan has become a
      Liquidated Mortgage Loan.

     

    Liquidation
      Expenses:
      With
      respect to a Mortgage Loan in liquidation, unreimbursed expenses paid or
      incurred by or for the account of the Master Servicer or the related Servicer
      in
      connection with the liquidation of such Mortgage Loan and the related Mortgage
      Property, such expenses including (a) property protection expenses, (b) property
      sales expenses, (c) foreclosure and sale costs, including court costs and
      reasonable attorneys’ fees, and (d) similar expenses reasonably paid or incurred
      in connection with liquidation.

     

    Liquidation
      Proceeds:
      Amounts, other than Insurance Proceeds, received in connection with the partial
      or complete liquidation of a Mortgage Loan, whether through trustee’s sale,
      foreclosure sale or otherwise, or in connection with any condemnation or partial
      release of a Mortgaged Property and any other proceeds received with respect
      to
      an REO Property.

     

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

     

    Loss
      Allocation Limit:
      The
      meaning specified in Subsection 6.03(a)(v) hereof.

     

    Loss
      Severity Percentage:
      With
      respect to any Distribution Date, the percentage equivalent of a fraction,
      the
      numerator of which is the amount of Realized Losses incurred on a Mortgage
      Loan
      and the denominator of which is the Scheduled Principal Balance of such Mortgage
      Loan immediately prior to the liquidation of such Mortgage Loan.

     

    Lost
      Notes:
      The
      original Mortgage Notes that have been lost, as indicated on the Mortgage Loan
      Schedule.

     

    Master
      Servicer:
      As of
      the Closing Date, EMC Mortgage Corporation and, thereafter, its respective
      successors in interest who meet the qualifications of the Servicing Agreements
      and this Agreement.

     

    Master
      Servicing Compensation:
      For any
      Distribution Date, any amounts earned on permitted investments in the Master
      Servicer Collection Account.

     

    Master
      Servicer Collection Account: 
      The
      trust
      account or accounts created and maintained pursuant to Section 4.02, which
      shall
      be denominated “EMC Mortgage Corporation, as Master Servicer for the benefit of
      the Trustee on behalf of holders of Structured Asset Mortgage Investments II
      Inc., Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2
      -
      Master Servicer Collection Account.” The Master Servicer Collection Account
      shall be an Eligible Account.

     

    Master
      Servicer Information:
      As
      defined in Section 3.18(c).

     

    Material
      Defect:
      The
      meaning specified in Section 2.02(a).

     

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

     

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

     

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

     

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

     

    Monthly
      Advance:
      An
      advance of principal or interest required to be made by the applicable Servicer
      pursuant to the related Servicing Agreement or the Master Servicer pursuant
      to
      Section 6.06.

     

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

     

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

     

    Mortgage
      Interest Rate:
      The
      annual rate at which interest accrues from time to time on any Mortgage Loan
      pursuant to the related Mortgage Note, which rate is initially equal to the
      “Mortgage Interest Rate” set forth with respect thereto on the Mortgage Loan
      Schedule.

     

    Mortgage
      Loan:
      A
      mortgage loan transferred and assigned to the Trustee pursuant to Section 2.01
      or Section 2.04 and held as a part of the Trust Fund, as identified in the
      Mortgage Loan Schedule (which shall include, without limitation, each related
      Mortgage Note, Mortgage and Mortgage File and all rights appertaining thereto),
      including a mortgage loan the property securing which has become an REO
      Property. Notwithstanding any provision in this Agreement to the contrary,
      in no
      event shall the term “Mortgage Loan” include any Underlying Mortgage
      Loan.

     

    Mortgage
      Loan Purchase Agreement:
      The
      Mortgage Loan Purchase Agreement dated as of November 30, 2006, between EMC
      Mortgage Corporation, as seller, and Structured Asset Mortgage Investments
      II
      Inc., as purchaser, and all amendments thereof and supplements thereto, attached
      as Exhibit H.

     

    Mortgage
      Loan Schedule:
      The
      list of Mortgage Loans (as
      from
      time to time amended to reflect the repurchase or substitute of Mortgage Loans
      pursuant to the provisions of this Agreement)
      transferred to the Trustee as part of the Trust Fund and from time to time
      subject to this Agreement, the initial Mortgage Loan Schedule being attached
      hereto as Exhibit B setting forth the following information with respect to
      each
      Mortgage Loan:

     

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

    (b)  the
      property type;

    (c)  the
      Mortgage Interest Rate;

    (d)  the
      Servicing Fee Rate;

    (e)  the
      LPMI
      Fee, if applicable;

    (f)  [reserved];

    (g)  the
      Net
      Rate;

    (h)  the
      maturity date;

    (i)  the
      stated original term to maturity;

    (j)  the
      stated remaining term to maturity;

    (k)  the
      original Principal Balance;

    (l)  the
      first
      payment date;

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

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

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

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

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

    (r)  the
      Gross
      Margin, if applicable;

    (s)  the
      next
      Adjustment Date, if applicable;

    (t)  the
      Maximum Mortgage Rate, if applicable;

    (u)  the
      Minimum Mortgage Rate, if applicable;

    (v)  the
      Periodic Rate Cap, if applicable; 

    (w)  the
      Loan
      Group, if applicable;

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

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

    (z)  the
      Prepayment Charge, if any;

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

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

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

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

    (ee)  the
      Mortgage Loan Seller; and

    (ff)  the
      original amortization term.

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

     

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

     

    Mortgaged
      Property:
      Land
      and improvements securing the indebtedness of a Mortgagor under the related
      Mortgage Loan or, in the case of REO Property, such REO Property. In no event,
      however, shall the term “Mortgaged Property” include any mortgaged property or
      real estate owned property relating to an Underlying Mortgage Loan.

     

    Mortgagor:
      The
      obligor on a Mortgage Note.

     

    Net
      Interest Shortfall:
      With
      respect to any Distribution Date, the Interest Shortfall, if any, for such
      Distribution Date net of Compensating Interest Payments made with respect to
      such Distribution Date.

     

    Net
      Liquidation Proceeds:
      As to
      any Liquidated Mortgage Loan, Liquidation Proceeds net of (i) Liquidation
      Expenses which are payable therefrom to the related Servicer or the Master
      Servicer in accordance with the related Servicing Agreement or this Agreement
      and (ii) unreimbursed advances by the related Servicer or the Master Servicer
      and Monthly Advances.

     

    Net
      Mortgage Rate:
      With
      respect to each Mortgage Loan, the Mortgage Interest Rate in effect from time
      to
      time less the sum of (i) the Servicing Fee Rate and (ii) the Trustee Fee
      Rate.

     

    Non-Offered
      Subordinate Certificates:
      The
      Class B-4, Class B-5 and Class B-6 Certificates.

     

    Non-PO
      Percentage:
      With
      respect to any Group I Mortgage Loan with a Net Mortgage Rate less than 6.250%
      per annum, a fraction, expressed as a percentage, (x) the numerator of which
      is
      equal to the related Net Mortgage Rate, and (y) the denominator of which is
      equal to 6.250% per annum. With respect to any Group II Mortgage Loan with
      a Net
      Mortgage Rate less than 5.500% per annum, a fraction, expressed as a percentage,
      (x) the numerator of which is equal to the related Net Mortgage Rate, and (y)
      the denominator of which is equal to 5.500% per annum. With respect to all
      other
      Mortgage Loans, 100%.

     

    Nonrecoverable
      Advance:
      With
      respect to any Mortgage Loan, any advance or Monthly Advance (i) which was
      previously made or is proposed to be made by the Master Servicer, the Trustee
      (as successor Master Servicer) or the applicable Servicer and (ii) which, in
      the
      good faith judgment of the Master Servicer, the Trustee or the applicable
      Servicer, will not or, in the case of a proposed advance or Monthly Advance,
      would not, be ultimately recoverable by the Master Servicer, the Trustee (as
      successor Master Servicer) or the applicable Servicer from Liquidation Proceeds,
      Insurance Proceeds or future payments on the Mortgage Loan for which such
      advance or Monthly Advance was made or is proposed to be made.

     

    Notional
      Amount:
      The
      Notional Amount of the Class I-A1-2 Certificates, as of any date of
      determination, is equal to the Current Principal Amount of the Class I-A1-1
      Certificates. For federal income tax purposes, however, the Notional Amount
      of
      the Class I-A1-2 Certificates is an amount equal to the Uncertificated Principal
      Balance of REMIC II Regular Interest I-A1-1. The Notional Amount of the Class
      I-A2-2 Certificates, as of any date of determination, is equal to the Current
      Principal Amount of the Class I-A2-1 Certificates. For federal income tax
      purposes, however, the Notional Amount of the Class I-A2-2 Certificates is
      an
      amount equal to the Uncertificated Principal Balance of REMIC II Regular
      Interest I-A2-1. The Notional Amount of the Class I-X Component, as of any
      date
      of determination, is equal to the aggregate Scheduled Principal Balance of
      the
      Group I Mortgage Loans with a Net Mortgage Rate greater than 7.500% per annum.
      For federal income tax purposes, however, the Notional Amount of the Class
      I-X
      Component is an amount equal to the Uncertificated Notional Amount of REMIC
      II
      Regular Interest I-X. The Notional Amount of the Class II-X Component, as of
      any
      date of determination, is equal to the aggregate Scheduled Principal Balance
      of
      the Group II Mortgage Loans with a Net Mortgage Rate greater than 6.000% per
      annum. For federal income tax purposes, however, the Notional Amount of the
      Class II-X Component is an amount equal to the Uncertificated Notional Amount
      of
      REMIC II Regular Interest II-X. The
      Notional Amount of the Class BX Certificates, as of any date of determination,
      is equal to the sum of the aggregate Current Principal Amounts of the Class
      B-1,
      Class B-2 and Class B-3 Certificates. For federal income tax purposes, however,
      the Notional Amount of the Class BX Certificates is an amount equal to the
      aggregate Uncertificated Principal Balance of REMIC II Regular Interests B-1,
      B-2 and B-3.

     

    Officer’s
      Certificate:
      A
      certificate signed by the Chairman of the Board, the Vice Chairman of the Board,
      the President or a Vice President or Assistant Vice President or other
      authorized officer of the Master Servicer, the Depositor, the Seller or the
      Servicer, as applicable, and delivered to the Trustee, as required by this
      Agreement.

     

    Offered
      Certificates: The
      Senior Certificates and Offered Subordinate Certificates.

     

    Offered
      Subordinate Certificates:
      The
      Class BX, Class B-1, Class B-2 and Class B-3 Certificates.

     

    Opinion
      of Counsel:
      A
      written opinion of counsel who is or are acceptable to the Trustee or the Master
      Servicer, as applicable, and who, unless required to be Independent (an “Opinion
      of Independent Counsel”), may be internal counsel for the Master Servicer or the
      Depositor.

     

    Original
      Subordinate Principal Balance:
      The
      aggregate Current Principal Amount of the Subordinate Certificates as of the
      Closing Date.

     

    Original
      Value:
      The
      lesser of (i) the Appraised Value or (ii) the sales price of a Mortgaged
      Property at the time of origination of a Mortgage Loan, except in instances
      where either clauses (i) or (ii) is unavailable, the other may be used to
      determine the Original Value, or if both clauses (i) and (ii) are unavailable,
      Original Value may be determined from other sources reasonably acceptable to
      the
      Depositor.

     

    Outstanding
      Mortgage Loan:
      With
      respect to any Due Date, a Mortgage Loan which, prior to such Due Date, was
      not
      the subject of a Principal Prepayment in full, did not become a Liquidated
      Mortgage Loan and was not purchased or replaced.

     

    Outstanding
      Principal Balance:
      As of
      the time of any determination, the principal balance of a Mortgage Loan
      remaining to be paid by the Mortgagor, or, in the case of an REO Property,
      the
      principal balance of the related Mortgage Loan remaining to be paid by the
      Mortgagor at the time such property was acquired by the Trust Fund less any
      Net
      Liquidation Proceeds with respect thereto to the extent applied to
      principal.

     

    Pass-Through
      Rate:
      As to
      each Class of Certificates (other than the Class PO Certificates), the Class
      X
      Components, the REMIC I Regular Interests and the REMIC II Regular Interests,
      the rate of interest determined as provided with respect thereto in Section
      5.01(c). Any monthly calculation of interest at a stated rate shall be based
      upon annual interest at such rate divided by twelve.

     

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

     

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

     

    (i) direct
      obligations of, and obligations the timely payment of which are fully guaranteed
      by the United States of America or any agency or instrumentality of the United
      States of America the obligations of which are backed by the full faith and
      credit of the United States of America;

     

    (ii) (a)
      demand or time deposits, federal funds or bankers’ acceptances issued by any
      depository institution or trust company incorporated under the laws of the
      United States of America or any state thereof (including the Trustee or the
      Master Servicer or its Affiliates acting in its commercial banking capacity)
      and
      subject to supervision and examination by federal and/or state banking
      authorities, provided that the commercial paper and/or the short-term debt
      rating and/or the long-term unsecured debt obligations of such depository
      institution or trust company at the time of such investment or contractual
      commitment providing for such investment have the Applicable Credit Rating
      or
      better from each Rating Agency and (b) any other demand or time deposit or
      certificate of deposit that is fully insured by the Federal Deposit Insurance
      Corporation;

     

    (iii) repurchase
      obligations with respect to (a) any security described in clause (i) above
      or
      (b) any other security issued or guaranteed by an agency or instrumentality
      of
      the United States of America, the obligations of which are backed by the full
      faith and credit of the United States of America, in either case entered into
      with a depository institution or trust company (acting as principal) described
      in clause (ii)(a) above where the Trustee or the Master Servicer or its
      Affiliates hold the security therefor;

     

    (iv) securities
      bearing interest or sold at a discount issued by any corporation (including
      the
      Trustee or the Master Servicer or its Affiliates) incorporated under the laws
      of
      the United States of America or any state thereof that have the Applicable
      Credit Rating or better from each Rating Agency at the time of such investment
      or contractual commitment providing for such investment; provided, however,
      that
      securities issued by any particular corporation will not be Permitted
      Investments to the extent that investments therein will cause the then
      outstanding principal amount of securities issued by such corporation and held
      as part of the Trust to exceed 10% of the aggregate Outstanding Principal
      Balances of all the Mortgage Loans and Permitted Investments held as part of
      the
      Trust;

     

    (v) commercial
      paper (including both non-interest-bearing discount obligations and
      interest-bearing obligations payable on demand or on a specified date not more
      than one year after the date of issuance thereof) having the Applicable Credit
      Rating or better from each Rating Agency at the time of such
      investment;

     

    (vi) a
      Reinvestment Agreement issued by any bank, insurance company or other
      corporation or entity;

     

    (vii) any
      other
      demand, money market or time deposit, obligation, security or investment as
      may
      be acceptable to each Rating Agency as evidenced in writing by each Rating
      Agency to the Trustee or the Master Servicer or its Affiliates; and

     

    (viii) any
      money
      market or common trust fund having the Applicable Credit Rating or better from
      each Rating Agency rating such fund, including any such fund for which the
      Trustee or Master Servicer or any affiliate of the Trustee or Master Servicer
      acts as a manager or an advisor; provided, however, that no instrument or
      security shall be a Permitted Investment if such instrument or security
      evidences a right to receive only interest payments with respect to the
      obligations underlying such instrument or if such security provides for payment
      of both principal and interest with a yield to maturity in excess of 120% of
      the
      yield to maturity at par or if such instrument or security is purchased at
      a
      price greater than par.

     

    Permitted
      Transferee:
      Any
      Person other than a Disqualified Organization or an “electing large partnership”
(as defined by Section 775 of the Code).

     

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

     

    Physical
      Certificates:
      The
      Residual Certificates and the Non-Offered Subordinate Certificates.

     

    PO
      Percentage:
      With
      respect to any Discount Mortgage Loan in Group I, a fraction expressed as a
      percentage, (x) the numerator of which is equal to 6.250%
      minus
      the related Net Mortgage Rate, and (y) the denominator of which is equal to
      6.250% per annum. With respect to any Discount Mortgage Loan in Group II, a
      fraction expressed as a percentage, (x) the numerator of which is equal to
      5.500% minus the related Net Mortgage Rate, and (y) the denominator of which
      is
      equal to 5.500% per annum.

     

    Prepayment
      Charge:
      With
      respect to any Mortgage Loan, the charges or premiums, if any, due in connection
      with a full or partial prepayment of such Mortgage Loan in accordance with
      the
      terms thereof.

     

    Prepayment
      Interest Shortfall:
      With
      respect to any Distribution Date, the aggregate shortfall, if any, in
      collections of interest (adjusted to the related Net Mortgage Rates) on Mortgage
      Loans resulting from (a) prepayments in full received during the related
      Prepayment Period and (b) the partial prepayments received during the related
      Prepayment Period to the extent applied prior to the Due Date in the month
      of
      the Distribution Date.

     

    Prepayment
      Period:
      With
      respect to any Distribution Date and the related Servicer, such period as is
      provided in the related Servicing Agreement.

     

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

     

    Principal
      Prepayment:
      Any
      payment (whether partial or full) or other recovery of principal on a Mortgage
      Loan which is received in advance of its scheduled Due Date to the extent that
      it is not accompanied by an amount as to interest representing scheduled
      interest due on any date or dates in any month or months subsequent to the
      month
      of prepayment, including Insurance Proceeds and Repurchase Proceeds, but
      excluding the principal portion of Net Liquidation Proceeds received at the
      time
      a Mortgage Loan becomes a Liquidated Mortgage Loan.

     

    Protected
      Account:
      An
      account established and maintained for the benefit of Holders of the
      Certificates by each Servicer with respect to the Mortgage Loans and with
      respect to REO Property pursuant to the applicable Servicing
      Agreement.

     

    Purchase
      Price:
      With
      respect to any Mortgage Loan (or any property acquired with respect thereto)
      (x)
      required to be repurchased by the Seller pursuant to the Mortgage Loan Purchase
      Agreement or Article II of this Agreement or (y) that the Seller has a right
      to
      purchase pursuant to Section 3.21 hereof, an amount equal to the sum of (i)(a)
      100% of the Outstanding Principal Balance of such Mortgage Loan as of the date
      of repurchase (or if the related Mortgaged Property was acquired with respect
      thereto, 100% of the Outstanding Principal Balance at the date of the
      acquisition), plus (b) accrued but unpaid interest on the Outstanding Principal
      Balance at the related Mortgage Interest Rate, through and including the last
      day of the month of repurchase, plus (c) any unreimbursed Monthly Advances
      and
      servicing advances payable to the related Servicer of the Mortgage Loan or
      to
      the Master Servicer and (ii) any costs and damages (if any) incurred by the
      Trust in connection with any violation of such Mortgage Loan of any predatory
      lending laws.

     

    QIB:
      A
      Qualified Institutional Buyer as defined in Rule 144A promulgated under the
      Securities Act.

     

    Qualified
      Insurer:
      Any
      insurance company duly qualified as such under the laws of the state or states
      in which the related Mortgaged Property or Mortgaged Properties is or are
      located, duly authorized and licensed in such state or states to transact the
      type of insurance business in which it is engaged and approved as an insurer
      by
      the Master Servicer, so long as the claims paying ability of which is acceptable
      to the Rating Agencies for pass-through certificates having the same rating
      as
      the related Certificates rated by the Rating Agencies as of the Closing
      Date.

     

    Rating
      Agencies:
      With
      respect to the Certificates, Moody’s and S&P.

     

    Realized
      Loss:
      Any (i)
      Bankruptcy Loss or (ii) as to any Liquidated Mortgage Loan, (x) the Outstanding
      Principal Balance of such Liquidated Mortgage Loan plus accrued and unpaid
      interest thereon at the Mortgage Interest Rate through the last day of the
      month
      of such liquidation, less (y) the related Net Liquidation Proceeds with respect
      to such Mortgage Loan and the related Mortgage Property. With respect to each
      Mortgage Loan which is the subject of a servicing modification, (a) (1) the
      amount by which the interest portion of a monthly payment or the principal
      balance of such Mortgage Loan was reduced or (2) the sum of any other amounts
      owing under the Mortgage Loan that were forgiven and that constitute Monthly
      Advances that are reimbursable to the related Servicer, and (b) any such amount
      with respect to a monthly payment that was or would have been due in the month
      immediately following the month in which a Principal Prepayment or the Purchase
      Price of such Mortgage Loan is received or is deemed to have been received
      and
      not paid due to a servicing modification.  In addition, to the extent the
      Trustee receives Subsequent Recoveries with respect to any Mortgage Loan, the
      amount of the Realized Loss with respect to that Mortgage Loan will be reduced
      to the extent such recoveries are applied to reduce the Current Principal Amount
      of any Class of Certificates on any Distribution Date.

     

    Record
      Date:
      With
      respect to any Distribution Date and each Class of Certificates, other
      than the Class
      I-A1-1, Class I-A1-2, Class I-A2-1 and Class I-A2-2 Certificates, the close
      of
      business on the last Business Day of the month immediately preceding the month
      of such Distribution Date. With respect to any Distribution Date and
for
      the Class
      I-A1-1, Class I-A1-2, Class I-A2-1 and Class I-A2-2 Certificates,
      the Business Day preceding such Distribution Date so long as such Certificates
      remain in book-entry form; and otherwise, the last Business Day of the month
      preceding the month in which such Distribution Date occurs.

     

    Regular
      Certificates:
      Any of
      the Certificates other than the Residual Certificates.

     

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

     

    Regulation
      S:
      Regulation S promulgated under the Securities Act.

     

    Regulation
      S Global Certificates:
      The
      Regulation S Temporary Global Certificates and the Regulation S Permanent Global
      Certificates.

     

    Relief
      Act:
      The
      Servicemembers Civil Relief Act, formerly known as the Soldiers’ and Sailors’
Civil Relief Act of 1940, as amended, or similar state law.

     

    Relief
      Act Mortgage Loan:
      Any
      Mortgage Loan as to which the Scheduled Payment thereof has been reduced due
      to
      the application of the Relief Act.

     

    REMIC:
      A real
      estate mortgage investment conduit, as defined in the Code.

     

    REMIC
      I:
      That
      group of assets contained in the Trust Fund designated as a REMIC consisting
      of
      (i) the Mortgage Loans, (ii) the Distribution Account, (iii) any REO Property
      relating to the Mortgage Loans, (iv) the rights with respect to the related
      Servicing Agreement, (v) the rights with respect to the Assignment Agreement
      and
      (vi) any proceeds of the foregoing.

     

    REMIC
      I Interests:
      The
      REMIC I Regular Interests and the Class R-1 Certificates.

     

    REMIC
      I Regular Interests:
      REMIC I
      Regular Interests I-1-Sub, I-2-Sub, I-1-ZZZ, I-2-ZZZ, I-PO, I-X, II-1-Sub,
      II-2-Sub, II-1-ZZZ, II-2-ZZZ, II-PO and II-X.

     

    REMIC
      I Subordinated Balance Ratio:
      The
      ratio among the Uncertificated Principal Balances of each of the REMIC I Regular
      Interests ending with the designation “Sub,” equal to the ratio among, with
      respect to each such REMIC I Regular Interest, the excess of (x) the aggregate
      Scheduled Principal Balance of the Mortgage Loans in the related Subgroup (other
      than the related PO Percentage of the Scheduled Principal Balance of any such
      Mortgage Loans) over (y) the aggregate Current Principal Amount of the Senior
      Certificates in the related Subgroup (other than the portion of such Current
      Principal Amount attributable to the related Class PO Components of the Class
      PO
      Certificates).

     

    REMIC
      II:
      That
      group of assets contained in the Trust Fund designated as a REMIC consisting
      of
      the REMIC I Regular Interests.

     

    REMIC
      II Regular Interests:
      REMIC
      II Regular Interests I-1A-1, I-1A-3, I-1A-4, I-1A-5, I-2A-1, II-1A-1, II-2A-1,
      B-1, B-2, B-3, B-4, B-5, B-6, I-X, II-X, I-PO, II-PO and R-3.

     

    REMIC
      II Interests:
      The
      REMIC II Regular Interests and the Class R-2 Certificates.

     

    REMIC
      III:
      That
      group of assets contained in the Trust Fund designated as a REMIC consisting
      of
      the REMIC II Regular Interests.

    

    REMIC
      Opinion:
      An
      Opinion of Independent Counsel to the effect that the proposed action described
      therein would not, under the REMIC Provisions, (i) cause any REMIC to fail
      to
      qualify as a REMIC while any regular interest in such REMIC is outstanding,
      (ii)
      result in a tax on prohibited transactions with respect to any REMIC or (iii)
      constitute a taxable contribution to any REMIC after the Startup
      Day.

    

    REMIC
      Provisions:
      The
      provisions of the federal income tax law relating to REMICs, which appear at
      Sections 860A through 860G of the Code, and related provisions and regulations
      promulgated thereunder, as the foregoing may be in effect from time to
      time.

     

    REO
      Property:
      A
      Mortgaged Property acquired in the name of the Trustee, for the benefit of
      Certificateholders, by foreclosure or deed-in-lieu of foreclosure in connection
      with a defaulted Mortgage Loan.

     

    Reportable
      Event:
      As
      defined in Section 3.18.

     

    Repurchase
      Proceeds:
      The
      Purchase Price in connection with any repurchase of a Mortgage Loan by the
      Seller and any cash deposit in connection with the substitution of a Mortgage
      Loan.

     

    Request
      for Release:
      A
      request for release in the form attached hereto as Exhibit D.

     

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

     

    Residual
      Certificates:
      Any of
      the Class R-1, Class R-2 and Class R-3 Certificates.

     

    Responsible
      Officer:
      Any
      officer assigned to the Corporate Trust Office (or any successor thereto),
      including any Vice President, Assistant Vice President, Trust Officer, any
      Assistant Secretary, any trust officer or any other officer of the Trustee
      customarily performing functions similar to those performed by any of the above
      designated officers and having direct responsibility for the administration
      of
      this Agreement, and any other officer of the Trustee to whom a matter arising
      hereunder may be referred.

     

    Rule
      144A Certificate:
      The
      certificate to be furnished by each purchaser of a Non-Offered Certificate
      (which is also a Physical Certificate) which is a Qualified Institutional Buyer
      as defined under Rule 144A promulgated under the Securities Act, substantially
      in the form set forth as Exhibit F-2 hereto.

     

    S&P:
      Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and its
      successors in interest.

     

    Scheduled
      Payment:
      With
      respect to any Mortgage Loan and any month, the scheduled payment or payments
      of
      principal and interest due during such month on such Mortgage Loan which either
      is payable by a Mortgagor in such month under the related Mortgage Note or,
      in
      the case of REO Property, would otherwise have been payable under the related
      Mortgage Note.

     

    Scheduled
      Principal:
      The
      principal portion of any Scheduled Payment.

     

    Scheduled
      Principal Balance:
      With
      respect to any Mortgage Loan on any Distribution Date, (i) the unpaid principal
      balance of such Mortgage Loan as of the close of business on the related Due
      Date (taking account of the principal payment to be made on such Due Date and
      irrespective of any delinquency in its payment), as specified in the
      amortization schedule at the time relating thereto (before any adjustment to
      such amortization schedule by reason of any bankruptcy or similar proceeding
      occurring after the Cut-off Date (other than a Deficient Valuation) or any
      moratorium or similar waiver or grace period), less (ii) any Principal
      Prepayments received during or prior to the immediately preceding Prepayment
      Period and less (iii) the principal portion of any Net Liquidation Proceeds
      received during or prior to the immediately preceding calendar month; provided
      that the Scheduled Principal Balance of a Liquidated Mortgage Loan is
      zero.

     

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

     

    Securities
      Legend:
“THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
      HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
      MAY
      BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
      THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
      144A
      UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
      BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
      (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A
      QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
      PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
      TO
      AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
      (IF
      AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR”
WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION
      D
      UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH
      PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT,
      SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE
      FORM
      PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER
      EVIDENCE ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER
      IS IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH
      CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES
      AND
      ANY OTHER APPLICABLE JURISDICTION. THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY
      OR INDIRECTLY BY, OR ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
      ARRANGEMENT WHICH IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
      SECURITY ACT OF 1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE
      OF 1986, AS AMENDED [in the case of a Residual Certificate or a Class
      B-4,
      Class B-5 and Class B-6 Certificate]
      UNLESS
      THE OPINION OF COUNSEL REQUIRED BY SECTION 5.07 OF THE POOLING AND SERVICING
      AGREEMENT IS PROVIDED [in the case of a Class B-4, Class B-5 and Class B-6
      Certificate] UNLESS THE TRANSFEREE CERTIFIES OR REPRESENTS THAT THE PROPOSED
      TRANSFER AND HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT AND
      OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY PROHIBITED
      TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS PROHIBITED
      TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED TRANSACTION
      EXEMPTION (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23 AND (II)
      WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY DUTIES ON THE PART OF THE
      DEPOSITOR, THE MASTER SERVICER, ANY SERVICER OR THE TRUSTEE, WHICH WILL BE
      DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL
      CERTIFICATE AND WILL BE EVIDENCED BY A REPRESENTATION OR AN OPINION OF COUNSEL
      TO SUCH EFFECT BY OR ON BEHALF OF AN INSTITUTIONAL ACCREDITED
      INVESTOR.”

     

    Security
      Instrument:
      A
      written instrument creating a valid first lien on a Mortgaged Property securing
      a Mortgage Note, which may be any applicable form of mortgage, deed of trust,
      deed to secure debt or security deed, including any riders or addenda
      thereto.

     

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

     

    Senior
      Certificates:
      The
      Class I-A1-1, Class I-A1-2, Class I-A1-3, Class I-A1-4, Class I-A1-5, Class
      I-A2-1, Class I-A2-2, Class II-A1-1, Class II-A2-1, Class X, Class PO, Class
      R-1, Class R-2 and Class R-3 Certificates.

     

    Servicer:
      Any of
      Chevy Chase, EMC and Wells Fargo. 

     

    Servicer
      Remittance Date:
      With
      respect to each Mortgage Loan, the date set forth in the related Servicing
      Agreement.

     

    Servicing
      Agreements:
      The
      Chevy Chase Servicing Agreement, EMC Servicing Agreement and Wells Fargo
      Servicing Agreement.

     

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

     

    Servicing
      Fee:
      As to
      any Mortgage Loan and Distribution Date, an amount equal to the product of
      (i)
      the Scheduled Principal Balance of such Mortgage Loan as of the Due Date in
      the
      month preceding the month in which such Distribution Date occurs and (ii)
      1/12th
      of the
      Servicing Fee Rate.

     

    Servicing
      Fee Rate:
      0.25%
      per annum. 

     

    Servicing
      Officer:
      Any
      officer of the related Servicer or Master Servicer involved in or responsible
      for the administration and servicing or master servicing, as applicable, of
      the
      Mortgage Loans as to which officer evidence, reasonably acceptable to the
      Trustee, of due authorization of such officer, by such Servicer or Master
      Servicer has been furnished from time to time to the Trustee.

     

    Sponsor:
      EMC Mortgage Corporation, in its capacity as sponsor hereunder.

     

    Startup
      Day:
      November 30, 2006.

     

    Subgroup:
      Any
      of Subgroup I-1, Subgroup I-2, Subgroup II-1 and Subgroup II-2.

     

    Subgroup
      I-1:
      All of
      the Group I Mortgage Loans with a Net Mortgage Rate of less than 6.250% per
      annum plus the Subgroup I-1 Fraction of the principal balance of any Group
      I
      Mortgage Loan with a Net Mortgage Rate of greater than or equal to 6.250% per
      annum and less than 7.500% per annum.

     

    Subgroup
      I-1 Certificates:
      The
      Class I-A1-1, Class I-A1-2, Class I-A1-3, Class I-A1-4, Class I-A1-5 and Class
      PO Certificates. 

     

    Subgroup
      I-1 Fraction:
      With
      respect to any Group I Mortgage Loan with a Net Mortgage Rate of greater than
      or
      equal to 6.250% per annum and less than 7.500% per annum, a fraction, (x) the
      numerator of which is equal to 7.500% minus the Net Mortgage Rate of such
      Mortgage Loan, and (y) the denominator of which is equal to 1.250%.

     

    Subgroup
      I-1 Principal Distribution Amount:
      The
      Subgroup Principal Distribution Amount with respect to Subgroup
      I-1.

     

    Subgroup
      I-2:
      All of
      the Group I Mortgage Loans with a Net Mortgage Rate of greater than or equal
      to
      7.500% per annum, plus the Subgroup I-2 Fraction of the principal balance of
      any
      Group I Mortgage Loan with a Net Mortgage Rate of greater than or equal to
      6.250% per annum and less than 7.500% per annum.

     

    Subgroup
      I-2 Certificates:
      The
      Class I-A2-1, Class I-A2-2 and Class X Certificates. 

     

    Subgroup
      I-2 Fraction:
      With
      respect to any Group II Mortgage Loan with a Net Mortgage Rate of greater than
      or equal to 6.250% per annum and less than 7.500% per annum, a fraction, (x)
      the
      numerator of which is equal to the Net Mortgage Rate of such Mortgage Loans
      minus 6.250%, and (y) the denominator of which is equal to 1.250%.

     

    Subgroup
      I-2 Principal Distribution Amount:
      The
      Subgroup Principal Distribution Amount with respect to Subgroup
      I-2.

     

    Subgroup
      II-1:
      All of
      the Group II Mortgage Loans with a Net Mortgage Rate of less than 5.500% per
      annum plus the Subgroup II-1 Fraction of the principal balance of any Group
      II
      Mortgage Loan with a Net Mortgage Rate of greater than or equal to 5.500% per
      annum and less than 6.000% per annum.

     

    Subgroup
      II-1 Certificates:
      The
      Class II-A1-1, Class PO, Class R-1, Class R-2 and Class R-3
      Certificates.

     

    Subgroup
      II-1 Fraction:
      With
      respect to any Group II Mortgage Loan with a Net Mortgage Rate of greater than
      or equal to 5.500% per annum and less than 6.000% per annum, a fraction, (x)
      the
      numerator of which is equal to 6.000% minus the Net Mortgage Rate of such
      Mortgage Loan, and (y) the denominator of which is equal to 0.500%.

     

    Subgroup
      II-1 Principal Distribution Amount:
      The
      Subgroup Principal Distribution Amount with respect to Subgroup
      II-1.

     

    Subgroup
      II-2:
      All of
      the Group II Mortgage Loans with a Net Mortgage Rate of greater than or equal
      to
      6.000% per annum, plus the Subgroup II-2 Fraction of the principal balance
      of
      any Group II Mortgage Loan with a Net Mortgage Rate of greater than or equal
      to
      5.500% per annum and less than 6.000% per annum.

     

    Subgroup
      II-2 Certificates:
      The
      Class II-A2-1 Certificates and Class X Certificates. 

     

    Subgroup
      II-2 Fraction:
      With
      respect to any Group II Mortgage Loan with a Net Mortgage Rate of greater than
      or equal to 5.500% per annum and less than 6.000% per annum, a fraction, (x)
      the
      numerator of which is equal to the Net Mortgage Rate of such Mortgage Loans
      minus 5.500%, and (y) the denominator of which is equal to 0.500%.

     

    Subgroup
      II-2 Principal Distribution Amount:
      The
      Subgroup Principal Distribution Amount with respect to Subgroup
      II-2.

     

    Subgroup
      Principal Distribution Amount:
      With
      respect to each of Subgroup
      I-1, Subgroup I-2, Subgroup II-1 and Subgroup II-2 Certificates (other than
      the
      Class PO Certificates and Class X Certificates) and
      each
      Distribution Date will be an amount equal to the sum of the following (but
      in no
      event greater than the aggregate Current Principal Amounts of each of the
Subgroup
      I-1, Subgroup I-2, Subgroup II-1 and Subgroup II-2 Certificates,
      as
      applicable, immediately prior to such Distribution Date): 

     

    (1) the
      applicable Subgroup Senior Percentage of the Non-PO Percentage of the principal
      portion of all Scheduled Payments due on the Mortgage Loans in the related
      Subgroup on the related Due Date, as specified in the amortization schedule
      at
      the time applicable thereto (after adjustment for previous Principal Prepayments
      but before any adjustments to such amortization schedule by reason of any
      bankruptcy or similar proceeding or any moratorium or similar waiver or grace
      period); 

     

    (2) the
      applicable Subgroup Senior Prepayment Percentage of the Non-PO Percentage of
      the
      Scheduled Principal Balance of each Mortgage Loan in the related Subgroup which
      was the subject of a Principal Prepayment in full received by the Servicers
      during the applicable Prepayment Period; 

     

    (3) the
      applicable Subgroup Senior Prepayment Percentage of the Non-PO Percentage of
      all
      Principal Prepayments in part received by the Servicers during the applicable
      Prepayment Period with respect to each Mortgage Loan in the related
      Subgroup;

     

    (4) the
      lesser of (a) the applicable Subgroup Senior Prepayment Percentage of the Non-PO
      Percentage of the sum of (i) all Net Liquidation Proceeds allocable to principal
      received in respect of each Mortgage Loan in the related Subgroup which became
      a
      Liquidated Mortgage Loan during the prior calendar month (other than Mortgage
      Loans described in the immediately following clause (ii)) and all Subsequent
      Recoveries received in respect of each Liquidated Mortgage Loan in the related
      Subgroup during the prior calendar month and (ii) the Scheduled Principal
      Balance of each such Mortgage Loan in the related Subgroup purchased by an
      insurer from the Trustee during the related Prepayment Period pursuant to the
      related Primary Mortgage Insurance Policy, if any, or otherwise; and (b) the
      applicable Subgroup Senior Percentage of the Non-PO Percentage of the sum of
      (i)
      the Scheduled Principal Balance of each Mortgage Loan in the related Subgroup
      which became a Liquidated Mortgage Loan during the prior calendar month (other
      than the Mortgage Loans described in the immediately following clause (ii))
      and
      all Subsequent Recoveries received in respect of each Liquidated Mortgage Loan
      in the related Subgroup during the prior calendar month and (ii) the Scheduled
      Principal Balance of each such Mortgage Loan in the related Subgroup that was
      purchased by an insurer from the Trustee during the related Prepayment Period
      pursuant to the related Primary Mortgage Insurance Policy, if any or otherwise;
      and

     

    (5) the
      applicable Subgroup Senior Prepayment Percentage of the Non-PO Percentage of
      the
      sum of (a) the Scheduled Principal Balance of each Mortgage Loan in the related
      Subgroup which was repurchased by the Issuing Entity in connection with such
      Distribution Date and (b) the excess, if any, of the Scheduled Principal Balance
      of each Mortgage Loan in the related Subgroup that has been replaced by the
      Issuing Entity with a substitute Mortgage Loan pursuant to the Mortgage Loan
      Purchase Agreement in connection with such Distribution Date over the Scheduled
      Principal Balance of each such substitute Mortgage Loan.

     

    Subgroup
      Senior Percentage:
      With
      respect to each Subgroup, the lesser of (a) 100% and (b) the percentage (carried
      to six places rounded up) obtained by dividing the Current Principal Amount
      of
      the Senior Certificates of such Subgroup (other than any Class PO Certificates),
      immediately prior to such Distribution Date, by the aggregate Scheduled
      Principal Balance of the Mortgage Loans in the related Subgroup (other than
      the
      PO Percentage thereof with respect to the related Discount Mortgage Loans)
      as of
      the beginning of the related Due Period. The initial Subgroup Senior Percentage
      for the Senior Certificates of each Subgroup in Loan Group I will be
      approximately 95.95%. The initial Subgroup Senior Percentage for the Senior
      Certificates of each Subgroup in Loan Group II will be approximately
      95.99%.

     

    Subgroup
      Senior Prepayment Percentage:
      The
      Subgroup Senior Prepayment Percentage for the Subgroup
      I-1, Subgroup I-2, Subgroup II-1 and Subgroup II-2 Certificates,
      on any
      Distribution Date occurring during the periods set forth below will be as
      follows:

     

    
      	
              Period
                (dates inclusive)

            	
              Subgroup
                Senior Prepayment Percentage

            
	
              December
                25, 2006 - November
                25, 2011

            	
              100%

            
	
              December
                25, 2011 - November 25, 2012

            	
              Subgroup
                Senior Percentage for the related Subgroup Certificates plus 70%
                of the
                related Subordinate Percentage

            
	
              December
                25, 2012 - November 25, 2013

            	
              Subgroup
                Senior Percentage for the related Subgroup Certificates plus 60%
                of the
                related Subordinate Percentage

            
	
              December
                25, 2013 - November 25, 2014

            	
              Subgroup
                Senior Percentage for the related Subgroup Certificates plus 40%
                of the
                related Subordinate Percentage

            
	
              December
                25, 2014 - November 25, 2015

            	
              Subgroup
                Senior Percentage for the related Subgroup Certificates plus 20%
                of the
                related Subordinate Percentage

            
	
              December
                25, 2015 and thereafter

            	
              Subgroup
                Senior Percentage for the related Subgroup
                Certificates

            

    

    

    Any
      scheduled reduction to the Subgroup Senior Prepayment Percentage for the
Subgroup
      I-1, Subgroup I-2, Subgroup II-1 and Subgroup II-2 Certificates
      shall
      not be made as of any Distribution Date unless, as of the last day of the month
      preceding such Distribution Date (1) the aggregate Scheduled Principal Balance
      of the Mortgage Loans delinquent 60 days or more (including for this purpose
      any
      such Mortgage Loans in foreclosure and such Mortgage Loans with respect to
      which
      the related Mortgaged Property has been acquired by the Trust) averaged over
      the
      last six months, as a percentage of the aggregate Current Principal Amount
      of
      the Subordinate Certificates does not exceed 50% and (2) cumulative Realized
      Losses on the Mortgage Loans do not exceed (a) 30% of the aggregate Current
      Principal Amount of the Original Subordinate Principal Balance if such
      Distribution Date occurs between and including December 2011 and November 2012,
      (b) 35% of the Original Subordinate Principal Balance if such Distribution
      Date
      occurs between and including December 2012 and November 2013, (c) 40% of the
      Original Subordinate Principal Balance if such Distribution Date occurs between
      and including December 2013 and November 2014, (d) 45% of the Original
      Subordinate Principal Balance if such Distribution Date occurs between and
      including December 2014 and November 2015, and (e) 50% of the Original
      Subordinate Principal Balance if such Distribution Date occurs during or after
      December 2015.

     

    Notwithstanding
      the foregoing, if on any Distribution Date, the percentage for Subgroup
      I-1, Subgroup I-2, Subgroup II-1 and Subgroup II-2,
      the
      numerator of which is the aggregate Current Principal Amount of the Senior
      Certificates of such Subgroup (other than the Class PO Certificates) immediately
      preceding such Distribution Date, and the denominator of which is the Scheduled
      Principal Balance of the Mortgage Loans in such Subgroup (other than the PO
      Percentage thereof with respect to the related Discount Mortgage Loans) as
      of
      the beginning of the related Due Period, exceeds such percentage as of the
      Cut-off Date, then the Subgroup Senior Prepayment Percentage with respect to
      the
      Senior Certificates of each Subgroup (other than the Class PO Certificates)
      for
      such Distribution Date will equal 100%.

     

    Subordinate
      Certificates:
      The
      Offered Subordinate Certificates and Non-Offered Subordinate
      Certificates.

     

    Subordinate
      Certificate Writedown Amount:
      With
      respect to the Subordinate Certificates, the amount by which (x) the sum of
      the
      Current Principal Amounts of the Certificates (after giving effect to the
      distribution of principal and the allocation of Realized Losses in reduction
      of
      the Current Principal Amounts of the Certificates on such Distribution Date)
      exceeds (y) the Scheduled Principal Balances of the Mortgage Loans on the Due
      Date related to such Distribution Date.

     

    Subordinate
      Optimal Principal Amount:
      With
      respect to the Subordinate Certificates and each Distribution Date, an amount
      equal to the sum of the following from each Subgroup (but in no event greater
      than the aggregate Current Principal Amount of the Subordinate Certificates
      immediately prior to such Distribution Date):

     

    (i) the
      Subordinate Percentage of the Non-PO Percentage of the principal portion of
      all
      Monthly Payments due on each Mortgage Loan in the related Subgroup on the
      related Due Date, as specified in the amortization schedule at the time
      applicable thereto (after adjustment for previous principal prepayments but
      before any adjustment to such amortization schedule by reason of any bankruptcy
      or similar proceeding or any moratorium or similar waiver or grace
      period);

     

    (ii) the
      Subordinate Prepayment Percentage of the Non-PO Percentage of the Scheduled
      Principal Balance of each Mortgage Loan in the related Subgroup which was the
      subject of a prepayment in full received by the Master Servicer during the
      applicable Prepayment Period;

     

    (iii) the
      Subordinate Prepayment Percentage of the Non-PO Percentage of all partial
      prepayments of principal received during the applicable Prepayment Period for
      each Mortgage Loan in the related Subgroup;

     

    (iv) the
      excess, if any, of (a) the Net Liquidation Proceeds allocable to principal
      received during the prior calendar month in respect of each Liquidated Mortgage
      Loan in the related Subgroup over (b) the sum of the amounts distributable
      to
      the holders of the Senior Certificates pursuant to clause (4) of the definition
      of “Subgroup Principal Distribution Amount” and “Class PO Certificate Principal
      Distribution Amount” on such Distribution Date;

     

    (v) the
      Subordinate Prepayment Percentage of the Non-PO Percentage of the sum of (a)
      the
      Scheduled Principal Balance of each Mortgage Loan in the related Subgroup which
      was repurchased by the Seller in connection with such Distribution Date and
      (b)
      the difference, if any, between the Scheduled Principal Balance of a Mortgage
      Loan in the related Subgroup that has been replaced by the Seller with a
      substitute Mortgage Loan pursuant to the Mortgage Loan Purchase Agreement in
      connection with such Distribution Date and the Scheduled Principal Balance
      of
      such substitute Mortgage Loan; and

     

    (vi) on
      the
      Distribution Date on which the Current Principal Amounts of the Senior
      Certificates (other than the Class
      I-A1-2, Class I-A2-2, Class X and Class PO Certificates)
      have
      all been reduced to zero, 100% of any Subgroup Principal Distribution
      Amount.

     

    Subordinate
      Percentage:
      As of
      any Distribution Date and with respect to any Subgroup, 100% minus the related
      Subgroup Senior Percentage for the Senior Certificates related to such Subgroup.
      The initial Subordinate Percentage for each Subgroup will be equal to
      4.04%.

     

    Subordinate
      Prepayment Percentage:
      As of
      any Distribution Date and with respect to any Subgroup, 100% minus the related
      Subgroup Senior Prepayment Percentage for such Subgroup, except that on any
      Distribution Date after the Current Principal Amount of each Class of related
      Senior Certificates has each been reduced to zero, the Subordinate Prepayment
      Percentage for the Subordinate Certificates with respect to such Subgroup will
      equal 100%.

     

    Subsequent
      Recoveries:
      As of
      any Distribution Date, amounts received by the related Servicer during the
      preceding calendar month or surplus amounts held by the related Servicer to
      cover estimated expenses (including, but not limited to, recoveries in respect
      of the representations and warranties made by the Seller pursuant to the
      Mortgage Loan Purchase Agreement) specifically related to a Liquidated Mortgage
      Loan or disposition of an REO Property prior to the preceding calendar month
      that resulted in a Realized Loss, after the liquidation or disposition of such
      Mortgage Loan.

     

    Substitute
      Mortgage Loan:
      A
      mortgage loan tendered to the Trustee pursuant to the related Servicing
      Agreement, the Mortgage Loan Purchase Agreement or Section 2.04 of this
      Agreement, as applicable, in each case, (i) which has an Outstanding Principal
      Balance not greater nor materially less than the Mortgage Loan for which it
      is
      to be substituted; (ii) which has a Mortgage Interest Rate and Net Mortgage
      Rate
      not less than, and not materially greater than, such Mortgage Loan; (iii) which
      has a maturity date not materially earlier or later than such Mortgage Loan
      and
      not later than the latest maturity date of any Mortgage Loan; (iv) which is
      of
      the same property type and occupancy type as such Mortgage Loan; (v) which
      has a
      Loan-to-Value Ratio not greater than the Loan-to-Value Ratio of such Mortgage
      Loan; (vi) which is current in payment of principal and interest as of the
      date
      of substitution; and (vii) as to which the payment terms do not vary in any
      material respect from the payment terms of the Mortgage Loan for which it is
      to
      be substituted.

     

    Tax
      Administration and Tax Matters Person:
      The
      Trustee or any successor thereto or assignee thereof shall serve as tax
      administrator hereunder and as agent for the Tax Matters Person. The Holder
      of
      each Class of Residual Certificates shall be the Tax Matters Person for the
      related REMIC, as more particularly set forth in Section 9.12
      hereof.

     

    Termination
      Purchase Price:
      The
      price, calculated as set forth in Section 10.01, to be paid in connection with
      the repurchase of the Mortgage Loans pursuant to Section 10.01.

     

    Trust
      Fund:
      The
      corpus of the trust created by this Agreement, consisting of the Mortgage Loans
      and the other assets described in Section 2.01(a).

     

    Trustee:
      U.S.
      Bank National Association or its successor in interest, or any successor trustee
      appointed as herein provided.

     

    Trustee
      Fee:
      As to each Mortgage Loan and any Distribution Date, an amount equal to the
      product of (i) the Scheduled Principal Balance of such Mortgage Loan as of
      the
      Due Date in the month preceding the month in which such Distribution Date occurs
      and (ii) 1/12th
      of the Trustee Fee Rate.

     

    Trustee
      Fee Rate:
      0.013% per annum

     

    Trustee
      Information:
      As
      defined in Section 3.18(c). 

     

    Uncertificated
      Notional Amount:
      With
      respect to REMIC I Regular Interest I-X, the aggregate Scheduled Principal
      Balance of the Group I Mortgage Loans with Net Mortgage Rates greater than
      7.500% per annum. With respect to REMIC II Regular Interest I-X, an amount
      equal
      to the Uncertificated Notional Amount for REMIC I Regular Interest I-X. With
      respect to REMIC I Regular Interest II-X, the aggregate Scheduled Principal
      Balance of the Group II Mortgage Loans with Net Mortgage Rates greater than
      6.000% per annum. With respect to REMIC II Regular Interest II-X, an amount
      equal to the Uncertificated Notional Amount for REMIC I Regular Interest
      II-X.

    

    Uncertificated
      Principal Balance:
      With
      respect to any REMIC I Regular Interest or REMIC II Regular Interest as of
      any
      Distribution Date, the initial principal amount of such regular interest as
      set
      forth in Sections 5.01(c)(i) and (c)(ii), reduced by (i) all amounts distributed
      on previous Distribution Dates on such regular interest with respect to
      principal and (ii) the principal portion of all Realized Losses allocated prior
      to such Distribution Date to such regular interest, taking account of the Loss
      Allocation Limit.

    

    Uninsured
      Cause:
      Any
      cause of damage to a Mortgaged Property or related REO Property such that the
      complete restoration of such Mortgaged Property or related REO Property is
      not
      fully reimbursable by the hazard insurance policies required to be maintained
      pursuant the related Servicing Agreement, without regard to whether or not
      such
      policy is maintained.

     

    United
      States Person:
      A
      citizen or resident of the United States, a corporation or partnership
      (including an entity treated as a corporation or partnership for federal income
      tax purposes) created or organized in, or under the laws of, the United States
      or any state thereof or the District of Columbia (except, in the case of a
      partnership, to the extent provided in Treasury regulations), provided that,
      for
      purposes solely of the Residual Certificates, no partnership or other entity
      treated as a partnership for United States federal income tax purposes shall
      be
      treated as a United States Person unless all Persons that own an interest in
      such partnership either directly or through any entity that is not a corporation
      for United States federal income tax purposes are United States Persons, or
      an
      estate whose income is subject to United States federal income tax regardless
      of
      its source, or a trust if a court within the United States is able to exercise
      primary supervision over the administration of the trust and one or more such
      United States Persons have the authority to control all substantial decisions
      of
      the trust. To the extent prescribed in regulations by the Secretary of the
      Treasury, which have not yet been issued, a trust which was in existence on
      August 20, 1996 (other than a trust treated as owned by the grantor under
      subpart E of part I of subchapter J of chapter 1 of the Code) and which was
      treated as a United States Person on August 20, 1996 may elect to continue
      to be
      treated as a United States Person notwithstanding the previous
      sentence.

     

    Wells
      Fargo:
      Wells
      Fargo Bank, N.A., or its successor in interest.

     

    Wells
      Fargo Servicing Agreement:
      The
      Master Seller’s Warranties and Servicing Agreement, dated as of November 1,
      2005, between the Seller and Wells Fargo, attached hereto as Exhibit I-3, and
      as
      modified by the related Assignment Agreement.

     

    Section
      1.02 Calculation
      of LIBOR. 

     

    LIBOR
      applicable to the calculation of the Pass-Through Rate on the Adjustable Rate
      Certificates for any Interest Accrual Period will be determined on each Interest
      Determination Date. On each Interest Determination Date, LIBOR shall be
      established by the Trustee and, as to any Interest Accrual Period, will equal
      the rate for one month United States dollar deposits that appears on the
      Telerate Screen Page 3750 as of 11:00 a.m., London” time, on such Interest
      Determination Date. “Telerate Screen Page 3750” means the display designated as
      page 3750 on the Telerate Service (or such other page as may replace page 3750
      on that service for the purpose of displaying London interbank offered rates
      of
      major banks). If such rate does not appear on such page (or such other page
      as
      may replace that page on that service, or if such service is no longer offered,
      LIBOR shall be so established by use of such other service for displaying LIBOR
      or comparable rates as may be reasonably selected by the Trustee), the rate
      will
      be the Reference Bank Rate. The “Reference Bank Rate” will be determined on the
      basis of the rates at which deposits in U.S. Dollars are offered by the
      reference banks (which shall be any three major banks that are engaged in
      transactions in the London interbank market, selected by the Trustee) as of
      11:00 a.m., London time, on the Interest Determination Date to prime banks
      in
      the London interbank market for a period of one month in amounts approximately
      equal to the aggregate Current Principal Amount of the Adjustable Rate
      Certificates then outstanding. The Trustee will request the principal London
      office of each of the reference banks to provide a quotation of its rate. If
      at
      least two such quotations are provided, the rate will be the arithmetic mean
      of
      the quotations rounded up to the nearest whole multiple of 0.03125%. If on
      such
      date fewer than two quotations are provided as requested, the rate will be
      the
      arithmetic mean of the rates quoted by one or more major banks in New York
      City,
      selected by the Trustee, as of 11:00 a.m., New York City time, on such date
      for
      loans in U.S. Dollars to leading European banks for a period of one month in
      amounts approximately equal to the aggregate Current Principal Amount of the
      Adjustable Rate Certificates then outstanding. If no such quotations can be
      obtained, the rate will be LIBOR for the prior Distribution Date; provided
      however,
      if,
      under the priorities described above, LIBOR for a Distribution Date would be
      based on LIBOR for the previous Distribution Date for the third consecutive
      Distribution Date, the Trustee shall select an alternative comparable index
      (over which the Trustee has no control), used for determining one-month
      Eurodollar lending rates that is calculated and published (or otherwise made
      available) by an independent party. The establishment of LIBOR by the Trustee
      on
      any Interest Determination Date and the Trustee’s subsequent calculation of the
      Pass-Through Rate applicable to the Adjustable Rate Certificates for the
      relevant Interest Accrual Period, in the absence of manifest error, will be
      final and binding. Promptly following each Interest Determination Date the
      Trustee shall supply the Master Servicer with the results of its determination
      of LIBOR on such date.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      II

    Conveyance
      of Mortgage Loans;

    Original
      Issuance of Certificates

     

    Section
      2.01 Conveyance
      of Mortgage Loans to Trustee. 

     

    (a) The
      Depositor concurrently with the execution and delivery of this Agreement, sells,
      transfers and assigns to the Trust without recourse all its right, title and
      interest in and to (i) the Mortgage Loans identified in the Mortgage Loan
      Schedule, including all interest and principal due with respect to the Mortgage
      Loans after the Cut-off Date, but excluding any payments of principal and
      interest due on or prior to the Cut-off Date; (ii) such assets as shall from
      time to time be credited or are required by the terms of this Agreement to
      be
      credited to the Master Servicer Collection Account and the Distribution Account,
      (iii) such assets relating to the Mortgage Loans as from time to time may be
      held by the Servicers in the Protected Accounts, the Master Servicer in the
      Master Servicer Collection Account and the Trustee in the Distribution Account,
      (iv) any REO Property, (v) the Required Insurance Policies and any amounts
      paid
      or payable by the insurer under any Insurance Policy (to the extent the
      mortgagee has a claim thereto), (vi) the Mortgage Loan Purchase Agreement to
      the
      extent provided in Subsection 2.03(a), (vii) the rights with respect to the
      Servicing Agreements as assigned to the Trustee on behalf of the
      Certificateholders by the Assignment Agreement and (viii) all proceeds of the
      foregoing. Although it is the intent of the parties to this Agreement that
      the
      conveyance of the Depositor’s right, title and interest in and to the Mortgage
      Loans and other assets in the Trust Fund pursuant to this Agreement shall
      constitute a purchase and sale and not a loan, in the event that such conveyance
      is deemed to be a loan, it is the intent of the parties to this Agreement that
      the Depositor shall be deemed to have granted to the Trustee a first priority
      perfected security interest in all of the Depositor’s right, title and interest
      in, to and under the Mortgage Loans and other assets in the Trust Fund, and
      that
      this Agreement shall constitute a security agreement under applicable law.
      Moreover, if for any other reason this Agreement is held or deemed to create
      a
      security interest in the Mortgage Loans and the other assets constituting the
      Trust Fund, then it is intended as follows: (a) this Agreement shall also be
      deemed to be a security agreement within the meaning of Articles 8 and 9 of
      the
      Uniform Commercial Code; (b) the conveyance provided for in this Section shall
      be deemed to be a grant by the Depositor to the Trustee of a security interest
      in all of the Depositor’s right, title and interest in and to the Mortgage Loans
      and all proceeds of the conversion, voluntary or involuntary, of the foregoing
      into cash, instruments, securities or other property, including without
      limitation all amounts from time to time held or invested in the Distribution
      Account, whether in the form of cash, instruments, securities or other property;
      (c) the possession by the Trustee or its agent of the Mortgage Loans and such
      other items of property as constitute instruments, money, negotiable documents
      or chattel paper shall be deemed to be “possession by the secured party” for
      purposes of perfecting the security interest pursuant to Section 9-305 of the
      Uniform Commercial Code; (d) the Trustee shall be deemed to be the “securities
      intermediary,” as such term is defined in Section 8-102(a)(14)(ii) of the New
      York Uniform Commercial Code, that in the ordinary course of its business
      maintains “securities accounts” for others, as such term is used in Section
      8-501 of the New York Uniform Commercial Code; (e) the “securities
      intermediary’s jurisdiction” as defined in the New York Uniform Commercial Code
      shall be the State of New York; (f) the Trustee is not a “clearing corporation”,
      as such term is defined in Section 8-102(a)(5) of the New York Uniform
      Commercial Code and (g) notifications to persons holding such property, and
      acknowledgments, receipts or confirmations from persons holding such property,
      shall be deemed to be notifications to or acknowledgments, receipts or
      confirmations from, financial intermediaries, bailees or agents (as applicable)
      of the Trustee for the purpose of perfecting such security interest under
      applicable law. 

     

    (b) In
      connection with the above transfer and assignment, the Depositor hereby
      delivers, or hereby causes to be delivered, to the Custodian, as agent for
      the
      Trustee, with respect to each Mortgage Loan:

     

    (i) the
      original Mortgage Note, endorsed without recourse (a) to the order of the
      Trustee or (b) in the case of a Mortgage Loan registered on the MERS system,
      endorsed in blank, in either case showing an unbroken chain of endorsements
      from
      the originator thereof to the Person endorsing it to the Trustee, or lost note
      affidavit together with a copy of the related Mortgage Note;

     

    (ii) the
      original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting the
      presence of the MIN and language indicating that such Mortgage Loan is a MOM
      Loan, which shall have been recorded (or, for Mortgage Loans other than the
      EMC
      Flow Loans, if the original is not available, a copy), with evidence of such
      recording indicated thereon (or if clause (w) in the proviso below applies,
      shall be in recordable form);

     

    (iii) unless
      the Mortgage Loan is either a MOM Loan or has been assigned in the name of
      MERS,
      a certified copy of the assignment (which may be in the form of a blanket
      assignment if permitted in the jurisdiction in which the Mortgaged Property
      is
      located) to “U.S. Bank National Association, as Trustee”, with evidence of
      recording with respect to each Mortgage Loan in the name of the Trustee thereon
      (or if clause (w) in the proviso below applies or for Mortgage Loans with
      respect to which the related Mortgaged Property is located in a state other
      than
      Maryland or an Opinion of Counsel has been provided as set forth in this Section
      2.01(b), shall be in recordable form);

     

    (iv) all
      intervening assignments of the Security Instrument, if applicable and only
      to
      the extent available to the Depositor with evidence of recording
      thereon;

     

    (v) the
      original or a copy of the policy or certificate of primary mortgage guaranty
      insurance, to the extent available, if any;

     

    (vi) the
      original policy of title insurance or mortgagee’s certificate of title insurance
      or commitment or binder for title insurance or, in the event such original
      title
      policy has not been received from the title insurer, such original title policy
      will be delivered within one year of the Closing Date or, in the event such
      original title policy is unavailable, a photocopy of such title policy or,
      in
      lieu thereof, a current lien search on the related Mortgaged Property;
      and

     

    (viii) originals
      of all modification agreements, if applicable and available.

     

    provided,
      however,
      that in
      lieu of the foregoing, the Depositor may deliver to the Custodian, as agent
      of
      the Trustee, the following documents, under the circumstances set forth below:
      (w) in lieu of the original Security Instrument (other than the Mortgages
      related to the EMC Flow Loans), assignments to the Trustee or intervening
      assignments thereof which have been delivered, are being delivered or will,
      upon
      receipt of recording information relating to the Security Instrument required
      to
      be included thereon, be delivered to recording offices for recording and have
      not been returned to the Depositor in time to permit their delivery as specified
      above, the Depositor may deliver, or cause to be delivered, a true copy thereof
      with a certification by the Depositor, on the face of such copy, substantially
      as follows: “Certified to be a true and correct copy of the original, which has
      been transmitted for recording”; (x) in lieu of the Security Instrument,
      assignment to the Trustee or intervening assignments thereof, if the applicable
      jurisdiction retains the originals of such documents (as evidenced by a
      certification from the Depositor to such effect) the Depositor may deliver
      photocopies of such documents containing an original certification by the
      judicial or other governmental authority of the jurisdiction where such
      documents were recorded; (y) in lieu of the Mortgages (other
      than the Mortgages related to the EMC Flow Loans), assignment to the Trustee
      or
      in blank or intervening assignments thereof, if the applicable jurisdiction
      retains the originals of such documents (as evidenced by a certification from
      the Depositor to such effect) the Depositor may deliver, or cause to be
      delivered, photocopies of such documents containing an original certification
      by
      the judicial or other governmental authority of the jurisdiction where such
      documents were recorded; and
      (z)
      in lieu of the Mortgage Notes relating to the Mortgage Loans identified on
      Exhibit 5 to the Mortgage Loan Purchase Agreement, the Depositor may deliver,
      or
      cause to be delivered, a lost note affidavit from the Seller; and (z) the
      Depositor shall not be required to deliver intervening assignments or Mortgage
      Note endorsements between the related underlying originator or underlying Seller
      and the Seller, between the Seller and the Depositor, and between the Depositor
      and the Trustee; and provided, further, however, that in the case of Mortgage
      Loans which have been prepaid in full after the Cut-off Date and prior to the
      Closing Date, the Depositor, in lieu of delivering the above documents, may
      deliver, or cause to be delivered, to the Trustee or the Custodian, as its
      agent, a certification to such effect and shall deposit all amounts paid in
      respect of such Mortgage Loans in the Master Servicer Collection Account on
      the
      Closing Date. The Depositor shall deliver, or cause to be delivered, such
      original documents (including any original documents as to which certified
      copies had previously been delivered) to the Trustee or the Custodian, as its
      agent, promptly after they are received. The Depositor shall cause the Seller,
      at its expense, to cause each assignment of the Security Instrument to the
      Trustee to be recorded not later than 180 days after the Closing Date, unless
      (a) such recordation is not required by the Rating Agencies or an Opinion of
      Counsel addressed to the Trustee has been provided to the Trustee (with a copy
      to the Custodian) which states that recordation of such Security Instrument
      is
      not required to protect the interests of the Certificateholders in the related
      Mortgage Loans or (b) MERS is identified on the Mortgage or on a properly
      recorded assignment of the Mortgage as the mortgagee of record solely as nominee
      for the Seller and its successor and assigns; provided, however, notwithstanding
      the foregoing, each assignment shall be submitted for recording by the Seller
      in
      the manner described above, at no expense to the Trust or the Trustee or the
      Custodian, as its agent, upon the earliest to occur of: (i) reasonable direction
      by the Holders of Certificates evidencing Fractional Undivided Interests
      aggregating not less than 25% of the Trust Fund, (ii) the occurrence of an
      Event
      of Default, (iii) the occurrence of a bankruptcy, insolvency or foreclosure
      relating to the Seller and (iv) the occurrence of a servicing transfer as
      described in Section 8.02 hereof. Notwithstanding the foregoing, if the Seller
      fails to pay the cost of recording the assignments, such expense will be paid
      by
      the Trustee and the Trustee shall be reimbursed for such expenses by the Trust
      in accordance with Section 9.05.

     

    Section
      2.02 Acceptance
      of Mortgage Loans and Underlying Certificates by Trustee. 

     

    (a) The
      Trustee acknowledges the sale, transfer and assignment of the Trust Fund to
      it
      by the Depositor and receipt of, subject to further review and the exceptions
      which may be noted pursuant to the procedures described below, and declares
      that
      it holds, the documents (or certified copies thereof) delivered to the
      Custodian, as its agent, pursuant to Section 2.01(b), and declares that it
      will
      continue to hold those documents and any amendments, replacements or supplements
      thereto and all other assets of the Trust Fund delivered to it as Trustee in
      trust for the use and benefit of all present and future Holders of the related
      Certificates. On the Closing Date, the Custodian, with respect to the Mortgage
      Loans, shall acknowledge with respect to each Mortgage Loan by delivery to
      the
      Depositor, the Seller, the Master Servicer and the Trustee of an Initial
      Certification receipt of the Mortgage File, but without review of such Mortgage
      File, except to the extent necessary to confirm that such Mortgage File contains
      the related Mortgage Note or lost note affidavit. No later than 90 days after
      the Closing Date (or, with respect to any Substitute Mortgage Loan, within
      five
      Business Days after the receipt by the Trustee or Custodian thereof), the
      Trustee agrees, for the benefit of the related Certificateholders, to review
      or
      cause to be reviewed by the Custodian on its behalf (under the Custodial
      Agreement), each Mortgage File delivered to it and to execute and deliver,
      or
      cause to be executed and delivered, to the Depositor, the Seller, the Master
      Servicer and the Trustee an Interim Certification. In conducting such review,
      the Trustee or Custodian will ascertain whether all required documents have
      been
      executed and received, and based on the Mortgage Loan Schedule, whether those
      documents relate, determined on the basis of the Mortgagor name, original
      principal balance and loan number, to the Mortgage Loans it has received, as
      identified in the Mortgage Loan Schedule. In performing any such review, the
      Trustee or the Custodian, as its agent, may conclusively rely on the purported
      due execution and genuineness of any such document and on the purported
      genuineness of any signature thereon. If the Trustee or the Custodian, as its
      agent, finds any document constituting part of the Mortgage File has not been
      executed or received, or to be unrelated, determined on the basis of the
      Mortgagor name, original principal balance and loan number, to the Mortgage
      Loans identified in Exhibit B or to appear defective on its face (a “Material
      Defect”), the Trustee or the Custodian, as its agent, shall promptly notify the
      Seller. In accordance with the Mortgage Loan Purchase Agreement, the Seller
      shall correct or cure any such defect within ninety (90) days from the date
      of
      notice from the Trustee or the Custodian, as its agent, of the defect and if
      the
      Seller fails to correct or cure the defect within such period, and such defect
      materially and adversely affects the interests of the related Certificateholders
      in the related Mortgage Loan, the Trustee shall enforce the Seller’s obligation
      under the Mortgage Loan Purchase Agreement to, within 90 days from the Trustee’s
      or the Custodian’s notification, provide a Substitute Mortgage Loan (if within
      two years of the Closing Date) or purchase such Mortgage Loan at the Purchase
      Price; provided that, if such defect would cause the Mortgage Loan to be other
      than a “qualified mortgage” as defined in Section 860G(a)(3) of the Code, any
      such cure or repurchase must occur within 90 days from the date such breach
      was
      discovered; provided, however, that if such defect relates solely to the
      inability of the Seller to deliver the original Security Instrument or
      intervening assignments thereof, or a certified copy because the originals
      of
      such documents, or a certified copy have not been returned by the applicable
      jurisdiction, the Seller shall not be required to purchase such Mortgage Loan
      if
      the Seller delivers such original documents or certified copy promptly upon
      receipt, but in no event later than 360 days after the Closing Date. The
      foregoing repurchase obligation shall not apply in the event that the Seller
      cannot deliver such original or copy of any document submitted for recording
      to
      the appropriate recording office in the applicable jurisdiction because such
      document has not been returned by such office; provided that the Seller shall
      instead deliver a recording receipt of such recording office or, if such receipt
      is not available, a certificate confirming that such documents have been
      accepted for recording, and delivery to the Trustee or the Custodian, as its
      agent, shall be effected by the Seller within thirty days of its receipt of
      the
      original recorded document. 

     

    (b) No
      later
      than 180 days after the Closing Date, the Trustee or the Custodian, as its
      agent, will review, for the benefit of the Certificateholders, the Mortgage
      Files delivered to it and will execute and deliver or cause to be executed
      and
      delivered to the Depositor, the Seller, the Master Servicer and the Trustee
      a
      Final Certification. In conducting such review, the Trustee or the Custodian,
      as
      its agent, will ascertain whether an original of each document required to
      be
      recorded has been returned from the recording office with evidence of recording
      thereon or a certified copy has been obtained from the recording office. If
      the
      Trustee or the Custodian, as its agent, finds a Material Defect, the Trustee
      or
      the Custodian, as its agent, shall promptly notify the Seller (provided,
      however, that with respect to those documents described in subsections (b)(iv)
      and (viii) of Section 2.01, the Trustee’s and Custodian’s obligations shall
      extend only to the documents actually delivered to the Custodian pursuant to
      such subsections). In accordance with the Mortgage Loan Purchase Agreement,
      the
      Seller shall correct or cure any such defect within 90 days from the date of
      notice from the Trustee or the Custodian, as its agent, of the Material Defect
      and if the Seller is unable to cure such defect within such period, and if
      such
      defect materially and adversely affects the interests of the related
      Certificateholders in the related Mortgage Loan, the Trustee shall enforce
      the
      Seller’s obligation under the Mortgage Loan Purchase Agreement to, within 90
      days from the Trustee’s or Custodian’s notification, provide a Substitute
      Mortgage Loan (if within two years of the Closing Date) or purchase such
      Mortgage Loan at the Purchase Price, provided that, if such defect would cause
      the Mortgage Loan to be other than a “qualified mortgage” as defined in Section
      860G(a)(3) of the Code, any such cure, repurchase or substitution must occur
      within 90 days from the date such breach was discovered, provided, however,
      that
      if such defect relates solely to the inability of the Seller to deliver the
      original Security Instrument or intervening assignments thereof, or a certified
      copy, because the originals of such documents or a certified copy, have not
      been
      returned by the applicable jurisdiction, the Seller shall not be required to
      purchase such Mortgage Loan, if the Seller delivers such original documents
      or
      certified copy promptly upon receipt, but in no event later than 360 days after
      the Closing Date. The foregoing repurchase obligation shall not apply in the
      event that the Seller cannot deliver such original or copy of any document
      submitted for recording to the appropriate recording office in the applicable
      jurisdiction because such document has not been returned by such office;
      provided that the Seller shall instead deliver a recording receipt of such
      recording office or, if such receipt is not available, a certificate confirming
      that such documents have been accepted for recording, and delivery to the
      Trustee or the Custodian, as its agent, shall be effected by the Seller within
      thirty days of its receipt of the original recorded document.

     

    (c) In
      the
      event that a Mortgage Loan is purchased by the Seller in accordance with
      Subsections 2.02(a) or (b) above, the Seller shall remit to the Master Servicer
      the Purchase Price for deposit in the Master
      Servicer Collection Account
      and the
      Seller shall provide to the Trustee written notification detailing the
      components of the Purchase Price. Upon deposit of the Purchase Price in the
      Master Servicer Collection Account, the Depositor shall notify the Trustee
      and
      the Custodian, as agent of the Trustee (upon receipt of a Request for Release
      in
      the form of Exhibit D attached hereto with respect to such Mortgage Loan),
      shall
      release to the Seller the related Mortgage File and the Trustee shall execute
      and deliver all instruments of transfer or assignment, without recourse,
      representation or warranty, furnished to it by the Seller, as are necessary
      to
      vest in the Seller title to and rights under the Mortgage Loan. Such purchase
      shall be deemed to have occurred on the date on which the Purchase Price in
      immediately available funds is received by the Trustee. The Master Servicer
      shall amend the Mortgage Loan Schedule to reflect such repurchase and shall
      promptly notify the Rating Agencies, the Seller and the Trustee of such
      amendment. The obligation of the Seller to repurchase or substitute for any
      Mortgage Loan a Substitute Mortgage Loan as to which such a defect in a
      constituent document exists shall be the sole remedy respecting such defect
      available to the related Certificateholders or to the Trustee on their
      behalf.

     

    Section
      2.03 Assignment
      of Interest in the Mortgage Loan Purchase Agreement. 

     

    (a) The
      Depositor hereby assigns to the Trustee, on behalf of the Certificateholders
      of
      the Certificates, all of its right, title and interest in the Mortgage Loan
      Purchase Agreement, including but not limited to the Depositor’s rights and
      obligations pursuant to the Servicing Agreements (noting that the Seller has
      retained the right in the event of breach of the representations, warranties
      and
      covenants, if any, with respect to the related Mortgage Loans of the
related
      Servicer
      under the related Servicing Agreement to enforce the provisions thereof and
      to
      seek all or any available remedies). The obligations of the Seller to substitute
      or repurchase, as applicable, a Mortgage Loan shall be the Trustee’s and the
      related Certificateholders’ sole remedy for any breach thereof. At the request
      of the Trustee, the Depositor shall take such actions as may be necessary to
      enforce the above right, title and interest on behalf of the Trustee and the
      Certificateholders or shall execute such further documents as the Trustee may
      reasonably require in order to enable the Trustee to carry out such
      enforcement.

     

    (b) If
      the
      Depositor or the Trustee discovers a breach of any of the representations and
      warranties set forth in the Mortgage Loan Purchase Agreement, which breach
      materially and adversely affects the value of the interests of related
      Certificateholders or the Trustee in the related Mortgage Loan, the party
      discovering the breach shall give prompt written notice of the breach to the
      other parties to this Agreement. The Seller, within 90 days of its discovery
      or
      receipt of notice that such breach has occurred (whichever occurs earlier),
      shall cure the breach in all material respects or, subject to the Mortgage
      Loan
      Purchase Agreement or Section 2.04 of this Agreement, as applicable, shall
      purchase the Mortgage Loan or any property acquired with respect thereto from
      the Trustee; provided, however, that if there is a breach of any representation
      set forth in the Mortgage Loan Purchase Agreement or Section 2.04 of this
      Agreement, as applicable, and the Mortgage Loan or the related property acquired
      with respect thereto has been sold, then the Seller shall pay, in lieu of the
      Purchase Price, any excess of the Purchase Price over the Net Liquidation
      Proceeds received upon such sale. If the Net Liquidation Proceeds exceed the
      Purchase Price, any excess shall be paid to the Seller to the extent not
      required by law to be paid to the borrower. Any such purchase by the Seller
      shall be made by providing an amount equal to the Purchase Price to the Master
      Servicer for deposit in the Master Servicer Collection Account and written
      notification detailing the components of such Purchase Price to the Master
      Servicer. The Depositor shall notify the Trustee and submit to the Custodian,
      as
      agent for the Trustee, a Request for Release, and the Custodian shall release,
      or the Trustee shall cause the Custodian to release, to the Seller the related
      Mortgage File and the Trustee shall execute and deliver all instruments of
      transfer or assignment furnished to it by the Seller, without recourse,
      representation or warranty as are necessary to vest in the Seller title to
      and
      rights under the Mortgage Loan or any property acquired with respect thereto.
      Such purchase shall be deemed to have occurred on the date on which the Purchase
      Price in available funds is received by the Trustee. The Master Servicer shall
      amend the Mortgage Loan Schedule to reflect such repurchase and shall promptly
      notify the Seller, the Trustee and the Rating Agencies of such amendment.
      Enforcement of the obligation of the Seller to purchase (or substitute a
      Substitute Mortgage Loan for) any Mortgage Loan or any property acquired with
      respect thereto (or pay the Purchase Price as set forth in the above proviso)
      as
      to which a breach has occurred and is continuing shall constitute the sole
      remedy respecting such breach available to the Certificateholders or the Trustee
      on their behalf.

     

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

     

    Section
      2.04 Substitution
      of Mortgage Loans. 

     

    Notwithstanding
      anything to the contrary in this Agreement, in lieu of purchasing a Mortgage
      Loan pursuant to the Mortgage Loan Purchase Agreement or Sections 2.02 or 2.03
      of this Agreement, the Seller may, no later than the date by which such purchase
      by the Seller would otherwise be required, tender to the Trustee a Substitute
      Mortgage Loan accompanied by a certificate of an authorized officer of the
      Seller that such Substitute Mortgage Loan conforms to the requirements set
      forth
      in the definition of “Substitute Mortgage Loan” in this Agreement; provided,
      however, that substitution pursuant to the Mortgage Loan Purchase Agreement
      or
      Section 2.04 of this Agreement, as applicable, in lieu of purchase shall not
      be
      permitted after the termination of the two-year period beginning on the Startup
      Day; provided, further, that if the breach would cause the Mortgage Loan to
      be
      other than a “qualified mortgage” as defined in Section 860G(a)(3) of the Code,
      any such cure or substitution must occur within 90 days from the date the breach
      was discovered. The Custodian, as agent for the Trustee, shall examine the
      Mortgage File for any Substitute Mortgage Loan in the manner set forth in
      Section 2.02(a) and the Trustee or the Custodian, as its agent, shall notify
      the
      Seller, in writing, within five Business Days after receipt, whether or not
      the
      documents relating to the Substitute Mortgage Loan satisfy the requirements
      of
      the fourth sentence of Subsection 2.02(a). Within two Business Days after such
      notification, the Seller shall provide to the Trustee for deposit in the
      Distribution Account the amount, if any, by which the Outstanding Principal
      Balance as of the next preceding Due Date of the Mortgage Loan for which
      substitution is being made, after giving effect to the Scheduled Principal
      due
      on such date, exceeds the Outstanding Principal Balance as of such date of
      the
      Substitute Mortgage Loan, after giving effect to Scheduled Principal due on
      such
      date, which amount shall be treated for the purposes of this Agreement as if
      it
      were the payment by the Seller of the Purchase Price for the purchase of a
      Mortgage Loan by the Seller. After such notification to the Seller and, if
      any
      such excess exists, upon receipt of such deposit, the Trustee shall accept
      such
      Substitute Mortgage Loan which shall thereafter be deemed to be a Mortgage
      Loan
      hereunder. In the event of such a substitution, accrued interest on the
      Substitute Mortgage Loan for the month in which the substitution occurs and
      any
      Principal Prepayments made thereon during such month shall be the property
      of
      the Trust Fund and accrued interest for such month on the Mortgage Loan for
      which the substitution is made and any Principal Prepayments made thereon during
      such month shall be the property of the Seller. The Scheduled Principal on
      a
      Substitute Mortgage Loan due on the Due Date in the month of substitution shall
      be the property of the Seller and the Scheduled Principal on the Mortgage Loan
      for which the substitution is made due on such Due Date shall be the property
      of
      the Trust Fund. Upon acceptance of the Substitute Mortgage Loan (and delivery
      to
      the Custodian of a Request for Release for such Mortgage Loan), the Custodian,
      as agent for the Trustee, shall release to the Seller the related Mortgage
      File
      related to any Mortgage Loan released pursuant to the Mortgage Loan Purchase
      Agreement or Section 2.04 of this Agreement, as applicable, and shall execute
      and deliver all instruments of transfer or assignment, without recourse,
      representation or warranty in form as provided to it as are necessary to vest
      in
      the Seller title to and rights under any Mortgage Loan released pursuant to
      the
      Mortgage Loan Purchase Agreement or Section 2.04 of this Agreement, as
      applicable. The Seller shall deliver to the Custodian the documents related
      to
      the Substitute Mortgage Loan in accordance with the provisions of the Mortgage
      Loan Purchase Agreement or Subsections 2.01(b) and 2.02(b) of this Agreement,
      as
      applicable, with the date of acceptance of the Substitute Mortgage Loan deemed
      to be the Closing Date for purposes of the time periods set forth in those
      Subsections. The representations and warranties set forth in the Mortgage Loan
      Purchase Agreement shall be deemed to have been made by the Seller with respect
      to each Substitute Mortgage Loan as of the date of acceptance of such Mortgage
      Loan by the Trustee. The Master Servicer shall amend the Mortgage Loan Schedule
      to reflect such substitution and shall provide a copy of such amended Mortgage
      Loan Schedule to the Seller, the Trustee and the Rating Agencies.

     

    In
      connection with any substitution of a Mortgage Loan pursuant to this Section
      2.04, the Seller shall, or cause the related Servicer to, furnish to the Trustee
      an officer’s certificate, signed by a duly authorized officer of the Seller or
      the related Servicer, as the case may be, to the effect that such substitution
      has been made in accordance with the terms and conditions of this Agreement
      and
      that all conditions precedent to such substitution have been satisfied, together
      with copies of the Opinion of Counsel, if any, required to be delivered pursuant
      to Section 2.08 and the related Request for Release, on which the Trustee may
      rely. Solely for purposes of the Trustee providing an Assessment of Compliance,
      upon receipt of the deposit specified in the preceding paragraph, if applicable,
      and the documentation specified in the preceding sentence, the Trustee shall
      approve such substitution and which approval shall be based solely on the
      Trustee’s receipt of such documentation and deposits. It is understood and
      agreed that the obligation under this Agreement of the Seller to substitute
      any
      Mortgage Loan as to which a breach has occurred and is continuing shall
      constitute the sole remedies against the Seller respecting such breach available
      to Certificateholders, the Depositor or the Trustee.

     

    Section
      2.05 Issuance
      of Certificates. 

     

    (a) The
      Trustee acknowledges the assignment to it of the Mortgage Loans and the other
      assets comprising the Trust Fund and, concurrently therewith, the Trustee has
      signed, and countersigned and delivered to the Depositor, in exchange therefor,
      the Certificates in such authorized denominations representing such Fractional
      Undivided Interests as the Depositor has requested. The Trustee agrees that
      it
      will hold the Mortgage Loans and such other assets as may from time to time
      be
      delivered to it segregated on the books of the Trustee in trust for the benefit
      of the related Certificateholders.

     

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

     

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

    

    Section
      2.06 Representations
      and Warranties Concerning the Depositor. 

     

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

     

    (a) the
      Depositor (i) is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Delaware and (ii) is qualified and
      in
      good standing as a foreign corporation to do business in each jurisdiction
      where
      such qualification is necessary, except where the failure so to qualify would
      not reasonably be expected to have a material adverse effect on the Depositor’s
      business as presently conducted or on the Depositor’s ability to enter into this
      Agreement and to consummate the transactions contemplated hereby;

     

    (b) the
      Depositor has full corporate power to own its property, to carry on its business
      as presently conducted and to enter into and perform its obligations under
      this
      Agreement;

     

    (c) the
      execution and delivery by the Depositor of this Agreement have been duly
      authorized by all necessary corporate action on the part of the Depositor;
      and
      neither the execution and delivery of this Agreement, nor the consummation
      of
      the transactions herein contemplated, nor compliance with the provisions hereof,
      will conflict with or result in a breach of, or constitute a default under,
      any
      of the provisions of any law, governmental rule, regulation, judgment, decree
      or
      order binding on the Depositor or its properties or the articles of
      incorporation or by-laws of the Depositor, except those conflicts, breaches
      or
      defaults which would not reasonably be expected to have a material adverse
      effect on the Depositor’s ability to enter into this Agreement and to consummate
      the transactions contemplated hereby;

     

    (d) the
      execution, delivery and performance by the Depositor of this Agreement and
      the
      consummation of the transactions contemplated hereby do not require the consent
      or approval of, the giving of notice to, the registration with, or the taking
      of
      any other action in respect of, any state, federal or other governmental
      authority or agency, except those consents, approvals, notices, registrations
      or
      other actions as have already been obtained, given or made;

     

    (e) this
      Agreement has been duly executed and delivered by the Depositor and, assuming
      due authorization, execution and delivery by the other parties hereto,
      constitutes a valid and binding obligation of the Depositor enforceable against
      it in accordance with its terms (subject to applicable bankruptcy and insolvency
      laws and other similar laws affecting the enforcement of the rights of creditors
      generally);

     

    (f) there
      are
      no actions, suits or proceedings pending or, to the knowledge of the Depositor,
      threatened against the Depositor, before or by any court, administrative agency,
      arbitrator or governmental body (i) with respect to any of the transactions
      contemplated by this Agreement or (ii) with respect to any other matter which
      in
      the judgment of the Depositor will be determined adversely to the Depositor
      and
      will if determined adversely to the Depositor materially and adversely affect
      the Depositor’s ability to enter into this Agreement or perform its obligations
      under this Agreement; and the Depositor is not in default with respect to any
      order of any court, administrative agency, arbitrator or governmental body
      so as
      to materially and adversely affect the transactions contemplated by this
      Agreement; 

     

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

     

    (h) immediately
      prior to the transfer and assignment to the Trustee, each Mortgage Note and
      each
      Mortgage were not subject to an assignment or pledge, and the Depositor had
      good
      and marketable title to and was the sole owner thereof and had full right to
      transfer and sell such Mortgage Loan to the Trustee free and clear of any
      encumbrance, equity, lien, pledge, charge, claim or security
      interest.

     

    Section
      2.07  Representations
      and Warranties of EMC.

     

    EMC,
      in
      its capacity as Seller and Master Servicer, hereby represents and warrants
      to
      the Depositor and the Trustee as follows, as of the Closing Date:

     

    (a)  EMC
      is
      duly organized as a Delaware corporation and is validly existing and in good
      standing under the laws of the State of Delaware and is duly authorized and
      qualified to transact any and all business contemplated by this Agreement to
      be
      conducted by EMC in any state in which a Mortgaged Property is located or is
      otherwise not required under applicable law to effect such qualification and,
      in
      any event, is in compliance with the doing business laws of any such state,
      to
      the extent necessary to ensure its ability to enforce each Mortgage Loan, to
      sell the Mortgage Loans in accordance with the terms of the Mortgage Loan
      Purchase Agreement and to perform any of its other obligations under this
      Agreement in accordance with the terms hereof.

     

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

     

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

     

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

     

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

     

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

     

    (g)  With
      respect to each Mortgage Loan as of the Closing Date (or such other date as
      may
      be specified in Section 7 of the Mortgage Loan Purchase Agreement), EMC, as
      Seller, hereby remakes and restates each of the representations and warranties
      set forth in Section 7 of the Mortgage Loan Purchase Agreement to the Depositor
      and the Trustee to the same extent as if fully set forth herein.

     

    Upon
      discovery by any of the parties hereto of a breach of a representation or
      warranty set forth in the Mortgage Loan Purchase Agreement with respect to
      the
      Mortgage Loans that materially and adversely affects the interests of the
      Certificateholders in any Mortgage Loan, the party discovering such breach
      shall
      give prompt written notice thereof to the other parties. EMC, in its capacity
      as
      Seller, hereby covenants with respect to the representations and warranties
      set
      forth in the Mortgage Loan Purchase Agreement with respect to the Mortgage
      Loans, that within 90 days of the discovery of a breach of any representation
      or
      warranty set forth therein that materially and adversely affects the interests
      of the Certificateholders in any Mortgage Loan, it shall cure such breach in
      all
      material respects and, if such breach is not so cured, (i) if such 90 day period
      expires prior to the second anniversary of the Closing Date, remove such
      Mortgage Loan (a “Deleted Mortgage Loan”) from the Trust Fund and substitute in
      its place a Replacement Mortgage Loan, in the manner and subject to the
      conditions set forth in this Section; or (ii) repurchase the affected Mortgage
      Loan or Mortgage Loans from the Trustee at the Purchase Price in the manner
      set
      forth below; provided that any such substitution pursuant to (i) above or
      repurchase pursuant to (ii) above shall not be effected prior to the delivery
      to
      the Trustee of an Opinion of Counsel if required by Section 2.04 hereof and
      any
      such substitution pursuant to (i) above shall not be effected prior to the
      additional delivery to the applicable Custodian of a Request for Release. The
      Trustee shall give prompt written notice to the parties hereto of EMC’s failure
      to cure such breach as set forth in the preceding sentence. EMC shall promptly
      reimburse the Master Servicer and the Trustee for any expenses reasonably
      incurred by the Master Servicer or the Trustee in respect of enforcing the
      remedies for such breach. To enable the Master Servicer to amend the Mortgage
      Loan Schedule, EMC shall, unless it cures such breach in a timely fashion
      pursuant to this Section 2.07, promptly notify the Master Servicer whether
      it
      intends either to repurchase, or to substitute for, the Mortgage Loan affected
      by such breach. With respect to the representations and warranties with respect
      to the Mortgage Loans that are made to the best of EMC’s knowledge, if it is
      discovered by any of the Depositor, the Master Servicer, EMC or the Trustee
      that
      the substance of such representation and warranty is inaccurate and such
      inaccuracy materially and adversely affects the value of the related Mortgage
      Loan, notwithstanding EMC’s lack of knowledge with respect to the substance of
      such representation or warranty, EMC (in its capacity as Seller) shall
      nevertheless be required to cure, substitute for or repurchase the affected
      Mortgage Loan in accordance with the foregoing.

     

    With
      respect to any Replacement Mortgage Loan or Loans, EMC (in its capacity as
      Seller) shall deliver to the Trustee or the related Custodian on its behalf
      for
      the benefit of the Certificateholders such documents and agreements as are
      required by Section 2.01. No substitution will be made in any calendar month
      after the Determination Date for such month. Notwithstanding the foregoing,
      such
      substitution must be done within two years of the Closing Date. Scheduled
      Payments due with respect to Replacement Mortgage Loans in the Due Period
      related to the Distribution Date on which such proceeds are to be distributed
      shall not be part of the Trust Fund and will be retained by EMC (in its capacity
      as Seller). For the month of substitution, distributions to Certificateholders
      will include the Scheduled Payment due on any Deleted Mortgage Loan for the
      related Due Period and thereafter EMC (in its capacity as Seller) shall be
      entitled to retain all amounts received in respect of such Deleted Mortgage
      Loan. The Master Servicer shall amend the Mortgage Loan Schedule for the benefit
      of the Certificateholders to reflect the removal of each such Deleted Mortgage
      Loan and the substitution of the Replacement Mortgage Loan or Loans and the
      Master Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee
      and the related Custodian. Upon such substitution, the Replacement Mortgage
      Loan
      or Loans shall be subject to the terms of this Agreement in all respects, and
      EMC shall be deemed to have made with respect to such Replacement Mortgage
      Loan
      or Loans, as of the date of substitution, the representations and warranties
      set
      forth in Section 7 or Section 8 of the Mortgage Loan Purchase Agreement with
      respect to such Mortgage Loan. Upon any such substitution and the deposit into
      the Master Servicer Collection Account of the amount required to be deposited
      therein in connection with such substitution as described in the following
      paragraph and receipt by the related Custodian of a Request for Release for
      such
      Mortgage Loan, the related Custodian shall release to EMC the Mortgage File
      relating to such Deleted Mortgage Loan and held for the benefit of the
      Certificateholders and the Trustee shall execute and deliver at EMC’s direction
      such instruments of transfer or assignment as have been prepared by EMC, in
      each
      case without recourse, representation or warranty as shall be necessary to
      vest
      in EMC, or its respective designee, title to the Trustee’s interest in any
      Deleted Mortgage Loan substituted for pursuant to this Section
      2.07.

     

    For
      any
      month in which EMC substitutes one or more Replacement Mortgage Loans for a
      Deleted Mortgage Loan, the Master Servicer will determine the amount (if any)
      by
      which the aggregate principal balance of all the Replacement Mortgage Loans
      as
      of the date of substitution is less than the Stated Principal Balance (after
      application of the principal portion of the Scheduled Payment due in the month
      of substitution) of such Deleted Mortgage Loan. An amount equal to the aggregate
      of such deficiencies, described in the preceding sentence for any Distribution
      Date (such amount, the “Substitution Adjustment Amount”) shall be deposited into
      the Master Servicer Collection Account, by EMC upon its delivering such
      Replacement Mortgage Loan on the Determination Date for the Distribution Date
      relating to the Prepayment Period during which the related Mortgage Loan became
      required to be purchased or replaced hereunder.

     

    In
      the
      event that EMC (in its capacity as Seller) shall have repurchased a Mortgage
      Loan, the Purchase Price therefor shall be deposited into the Master Servicer
      Collection Account maintained by the Master Servicer, on the Determination
      Date
      for the Distribution Date in the month following the month during which EMC
      became obligated to repurchase or replace such Mortgage Loan and upon such
      deposit of the Purchase Price, the delivery of an Opinion of Counsel if required
      by Section 2.04 and the receipt of a Request for Release, the related Custodian
      shall release the related Mortgage File held for the benefit of the
      Certificateholders to EMC, and the Trustee shall execute and deliver at such
      Person’s direction the related instruments of transfer or assignment prepared by
      EMC, in each case without recourse, representation or warranty, as shall be
      necessary to transfer title from the Trustee for the benefit of the
      Certificateholders and transfer the Trustee’s interest to EMC to any Mortgage
      Loan purchased pursuant to this Section 2.07. It is understood and agreed that
      the obligation under this Agreement of EMC to cure, repurchase or replace any
      Mortgage Loan as to which a breach has occurred and is continuing shall
      constitute the sole remedies against EMC (in its capacity as Seller) respecting
      such breach available to the Certificateholders, the Depositor or the
      Trustee.

     

    The
      representations and warranties set forth in this Section 2.07 hereof shall
      survive delivery of the respective Mortgage Loans and Mortgage Files to the
      Trustee or the related Custodian for the benefit of the
      Certificateholders. 

     

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

     

    Notwithstanding
      any contrary provision of this Agreement, with respect to any Mortgage Loan
      that
      is not in default or as to which default is not imminent, no repurchase or
      substitution pursuant to Sections 2.02, 2.03, 2.04 or 2.07 shall be made unless
      the Seller delivers to the Trustee an Opinion of Counsel, addressed to the
      Trustee, to the effect that such repurchase or substitution would not (i) result
      in the imposition of the tax on “prohibited transactions” of any REMIC or
      contributions after the Closing Date, as defined in Sections 860F(a)(2) and
      860G(d) of the Code, respectively, or (ii) cause any REMIC to fail to qualify
      as
      a REMIC at any time that any Certificates are outstanding. Any Mortgage Loan
      as
      to which repurchase or substitution was delayed pursuant to this paragraph
      shall
      be repurchased or the substitution therefor shall occur (subject to compliance
      with Sections 2.02, 2.03, 2.04 or 2.07) upon the earlier of (a) the occurrence
      of a default or imminent default with respect to such Mortgage Loan and (b)
      receipt by the Trustee of an Opinion of Counsel addressed to the Trustee to
      the
      effect that such repurchase or substitution, as applicable, will not result
      in
      the events described in clause (i) or clause (ii) of the preceding
      sentence.

     

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      III

    Administration
      of the Trust Fund and Servicing of Mortgage Loans

     

    Section
      3.01 Master
      Servicer.

     

    The
      Master Servicer shall supervise, monitor and oversee the obligation of the
      Servicers to service and administer the Mortgage Loans in accordance with the
      terms of the applicable Servicing Agreement and shall have full power and
      authority to do any and all things which it may deem necessary or desirable
      in
      connection with such master servicing and administration. In performing its
      obligations hereunder, the Master Servicer shall act in a manner consistent
      with
      Accepted Master Servicing Practices. Furthermore, the Master Servicer shall
      oversee and consult with each Servicer as necessary from time-to-time to carry
      out the Master Servicer’s obligations hereunder, shall receive, review and
      evaluate all reports, information and other data provided to the Master Servicer
      by each Servicer and shall cause each Servicer to perform and observe the
      covenants, obligations and conditions to be performed or observed by such
      Servicer under its applicable Servicing Agreement. The Master Servicer shall
      independently and separately monitor the Servicer’s servicing activities with
      respect to each Mortgage Loan, reconcile the results of such monitoring with
      such information provided in the previous sentence on a monthly basis and
      coordinate corrective adjustments to the Servicers’ and Master Servicer’s
      records, and based on such reconciled and corrected information, the Master
      Servicer shall provide such information to the Trustee, in
      the
      form of Exhibit R attached hereto and as
      shall
      be necessary in order for it to prepare the statements specified in Section
      6.05(a) by
      12:00
      p.m. CST on the 5th Business Day prior to each Distribution Date,
      and
      prepare any other information and statements required to be forwarded by the
      Master Servicer hereunder; provided, however, in no event shall the Master
      Servicer be required to provide such information to the Trustee earlier than
      12:00 p.m. CST on the 19th
      calendar
      day of the month. The Master Servicer shall reconcile the results of its
      Mortgage Loan monitoring with the actual remittances of the Servicers pursuant
      to the applicable Servicing Agreement. The Master Servicer shall be entitled
      to
      conclusively rely on the Mortgage Loan data provided by the related Servicer
      and
      shall have no liability for any errors in such Mortgage Loan data.

     

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

     

    The
      Trustee shall furnish the Servicers and the Master Servicer with any powers
      of
      attorney substantially in the form of Exhibit P hereto and upon written request
      from a Servicing Officer other documents in form as provided to it necessary
      or
      appropriate to enable the Servicers and the Master Servicer to service and
      administer the Mortgage Loans and REO Property. The Trustee shall be indemnified
      by the Master Servicer for any costs, liabilities or expenses incurred by it
      in
      connection with such powers of attorney.

     

    The
      Trustee or the Custodian shall provide access to the records and documentation
      in possession of the Trustee regarding the Mortgage Loans and REO Property
      and
      the servicing thereof to the related Certificateholders, the FDIC, and the
      supervisory agents and examiners of the FDIC, such access being afforded only
      upon reasonable prior written request and during normal business hours at the
      office of the Trustee; provided, however, that, unless otherwise required by
      law, the Trustee shall not be required to provide access to such records and
      documentation if the provision thereof would violate the legal right to privacy
      of any Mortgagor. The Trustee shall allow representatives of the above entities
      to photocopy any of the records and documentation and shall provide equipment
      for that purpose at a charge that covers the Trustee’s actual
      costs.

     

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

     

    Section
      3.02 REMIC-Related
      Covenants. 

     

    For
      as
      long as each REMIC shall exist, the Trustee shall act in accordance herewith
      to
      assure continuing treatment of such REMIC as a REMIC, and the Trustee shall
      comply with any directions of the Depositor, the related Servicer or the Master
      Servicer to ensure such continuing treatment. In particular, the Trustee shall
      not (unless expressly permitted under the terms of this Agreement) (a) sell
      or
      permit the sale of all or any portion of the Mortgage Loans or of any investment
      of deposits in an Account unless such sale is as a result of a repurchase of
      the
      Mortgage Loans pursuant to this Agreement or the Trustee has received a REMIC
      Opinion addressed to the Trustee prepared at the expense of the Trust Fund;
      (b)
      other than with respect to a substitution pursuant to the Mortgage Loan Purchase
      Agreement, Section 2.04 or Section 2.07 of this Agreement, as applicable, accept
      any contribution to any REMIC after the Startup Day without receipt of a REMIC
      Opinion addressed to the Trustee; or (c) acquire any assets for any REMIC other
      than any REO Property after the Startup Day without receipt of a REMIC
      Opinion.

     

    Section
      3.03 Monitoring
      of Servicers. 

     

    (a) The
      Master Servicer shall be responsible for reporting to the Trustee and the
      Depositor the non-compliance by each Servicer with its duties under the related
      Servicing Agreement. In the review of each Servicer’s activities, the Master
      Servicer may rely upon an officer’s certificate of the Servicer (or similar
      document signed by an officer of the Servicer) with regard to the Servicer’s
      compliance with the terms of its Servicing Agreement. In the event that the
      Master Servicer, in its judgment, determines that a Servicer (other than the
      Company) should be terminated in accordance with its Servicing Agreement, or
      that a notice should be sent pursuant to such Servicing Agreement with respect
      to the occurrence of an event that, unless cured, would constitute grounds
      for
      such termination, the Master Servicer shall notify the Depositor and the Trustee
      thereof and the Master Servicer shall issue such notice or take such other
      action as it deems appropriate. In the event that the Master Servicer, in its
      judgment, determines that the Company should be terminated in accordance with
      the EMC Servicing Agreement, or that a notice should be sent pursuant to the
      EMC
      Servicing Agreement with respect to the occurrence of an event that, unless
      cured, would constitute grounds for such termination, the Master Servicer shall
      notify the Depositor and the Trustee thereof in writing. Pursuant to its receipt
      of such written notification from the Master Servicer, the Trustee shall issue
      such notice of termination to the Company or take such other action as it deems
      appropriate.

     

    (b) The
      Master Servicer, for the benefit of the Trustee and the Certificateholders,
      shall enforce the obligations of each Servicer under the related Servicing
      Agreement, and shall, in the event that a Servicer, other than the Company,
      fails to perform its obligations in accordance with the related
      Servicing Agreement, subject to the preceding paragraph, terminate the rights
      and obligations of such Servicer thereunder and act as servicer of the related
      Mortgage Loans or to cause the Trustee to enter into a new Servicing Agreement
      with a successor Servicer selected by the Master Servicer; provided, however,
      it
      is understood and acknowledged by the parties hereto that there will be a period
      of transition (not to exceed 90 days) before the actual servicing functions
      can
      be fully transferred to such successor Servicer. In the event that the Company
      fails to perform its obligations in accordance with the EMC Servicing Agreement,
      subject to the preceding paragraph,
      the Master Servicer shall notify the Trustee in writing of such failure.
      Pursuant to its receipt of such notification from the Master Servicer, the
      Trustee shall terminate the rights and obligations of the Company under the
      EMC
      Servicing Agreement and enter in to a new Servicing Agreement with a successor
      Servicer selected by the Trustee; provided, however, it is understood and
      acknowledged by the parties hereto that there will be a period of transition
      (not to exceed 90 days) before the actual servicing functions can be fully
      transferred to such successor Servicer. In either event, such enforcement,
      including, without limitation, the legal prosecution of claims, termination
      of
      the Servicing Agreements and the pursuit of other appropriate remedies, shall
      be
      in such form and carried out to such an extent and at such time as the Master
      Servicer (or in the case the Company is terminated as the Servicer, the
      successor servicer or the Trustee, as applicable) in its good faith business
      judgment, would require were it the owner of the Mortgage Loans. The Master
      Servicer shall pay the costs of such enforcement at its own expense, provided
      that the Master Servicer shall not be required to prosecute or defend any legal
      action except to the extent that the Master Servicer shall have received
      reasonable indemnity for its costs and expenses in pursuing such action. In
      the
      event that the Company is terminated as the Servicer, the Trustee shall pay
      the
      costs of such enforcement at its own expense, subject to its right to be
      reimbursed for such costs from the Distribution Account pursuant to Section
      3.03(c); provided that the Trustee shall not be required to prosecute or defend
      any legal action except to the extent that the Trustee shall have received
      reasonable indemnity for its costs and expenses in pursuing such action. Nothing
      herein shall impose any obligation on the part of the Trustee to assume or
      succeed to the duties or obligations of the Company or the Master Servicer
      unless the Trustee has not been able to find a successor servicer or a successor
      master servicer.

     

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

     

    (d) The
      Master Servicer shall require each Servicer to comply with the remittance
      requirements and other obligations set forth in the related Servicing
      Agreement.

     

    (e) If
      the
      Master Servicer acts as a servicer, it shall not be liable for losses of the
      predecessor Servicer or any acts or omissions of the predecessor Servicer,
      or
      deemed to have made any representations and warranties of the related Servicer,
      if any, that it replaces.

     

    Section
      3.04 Fidelity
      Bond. 

     

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

     

    Section
      3.05 Power
      to Act; Procedures. 

     

    The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority, subject to the REMIC Provisions and the provisions of
      Article X hereof, to do any and all things that it may deem necessary or
      desirable in connection with the master servicing and administration of the
      Mortgage Loans, including but not limited to the power and authority (i) to
      execute and deliver, on behalf of the Holders of the Certificates and the
      Trustee, customary consents or waivers and other instruments and documents,
      (ii)
      to consent to transfers of any Mortgaged Property and assumptions of the
      Mortgage Notes and related Mortgages, (iii) to collect any Insurance Proceeds,
      Liquidation Proceeds and Subsequent Recoveries, and (iv) to effectuate
      foreclosure or other conversion of the ownership of the Mortgaged Property
      securing any Mortgage Loan, in each case, in accordance with the provisions
      of
      this Agreement and the related Servicing Agreement, as applicable; provided,
      however, that the Master Servicer shall not (and, consistent with its
      responsibilities under Section 3.03, shall not authorize any Servicer to)
      knowingly or intentionally take any action, or fail to take (or fail to cause
      to
      be taken) any action reasonably within its control and the scope of duties
      more
      specifically set forth herein, that, under the REMIC Provisions, if taken or
      not
      taken, as the case may be, may cause any REMIC to fail to qualify as a REMIC
      or
      result in the imposition of a tax upon the Trust Fund (including but not limited
      to the tax on prohibited transactions as defined in Section 860F(a)(2) of the
      Code and the tax on contributions to a REMIC set forth in Section 860G(d) of
      the
      Code) unless the Master Servicer has received an Opinion of Counsel (but not
      at
      the expense of the Master Servicer) to the effect that the contemplated action
      would not cause any REMIC to fail to qualify as a REMIC or result in the
      imposition of a tax upon any REMIC. The Trustee shall furnish the Master
      Servicer, upon written request from a Servicing Officer, with any powers of
      attorney empowering the Master Servicer or any Servicer to execute and deliver
      instruments of satisfaction or cancellation, or of partial or full release
      or
      discharge, and to foreclose upon or otherwise liquidate Mortgaged Property,
      and
      to appeal, prosecute or defend in any court action relating to the Mortgage
      Loans or the Mortgaged Property, in accordance with the related Servicing
      Agreement and this Agreement, and the Trustee shall execute and deliver such
      other documents, as the Master Servicer may request, to enable the Master
      Servicer to master service and administer the Mortgage Loans and carry out
      its
      duties hereunder, in each case in accordance with Accepted Master Servicing
      Practices (and the Trustee shall have no liability for misuse of any such powers
      of attorney by the Master Servicer or any Servicer). If the Master Servicer
      or
      the Trustee has been advised that it is likely that the laws of the state in
      which action is to be taken prohibit such action if taken in the name of the
      Trustee or that the Trustee would be adversely affected under the “doing
      business” or tax laws of such state if such action is taken in its name, the
      Master Servicer shall join with the Trustee in the appointment of a co-trustee
      pursuant to Section 9.11 hereof. In the performance of its duties hereunder,
      the
      Master Servicer shall be an independent contractor and shall, except in those
      instances where it is taking action in the name of the Trust, not be deemed
      to
      be the agent of the Trust.

     

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

     

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

     

    Section
      3.07 Release
      of Mortgage Files.

     

    (a) Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by
      any Servicer of a notification that payment in full has been escrowed in a
      manner customary for such purposes for payment to Certificateholders on the
      next
      Distribution Date, the Servicer will, if required under the applicable Servicing
      Agreement (or if the applicable Servicer does not, the Master Servicer may),
      promptly furnish to the Custodian, on behalf of the Trustee, two copies of
      a
      certification substantially in the form of Exhibit D (or as otherwise provided
      in the Custodial Agreement) hereto signed by a Servicing Officer or in a
      mutually agreeable electronic format which will, in lieu of a signature on
      its
      face, originate from a Servicing Officer (which certification shall include
      a
      statement to the effect that all amounts received in connection with such
      payment that are required to be deposited in the Protected Account maintained
      by
      the applicable Servicer pursuant to Section 4.01 or by the applicable Servicer
      pursuant to the applicable Servicing Agreement have been or will be so
      deposited) and shall request that the Custodian, on behalf of the Trustee,
      deliver to the applicable Servicer the related Mortgage File. Upon receipt
      of
      such certification and request, the Custodian, on behalf of the Trustee, shall
      promptly release the related Mortgage File to the applicable Servicer and the
      Trustee and Custodian shall have no further responsibility with regard to such
      Mortgage File. Upon any such payment in full, each Servicer is authorized,
      to
      give, as agent for the Trustee, as the mortgagee under the Mortgage that secured
      the Mortgage Loan, an instrument of satisfaction (or assignment of mortgage
      without recourse) regarding the Mortgaged Property subject to the Mortgage,
      which instrument of satisfaction or assignment, as the case may be, shall be
      delivered to the Person or Persons entitled thereto against receipt therefor
      of
      such payment, it being understood and agreed that no expenses incurred in
      connection with such instrument of satisfaction or assignment, as the case
      may
      be, shall be chargeable to the applicable Protected Account.

     

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

     

    Section
      3.08 Documents,
      Records and Funds in Possession of Master Servicer to Be Held for
      Trustee.

     

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

     

    (b) All
      Mortgage Files and funds collected or held by, or under the control of, the
      Master Servicer, in respect of any Mortgage Loans, whether from the collection
      of principal and interest payments or from Liquidation Proceeds, Insurance
      Proceeds or Subsequent Recoveries, shall be held by the Master Servicer for
      and
      on behalf of the Trustee and the Certificateholders and shall be and remain
      the
      sole and exclusive property of the Trustee; provided, however, that the Master
      Servicer and each Servicer shall be entitled to setoff against, and deduct
      from,
      any such funds any amounts that are properly due and payable to the Master
      Servicer or such Servicer to the extent provided under this Agreement or the
      applicable Servicing Agreement.

     

    Section
      3.09 Standard
      Hazard Insurance and Flood Insurance Policies. 

     

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

     

    (b) Pursuant
      to Section 4.01 and 4.02, any amounts collected by the Servicers or the Master
      Servicer, or by any Servicer, under any insurance policies (other than amounts
      to be applied to the restoration or repair of the property subject to the
      related Mortgage or released to the Mortgagor in accordance with the applicable
      Servicing Agreement) shall be deposited into the Master Servicer Collection
      Account, subject to withdrawal pursuant to Section 4.02 and 4.03. Any cost
      incurred by the Master Servicer or any Servicer in maintaining any such
      insurance if the Mortgagor defaults in its obligation to do so shall be added
      to
      the amount owing under the Mortgage Loan where the terms of the Mortgage Loan
      so
      permit; provided, however, that the addition of any such cost shall not be
      taken
      into account for purposes of calculating the distributions to be made to
      Certificateholders and shall be recoverable by the Master Servicer or such
      Servicer pursuant to Sections 4.02 and 4.03.

     

    Section
      3.10 Presentment
      of Claims and Collection of Proceeds. 

     

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

     

    Section
      3.11 Maintenance
      of the Primary Mortgage Insurance Policies.

     

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

     

    (b) The
      Master Servicer agrees to present, or to cause each Servicer (to the extent
      required under the related Servicing Agreement) to present, on behalf of the
      Trustee and the Certificateholders, claims to the insurer under any Primary
      Mortgage Insurance Policies and, in this regard, to take such reasonable action
      as shall be necessary to permit recovery under any Primary Mortgage Insurance
      Policies respecting defaulted Mortgage Loans. Pursuant to Section 4.01 and
      4.02,
      any amounts collected by the Master Servicer or any Servicer under any Primary
      Mortgage Insurance Policies shall be deposited in the Master Servicer Collection
      Account, subject to withdrawal pursuant to Sections 4.02 and 4.03.

     

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

     

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

     

    Section
      3.13 Realization
      Upon Defaulted Mortgage Loans. 

     

    The
      Master Servicer shall cause each Servicer (to the extent required under the
      related Servicing Agreement) to foreclose upon, repossess or otherwise
      comparably convert the ownership of Mortgaged Properties securing such of the
      Mortgage Loans as come into and continue in default and as to which no
      satisfactory arrangements can be made for collection of delinquent payments,
      all
      in accordance with the applicable Servicing Agreement.

     

    Section
      3.14 Compensation
      for the Master Servicer. 

     

    The
      Master Servicer will be entitled to all income and gain realized from any
      investment of funds in the Master Servicer Collection Account, pursuant to
      Article IV, for the performance of its activities hereunder. Servicing
      compensation in the form of assumption fees, if any, late payment charges,
      as
      collected, if any, or otherwise (including any prepayment premium or penalty)
      shall be retained by the applicable Servicer and shall not be deposited in
      the
      related Protected Account. The Master Servicer shall be required to pay all
      expenses incurred by it in connection with its activities hereunder and shall
      not be entitled to reimbursement therefor except as provided in this
      Agreement.

     

    Section
      3.15 REO
      Property. 

     

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

     

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

     

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

     

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

     

    Section
      3.16 Annual
      Statement as to Compliance.

     

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

    

    Failure
      of the Master Servicer to comply with this Section 3.16 (including with respect
      to the timeframes required herein) shall be deemed an Event of Default, and
      at
      the written direction of the Depositor the Trustee shall, in addition to
      whatever rights the Trustee may have under this Agreement and at law or equity
      or to damages, including injunctive relief and specific performance, upon notice
      immediately terminate all of the rights and obligations of the Master Servicer
      under this Agreement and in and to the Mortgage Loans and the proceeds thereof
      without compensating the Master Servicer for the same (but
      subject to the Master Servicer’s rights to payment of any Master Servicing
      Compensation and reimbursement of all amounts for which it is entitled to be
      reimbursed prior to the date of termination).
      This
      paragraph shall supersede any other provision in this Agreement or any other
      agreement to the contrary.

    

    In
      the event the Master Servicer, any Servicer or
      any subservicer or subcontractor engaged by either such party is terminated
      or
      resigns pursuant to the terms of this Agreement, or any other applicable
      agreement in the case of a Servicer, a subservicer or subcontractor, as the
      case
      may be, such party shall provide an Annual Statement of Compliance pursuant
      to
      this Section 3.16 or to the related section of such other applicable agreement,
      as the case may be, as to the performance of its obligations with respect to
      the
      period of time it was subject to this Agreement or any other applicable
      agreement, as the case may be notwithstanding any such termination or
      resignation.

    

    Section
      3.17 Assessments
      of Compliance and Attestation Reports. 

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

    Failure
      of the Master Servicer to comply with this Section 3.17 (including with respect
      to the timeframes required herein) shall
      constitute an
      Event
      of Default, and at the written direction of the Depositor the Trustee shall,
      in
      addition to whatever rights the Trustee may have under this Agreement and at
      law
      or equity or to damages, including injunctive relief and specific performance,
      upon notice immediately terminate all of the rights and obligations of the
      Master Servicer under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Master Servicer for the same (but
      subject to the Master Servicer’s rights to payment of any Master Servicing
      Compensation and reimbursement of all amounts for which it is entitled to be
      reimbursed prior to the date of termination). Failure of the Trustee to comply
      with this Section 3.17 (including with respect to the timeframes required in
      this Section) which failure results in a failure to timely file the related
      Form
      10-K, shall be deemed a default which may result in the termination of the
      Trustee pursuant to Section 9.08 of this Agreement and the Depositor may, in
      addition to whatever rights the Depositor may have under this Agreement and
      at
      law or equity or to damages, including injunctive relief and specific
      performance, upon notice immediately terminate all of the rights and obligations
      of the Trustee under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Trustee for the same (but subject
      to
      the Trustee’s right to reimbursement of all amounts for which it is entitled to
      be reimbursed prior to the date of termination). This paragraph shall supersede
      any other provision in this Agreement or any other agreement to the
      contrary.

    

    In
      the event the Master Servicer, the Custodian, the Trustee
      or any
      subservicer or subcontractor engaged by any such party is terminated, assigns
      its rights and obligations under, or resigns pursuant to, the terms of the
      Agreement, the related Custodial Agreement, or any other applicable agreement
      in
      the case of a subservicer or subcontractor, as the case may be, such party
      shall
      provide an Assessment of Compliance and cause to be provided an Attestation
      Report pursuant to this Section 3.17 or to the related section of such other
      applicable agreement, as the case may be, notwithstanding any such termination,
      assignment or resignation.

    

    Section
      3.18 Reports
      Filed with Securities and Exchange Commission. 

     

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

     

    (B)
      Within five (5) calendar days after the related Distribution Date, (i) the
      parties set forth in Exhibit M shall be required to provide, and the Master
      Servicer shall enforce the obligations of each Servicer (to the extent provided
      in the related Servicing Agreement) to provide, pursuant to Section 3.18(a)(iv)
      below, to the Trustee (via email to notifications@fsir.com) and the Depositor,
      to the extent known by a responsible officer thereof, in EDGAR-compatible
      format, or in such other form as otherwise agreed upon by the Trustee
      and the
      Depositor and such party, the form and substance of any Additional Form 10-D
      Disclosure, if applicable, and (ii) the Depositor will approve, as to form
      and
      substance, or disapprove, as the case may be, the inclusion of the Additional
      Form 10-D Disclosure on Form 10-D. Subject to the foregoing, the Trustee has
      no
      duty under this Agreement to monitor or enforce the performance by the other
      parties listed on Exhibit M of their duties under this paragraph or to
      proactively solicit or procure from such parties any Additional Form 10-D
      Disclosure information. The Depositor shall be responsible for any reasonable
      fees and expenses assessed or incurred by the Trustee in connection with
      including any Additional Form 10-D Disclosure on Form 10-D pursuant to this
      Section.

     

    (C)
      After
      preparing the Form 10-D, the Trustee shall forward electronically a copy of
      the
      Form 10-D to the Depositor (in the case of any Additional 10-D Disclosure and
      otherwise if requested by the Depositor) and the Master Servicer for review.
      Within
      two Business Days after receipt of such copy, but no later than the 12th
      calendar day after the Distribution Date (provided that, the Trustee forwards
      a
      copy of the Form 10-D no later than the 10th
      calendar
      after the Distribution Date), the Depositor shall notify the Trustee in writing
      (via email to notifications@fsir.com) of any changes to or approval of such
      Form
      10-D. In the absence of receipt of any written changes or approval, the Trustee
      shall be entitled to assume that such Form 10-D is in final form and the Trustee
      may proceed with the execution and filing of the Form 10-D. No later than two
      (2) Business Days prior to the 15th calendar day after the related Distribution
      Date, a duly authorized officer of the Master Servicer shall sign the Form
      10-D
      and return an electronic or fax copy of such signed Form 10-D (with an original
      executed hard copy to follow by overnight mail) to the Trustee. If a Form 10-D
      cannot be filed on time or if a previously filed Form 10-D needs to be amended,
      the Trustee shall follow the procedures set forth in Section 3.18(a)(v)(B).
      Promptly (but no later than one (1) Business Day) after filing with the
      Commission, the Trustee shall make available on its internet website identified
      in Section 6.05 a final executed copy of each Form 10-D filed by the Trustee.
      The signing party at the Master Servicer can be contacted as set forth in
      Section 11.07. Form 10-D requires the registrant to indicate (by checking “yes”
or “no”) that it (1) has filed all reports required to be filed by Section 13 or
      15(d) of the Exchange Act during the preceding 12 months (or for such shorter
      period that the registrant was required to file such reports), and (2) has
      been
      subject to such filing requirements for the past 90 days. The Depositor shall
      notify the Trustee in writing, no later than the fifth calendar day after the
      related Distribution Date with respect to the filing of a report on Form 10-D,
      if the answer to the questions should be “no”. The Trustee shall be entitled to
      rely on the representations in Section 2.06(g) or any such notice in preparing,
      executing and/or filing any such report. The parties to this Agreement
      acknowledge that the performance by the Master Servicer and the Trustee of
      their
      respective duties under Sections 3.18(a)(i) and (v) related to the timely
      preparation, execution and filing of Form 10-D is contingent upon such parties
      strictly observing all applicable deadlines in the performance of their duties
      under such Sections. Neither the Master Servicer nor the Trustee shall have
      any
      liability for any loss, expense, damage, claim arising out of or with respect
      to
      any failure to properly prepare, execute and/or timely file such Form 10-D,
      where such failure results from a party’s failure to deliver on a timely basis,
      any information from such party needed to prepare, arrange for execution or
      file
      such Form 10-D, not resulting from its own negligence, bad faith or willful
      misconduct. 

     

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

     

    (B)
      For
      so long as the Trust is subject to the Exchange Act reporting requirements,
      no
      later than the close of business on the 2nd Business Day after the occurrence
      of
      a Reportable Event (i) the parties set forth in Exhibit M shall be required
      pursuant to Section 3.18(a)(iv) below to provide, and the Master Servicer will
      enforce the obligations of each Servicer (to the extent provided in the related
      Servicing Agreement) to provide to the Trustee and the Depositor, to the extent
      known by a responsible officer thereof, in EDGAR-compatible format, or in such
      other form as otherwise agreed upon by the Trustee and the Depositor and such
      party, the form and substance of any Form 8-K Disclosure Information, if
      applicable, and (ii) the Depositor shall approve, as to form and substance,
      or
      disapprove, as the case may be, the inclusion of the Form 8-K Disclosure
      Information on Form 8-K. The Depositor shall be responsible for any reasonable
      fees and expenses assessed or incurred by the Trustee in connection with
      including any Form 8-K Disclosure Information on Form 8-K pursuant to this
      Section. 

     

    (C)
      After
      preparing the Form 8-K, the Trustee shall forward electronically a copy of
      the
      Form 8-K to the Depositor and the Master Servicer for review. No later than
      the
      close of business New York City time on the 3rd Business Day after the
      Reportable Event, a duly authorized officer of the Master Servicer shall sign
      the Form 8-K and return an electronic or fax copy of such signed Form 8-K (with
      an original executed hard copy to follow by overnight mail) to the Trustee.
      Promptly, but no later than the close of business on the 3rd Business Day after
      the Reportable Event (provided that, the Trustee forwards a copy of the Form
      8-K
      no later than noon New York time on the third Business Day after the Reportable
      Event), the Depositor shall notify the Trustee in writing via email to
      notifications@fsir.com of any changes to or approval of such Form 8-K. In the
      absence of receipt of any written changes or approval, the Trustee shall be
      entitled to assume that such Form 8-K is in final form and the Trustee may
      proceed with the execution and filing of the Form 8-K. If a Form 8-K cannot
      be
      filed on time or if a previously filed Form 8-K needs to be amended, the Trustee
      shall follow the procedures set forth in Section 3.18(a)(v)(B). Promptly (but
      no
      later than one (1) Business Day) after filing with the Commission, the Trustee
      shall, make available on its internet website a final executed copy of each
      Form
      8-K filed by the Trustee. The signing party at the Master Servicer can be
      contacted as set forth in Section 11.07. The parties to this Agreement
      acknowledge that the performance by Master Servicer and the Trustee of their
      respective duties under this Section 3.18(a)(ii) related to the timely
      preparation, execution and filing of Form 8-K is contingent upon such parties
      strictly observing all applicable deadlines in the performance of their duties
      under this Section 3.18(a)(ii). Neither the Master Servicer nor the Trustee
      shall have any liability for any loss, expense, damage, claim arising out of
      or
      with respect to any failure to properly prepare, execute and/or timely file
      such
      Form 8-K, where such failure results from a party’s failure to deliver on a
      timely basis, any information from such party needed to prepare, arrange for
      execution or file such Form 8-K, not resulting from its own negligence, bad
      faith or willful misconduct.

     

    (iii)
      (A)
      Within 90 days after the end of each fiscal year of the Trust or such earlier
      date as may be required by the Exchange Act (the “Form 10-K Filing Deadline”)
      (it being understood that the fiscal year for the Trust ends on December 31st
      of
      each year), commencing in March 2007, the Trustee shall prepare and file on
      behalf of the Trust a Form 10-K, in form and substance as required by the
      Exchange Act. Each
      such
      Form 10-K shall include the following items, in each case to the extent they
      have been delivered to the Trustee within the applicable time frames set forth
      in this Agreement, (I) an annual compliance statement for each
      Servicer, the Master
      Servicer, the Trustee and any subservicer or subcontractor, as applicable,
      as
      described under Section 3.16, (II)(A) the annual reports on assessment of
      compliance with Servicing Criteria for each Servicer, the Master Servicer,
      each
      subservicer and subcontractor participating in the servicing function, the
      Trustee and the Custodian, as described under Section 3.17, and (B) if any
      such
      report on assessment of compliance with Servicing Criteria described under
      Section 3.17 identifies any material instance of noncompliance, disclosure
      identifying such instance of noncompliance, or if any such report on assessment
      of compliance with Servicing Criteria described under Section 3.17 is not
      included as an exhibit to such Form 10-K, disclosure that such report is not
      included and an explanation why such report is not included, (III)(A) the
      registered public accounting firm attestation report for each Servicer, the
      Master Servicer, the Trustee, each subservicer, each subcontractor, as
      applicable, and the Custodian, as described under Section 3.17, and (B) if
      any
      registered public accounting firm attestation report described under Section
      3.17 identifies any material instance of noncompliance, disclosure identifying
      such instance of noncompliance, or if any such registered public accounting
      firm
      attestation report is not included as an exhibit to such Form 10-K, disclosure
      that such report is not included and an explanation why such report is not
      included, and (IV) a Sarbanes-Oxley Certification as described in Section 3.18
      (a)(iii)(D) below (provided, however, that the Trustee may omit from the Form
      10-K any annual compliance statement, assessment of compliance or attestation
      report that is not required to be filed with such Form 10-K pursuant to
      Regulation AB). Any
      disclosure or information in addition to (I) through (IV) above that is required
      to be included on Form 10-K (“Additional Form 10-K Disclosure”) shall be,
      pursuant to the paragraph immediately below, reported by the parties set forth
      on Exhibit M to the Trustee and the Depositor and approved for inclusion by
      the
      Depositor, and the Trustee will have no duty or liability for any failure
      hereunder to determine or prepare any Additional Form 10-K Disclosure absent
      such reporting (other than in the case where the Trustee is the reporting party
      as set forth in Exhibit M) and approval.

     

    (B)
      No
      later than March 15th
      of each
      year that the Trust is subject to the Exchange Act reporting requirements,
      commencing in 2007, (i) the parties set forth in Exhibit M shall be required
      to
      provide, and the Master Servicer shall enforce the obligations of each Servicer
      (to the extent provided in the related Servicing Agreement) to provide, pursuant
      to Section 3.18(a)(iv) below to the Trustee and the Depositor, to the extent
      known by a responsible officer thereof, in EDGAR-compatible format, or in such
      other form as otherwise agreed upon by the Trustee and the Depositor and such
      party, the form and substance of any Additional Form 10-K Disclosure, if
      applicable, and (ii) the Depositor will approve, as to form and substance,
      or
      disapprove, as the case may be, the inclusion of the Additional Form 10-K
      Disclosure on Form 10-K. The Depositor shall be responsible for any reasonable
      fees and expenses assessed or incurred by the Trustee in connection with
      including any Additional Form 10-K Disclosure on Form 10-K pursuant to this
      Section.

     

    (C)
      After
      preparing the Form 10-K, the Trustee shall forward electronically a copy of
      the
      Form 10-K to the Depositor (only in the case where such Form 10-K includes
      Additional Form 10-K Disclosure and otherwise if requested by the Depositor)
      and
      the Master Servicer for review. Within three Business Days after receipt of
      such
      copy, but no later than March 25th
      (provided that, the Trustee forwards a copy of the Form 10-K no later than
      four
      Business Days after March 15th), the Depositor shall notify the Trustee in
      writing (which may be furnished electronically) of any changes to or approval
      of
      such Form 10-K. In the absence of receipt of any written changes or approval,
      the Trustee shall be entitled to assume that such Form 10-K is in final form
      and
      the Trustee may proceed with the execution and filing of the Form 10-K. No later
      than the close of business Eastern Standard time on the 4th Business Day prior
      to the Form 10-K Filing Deadline, an officer of the Master Servicer in charge
      of
      the master servicing function shall sign the Form 10-K and return an electronic
      or fax copy of such signed Form 10-K (with an original executed hard copy to
      follow by overnight mail) to the Trustee. If a Form 10-K cannot be filed on
      time
      or if a previously filed Form 10-K needs to be amended, the Trustee will follow
      the procedures set forth in Section 3.18(a)(v)(B). Promptly (but no later than
      one (1) Business Day) after filing with the Commission, the Trustee shall make
      available on its internet website a final executed copy of each Form 10-K filed
      by the Trustee. The signing party at the Master Servicer can be contacted
as
      set forth in Section 11.07.
      Form
      10-K requires the registrant to indicate (by checking “yes ” or “no”) that it
      (1) has filed all reports required to be filed by Section 13 or 15(d) of the
      Exchange Act during the preceding 12 months (or for such shorter period that
      the
      registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past 90 days. The Depositor shall notify the Trustee
      in writing, no later than the 15th calendar day in March of each year in which
      the Trust is subject to the reporting requirements of the Exchange Act with
      respect to the filing of a report on Form 10-K, if the answer to the questions
      should be “no”. The Trustee shall be entitled to rely on the representations in
      Section 2.06(g) or any such notice in preparing, executing and/or filing any
      such report. The parties to this Agreement acknowledge that the performance
      by
      the Master Servicer and the Trustee of their respective duties under Sections
      3.18(a)(iii) and (iv) related to the timely preparation, execution and filing
      of
      Form 10-K is contingent upon such parties strictly observing all applicable
      deadlines in the performance of their duties under such Sections and Sections
      3.16 and Section 3.17. Neither the Master Servicer nor the Trustee shall have
      any liability for any loss, expense, damage, claim arising out of or with
      respect to any failure to properly prepare, execute and/or timely file such
      Form
      10-K, where such failure results from the Master Servicer’s or the Trustee’s
      inability or failure to receive, on a timely basis, any information from any
      other party hereto needed to prepare, arrange for execution or file such Form
      10-K, not resulting from its own negligence, bad faith or willful misconduct.
      

     

    (D)
      Each
      Form 10-K shall include a certification (the “Sarbanes-Oxley Certification”)
      required to be included therewith pursuant to the Sarbanes-Oxley Act which
      shall
      be signed by the Certifying Person and delivered to the Trustee no later than
      March 15th
      of each
      year in which the Trust is subject to the reporting requirements of the Exchange
      Act. The Master Servicer shall cause any Servicer, and any subservicer or
      subcontractor engaged by it to, provide to the Person who signs the
      Sarbanes-Oxley Certification (the “Certifying Person”), by March 15th of each
      year in which the Trust is subject to the reporting requirements of the Exchange
      Act (or such other date specified in the related Servicing Agreement) and
      otherwise within a reasonable period of time upon request, a certification
      (each, a “Back-Up Certification”), in the form attached hereto as Exhibit K,
      upon which the Certifying Person, the entity for which the Certifying Person
      acts as an officer, and such entity’s officers, directors and Affiliates
      (collectively with the Certifying Person, “Certification Parties”) can
      reasonably rely. An officer of the Master Servicer in charge of the master
      servicing function shall serve as the Certifying Person on behalf of the Trust.
      Such officer of the Certifying Person can be contacted as set forth in Section
      11.07. In
      connection with the filing of any Form 10-K hereunder, the Trustee shall sign
      a
      Back-Up Certification substantially in the form of Exhibit Q; provided, however,
      that the Trustee shall not be required to undertake an analysis of any
      accountant’s report attached as an exhibit to the Form 10-K. In
      the
      event the Trustee is terminated or resigns pursuant to the terms of this
      Agreement or any subcontractor or subservicer is terminated pursuant to the
      related servicing agreement, the Trustee, subcontractor or subservicer, as
      applicable, shall provide a Back-Up Certification to the Certifying Person
      pursuant to this Section 3.18(b) with respect to the period of time it was
      subject to this Agreement or the related servicing agreement, as
      applicable.

     

    (iv)
      With
      respect to any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure
      or any Form 8-K Disclosure Information (collectively, the “Additional
      Disclosure”) relating to the Trust Fund, the Trustee’s obligation to include
      such Additional Information in the applicable Exchange Act report is subject
      to
      receipt from the entity that is indicated in Exhibit M as the responsible party
      for providing that information, if other than the Trustee, as and when required
      as described in Section 3.18(a)(i) through (iii) above. Such Additional
      Disclosure shall be accompanied by a notice substantially in the form of Exhibit
      N. Each of the Master Servicer, the Seller, the Trustee, the Custodian and
      the
      Depositor hereby agrees to notify and provide, and the Master Servicer agrees
      to
      enforce the obligations (to the extent provided in the related Servicing
      Agreement) of each Servicer to notify and provide, to the extent known to the
      Trustee and the Depositor all Additional Disclosure relating to the Trust Fund,
      with respect to which such party is indicated in Exhibit M as the responsible
      party for providing that information. The Depositor shall be responsible for
      any
      reasonable fees and expenses assessed or incurred by the Trustee in connection
      with including any Additional Disclosure information pursuant to this
      Section.

     

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

     

    (B)
      In
      the event that the Trustee is unable to timely file with the Commission all
      or
      any required portion of any Form 8-K, 10-D or 10-K required to be filed by
      this
      Agreement because required disclosure information was either not delivered
      to it
      or delivered to it after the delivery deadlines set forth in this Agreement
      or
      for any other reason, the Trustee shall promptly notify the Depositor and the
      Master Servicer. In the case of Form 10-D and Form 10-K, the Depositor, the
      Master Servicer and the Trustee shall cooperate to prepare and file a Form
      12b-25 and a 10-DA and 10-KA as applicable, pursuant to Rule 12b-25 of the
      Exchange Act. In the case of Form 8-K, the Trustee will, upon receipt of all
      required Form 8-K Disclosure Information and upon the approval and direction
      of
      the Depositor, include such disclosure information on the next Form 10-D. In
      the
      event that any previously filed Form 8-K, 10-D or 10-K needs to be amended,
      and
      such amendment relates to any Additional Disclosure, the Trustee shall notify
      the Depositor and the parties affected thereby and such parties will cooperate
      to prepare any necessary Form 8-K, 10-DA or 10-KA. Any Form 15, Form 12b-25
      or
      any amendment to Form 8-K, 10-D or 10-K shall be signed by an appropriate
      officer of the Master Servicer. The parties hereto acknowledge that the
      performance by the Master Servicer and the Trustee of their respective duties
      under this Section 3.18(a)(v) related to the timely preparation, execution
      and
      filing of Form 15, a Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K
      is
      contingent upon the Master Servicer and the Depositor timely performing their
      duties under this Section. Neither the Master Servicer nor the Trustee shall
      have any liability for any loss, expense, damage or claim arising out of or
      with
      respect to any failure to properly prepare, execute and/or timely file any
      such
      Form 15, Form 12b-25 or any amendments to Form 8-K, 10-D or 10-K, where such
      failure results from a party’s failure to deliver on a timely basis, any
      information from such party needed to prepare, arrange for execution or file
      such Form 15, Form 12b-25 or any amendments to Form 8-K, 10-D or 10-K, not
      resulting from its own negligence, bad faith or willful misconduct.

     

    The
      Depositor agrees to promptly furnish to the Trustee, from time to time upon
      request, such further information, reports and financial statements within
      its
      control related to this Agreement, the Mortgage Loans as the Trustee reasonably
      deems appropriate to prepare and file all necessary reports with the Commission.
      The Trustee shall have no responsibility to file any items other than those
      specified in this Section 3.18; provided, however, the Trustee shall cooperate
      with the Depositor in connection with any additional filings with respect to
      the
      Trust Fund as the Depositor deems necessary under the Exchange Act. Copies
      of
      all reports filed by the Trustee under the Exchange Act shall be available
      on
      the Trustee’s website initially located at www.usbank.com/abs. Fees and expenses
      incurred by the Trustee in connection with this Section 3.18 shall not be
      reimbursable from the Trust Fund.

     

    (b)  The
      Trustee shall indemnify and hold harmless the Depositor and the Master Servicer
      and each of its officers, directors and affiliates from and against any losses,
      damages, penalties, fines, forfeitures, reasonable and necessary legal fees
      and
      related costs, judgments and other costs and expenses arising out of or based
      upon a breach of the Trustee’s obligations under Sections 3.16, 3.17 and 3.18 or
      the Trustee’s negligence, bad faith or willful misconduct in connection
      therewith. In addition, the Trustee shall indemnify and hold harmless the
      Depositor and the Master Servicer and each of their respective officers,
      directors and affiliates from and against any losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments
      and other reasonable costs and expenses arising out of or based upon (i) any
      untrue statement or alleged untrue statement of any material fact contained
      in
      any Back-Up Certification, any Annual Statement of Compliance, any Assessment
      of
      Compliance or any Additional Disclosure provided by the Trustee on its behalf
      or
      on behalf of any subservicer or subcontractor engaged by the Trustee pursuant
      to
      Section 3.16, 3.17 or 3.18 (the
      “Trustee Information”), or (ii) any omission or alleged omission to state
      therein a material fact required to be stated therein or necessary to make
      the
      statements therein, in light of the circumstances in which they were made,
      not
      misleading; provided, by way of clarification, that this paragraph shall be
      construed solely by reference to the Trustee Information and not to any other
      information communicated in connection with the Certificates, without regard
      to
      whether the Trustee Information or any portion thereof is presented together
      with or separately from such other information.

     

    The
      Depositor shall indemnify and hold harmless the Trustee and the Master Servicer
      and each of its officers, directors and affiliates from and against any losses,
      damages, penalties, fines, forfeitures, reasonable and necessary legal fees
      and
      related costs, judgments and other costs and expenses arising out of or based
      upon a breach of the obligations of the Depositor under Sections 3.16, 3.17
      and
      3.18 or the Depositor’s negligence, bad faith or willful misconduct in
      connection therewith. In addition, the Depositor shall indemnify and hold
      harmless the Master Servicer, the Trustee and each of their respective officers,
      directors and affiliates from and against any losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments
      and other reasonable costs and expenses arising out of or based upon (i) any
      untrue statement or alleged untrue statement of any material fact contained
      in
      any Additional Disclosure provided by the Depositor that is required to be
      filed
      pursuant to this Section 3.18 (the
      “Depositor Information”),
      or
(ii)
      any omission or alleged omission to state therein a material fact required
      to be
      stated therein or necessary to make the statements therein, in light of the
      circumstances in which they were made, not misleading; provided, by way of
      clarification, that this paragraph shall be construed solely by reference to
      the
      Depositor Information that is required to be filed and not to any other
      information communicated in connection with the Certificates, without regard
      to
      whether the Depositor Information or any portion thereof is presented together
      with or separately from such other information.

     

    The
      Master Servicer shall indemnify and hold harmless the Trustee and the Depositor
      and each of its respective officers, directors and affiliates from and against
      any losses, damages, penalties, fines, forfeitures, reasonable and necessary
      legal fees and related costs, judgments and other reasonable costs and expenses
      arising out of or based upon a breach of the obligations of the Master Servicer
      under Sections 3.16, 3.17 and 3.18 or the Master Servicer’s negligence, bad
      faith or willful misconduct in connection therewith. In addition, the Master
      Servicer shall indemnify and hold harmless the Depositor and each of its
      officers, directors and affiliates from and against any losses, damages,
      penalties, fines, forfeitures, reasonable and necessary legal fees and related
      costs, judgments and other costs and expenses arising out of or based upon
      (i)
      any untrue statement or alleged untrue statement of any material fact contained
      in any Annual Statement of Compliance, any Assessment of Compliance, any
      Attestation Report or any Additional Disclosure or other information provided
      by
      the Master Servicer on its behalf or on behalf of any subservicer or
      subcontractor engaged by the Master Servicer pursuant to Section 3.16, 3.17
      or
      3.18 (the
      “Master Servicer Information”), or (ii) any omission or alleged omission to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein, in light of the circumstances in which they were made,
      not misleading; provided, by way of clarification, that this paragraph shall
      be
      construed solely by reference to the Master Servicer Information and not to
      any
      other information communicated in connection with the Certificates, without
      regard to whether the Master Servicer Information or any portion thereof is
      presented together with or separately from such other information.

     

    If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless the Depositor, the Trustee or the Master Servicer, as applicable,
      then
      the defaulting party, in connection with any conduct for which it is providing
      indemnification under this Section 3.18(c), agrees that it shall contribute
      to
      the amount paid or payable by the other parties as a result of the losses,
      claims, damages or liabilities of the other party in such proportion as is
      appropriate to reflect the relative fault and the relative benefit of the
      respective parties.

     

    The
      indemnification provisions set forth in this Section 3.18(c) shall survive
      the
      termination of this Agreement or the termination of any party to this
      Agreement.

     

    (c)  Failure
      of the Master Servicer to comply with this Section 3.18 (including with respect
      to the timeframes required herein) shall, constitute an Event of Default, and
      at
      the written direction of the Depositor the Trustee shall, in addition to
      whatever rights the Trustee may have under this Agreement and at law or equity
      or to damages, including injunctive relief and specific performance, upon notice
      immediately terminate all of the rights and obligations of the Master Servicer
      under this Agreement and in and to the Mortgage Loans and the proceeds thereof
      without compensating the Master Servicer for the same (but subject to the Master
      Servicer’s rights to payment of any Master Servicing Compensation and
      reimbursement of all amounts for which it is entitled to be reimbursed prior
      to
      the date of termination). Failure of the Trustee to comply with this Section
      3.18 (including with respect to the timeframes required in this Section) which
      failure results in a failure to timely file the related Form 10-K, shall be
      deemed a default which may result in the termination of the Trustee pursuant
      to
      Section 9.08 of this Agreement and the Depositor may, in addition to whatever
      rights the Depositor may have under this Agreement and at law or equity or
      to
      damages, including injunctive relief and specific performance, upon notice
      immediately terminate all of the rights and obligations of the Trustee under
      this Agreement and in and to the Mortgage Loans and the proceeds thereof without
      compensating the Trustee for the same (but subject to the Trustee’s right to
      reimbursement of all amounts for which it is entitled to be reimbursed prior
      to
      the date of termination). This paragraph shall supersede any other provision
      in
      this Agreement or any other agreement to the contrary. In connection with the
      termination of the Master Servicer pursuant to this Section 3.18(d), the Trustee
      shall be entitled to reimbursement of all costs and expenses associated with
      such termination to the extent set forth in Section 9.05. Notwithstanding
      anything to the contrary in this Agreement, no Event of Default by the Master
      Servicer or default by the Trustee shall have occurred with respect to any
      failure to properly prepare, execute and/or timely file any report on Form
      8-K,
      Form 10-D or Form 10-K, any Form 15 or Form 12b-25 or any amendments to Form
      8-K, 10-D or 10-K, where such failure results from any party’s failure to
      deliver on a timely basis, any information from such party needed to prepare,
      arrange for execution or file any such report, Form or amendment, and does
      not
      result from its own negligence, bad faith or willful misconduct.

     

    (d)  Notwithstanding
      the provisions of Section 11.02, this Section 3.18 may be amended without the
      consent of the Certificateholders.

     

    (e)  Any
      report, notice or notification to be delivered by the Master Servicer or the
      Trustee to the Depositor pursuant to this Section 3.18, may be delivered via
      email to or,
      in
      the case of a notification, telephonically by calling Reg AB Compliance Manager
      at (212) 272-7525. 

     

    Section
      3.19 Intention
      of the Parties and Interpretation.

     

    Each
      of the parties acknowledges and agrees that the purpose of Sections 3.16, 3.17
      and 3.18 of this Agreement is to facilitate compliance by the Seller, the
      Depositor and the Master Servicer with the provisions of Regulation AB.
      Therefore, each of the parties agrees that (a) the obligations of the parties
      hereunder shall be interpreted in such a manner as to accomplish that purpose,
      (b) the parties’ obligations hereunder will be supplemented and modified as
      necessary to be consistent with any such amendments, interpretive advice or
      guidance, convention or consensus among active participants in the asset-backed
      securities markets, advice of counsel, or otherwise in respect of the
      requirements of Regulation AB, (c) the parties shall comply with reasonable
      requests made by the Seller, the Depositor, the Master Servicer or the Trustee
      for delivery of additional or different information as the Seller, the
      Depositor, the Master Servicer or the Trustee may determine in good faith is
      necessary to comply with the provisions of Regulation AB and (d) no amendment
      of
      this Agreement shall be required to effect any such changes in the obligations
      of the parties to this transaction as are necessary to accommodate evolving
      interpretations of the provisions of Regulation AB. 

     

    Section
      3.20 UCC. 

     

    The
      Depositor shall inform the Trustee in writing of any Uniform Commercial Code
      financing statements that were filed on the Closing Date in connection with
      the
      Trust with stamped recorded copies of such financing statements to be delivered
      to the Trustee promptly upon receipt by the Depositor. If directed by the
      Depositor in writing, the Trustee will file any continuation statements solely
      at the expense of the Depositor. The Depositor shall file any financing
      statements or amendments thereto required by any change in the Uniform
      Commercial Code.

     

    Section
      3.21 Optional
      Purchase of Defaulted Mortgage Loans. 

     

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

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      IV

    Accounts

     

    Section
      4.01 Protected
      Accounts.

     

    (a) The
      Master Servicer shall enforce the obligation of each Servicer to establish
      and
      maintain a Protected Account in accordance with the applicable Servicing
      Agreement, with records to be kept with respect thereto on a Mortgage Loan
      by
      Mortgage Loan basis, into which accounts shall be deposited within two Business
      Days (or as of such other time specified in the related Servicing Agreement)
      of
      receipt and identification, all collections of principal and interest on any
      Mortgage Loan and any REO Property received by a Servicer, including Principal
      Prepayments, Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries
      and
      advances made from the Servicer’s own funds (less servicing compensation as
      permitted by the applicable Servicing Agreement in the case of any Servicer)
      and
      all other amounts to be deposited in the applicable Protected Account. Each
      Servicer is hereby authorized to make withdrawals from and deposits to the
      applicable Protected Account for purposes required or permitted by this
      Agreement. Reconciliations will be prepared for the Protected Accounts within
      45
      calendar days after the bank statement cut-off date. To the extent provided
      in
      the related Servicing Agreement, the related Protected Account shall be held
      by
      a Designated Depository Institution and segregated on the books of such
      institution in the name of the Trustee for the benefit of Holders of the
      Certificates.

     

    (b) To
      the
      extent provided in the related Servicing Agreement, amounts on deposit in a
      Protected Account may be invested in Permitted Investments in the name of the
      Trustee for the benefit of Holders of the Certificates and, except as provided
      in the preceding paragraph, not commingled with any other funds. Such Permitted
      Investments shall mature, or shall be subject to redemption or withdrawal,
      no
      later than the date on which such funds are required to be withdrawn for deposit
      in the Master Servicer Collection Account, and shall be held until required
      for
      such deposit. The income earned from Permitted Investments made pursuant to
      this
      Section 4.01 shall be paid to the related Servicer under the applicable
      Servicing Agreement, and the risk of loss of moneys required to be distributed
      to the Holders of the Certificates resulting from such investments shall be
      borne by and be the risk of the related Servicer. The related Servicer (to
      the
      extent provided in the applicable Servicing Agreement) shall deposit the amount
      of any such loss in the related Protected Account within two Business Days
      of
      receipt of notification of such loss but not later than the second Business
      Day
      prior to the Distribution Date on which the moneys so invested are required
      to
      be distributed to the Holders of the Certificates.

     

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

     

    (i) Scheduled
      Payments on the Mortgage Loans received or any related portion thereof advanced
      by such Servicer pursuant to its Servicing Agreement which were due on or before
      the related Due Date, net of the amount thereof comprising its Servicing Fee
      or
      any fees with respect to any lender-paid primary mortgage insurance
      policy;

     

    (ii) Full
      Principal Prepayments received by such Servicer with respect to the Mortgage
      Loans in the related Prepayment Period, with interest to the date of prepayment,
      net of the amount thereof comprising its Servicing Fee;

     

    (iii) Liquidation
      Proceeds or Subsequent Recoveries received by such Servicer with respect to
      the
      Mortgage Loans during the related calendar month;

     

    (iv) Partial
      Principal Prepayments received by such Servicer for the Mortgage Loans in the
      related Prepayment Period; and

     

    (v) Any
      amount to be used as a Monthly Advance and any Compensating Interest
      Payments.

     

    (d) Withdrawals
      may be made from an Account only to make remittances as provided in Sections
      4.01(c), 4.02 and 4.03; to reimburse the Master Servicer or a Servicer for
      Monthly Advances which have been recovered by subsequent collections from the
      related Mortgagor; to remove amounts deposited in error; to remove fees, charges
      or other such amounts deposited on a temporary basis; or to clear and terminate
      the account at the termination of the Trust Fund in accordance with Section
      10.01. As provided in Sections 4.01(a) and 4.02(b) certain amounts otherwise
      due
      to the Servicers may be retained by them and need not be deposited in the Master
      Servicer Collection Account.

     

    Section
      4.02 Master
      Servicer Collection Account. 

     

    (a)  The
      Master Servicer shall establish and maintain in the name of the Trustee, for
      the
      benefit of the Holders of the Certificates, the Master Servicer Collection
      Account as a segregated trust account or accounts. The Master Servicer
      Collection Account shall be an Eligible Account. The Master Servicer will
      deposit in the Master Servicer Collection Account as identified by the Master
      Servicer and as received by the Master Servicer, the following
      amounts:

     

    (i)  Any
      amounts withdrawn from a Protected Account for deposit into the Master Servicer
      Collection Account in accordance with the related Servicing
      Agreement;

     

    (ii)  Any
      Monthly Advance and any Compensating Interest Payments;

     

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

     

    (iv)  The
      Purchase Price with respect to any Mortgage Loans purchased by the Seller
      pursuant to the Mortgage Loan Purchase Agreement or Sections 2.02 or 2.03
      hereof, any amounts which are to be treated pursuant to Section 2.04 of this
      Agreement as the payment of a Purchase Price in connection with the tender
      of a
      Substitute Mortgage Loan by the Seller, the Purchase Price with respect to
      any
      Mortgage Loans purchased by the Company pursuant to Section 3.21, and all
      proceeds of any Mortgage Loans or property acquired with respect thereto
      repurchased by the Depositor or its designee pursuant to Section
      10.01;

     

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

     

    (vi)  Any
      other
      amounts received by or on behalf of the Master Servicer and required to be
      deposited in the Master Servicer Collection Account pursuant to this
      Agreement.

     

    (b)  All
      amounts deposited to the Master Servicer Collection Account shall be held by
      the
      Master Servicer in the name of the Trustee in trust for the benefit of the
      Certificateholders in accordance with the terms and provisions of this
      Agreement. The requirements for crediting the Master Servicer Collection Account
      shall be exclusive, it being understood and agreed that, without limiting the
      generality of the foregoing, payments in the nature of (i) prepayment or late
      payment charges or assumption, tax service, statement account or payoff,
      substitution, satisfaction, release and other like fees and charges and (ii)
      the
      items enumerated in Subsections 4.05(a)(i), (ii), (iii), (iv), (vi), (vii),
      (viii), (ix), (x), (xi), (xii) and (xiii), need not be credited by the Master
      Servicer or the related Servicer to the Distribution Account or the Master
      Servicer Collection Account, as applicable. Reconciliations will be prepared
      for
      the Master Servicing Collection Account within 45 calendar days after the bank
      statement cut-off date. In the event that the Master Servicer shall deposit
      or
      cause to be deposited to the Distribution Account any amount not required to
      be
      credited thereto, the Trustee, upon receipt of a written request therefor signed
      by a Servicing Officer of the Master Servicer, shall promptly transfer such
      amount to the Master Servicer, any provision herein to the contrary
      notwithstanding.

     

    (c)  The
      amount at any time credited to the Master Servicer Collection Account may be
      invested, in the name of the Trustee, or its nominee, for the benefit of the
      Certificateholders, in Permitted Investments as directed by Master Servicer.
      All
      Permitted Investments shall mature or be subject to redemption or withdrawal
      on
      or before, and shall be held until, the next succeeding Distribution Account
      Deposit Date. Any and all investment earnings on amounts on deposit in the
      Master
      Servicer Collection Account
      from
      time to time shall be for the account of the Master Servicer. The Master
      Servicer from time to time shall be permitted to withdraw or receive
      distribution of any and all investment earnings from the Master Servicer
      Collection Account. The risk of loss of moneys required to be distributed to
      the
      Certificateholders resulting from such investments shall be borne by and be
      the
      risk of the Master Servicer. The Master Servicer shall deposit the amount of
      any
      such loss in the Master Servicer Collection Account within two Business Days
      of
      receipt of notification of such loss but not later than the second Business
      Day
      prior to the Distribution Date on which the moneys so invested are required
      to
      be distributed to the Certificateholders.

     

    Section
      4.03 Permitted
      Withdrawals and Transfers from the Master Servicer Collection
      Account. 

     

    (a)  The
      Master Servicer will, from time to time on demand of a Servicer or the Trustee,
      make or cause to be made such withdrawals or transfers from the Master Servicer
      Collection Account as the Master Servicer has designated for such transfer
      or
      withdrawal pursuant to this Agreement and the related Servicing Agreement.
      The
      Master Servicer may clear and terminate the Master Servicer Collection Account
      pursuant to Section 10.01 and remove amounts from time to time deposited in
      error.

     

    (b)  On
      an
      ongoing basis, the Master Servicer shall withdraw from the Master Servicer
      Collection Account (i) any expenses, costs and liabilities recoverable by the
      Trustee, the Master Servicer or the Custodian pursuant to Sections 3.03, 7.03
      and 9.05 and (ii) any amounts payable to the Master Servicer as set forth in
      Section 3.14; provided however, that the Master Servicer shall be obligated
      to
      pay from its own funds any amounts which it is required to pay under Section
      7.03(a).

     

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

     

    (d)  No
      later
      than noon New York time on each Distribution Account Deposit Date, the Master
      Servicer will transfer all Available Funds on deposit in the Master Servicer
      Collection Account with respect to the related Distribution Date to the Trustee
      for deposit in the Distribution Account.

     

    Section
      4.04 Distribution
      Account.

     

    (a) The
      Trustee shall establish and maintain in the name of the Trustee, for the benefit
      of the Certificateholders, the Distribution Account as a segregated trust
      account or accounts.

     

    (b) The
      Distribution Account shall be an Eligible Account. The Trustee shall deposit
      in
      the Distribution Account the following amounts:

     

    (i) Any
      amounts withdrawn from the Master Servicer Collection Account and remitted
      by
      the Master Servicer for deposit into the Distribution
      Account;

     

    (ii) Any
      Monthly Advance;

     

    (iii) Any
      Compensating Interest Payments paid by the applicable Servicer;

     

    (iv) Any
      Insurance Proceeds or Net Liquidation Proceeds or Subsequent Recoveries received
      by or on behalf of the Master Servicer;

     

    (v) The
      Purchase Price with respect to any Mortgage Loans purchased by the Seller
      pursuant to the Mortgage Loan Purchase Agreement or Sections 2.02 or 2.03
      hereof, any amounts which are to be treated pursuant to Section 2.04 of this
      Agreement as the payment of a Purchase Price in connection with the tender
      of a
      Substitute Mortgage Loan by the Seller, the Purchase Price with respect to
      any
      Mortgage Loans purchased by the Seller pursuant to Section 3.21, and all
      proceeds of any Mortgage Loans or property acquired with respect thereto
      repurchased by the Depositor or its designee pursuant to Section
      10.01;

     

    (vi) Any
      amounts required to be deposited with respect to losses on investments of
      deposits in the Distribution Account; and

     

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

     

    (c) All
      amounts deposited to the Distribution Account shall be held by the Trustee
      in
      the name of the Trustee in trust for the benefit of the Certificateholders
      in
      accordance with the terms and provisions of this Agreement. In the event that
      the Master Servicer shall deposit or remit for deposit to the Distribution
      Account any amount not required to be credited thereto, the Trustee, upon
      receipt of a written request therefor signed by a Servicing Officer of the
      Master Servicer, shall promptly transfer such amount to the Master Servicer,
      any
      provision herein to the contrary notwithstanding.

     

    (d) The
      Distribution Account shall constitute a trust account of the Trust Fund
      segregated on the books of the Trustee and held by the Trustee in trust in
      its
      Corporate Trust Office, and the Distribution Account and the funds deposited
      therein shall not be subject to, and shall be protected from, all claims, liens,
      and encumbrances of any creditors or depositors of the Trustee or the Master
      Servicer (whether made directly, or indirectly through a liquidator or receiver
      of the Trustee or the Master Servicer). The Distribution Account shall be an
      Eligible Account. The amount at any time credited to the Distribution Account
      shall be
      (i) held in cash and fully insured by the FDIC to the maximum coverage provided
      thereby or (ii) invested in the name of the Trustee, in such Permitted
      Investments as may be selected by the Trustee or deposited in demand deposits
      with such depository institutions as may be selected by the Trustee, provided
      that time deposits of such depository institutions would be a Permitted
      Investment. All Permitted Investments shall mature or be subject to redemption
      or withdrawal on or before, and shall be held until, the next succeeding
      Distribution Date if the obligor for such Permitted Investment is the Trustee
      or, if such obligor is any other Person, the Business Day preceding such
      Distribution Date. All investment earnings on amounts on deposit in the
      Distribution Account or benefit from funds uninvested therein from time to
      time
      shall be for the account of the Trustee. The Trustee shall be permitted to
      withdraw or receive distribution of any and all investment earnings from the
      Distribution Account on each Distribution Date. If there is any loss on a
      Permitted Investment or demand deposit, the Trustee shall deposit such amount
      in
      the Distribution Account.
      With
      respect to the Distribution Account and the funds deposited therein, the Master
      Servicer shall take such action as may be necessary to ensure that the related
      Certificateholders shall be entitled to the priorities afforded to such a trust
      account (in addition to a claim against the estate of the Trustee) as provided
      by 12 U.S.C. § 92a(e), and applicable regulations pursuant thereto, if
      applicable, or any applicable comparable state statute applicable to state
      chartered banking corporations.

     

    Section
      4.05 Permitted
      Withdrawals and Transfers from the Distribution Account. 

     

    (a) The
      Trustee will, from time to time on written demand of the Master Servicer, make
      or cause to be made such withdrawals or transfers from the Distribution Account
      as the Master Servicer has designated for such transfer or withdrawal pursuant
      to this Agreement and the Servicing Agreements or as the Trustee has instructed
      hereunder for the following purposes (limited in the case of amounts due the
      Master Servicer to those not withdrawn from the Master Servicer Collection
      Account in accordance with the terms of this Agreement);

     

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

     

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

     

    (iii) to
      reimburse the Master Servicer or any Servicer from Insurance Proceeds relating
      to a particular Mortgage Loan for insured expenses incurred with respect to
      such
      Mortgage Loan and to reimburse the Master Servicer or such Servicer from
      Liquidation Proceeds from a particular Mortgage Loan for Liquidation Expenses
      incurred with respect to such Mortgage Loan; provided that the Master Servicer
      shall not be entitled to reimbursement for Liquidation Expenses with respect
      to
      a Mortgage Loan to the extent that (i) any amounts with respect to such Mortgage
      Loan were paid as Excess Liquidation Proceeds pursuant to clause (viii) of
      this
      Subsection 4.05(a) to the Master Servicer; and (ii) such Liquidation Expenses
      were not included in the computation of such Excess Liquidation
      Proceeds;

     

    (iv) to
      reimburse the Master Servicer or any Servicer for advances of funds (other
      than
      Monthly Advances) made with respect to the Mortgage Loans, and the right to
      reimbursement pursuant to this subclause being limited to amounts received
      on
      the related Mortgage Loan (including, for this purpose, the Purchase Price
      therefor, Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries)
      which represent late recoveries of the payments for which such advances were
      made;

     

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

     

    (vi) to
      pay
      the Master Servicer as set forth in Section 3.14;

     

    (vii) to
      reimburse the Master Servicer for expenses, costs and liabilities incurred
      by
      and reimbursable to it pursuant to Sections 3.03, 7.04(c) and (d);

     

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

     

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

     

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

     

    (xi)
      to
      pay the Trustee as set forth in Section 9.05;

     

    (xii) to
      remove
      amounts deposited in error; and

     

    (xiii) to
      clear
      and terminate the Distribution Account pursuant to Section 10.01.

     

    (b) The
      Master Servicer shall keep and maintain separate accounting, on a Mortgage
      Loan
      by Mortgage Loan basis, for the purpose of accounting for any reimbursement
      from
      the Distribution Account pursuant to subclauses (i) through (iv) or with respect
      to any such amounts which would have been covered by such subclauses had the
      amounts not been retained by the Master Servicer without being deposited in
      the
      Distribution Account under Section 4.04(c). 

     

    (c) On
      each
      Distribution Date, the Trustee shall distribute the Available Funds to the
      extent on deposit in the Distribution Account to the Holders of the Certificates
      in accordance with Section 6.01.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      V

    Certificates

     

    Section
      5.01 Certificates.

     

    (a) The
      Depository and the Depositor signing on behalf of the Issuing Entity have
      entered into a Depository Agreement dated as of the Closing Date (the
“Depository Agreement”). The Non-Offered Certificates (which are also Physical
      Certificates) and the Individual Certificates and as provided in Subsection
      5.01(b), the Certificates shall at all times remain registered in the name
      of
      the Depository or its nominee and at all times: (i) registration of such
      Certificates may not be transferred by the Trustee except to a successor to
      the
      Depository; (ii) ownership and transfers of registration of such Certificates
      on
      the books of the Depository shall be governed by applicable rules established
      by
      the Depository; (iii) the Depository may collect its usual and customary fees,
      charges and expenses from its Depository Participants; (iv) the Trustee shall
      deal with the Depository as representative of such Certificate Owners of the
      respective Class of Certificates for purposes of exercising the rights of the
      related Certificateholders under this Agreement, and requests and directions
      for
      and votes of such representative shall not be deemed to be inconsistent if
      they
      are made with respect to different Certificate Owners; and (v) the Trustee
      may
      rely and shall be fully protected in relying upon information furnished by
      the
      Depository with respect to its Depository Participants.

     

    The
      Residual Certificates and the Non-Offered Subordinate Certificates are initially
      Physical Certificates. If at any time the Holders of all of the Certificates
      of
      one or more such Classes request that the Trustee cause such Class to become
      Global Certificates, the Trustee and the Depositor will take such action as
      may
      be reasonably required to cause the Depository to accept such Class or Classes
      for trading if it may legally be so traded.

     

    All
      transfers by Certificate Owners of such respective Classes of Book-Entry
      Certificates and any Global Certificates shall be made in accordance with the
      procedures established by the Depository Participant or brokerage firm
      representing such Certificate Owners. Each Depository Participant shall only
      transfer Book-Entry Certificates of Certificate Owners it represents or of
      brokerage firms for which it acts as agent in accordance with the Depository’s
      normal procedures.

     

    (b) If
      (i)(A)
      the Depositor advises the Trustee in writing that the Depository is no longer
      willing or able to properly discharge its responsibilities as Depository and
      (B)
      the Depositor is unable to locate a qualified successor within 30 days or (ii)
      the Depositor at its option advises the Trustee in writing that it elects to
      terminate the book-entry system through the Depository, the Trustee shall
      request that the Depository notify all Certificate Owners of the occurrence
      of
      any such event and of the availability of definitive, fully registered
      Certificates to Certificate Owners requesting the same. Upon surrender to the
      Trustee of the Certificates by the Depository, accompanied by registration
      instructions from the Depository for registration, the Trustee shall issue
      the
      definitive Certificates. Neither the Depositor nor the Trustee shall be liable
      for any delay in delivery of such instructions and may conclusively rely on,
      and
      shall be protected in relying on, such instructions.

     

    (c) (i) REMIC
      I
      will be evidenced by (x) the REMIC I Regular Interests, which will be
      uncertificated and non-transferable and are hereby designated as the “regular
      interests” in REMIC I and have the initial principal amounts and accrue interest
      at the Pass-Through Rates equal to those set forth in this Section 5.01(c)(i),
      and (y) the Class R-1 Certificates, which are hereby designated as the sole
      class of “residual interests” in REMIC I. 

     

    The
      REMIC
      I Regular Interests and the Class R-1 Certificates will have the following
      designations, initial principal amounts and Pass-Through Rates:

     

    
      	
              REMIC
                I Interest

            	 	
              Initial
                Principal Amount

            	 	
              Pass-Through
                Rate

            	 	
              Related
                Subgroup

            
	
              I-1-Sub

            	 	
              $

            	
              6,829.96

            	 	
              6.250%

            	 	
              Subgroup
                I-1

            
	
              I-2-Sub

            	 	
              $

            	
              2,039.41

            	 	
              7.500%

            	 	
              Subgroup
                I-2

            
	
              I-1-ZZZ

            	 	
              $

            	
              168,826,473.76

            	 	
              6.250%

            	 	
              Subgroup
                I-1

            
	
              I-2-ZZZ

            	 	
              $

            	
              50,402,365.62

            	 	
              7.500%

            	 	
              Subgroup
                I-2

            
	
              I-PO

            	 	
              $

            	
              2,487,674.90

            	 	
              0.000%

            	 	
              Subgroup
                I-1

            
	
              II-PO

            	 	
              $

            	
              122,805.52

            	 	
              0.000%

            	 	
              Subgroup
                II-1

            
	
              II-1-Sub

            	 	
              $

            	
              535.20

            	 	
              5.500%

            	 	
              Subgroup
                II-1

            
	
              II-2-Sub

            	 	
              $

            	
              1,869.81

            	 	
              6.000%

            	 	
              Subgroup
                II-2

            
	
              II-1-ZZZ

            	 	
              $

            	
              13,352,010.52

            	 	
              5.500%

            	 	
              Subgroup
                II-1

            
	
              II-2-ZZZ

            	 	
              $

            	
              46,646,941.04

            	 	
              6.000%

            	 	
              Subgroup
                II-2

            
	
              I-X

            	 	 	
              (1)

            	 	
              (2)

            	 	
              Subgroup
                I-2

            
	
              II-X

            	 	 	
              (1)

            	 	
              (3)

            	 	
              Subgroup
                II-2

            
	
              Class
                R-1

            	 	
              $

            	
              50.00

            	 	
              5.500%

            	 	
              Subgroup
                II-1

            

    

    

    
      	 	
              (1)

            	
              REMIC
                I Regular Interests I-X and II-X will not have initial principal
                amounts
                but will accrue interest on their respective uncertificated notional
                amounts calculated in accordance with the related definition of
                “Uncertificated Notional Amount”
herein.

            

    

     

    
      	 	
              (2)

            	
              A
                variable pass-through rate equal to the excess, if any, of (a) the
                weighted average of the Net Mortgage Rates on the Group I Mortgage
                Loans
                with Net Mortgage Rates greater than 7.500% per annum over (b) 7.500%
                per
                annum. 

            

    

    

    
      	 	
              (3)

            	
              A
                variable pass-through rate equal to the excess, if any, of (a) the
                weighted average of the Net Mortgage Rates on the Group II Mortgage
                Loans
                with Net Mortgage Rates greater than 6.000% per annum over (b) 6.000%
                per
                annum.

            

    

    

    Interest
      shall be payable to the REMIC I Regular Interests at the applicable Pass-Through
      Rates on the related Uncertificated Principal Balances from distributions of
      interest collected from the related Subgroup. On the first Distribution Date,
      REMIC I Regular Interest II-1-ZZZ shall be paid $100 in reduction of its
      Uncertificated Principal Balance from distributions of principal collected
      from
      Subgroup II-1. Following the distribution in the preceding sentence,
      distributions of principal shall be deemed to be made to the REMIC I Regular
      Interests, in each case from the related Subgroup, in the following manner:
      first, to the related REMIC I Regular Interest ending with the designation
      “Sub,” so that the Uncertificated Principal Balance of each such REMIC I Regular
      Interest is equal to 0.1% of the excess of (x) the aggregate Scheduled Principal
      Balance of the Mortgage Loans in the related Subgroup other than the related
      PO
      Percentage of the Scheduled Principal Balance of any such Mortgage Loans over
      (y) the aggregate Current Principal Amount of the Senior Certificates related
      to
      such Subgroup (other than the portion of such Current Principal Amount
      attributable to the related Class PO Component of the Class PO Certificates)
      (except that if any such excess is a larger number than in the preceding
      distribution period, the least amount of principal shall be distributed to
      such
      REMIC I Regular Interests such that the REMIC I Subordinated Balance Ratio
      is
      maintained); and second, to the related REMIC I Regular Interest ending with
      the
      designation “ZZZ,” (provided that a portion of the remaining principal equal to
      the Class PO Certificate Principal Distribution Amount attributable to the
      related Discount Mortgage Loans shall be distributed to REMIC I Regular Interest
      I-PO or REMIC I Regular Interest II-PO, as applicable). Realized Losses from
      each Subgroup shall be applied after all distributions have been made on each
      Distribution Date, first, to the related REMIC I Regular Interest ending with
      the designation “Sub,” so that the Uncertificated Principal Balance of each such
      REMIC I Regular Interest is equal to 0.1% of the excess of (x) the aggregate
      Scheduled Principal Balance of the Mortgage Loans in the related Subgroup other
      than the related PO Percentage of the Scheduled Principal Balance of any such
      Mortgage Loans over (y) the aggregate Current Principal Amount of the Senior
      Certificates related to such Subgroup (other than the portion of such Current
      Principal Amount attributable to the related Class PO Component of the Class
      PO
      Certificates) (except that if any such excess is a larger number than in the
      preceding distribution period, the least amount of Realized Losses shall be
      applied to such REMIC I Regular Interests such that the REMIC I Subordinated
      Balance Ratio is maintained); and second, to the related REMIC I Regular
      Interests ending with the designation “ZZZ” (except that if a Realized Loss is
      recognized with respect to a Discount Mortgage Loan, the related PO Percentage
      of such Realized Loss shall be allocated to the related REMIC I Regular Interest
      I-PO or REMIC I Regular Interest II-PO, as applicable).

    

    The
      aggregate amount of any Net Interest Shortfalls and interest portion of Realized
      Losses for any Distribution Date shall be allocated to accrued interest payable
      to the REMIC I Regular Interests (other than REMIC I Regular Interests I-PO
      and
      II-PO), pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Pass-Through Rates on the respective Uncertificated Principal Balances of each
      such REMIC I Regular Interest.

     

    (ii) REMIC
      II
      shall be evidenced by (x) the REMIC II Regular Interests, which will be
      uncertificated and non-transferable and are hereby designated as the “regular
      interests” in REMIC II and have the initial principal amounts and accrue
      interest at the Pass-Through Rates equal to those set forth in this Section
      5.01(c)(ii), and (y) the Class R-2 Certificates, which are hereby designated
      as
      the sole class of “residual interests” in REMIC II. The REMIC II Regular
      Interests and the Class R-2 Certificates will have the following designations,
      initial principal amounts and Pass-Through Rates:  

     

    
      	
              Designation

            	 	
              Initial
                Principal Amount

            	 	
              Pass-Through
                Rate

            	 
	
              I-A1-1

            	 	
              $

            	
              29,183,200.00
                

            	 	
              7.000%

            	 
	
              I-A1-3

            	 	
              $

            	
              43,774,800.00
                

            	 	
              5.750%

            	 
	
              I-A1-4

            	 	
              $

            	
              84,045,341.99
                

            	 	
              6.250%

            	 
	
              I-A1-5

            	 	
              $

            	
              5,000,000.00
                

            	 	
              6.250%

            	 
	
              I-A2-1

            	 	
              $

            	
              48,365,000.00
                

            	 	
              7.500%

            	 
	
              II-A1-1

            	 	
              $

            	
              12,817,248.74
                

            	 	
              5.500%

            	 
	
              II-A2-1

            	 	
              $

            	
              44,779,000.00
                

            	 	
              6.000%

            	 
	
              I-X

            	 	 	
              (1)

            	 	
              (2)

            	 
	
              II-X

            	 	 	
              (1)

            	 	
              (2)

            	 
	
              I-PO

            	 	
              $

            	
              2,487,674.90
                

            	 	
              0.000%

            	 
	
              II-PO

            	 	
              $

            	
              122,805.52
                

            	 	
              0.000%

            	 
	
              B-1

            	 	
              $

            	
              4,509,000.00
                

            	 	
              (3)

            	 
	
              B-2

            	 	
              $

            	
              2,537,000.00
                

            	 	
              (3)

            	 
	
              B-3

            	 	
              $

            	
              1,127,000.00
                

            	 	
              (3)

            	 
	
              B-4

            	 	
              $

            	
              1,410,000.00
                

            	 	
              (3)

            	 
	
              B-5

            	 	
              $

            	
              986,000.00
                

            	 	
              (3)

            	 
	
              B-6

            	 	
              $

            	
              705,374.59
                

            	 	
              (3)

            	 
	
              Class
                R-2

            	 	
              $

            	
              50.00
                

            	 	
              5.500%

            	 
	
              R-3

            	 	
              $

            	
              50.00
                

            	 	
              5.500%

            	 

    

    

     

    
      	 	
              (1)

            	
              REMIC
                II Regular Interests I-X and II-X will not have initial principal
                amounts
                but will accrue interest on their respective uncertificated notional
                amounts calculated in accordance with the related definition of
                “Uncertificated Notional Amount”
herein.

            

    

     

    
      	 	
              (2)

            	
              REMIC
                II Regular Interests I-X and II-X will not have Pass-Through Rates
                but
                will be entitled to receive 100% of the amounts payable with respect
                to
                REMIC I Regular Interests I-X and II-X,
                respectively.

            

    

     

    
      	 	
              (3)

            	
              REMIC
                II Regular Interests B-1, B-2, B-3, B-4, B-5 and B-6 will each bear
                interest at a per annum rate equal to the weighted average of the
                Pass-Through Rates on REMIC I Regular Interests I-1-Sub, I-2-Sub,
                II-1-Sub
                and II-2-Sub, weighted on the basis of the Uncertificated Principal
                Balances of each such REMIC I Regular Interest immediately preceding
                the
                related Distribution Date.

            

    

     

    Principal
      shall be payable to, and shortfalls, losses and prepayments are allocable to,
      the REMIC II Regular Interests as such amounts are payable and allocable to
      the
      Corresponding Interests; provided that, solely for purposes of the foregoing,
      any shortfalls or losses allocable to the Class I-1A-2 Certificates and the
      Class I-2A-2 Certificates shall be deemed to be allocated entirely to the Class
      I-1A-1 Certificates and the Class I-2A-1 Certificates, respectively. Interest
      shall be payable to each REMIC II Regular Interest at the Pass-Through Rate
      for
      such REMIC II Regular Interest on its Uncertificated Principal
      Balance.

     

    (iii) The
      Classes of the Certificates (other than the Class PO Certificates and Class
      X
      Certificates), and Components of the Class PO Certificates and Class X
      Certificates, shall have the following designations, initial principal amounts
      and Pass-Through Rates:

     

    

      

        
          	
                  Designation

                	 	
                  Initial
                    Principal Amount

                	 	
                  Pass-Through
                    Rate

                
	
                  I-A1-1

                	 	
                  $

                	
                  29,183,200.00

                	 	
                  (2)

                
	
                  I-A1-2

                	 	 	
                  (1)

                	 	
                  (3)

                
	
                  I-A1-3

                	 	
                  $

                	
                  43,774,800.00

                	 	
                  5.75%

                
	
                  I-A1-4

                	 	
                  $

                	
                  84,045,341.99

                	 	
                  6.25%

                
	
                  I-A1-5

                	 	
                  $

                	
                  5,000,000.00

                	 	
                  6.25%

                
	
                  I-A2-1

                	 	
                  $

                	
                  48,365,000.00

                	 	
                  (4)

                
	
                  I-A2-2

                	 	
                  $

                	
                  (1)

                	 	
                  (5)

                
	
                  II-A1-1

                	 	
                  $

                	
                  12,817,248.74

                	 	
                  5.50%

                
	
                  II-A2-1

                	 	
                  $

                	
                  44,779,000.00

                	 	
                  6.00%

                
	
                  I-X
                    Component

                	 	
                  $

                	
                  (1)

                	 	
                  (6)

                
	
                  II-X
                    Component

                	 	
                  $

                	
                  (1)

                	 	
                  (7)

                
	
                  I-PO
                    Component

                	 	
                  $

                	
                  2,487,674.90

                	 	
                  0.00%

                
	
                  II-PO
                    Component

                	 	
                  $

                	
                  122,805.52

                	 	
                  0.00%

                
	
                  BX

                	 	
                  $

                	
                  (1)

                	 	
                  (8)

                
	
                  B-1

                	 	
                  $

                	
                  4,509,000.00

                	 	
                  6.00%

                
	
                  B-2

                	 	
                  $

                	
                  2,537,000.00

                	 	
                  6.00%

                
	
                  B-3

                	 	
                  $

                	
                  1,127,000.00

                	 	
                  6.00%

                
	
                  B-4

                	 	
                  $

                	
                  1,410,000.00

                	 	
                  (9)

                
	
                  B-5

                	 	
                  $

                	
                  986,000.00

                	 	
                  (9)

                
	
                  B-6

                	 	
                  $

                	
                  705,374.59

                	 	
                  (9)

                
	
                  R-1

                	 	
                  $

                	
                  50.00

                	 	
                  5.50%

                
	
                  R-2

                	 	
                  $

                	
                  50.00

                	 	
                  5.50%

                
	
                  R-3

                	 	
                  $

                	
                  50.00

                	 	
                  5.50%

                

        

      

    

    

    
      	 	
              (1)

            	
              As
                described in the definition of Notional Amount
                herein.

            

    

     

    
      	 	
              (2)

            	
              The
                Class I-A1-1 Certificates will bear interest at a Pass-Through Rate
                equal
                to 5.77%
                per annum for the first Distribution Date, and thereafter at an adjustable
                Pass-Through Rate equal to LIBOR plus 0.45% per annum, subject to
                a
                minimum rate of 0.45% per annum and a maximum rate equal to 7.00%
                per
                annum.

            

    

     

    
      	 	
              (3)

            	
              The
                Class I-A1-2 Certificates will bear interest at a Pass-Through Rate
                equal
                to 1.23% per annum for the first Distribution Date, and thereafter
                at an
                adjustable Pass-Through Rate equal to 6.55% per annum minus LIBOR,
                subject
                to a minimum rate of 0.00% per annum and a maximum rate equal to
                6.55% per
                annum.

            

    

     

    
      	 	
              (4)

            	
              The
                Class I-A2-1 Certificates will bear interest at a Pass-Through Rate
                equal
                to 5.65% per annum for the first Distribution Date, and thereafter
                at an
                adjustable Pass-Through Rate equal to LIBOR plus 0.33% per annum,
                subject
                to a minimum rate of 0.33% per annum and a maximum rate equal to
                7.50% per
                annum.

            

    

     

    
      	 	
              (5)

            	
              The
                Class I-A2-2 Certificates will bear interest at a Pass-Through Rate
                equal
                to 1.85% per annum for the first Distribution Date, and thereafter
                at an
                adjustable Pass-Through Rate equal to 7.17% per annum minus LIBOR,
                subject
                to a minimum rate of 0.00% per annum and a maximum rate equal to
                7.17% per
                annum.

            

    

     

    
      	 	
              (6)

            	
              The
                Class I-X Component will bear interest at a Pass-Through Rate equal
                to the
                excess, if any, of (a) the weighted average of the Net Mortgage Rates
                on
                the Group I Mortgage Loans with Net Mortgage Rates greater than 7.500%
                per
                annum over (b) 7.500% per annum; provided that, for federal income
                tax
                purposes, the Class I-X Component will not have a Pass-Through Rate
                but
                will be entitled to receive 100% of the amounts payable with respect
                to
                REMIC II Regular Interest I-X.

            

    

     

    
      	 	
              (7)

            	
              The
                Class II-X Component will bear interest at a Pass-Through Rate equal
                to
                the excess, if any, of (a) the weighted average of the Net Mortgage
                Rates
                on the Group II Mortgage Loans with Net Mortgage Rates greater than
                6.000%
                per annum over (b) 6.000% per annum; provided that, for federal income
                tax
                purposes, the Class II-X Component will not have a Pass-Through Rate
                but
                will be entitled to receive 100% of the amounts payable with respect
                to
                REMIC II Regular Interest II-X.

            

    

     

    
      	 	
              (8)

            	
              The
                Class BX Certificates will bear interest at a Pass-Through Rate equal
                to
                the excess, if any, of (a) the weighted average of 6.250%, 7.500%,
                5.500%
                and 6.000% per annum, weighted in proportion to the results of subtracting
                from each of the respective aggregate principal balances of the Mortgage
                Loans in Subgroup I-1 (other than the portion of the Mortgage Loans
                in
                Subgroup I-1 attributable to the Class I-PO Component of the Class
                PO
                Certificates), Subgroup I-2, Subgroup II-1 (other than the portion
                of the
                Mortgage Loans in Subgroup II-1 attributable to the Class II-PO Component
                of the Class PO Certificates) and Subgroup II-2 the aggregate Current
                Principal Amount of the related Class or Classes of Senior Certificates,
                other than the related Interest Only Certificates and other than
                the
                portion of such Current Principal Amount attributable to the related
                Class
                PO Component of the Class PO Certificates, over (b) 6.000% per annum;
                provided that, for federal income tax purposes, the Class BX Certificates
                will bear interest at a rate equivalent to the foregoing, expressed
                as the
                excess, if any, of (i) the weighted average of the Pass-Through Rates
                on
                REMIC II Regular Interests B-1, B-2 and B-3, weighted on the basis
                of the
                Uncertificated Principal Balances of each such REMIC II Regular Interest
                immediately preceding the related Distribution Date, over (ii) 6.000%
                per
                annum.

            

    

     

    
      	 	
              (9)

            	
              The
                Class B-4, Class B-5 and Class B-6 Certificates will each bear interest
                at
                a Pass-Through Rate equal to the weighted average of 6.250%, 7.500%,
                5.500% and 6.000% per annum, weighted in proportion to the results
                of
                subtracting from each of the respective aggregate principal balances
                of
                the Mortgage Loans in Subgroup I-1 (other than the portion of the
                Mortgage
                Loans in Subgroup I-1 attributable to the Class I-PO Component of
                the
                Class PO Certificates), Subgroup I-2, Subgroup II-1 (other than the
                portion of the Mortgage Loans in Subgroup II-1 attributable to the
                Class
                II-PO Component of the Class PO Certificates) and Subgroup II-2 the
                aggregate Current Principal Amount of the related Class or Classes
                of
                Senior Certificates, other than the related Interest Only Certificates
                and
                other than the portion of such Current Principal Amount attributable
                to
                the related Class PO Component of the Class PO Certificates; provided
                that, for federal income tax purposes, the Class BX Certificates
                will bear
                interest at a rate equivalent to the foregoing, expressed as the
                weighted
                average of the Pass-Through Rates on REMIC II Regular Interests B-4,
                B-5
                and B-6, weighted on the basis of the Uncertificated Principal Balances
                of
                each such REMIC II Regular Interest immediately preceding the related
                Distribution Date.

            

    

     

    (d) For
      purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
      Distribution Date immediately following the maturity date for the Mortgage
      Loan
      with the latest maturity date in the Trust Fund has been designated as the
      “latest possible maturity date” for the REMIC I Regular Interests, the REMIC II
      Regular Interests, the Components and the Regular Certificates.

     

    (e) With
      respect to each Distribution Date, each Class of Certificates and Class X
      Components shall accrue interest during the related Interest Accrual Period.
      With respect to each Distribution Date and each such Class of Certificates
      and
      Class X Components, interest shall be calculated on the basis of a 360-day
      year
      comprised of twelve 30-day months, based upon the respective Pass-Through Rate
      set forth, or determined as provided, above and the Current Principal Amount
      (or
      Notional Amount in the case of the Interest Only Certificates or Class X
      Components) of such Class applicable to such Distribution Date. 

     

    (f) The
      Certificates shall be substantially in the forms set forth in Exhibits A-1,
      A-2,
      A-3, A-4 or A-5, as applicable. On original issuance, the Trustee shall sign,
      countersign and shall deliver them at the direction of the Depositor. Pending
      the preparation of Definitive Certificates of any Class, the Trustee may sign
      and countersign temporary Certificates that are printed, lithographed or
      typewritten, in authorized denominations for Certificates of such Class,
      substantially of the tenor of the Definitive Certificates in lieu of which
      they
      are issued and with such appropriate insertions, omissions, substitutions and
      other variations as the officers or authorized signatories executing such
      Certificates may determine, as evidenced by their execution of such
      Certificates. If temporary Certificates are issued, the Depositor will cause
      Definitive Certificates to be prepared without unreasonable delay. After the
      preparation of Definitive Certificates, the temporary Certificates shall be
      exchangeable for definitive Certificates upon surrender of the temporary
      Certificates at the office of the Trustee, without charge to the Holder. Upon
      surrender for cancellation of any one or more temporary Certificates, the
      Trustee shall sign and countersign and deliver in exchange therefor a like
      aggregate principal amount, in authorized denominations for such Class, of
      Definitive Certificates of the same Class. Until so exchanged, such temporary
      Certificates shall in all respects be entitled to the same benefits as
      Definitive Certificates.

     

    (g) Each
      Class of Book-Entry Certificates will be registered as a single Certificate
      of
      such Class held by a nominee of the Depository or the DTC Custodian, and
      beneficial interests will be held by investors through the book-entry facilities
      of the Depository in minimum denominations of (i) in the case of the Senior
      Certificates (other than the Residual Certificates), $100,000 and in each case
      increments of $1.00 in excess thereof, (ii) in the case of the Class I-A1-5
      Certificates, $1,000 and increments of $1.00 in excess thereof, and (iii) in
      the
      case of the Subordinate Certificates, $100,000 and increments of $1.00 in excess
      thereof, except that one Certificate of each such Class may be issued in a
      different amount so that the sum of the denominations of all outstanding
      Certificates of such Class shall equal the Current Principal Amount of such
      Class on the Closing Date. On the Closing Date, the Trustee shall execute and
      countersign Physical Certificates all in an aggregate principal amount that
      shall equal the Current Principal Amount of such Class on the Closing Date.
      The
      Non-Offered Certificates shall be issued in certificated fully-registered form
      in minimum dollar denominations of $100,000 and integral multiples of $1.00
      in
      excess thereof, except that one of each of the Non-Offered Certificates of
      each
      Class may be issued in a different amount so that the sum of the denominations
      of all outstanding related Non-Offered Certificates of such Class shall equal
      the Current Principal Amount of such Class on the Closing Date. The Class R-1,
      Class R-2 and Class R-3 Certificates shall each be issued in certificated
      fully-registered form, in the denomination of $50. Each Class of Global
      Certificates, if any, shall be issued in fully registered form in minimum dollar
      denominations of $100,000 and integral multiples of $1.00 in excess thereof,
      except that one Certificate of each Class may be in a different denomination
      so
      that the sum of the denominations of all outstanding Certificates of such Class
      shall equal the Current Principal Amount of such Class on the Closing Date.
      On
      the Closing Date, the Trustee shall execute and countersign (i) in the case
      of
      each Class of the Offered Certificates, the Certificate in the entire Current
      Principal Amount of the respective Class and (ii) in the case of each Class
      of
      the Non-Offered Certificates, Individual Certificates all in an aggregate
      principal amount that shall equal the Current Principal Amount of each such
      respective Class on the Closing Date. The Certificates referred to in clauses
      (i) and (ii) and if at any time there are to be Global Certificates, the Global
      Certificates shall be delivered by the Depositor to the Depository or pursuant
      to the Depository’s instructions, shall be delivered by the Depositor on behalf
      of the Depository to and deposited with the DTC Custodian. The Trustee shall
      sign the Certificates by facsimile or manual signature and countersign them
      by
      manual signature on behalf of the Trustee by one or more authorized signatories,
      each of whom shall be Responsible Officers of the Trustee or its agent. A
      Certificate bearing the manual and facsimile signatures of individuals who
      were
      the authorized signatories of the Trustee or its agent at the time of issuance
      shall bind the Trustee, notwithstanding that such individuals or any of them
      have ceased to hold such positions prior to the delivery of such Certificate.
      

     

    (h) No
      Certificate shall be entitled to any benefit under this Agreement, or be valid
      for any purpose, unless there appears on such Certificate the manually executed
      countersignature of the Trustee or its agent, and such countersignature upon
      any
      Certificate shall be conclusive evidence, and the only evidence, that such
      Certificate has been duly executed and delivered hereunder. All Certificates
      issued on the Closing Date shall be dated the Closing Date. All Certificates
      issued thereafter shall be dated the date of their
      countersignature.

     

    (i) The
      Closing Date is hereby designated as the “startup” day of each REMIC within the
      meaning of Section 860G(a)(9) of the Code.

     

    (j) For
      federal income tax purposes, each REMIC shall have a tax year that is a calendar
      year and shall report income on an accrual basis.

     

    (k) The
      Trustee on behalf of the Trust shall cause each REMIC to timely elect to be
      treated as a REMIC under Section 860D of the Code. Any inconsistencies or
      ambiguities in this Agreement or in the administration of any trust established
      hereby shall be resolved in a manner that preserves the validity of such
      elections.

     

    (l) The
      following legend shall be placed on the Residual Certificates, whether upon
      original issuance or upon issuance of any other Certificate of any such Class
      in
      exchange therefor or upon transfer thereof:

     

    THIS
      CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF,
      AN
      EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE
      I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION
      4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE PROPOSED
      TRANSFEREE PROVIDES THE TRUSTEE WITH AN OPINION OF COUNSEL ADDRESSED TO THE
      DEPOSITOR, TRUSTEE AND MASTER SERVICER AND ON WHICH THEY MAY RELY THAT IS
      SATISFACTORY TO THE TRUSTEE THAT THE PURCHASE OF CERTIFICATES ON BEHALF OF
      SUCH
      PERSON WILL NOT RESULT IN OR CONSTITUTE A NONEXEMPT PROHIBITED TRANSACTION,
      IS
      PERMISSIBLE UNDER APPLICABLE LAW AND WILL NOT GIVE RISE TO ANY ADDITIONAL
      OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE MASTER SERVICER OR THE
      TRUSTEE.

     

    The
      following legend shall be placed upon the Class B-4, Class B-5 and Class B-6
      Certificates, whether upon original issuance or upon issuance of any other
      Certificate of any such Class in exchange therefor or upon transfer
      thereof:

     

    THIS
      CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF,
      AN
      EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE
      I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION
      4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE TRANSFEREE
      CERTIFIES OR REPRESENTS THAT THE PROPOSED TRANSFER AND HOLDING OF A CERTIFICATE
      AND THE SERVICING, MANAGEMENT AND OPERATION OF THE TRUST AND ITS ASSETS: (I)
      WILL NOT RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN
      INDIVIDUAL OR CLASS PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED
      TO, PROHIBITED TRANSACTION EXEMPTION (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE
      95-60 OR PTE 96-23 AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL OBLIGATIONS
      ON
      THE PART OF THE DEPOSITOR, THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE
      DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL
      CERTIFICATE OR UNLESS THE OPINION SPECIFIED IN SECTION 5.07 OF THE AGREEMENT
      IS
      PROVIDED.

     

    Section
      5.02 Registration
      of Transfer and Exchange of Certificates. 

     

    (a) The
      Trustee shall maintain at its Corporate Trust Office a separate Certificate
      Register for Certificates in which, subject to such reasonable regulations
      as it
      may prescribe, the Trustee shall provide for the registration of the
      Certificates and of transfers and exchanges of the Certificates as herein
      provided.

     

    (b) Subject
      to Subsection 5.01(a) and, in the case of any Global Certificate or Physical
      Certificate upon the satisfaction of the conditions set forth below, upon
      surrender for registration of transfer of any Certificate at any office or
      agency of the Trustee maintained for such purpose, the Trustee shall sign,
      countersign and shall deliver, in the name of the designated transferee or
      transferees, a new Certificate of a like Class and aggregate Fractional
      Undivided Interest, but bearing a different number.

     

    (c) By
      acceptance of an Individual Certificate, whether upon original issuance or
      subsequent transfer, each holder of such a Certificate acknowledges the
      restrictions on the transfer of such Certificate set forth in the Securities
      Legend and agrees that it will transfer such a Certificate only as provided
      herein. In addition to the provisions of Subsection 5.02(h), the following
      restrictions shall apply with respect to the transfer and registration of
      transfer of an Individual Certificate to a transferee that takes delivery in
      the
      form of an Individual Certificate:

     

    (i) The
      Trustee shall register the transfer of an Individual Certificate if the
      requested transfer is being made to a transferee who has provided the Trustee
      with a Rule 144A Certificate or comparable evidence as to its QIB
      status.

     

    (ii) The
      Trustee shall register the transfer of any Individual Certificate if (x) the
      transferor has advised the Trustee in writing that the Certificate is being
      transferred to an Institutional Accredited Investor; and (y) prior to the
      transfer the transferee furnishes to the Trustee an Investment Letter (and
      the
      Trustee shall be fully protected in so doing), provided that, if based upon
      an
      Opinion of Counsel addressed to the Trustee to the effect that the delivery
      of
      (x) and (y) above are not sufficient to confirm that the proposed transfer
      is
      being made pursuant to an exemption from, or in a transaction not subject to,
      the registration requirements of the Securities Act and other applicable laws,
      the Trustee shall as a condition of the registration of any such transfer
      require the transferor to furnish such other certifications, legal opinions
      or
      other information prior to registering the transfer of an Individual Certificate
      as shall be set forth in such Opinion of Counsel.

     

    (d) Subject
      to Subsection 5.02(h), so long as a Global Certificate of such Class is
      outstanding and is held by or on behalf of the Depository, transfers of
      beneficial interests in such Global Certificate, or transfers by holders of
      Individual Certificates of such Class to transferees that take delivery in
      the
      form of beneficial interests in the Global Certificate, may be made only in
      accordance with this Subsection 5.02(d) and in accordance with the rules of
      the
      Depository:

     

    (i) In
      the
      case of a beneficial interest in the Global Certificate being transferred to
      an
      Institutional Accredited Investor, such transferee shall be required to take
      delivery in the form of an Individual Certificate or Certificates and the
      Trustee shall register such transfer only upon compliance with the provisions
      of
      Subsection 5.02(c)(ii).

     

    (ii) In
      the
      case of a beneficial interest in a Class of Global Certificates being
      transferred to a transferee that takes delivery in the form of an Individual
      Certificate or Certificates of such Class, except as set forth in clause (i)
      above, the Trustee shall register such transfer only upon compliance with the
      provisions of Subsection 5.02(c)(i).

     

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

     

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

     

    (e) Subject
      to Subsection 5.02(h), an exchange of a beneficial interest in a Global
      Certificate of a Class for an Individual Certificate or Certificates of such
      Class, an exchange of an Individual Certificate or Certificates of a Class
      for a
      beneficial interest in the Global Certificate of such Class and an exchange
      of
      an Individual Certificate or Certificates of a Class for another Individual
      Certificate or Certificates of such Class (in each case, whether or not such
      exchange is made in anticipation of subsequent transfer, and, in the case of
      the
      Global Certificate of such Class, so long as such Certificate is outstanding
      and
      is held by or on behalf of the Depository) may be made only in accordance with
      this Subsection 5.02(e) and in accordance with the rules of the
      Depository:

     

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

     

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

     

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

     

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

     

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

     

    (g) The
      Securities Legend shall be placed on any Individual Certificate issued in
      exchange for or upon transfer of another Individual Certificate or of a
      beneficial interest in a Global Certificate.

     

    (h) Subject
      to the restrictions on transfer and exchange set forth in this Section 5.02,
      the
      holder of any Individual Certificate may transfer or exchange the same in whole
      or in part (in an initial certificate balance equal to the minimum authorized
      denomination set forth in Section 5.01(g) above or any integral multiple of
      $1.00 in excess thereof) by surrendering such Certificate at the Corporate
      Trust
      Office, or at the office of any transfer agent, together with an executed
      instrument of assignment and transfer satisfactory in form and substance to
      the
      Trustee in the case of transfer and a written request for exchange in the case
      of exchange. The holder of a beneficial interest in a Global Certificate may,
      subject to the rules and procedures of the Depository, cause the Depository
      (or
      its nominee) to notify the Trustee in writing of a request for transfer or
      exchange of such beneficial interest for an Individual Certificate or
      Certificates. Following a proper request for transfer or exchange, the Trustee
      shall, within five Business Days of such request made at the Corporate Trust
      Office, sign, countersign and deliver at the Corporate Trust Office, to the
      transferee (in the case of transfer) or holder (in the case of exchange) or
      send
      by first class mail at the risk of the transferee (in the case of transfer)
      or
      holder (in the case of exchange) to such address as the transferee or holder,
      as
      applicable, may request, an Individual Certificate or Certificates, as the
      case
      may require, for a like aggregate Fractional Undivided Interest and in such
      authorized denomination or denominations as may be requested. The presentation
      for transfer or exchange of any Individual Certificate shall not be valid unless
      made at the Corporate Trust Office by the registered holder in person, or by
      a
      duly authorized attorney-in-fact.

     

    (i) At
      the
      option of the Certificateholders, Certificates may be exchanged for other
      Certificates of authorized denominations of a like Class and aggregate
      Fractional Undivided Interest, upon surrender of the Certificates to be
      exchanged at the Corporate Trust Office; provided, however, that no Certificate
      may be exchanged for new Certificates unless the original Fractional Undivided
      Interest represented by each such new Certificate (i) is at least equal to
      the
      minimum authorized denomination or (ii) is acceptable to the Depositor as
      indicated to the Trustee in writing. Whenever any Certificates are so
      surrendered for exchange, the Trustee shall sign and countersign and the Trustee
      shall deliver the Certificates which the Certificateholder making the exchange
      is entitled to receive.

     

    (j) If
      the
      Trustee so requires, every Certificate presented or surrendered for transfer
      or
      exchange shall be duly endorsed by, or be accompanied by a written instrument
      of
      transfer, with a signature guarantee, in form satisfactory to the Trustee,
      duly
      executed by the holder thereof or his or her attorney duly authorized in
      writing.

     

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

     

    (l) The
      Trustee shall cancel all Certificates surrendered for transfer or exchange
      but
      shall retain such Certificates in accordance with its standard retention policy
      or for such further time as is required by the record retention requirements
      of
      the Securities Exchange Act of 1934, as amended, and thereafter may destroy
      such
      Certificates.

     

    Section
      5.03 Mutilated,
      Destroyed, Lost or Stolen Certificates. 

     

    (a) If
      (i)
      any mutilated Certificate is surrendered to the Trustee, or the Trustee receives
      evidence to its satisfaction of the destruction, loss or theft of any
      Certificate, and (ii) there is delivered to the Trustee such security or
      indemnity as it may require to save it harmless, and (iii) the Trustee has
      not
      received notice that such Certificate has been acquired by a third Person,
      the
      Trustee shall sign, countersign and deliver, in exchange for or in lieu of
      any
      such mutilated, destroyed, lost or stolen Certificate, a new Certificate of
      like
      tenor and Fractional Undivided Interest but in each case bearing a different
      number. The mutilated, destroyed, lost or stolen Certificate shall thereupon
      be
      canceled of record by the Trustee and shall be of no further effect and evidence
      no rights.

     

    (b) Upon
      the
      issuance of any new Certificate under this Section 5.03, the Trustee may require
      the payment of a sum sufficient to cover any tax or other governmental charge
      that may be imposed in relation thereto and any other expenses (including the
      fees and expenses of the Trustee) connected therewith. Any duplicate Certificate
      issued pursuant to this Section 5.03 shall constitute complete and indefeasible
      evidence of ownership in the Trust Fund, as if originally issued, whether or
      not
      the lost, stolen or destroyed Certificate shall be found at any
      time.

     

    Section
      5.04 Persons
      Deemed Owners. 

     

    Prior
      to
      due presentation of a Certificate for registration of transfer, the Depositor,
      the Trustee and any agent of the Depositor or the Trustee may treat the Person
      in whose name any Certificate is registered as the owner of such Certificate
      for
      the purpose of receiving distributions pursuant to Section 6.01 and for all
      other purposes whatsoever. Neither the Depositor nor the Trustee or any agent
      of
      the Depositor or the Trustee shall be affected by notice to the contrary. No
      Certificate shall be deemed duly presented for a transfer effective on any
      Record Date unless the Certificate to be transferred is presented no later
      than
      the close of business on the third Business Day preceding such Record
      Date.

     

    Section
      5.05 Transfer
      Restrictions on Residual Certificates. 

     

    (a) Residual
      Certificates, or interests therein, may not be transferred without the prior
      express written consent of the Tax Matters Person and the Depositor. As a
      prerequisite to such consent, (1) the proposed transferee must provide the
      Tax
      Matters Person, the Depositor and the Trustee with an affidavit that the
      proposed transferee is a Permitted Transferee (and an affidavit that it is
      a
      United States Person), and (2) the proposed transferor must provide the Tax
      Matters Person, the Depositor and the Trustee with a certificate to the effect
      that it has no knowledge that the statements made by the proposed transferee
      in
      any such affidavit are false, each as provided in Subsection
      5.05(b).

     

    (b) No
      transfer, sale or other disposition of a Residual Certificate (including a
      beneficial interest therein) may be made unless, prior to the transfer, sale
      or
      other disposition of a Residual Certificate, (1) the proposed transferee
      (including the initial purchasers thereof) delivers to the Tax Matters Person,
      the Trustee and the Depositor an affidavit in the form attached hereto as
      Exhibit E stating, among other things, that as of the date of such transfer
      (i)
      such transferee is a Permitted Transferee and a United States person and that
      (ii) such transferee is not acquiring such Residual Certificate for the account
      of any Person who is not a Permitted Transferee or not a United States person,
      and (2) the proposed transferor delivers to the Tax Matters Person, the Trustee
      and the Depositor a certificate to the effect that it has no knowledge that
      the
      statements made by
      the
      proposed transferee in
      any
      such affidavit are false. The Tax Matters Person shall not consent to a transfer
      of a Residual Certificate if it has actual knowledge that any statement made
      in
      the affidavit issued pursuant to the preceding sentence is not true.
      Notwithstanding any transfer, sale or other disposition of a Residual
      Certificate to any Person who is not a Permitted Transferee or a United States
      Person, such transfer, sale or other disposition shall be deemed to be of no
      legal force or effect whatsoever and such Person shall not be deemed to be
      a
      Holder of a Residual Certificate for any purpose hereunder, including, but
      not
      limited to, the receipt of distributions thereon. If any purported transfer
      shall be in violation of the provisions of this Subsection 5.05(b), then the
      prior Holder thereof shall, upon discovery that the transfer of such Residual
      Certificate was not in fact permitted by this Subsection 5.05(b), be restored
      to
      all rights and obligations as a Holder thereof retroactive to the date of the
      purported transfer. None of the Trustee, the Tax Matters Person or the Depositor
      shall be under any liability to any Person for any registration or transfer
      of a
      Residual Certificate that is not permitted by this Subsection 5.05(b) or for
      making payments due on such Residual Certificate to the purported Holder thereof
      or taking any other action with respect to such purported Holder under the
      provisions of this Agreement so long as the written affidavit referred to above
      was received with respect to such transfer, and the Tax Matters Person, the
      Trustee and the Depositor, as applicable, had no knowledge that it was untrue.
      The prior Holder shall be entitled to recover from any purported Holder of
      a
      Residual Certificate that was in fact not a Permitted Transferee or a United
      States Person under this Subsection 5.05(b) at the time it became a Holder
      all
      payments made on such Residual Certificate. Each Holder of a Residual
      Certificate, by acceptance thereof, shall be deemed for all purposes to have
      consented to the provisions of this Subsection 5.05(b) and to any amendment
      of
      this Agreement deemed necessary (whether as a result of new legislation or
      otherwise) by counsel of the Tax Matters Person or the Depositor to ensure
      that
      the Residual Certificates are not transferred to any Person who is not a
      Permitted Transferee or a United States Person and that any transfer of such
      Residual Certificates will not cause the imposition of a tax upon the Trust
      or
      cause any REMIC to fail to qualify as a REMIC.

     

    (c) The
      Residual Certificates (including a beneficial interest therein) may not be
      purchased by or transferred to any Person who is not a United States
      Person.

     

    (d) By
      accepting a Residual Certificate, the purchaser thereof agrees to be a Tax
      Matters Person, and appoints the Trustee to act as its agent with respect to
      all
      matters concerning the tax obligations of the Trust.

     

    Section
      5.06 Restrictions
      on Transferability of Non-Offered Certificates. 

     

    (a) No
      offer,
      sale, transfer or other disposition (including pledge) of any Non-Offered
      Certificate shall be made by any Holder thereof unless registered under the
      Securities Act, or an exemption from the registration requirements of the
      Securities Act and any applicable state securities or “Blue Sky” laws is
      available and the prospective transferee (other than the Depositor) of such
      Certificate signs and delivers to the Trustee an Investment Letter, if the
      transferee is an Institutional Accredited Investor, in the form set forth as
      Exhibit F-l hereto, or a Rule 144A Certificate, if the transferee is a QIB,
      in
      the form set forth as Exhibit F-2 hereto. Notwithstanding the provisions of
      the
      immediately preceding sentence, no restrictions shall apply with respect to
      the
      transfer or registration of transfer of a beneficial interest in any Non-Offered
      Certificate that is a Global Certificate of a Class to a transferee that takes
      delivery in the form of a beneficial interest in the Global Certificate of
      such
      Class provided that each such transferee shall be deemed to have made such
      representations and warranties contained in the Rule 144A Certificate as are
      sufficient to establish that it is a QIB. In the case of a proposed transfer
      of
      any Certificate to a transferee other than a QIB, the Trustee may require an
      Opinion of Counsel addressed to the Trustee that such transaction is exempt
      from
      the registration requirements of the Securities Act. The cost of such opinion
      shall not be an expense of the Trustee or the Trust Fund.

     

    (b) The
      Non-Offered Certificates shall each bear a Securities Legend.

     

    Section
      5.07 ERISA
      Restrictions. 

     

    (a) Subject
      to the provisions of subsection (b), no Residual Certificates or Non-Offered
      Subordinate
      Certificates may be acquired directly or indirectly by, or on behalf of, an
      employee benefit plan or other retirement arrangement which is subject to Title
      I of ERISA or Section 4975 of the Code, unless the proposed transferee provides
      either (i) the Trustee, with an Opinion of Counsel addressed to the Depositor,
      the Trustee and the Master Servicer (upon which they may rely) which is
      satisfactory to the Trustee, which opinion will not be at the expense of the
      Depositor, the Trustee or the Master Servicer, that the purchase of such
      Certificates by or on behalf of such Plan is permissible under applicable law,
      will not constitute or result in a nonexempt prohibited transaction under ERISA
      or Section 4975 of the Code and will not subject the Depositor, the Master
      Servicer or the Trustee to any obligation in addition to those undertaken in
      the
      Agreement or (ii) in the case of the Non-Offered Subordinate Certificates,
      a
      representation or certification to the Trustee (upon which the Trustee and
      the
      other parties hereto are authorized to rely) to the effect that the proposed
      transfer and holding of such a Certificate and the servicing, management and
      operation of the Trust: (I) will not result in a prohibited transaction under
      Section 406 of ERISA or Section 4975 of the Code which is not covered under
      an
      individual or class prohibited transaction exemption including but not limited
      to Department of Labor Prohibited Transaction Exemption (“PTE”) 84-14 (Class
      Exemption for Plan Asset Transactions Determined by Independent Qualified
      Professional Asset Managers); PTE 91-38 (Class Exemption for Certain
      Transactions Involving Bank Collective Investment Funds); PTE 90-1 (Class
      Exemption for Certain Transactions Involving Insurance Company Pooled Separate
      Accounts), PTE 95-60 (Class Exemption for Certain Transactions Involving
      Insurance Company General Accounts), and PTCE 96-23 (Class Exemption for Plan
      Asset Transactions Determined by In-House Asset Managers and (II) will not
      subject the Depositor, the Master Servicer or the Trustee to any obligation
      in
      addition to those undertaken in the Agreement.

     

    (b) Any
      Person acquiring an interest in a Global Certificate which is a Non-Offered
      Subordinate Certificate, by acquisition of such Certificate, shall be deemed
      to
      have represented to the Trustee that in the case of the Non-Offered Subordinate
      Certificates, either: (i) it is not acquiring an interest in such Certificate
      directly or indirectly by, or on behalf of, an employee benefit plan or other
      retirement arrangement which is subject to Title I of ERISA or Section 4975
      of
      the Code, or (ii) the transfer and holding of an interest in such Certificate
      to
      that Person and the subsequent servicing, management and operation of the Trust
      and its assets: (I) will not result in any prohibited transaction which is
      not
      covered under an individual or class prohibited transaction exemption,
      including, but not limited to, PTE 84-14, PTE 91-38, PTE 90-1, PTE 95-60 or
      PTE
      96-23 and (II) will not subject the Depositor, the Master Servicer or the
      Trustee to any obligation in addition to those undertaken in the
      Agreement.

     

    (c) Each
      beneficial owner of a Class BX, Class B-1, Class B-2 or Class B-3 Certificate
      or
      any interest therein shall be deemed to have represented, by virtue of its
      acquisition or holding of that certificate or interest therein, that either
      (i)
      it is not a Plan or investing with “Plan Assets”, (ii) it has acquired and is
      holding such certificate in reliance on Prohibited Transaction Exemption 90-30,
      as amended from time to time (the “Exemption”), and that it understands that
      there are certain conditions to the availability of the Exemption, including
      that the certificate must be rated, at the time of purchase, not lower than
      “BBB-” (or its equivalent) by S&P, Fitch or Moody’s Investors Service, Inc.,
      and the certificate is so rated or (iii) (1) it is an insurance company, (2)
      the
      source of funds used to acquire or hold the certificate or interest therein
      is
      an “insurance company general account,” as such term is defined in Prohibited
      Transaction Class Exemption (“PTCE”) 95-60, and (3) the conditions in Sections I
      and III of PTCE 95-60 have been satisfied.

     

    (d) Neither
      the Trustee nor the Master Servicer will be required to monitor, determine
      or
      inquire as to compliance with the transfer restrictions in this Agreement with
      respect to the Book-Entry Certificates. Any attempted or purported transfer
      of
      any Certificate in violation of the provisions of this Agreement shall be void
      ab initio and such Certificate shall be considered to have been held
      continuously by the prior permitted Certificateholder. Any transferor of any
      Certificate in violation of such provisions, shall indemnify and hold harmless
      the Trustee and the Master Servicer from and against any and all liabilities,
      claims, costs or expenses incurred by the Trustee or the Master Servicer as
      a
      result of such attempted or purported transfer. The Trustee shall not be liable
      for transfer of any such Book-Entry Certificates in or through book-entry
      facilities of any Depository or between or among Depository Participants or
      Certificate Owners made in violation of the transfer restrictions set forth
      herein.

     

    Section
      5.08 Rule
      144A Information. 

     

    For
      so
      long as any Non-Offered Certificates are outstanding and are “restricted
      securities” within the meaning of Rule 144(a)(3) of the Securities Act, (1) the
      Depositor will provide or cause to be provided to any holder of such Non-Offered
      Certificates and any prospective purchaser thereof designated by such a holder,
      upon the request of such holder or prospective purchaser, the information
      required to be provided to such holder or prospective purchaser by Rule
      144A(d)(4) under the Securities Act; and (2) the Depositor shall update such
      information from time to time in order to prevent such information from becoming
      false and misleading and will take such other actions as are necessary to ensure
      that the safe harbor exemption from the registration requirements of the
      Securities Act under Rule 144A is and will be available for resales of such
      Certificates conducted in accordance with Rule 144A.

     

     

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      VI

    Payments
      to Certificateholders

     

    Section
      6.01 Distributions
      on the Certificates.

     

    (a) Interest
      and principal (as applicable) on the Certificates will be distributed by the
      Trustee monthly on each Distribution Date based on the Certificates Distribution
      Report for such Distribution Date furnished by the Trustee pursuant to 6.05
      hereof, commencing in December 2006, in an amount equal to the related Available
      Funds on deposit in the Distribution Account for such Distribution Date. On
      each
      Distribution Date, the related Available Funds on deposit in the Distribution
      Account shall be distributed as follows:

     

    (I) Distributions
      on the Group I Certificates, Class X Certificates and Class PO
      Certificates

     

    On
      each
      Distribution Date, the Group I Available Funds will be distributed as
      follows:

     

    (i) on
      each
      Distribution Date, the Group I Available Funds will be distributed to the
      related Senior Certificates as follows:

     

    first,
      to the
      Class I-A1-1, Class I-A1-2, Class I-A1-3, Class I-A1-4, Class I-A1-5, Class
      I-A2-1, Class I-A2-2 and the Class I-X Component, on a pro rata basis, the
      Accrued Certificate Interest on such Classes for such Distribution
      Date;

     

    second,
      to the
      Class I-A1-1, Class I-A1-2, Class I-A1-3, Class I-A1-4, Class I-A1-5, Class
      I-A2-1, Class I-A2-2 and the Class I-X Component, on a pro rata basis, any
      Accrued Certificate Interest thereon remaining undistributed from previous
      Distribution Dates, to the extent of remaining Group I Available
      Funds;

     

    third,
      concurrently as follows:

     

    
      	 	
              (I)

            	
              to
                the extent of the remaining Group I Available Funds related to Subgroup
                I-1, to the Class I-A1-1, Class I-A1-3, Class I-A1-4 and Class I-A1-5
                Certificates, as principal, the Subgroup I-1 Principal Distribution
                Amount, in the order described in this Agreement, in reduction of
                the
                Current Principal Amounts thereof, until the Current Principal Amounts
                thereof have been reduced to zero;
                and

            

    

     

    
      	 	
              (II)

            	
              to
                the extent of the remaining Group I Available Funds related to Subgroup
                I-2, to the Class I-A2-1 Certificates, as principal, the Subgroup
                I-2
                Principal Distribution Amount, in reduction of the Current Principal
                Amount thereof, until the Current Principal Amount thereof has been
                reduced to zero; 

            

    

     

    fourth,
      to the
      Class I-PO Component of the Class PO Certificates, the portion of the Class
      PO
      Certificate Principal Distribution Amount for such Distribution Date
      attributable to Loan Group I to the extent of the remaining Group I Available
      Funds, until the Current Principal Amount thereof has been reduced to zero;
      and

     

    fifth,
      to the
      Class I-PO Component of the Class PO Certificates, the portion of the Class
      PO
      Certificate Deferred Amount attributable to Loan Group I, provided that (i)
      on
      any Distribution Date, distributions pursuant to this priority fifth
      shall
      not exceed the excess, if any, of (x) Group I Available Funds remaining after
      giving effect to distributions pursuant to priority first
      through
fourth
      above
      over (y) the sum of the amount of Accrued Certificate Interest for such
      Distribution Date and Accrued Certificate Interest remaining undistributed
      from
      previous Distribution Dates on all Classes of Subordinate Certificates then
      outstanding, (ii) such distributions shall not reduce the Current Principal
      Amount of the Class I-PO Component of the Class PO Certificates, and (iii)
      no
      distribution will be made in respect of the Class PO Certificate Deferred Amount
      on or after the Cross-Over Date.

     

    On
      each
      Distribution Date, an amount, up to the amount of the Subgroup I-1 Principal
      Distribution Amount for that Distribution Date, will be distributed as principal
      as follows in each case to the extent of the remaining Subgroup I-1 Principal
      Distribution Amount:

     

    (1) to
      the
      Class I-A1-4 Certificates, an amount up to $1,000.00, in reduction of the
      Current Principal Amount thereof;

     

    (2) to
      the
      Class I-A1-1 Certificates and Class I-A1-3 Certificates, concurrently on a
      pro
      rata basis, in reduction of the Current Principal Amounts thereof until the
      aggregate Current Principal Amount thereof has been reduced to the Aggregate
      Planned Principal Amount for such Distribution Date;

     

    (2) to
      the
      Class I-A1-4, in reduction of the Current Principal Amount thereof until the
      Current Principal Amount thereof has been reduced to zero;

     

    (3) to
      the
      Class I-A1-1 Certificates and Class I-A1-3 Certificates, concurrently on a
      pro
      rata basis, in
      reduction of the Current Principal Amounts thereof without regard to the
      Aggregate Planned Principal Amount, until the Current Principal Amounts thereof
      have been reduced
      to zero; and

     

    (4) to
      Class
      I-A1-5 Certificates,
      in
      reduction of the Current Principal Amount thereof until the Current Principal
      Amount thereof has been reduced to zero.

     

    On
      each
      Distribution Date, an amount, up to the amount of the Subgroup I-2 Principal
      Distribution Amount for that Distribution Date, will be distributed as principal
      to the Class I-A2-1 Certificates, in reduction of the Current Principal Amount
      thereof, until the Current Principal Amount thereof has been reduced to
      zero.

     

    (II) Distributions
      on the Group II Certificates, Class X Certificates and Class PO
      Certificates

     

    On
      each
      Distribution Date, the Group II Available Funds will be distributed as
      follows:

     

    (i) on
      each
      Distribution Date, the Group II Available Funds will be distributed to the
      related Senior Certificates as follows:

     

    first,
      to the
      Class II-A1-1, Class II-A2-1, Class R-1, Class R-2 and Class R-3 Certificates
      and the Class II-X Component, on a pro rata basis, the Accrued Certificate
      Interest on such Classes for such Distribution Date;

     

    second,
      to the
      Class II-A1-1, Class II-A2-1, Class R-1, Class R-2 and Class R-3 Certificates
      and the Class II-X Component, on a pro rata basis, any Accrued Certificate
      Interest thereon remaining undistributed from previous Distribution Dates,
      to
      the extent of remaining Group II Available Funds;

     

    third,
      concurrently as follows:

     

    
      	 	
              (I)

            	
              to
                the extent of the remaining Group II Available Funds related to Subgroup
                II-1, to the Class II-A1-1, Class R-1, Class R-2 and Class R-3
                Certificates, as principal, the Subgroup II-1 Principal Distribution
                Amount, in reduction of the Current Principal Amount thereof, until
                the
                Current Principal Amounts thereof have been reduced to zero;
                and

            

    

     

    
      	 	
              (II)

            	
              to
                the extent of the remaining Group II Available Funds related to Subgroup
                II-2, to the Class II-A2-1 Certificates, as principal, the Subgroup
                II-2
                Principal Distribution Amount, in the order described in this Agreement,
                in reduction of the Current Principal Amount thereof, until the Current
                Principal Amount thereof has been reduced to zero;
                

            

    

     

    fourth,
      to the
      Class II-PO Component of the Class PO Certificates, the portion of the Class
      PO
      Certificate Principal Distribution Amount for such Distribution Date
      attributable to Loan Group II to the extent of the remaining Group II Available
      Funds, until the Current Principal Amount thereof has been reduced to zero;
      and

     

    fifth,
      to the
      Class II-PO Component of the Class PO Certificates, the portion of the Class
      PO
      Certificate Deferred Amount attributable to Loan Group II, provided that (i)
      on
      any Distribution Date, distributions pursuant to this priority fifth
      shall
      not exceed the excess, if any, of (x) Group II Available Funds remaining after
      giving effect to distributions pursuant to priority first
      through
fourth
      above
      over (y) the sum of the amount of Accrued Certificate Interest for such
      Distribution Date and Accrued Certificate Interest remaining undistributed
      from
      previous Distribution Dates on all Classes of Subordinate Certificates then
      outstanding, (ii) such distributions shall not reduce the Current Principal
      Amount of the Class II-PO Component of the Class PO Certificates, and (iii)
      no
      distribution will be made in respect of the Class PO Certificate Deferred Amount
      on or after the Cross-Over Date.

     

    On
      each
      Distribution Date, an amount, up to the amount of the Subgroup II-1 Principal
      Distribution Amount for that Distribution Date, will be distributed as principal
      as follows in each case to the extent of the remaining Subgroup II-1 Principal
      Distribution Amount:

     

    (1)
      to
      the Class R-1, Class R-2 and Class R-3 Certificates, pro rata, in reduction
      of
      the Current Principal Amounts thereof, until the Certificate Principal Amounts
      thereof have been reduced to zero; and

     

    (2)
      to
      the Class II-A1-1 Certificates, in reduction of the Current Principal Amount
      thereof, until the Current Principal Amount thereof has been reduced to
      zero.

     

    On
      each
      Distribution Date, an amount, up to the amount of the Subgroup II-2 Principal
      Distribution Amount for that Distribution Date, will be distributed as principal
      to the Class II-A2-1 Certificates, in reduction of the Current Principal Amount
      thereof, until the Current Principal Amount thereof has been reduced to
      zero.

     

    (ii) Except
      as
      set forth in clauses (iii) and (iv) below, on each Distribution Date on or
      prior
      to the Cross-Over Date, an amount equal to the remaining Group I Available
      Funds
      and Group II Available Funds after the distributions in clause (i) above shall
      be distributed sequentially in the following order, to the Class BX, Class
      B-1,
      Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each
      case up to an amount equal to and in the following order: (a) the Accrued
      Certificate Interest thereon for such Distribution Date, (b) any Accrued
      Certificate Interest thereon remaining undistributed from previous Distribution
      Dates and (c) other than the Class BX Certificates, such Class’s Allocable Share
      for such Distribution Date, in each case, to the extent of the remaining Group
      I
      Available Funds and Group II Available Funds.

     

    (iii) On
      each
      Distribution Date prior to the Cross-Over Date but after the reduction of the
      Current Principal Amount of all of the Senior Certificates (other than the
      Class
      PO Certificates) related to a Subgroup or Loan Group to zero, the remaining
      Class or Classes of Senior Certificates in the remaining Subgroups or Loan
      Group
      (other than the Class I-A1-2,
      Class I-A2-2, Class X and
      Class
      PO Certificates) will be entitled to receive in reduction of their Current
      Principal Amounts, pro rata based upon their Current Principal Amounts
      immediately prior to such Distribution Date, in addition to any Principal
      Prepayments related to such remaining Senior Certificates’ respective Subgroup
      or Loan Group allocated to such Senior Certificates, 100% of the Principal
      Prepayments on any Mortgage Loan in the Subgroup or Loan Group relating to
      the
      class or classes of Senior Certificates of the fully repaid Subgroup or Loan
      Group; provided, however, if (A) the weighted average of the Subgroup
      Subordinate Percentages on such Distribution Date equals or exceeds two times
      the initial weighted average of the Subgroup Subordinate Percentages and (B)
      the
      aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days
      or more (including for this purpose any such Mortgage Loans in foreclosure
      and
      bankruptcy and Mortgage Loans with respect to which the related Mortgaged
      Property has been acquired by the Trust), averaged over the last six months,
      as
      a percentage of the aggregate Current Principal Amount of the Subordinate
      Certificates does not exceed 50%, then the additional allocation of Principal
      Prepayments to such remaining Class or Classes of Senior Certificates in
      accordance with this clause (iii) will not be made and 100% of the Principal
      Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid
      class or classes of Senior Certificates will be allocated to the Subordinate
      Certificates.

     

    (iv) If,
      after
      distributions have been made pursuant to priorities first
      and
second
      of
      clause (I)(i) above on any Distribution Date, the remaining Group I Available
      Funds is less than the sum of the Subgroup I-1, Subgroup I-2 and Class PO
      Principal Distribution Amount related to Subgroup I-1, such amounts shall be
      reduced, and such remaining funds will be distributed to the Group I Senior
      Certificates (other than the I-A1-2, Class I-A2-2 and Class X Certificates)
      on
      the basis of such reduced amounts. Notwithstanding any reduction in principal
      distributable to the Class PO Certificates pursuant to this paragraph, the
      principal balance of the Class PO Certificates shall be reduced not only by
      principal so distributed but also by the difference between (i) principal
      distributable to the Class PO Certificates in accordance with priority
fourth
      of
      clause
      (I)(i) above, and (ii) principal actually distributed to the Class PO
      Certificates after giving effect to this paragraph (such difference for the
      Class PO Certificates, the “Group I Class PO Certificate Cash Shortfall”). The
      Class PO Certificate Cash Shortfall for the Class PO Certificates with respect
      to any Distribution Date will be added to the Class PO Certificate Deferred
      Amount.

     

    (v) If,
      after
      distributions have been made pursuant to priorities first
      and
second
      of
      clause (II)(i) above on any Distribution Date, the remaining Group I Available
      Funds is less than the sum of the Subgroup II-1, Subgroup II-2 and Class PO
      Principal Distribution Amount related to Subgroup II-1, such amounts shall
      be
      reduced, and such remaining funds will be distributed to the Group II Senior
      Certificates (other than the Class X Certificates) on the basis of such reduced
      amounts. Notwithstanding any reduction in principal distributable to the Class
      PO Certificates pursuant to this paragraph, the principal balance of the Class
      PO Certificates shall be reduced not only by principal so distributed but also
      by the difference between (i) principal distributable to the Class PO
      Certificates in accordance with priority fourth
      of
      clause (II)(i) above, and (ii) principal actually distributed to the Class
      PO
      Certificates after giving effect to this paragraph (such difference for the
      Class PO Certificates, the “Group II Class PO Certificate Cash Shortfall”). The
      Class PO Certificate Cash Shortfall for the Class PO Certificates with respect
      to any Distribution Date will be added to the Class PO Certificate Deferred
      Amount.

     

    (vi) On
      each
      Distribution Date, any Available Funds remaining after payment of interest
      and
      principal to the Classes of Certificates entitled thereto, in each case as
      described above, will be distributed to the Class R Certificates on a pro rata
      basis; provided, that if on any Distribution Date there are any Available Funds
      remaining after payment of interest and principal to a Class or Classes of
      Certificates entitled thereto, such amounts will be distributed to the other
      Class or Classes of Senior Certificates, pro rata, based upon their Current
      Principal Amounts, until all amounts due to all Classes of Senior Certificates
      have been paid in full, before any amounts are distributed to the Class R
      Certificates.

     

    (b) “Pro
      rata” distributions among Classes of Certificates will be made in proportion to
      the then Current Principal Amount of such Classes.

     

    (c) No
      Accrued Certificate Interest will be payable with respect to any Class of
      Certificates after the Distribution Date on which the Current Principal Amount
      or Notional Amount of such Certificate has been reduced to zero.

     

    (d) If
      on any
      Distribution Date the Available Funds for the related Senior Certificates is
      less than the Accrued Certificate Interest on the related Senior Certificates
      for such Distribution Date prior to reduction for Net Interest Shortfalls and
      the interest portion of Realized Losses, the shortfall will be allocated among
      the Holders of each Class of the related Senior Certificates (other than the
      Class PO Certificates) in proportion to the respective amounts of Accrued
      Certificate Interest that would have been allocated thereto in the absence
      of
      such Net Interest Shortfalls and/or Realized Losses for such Distribution Date.
      In addition, the amount of any interest shortfalls will constitute unpaid
      Accrued Certificate Interest and will be distributable to Holders of the
      Certificates of the related Classes entitled to such amounts on subsequent
      Distribution Dates, to the extent of the applicable Available Funds after
      current interest distributions as required herein. Any such amounts so carried
      forward will not bear interest. Shortfalls in interest payments will not be
      offset by a reduction in the servicing compensation of the Master Servicer
      or
      otherwise. 

     

    (e) The
      expenses and fees of the Trust shall be paid by each of the REMICs, to the
      extent that such expenses relate to the assets of each of such respective
      REMICs, and all other expenses and fees of the Trust shall be paid pro rata
      by
      each of the REMICs.

     

    (f) [Reserved].

     

    (g) In
      addition, in the event that the Master Servicer receives any Subsequent
      Recoveries from a Servicer, the Master Servicer shall deposit such funds into
      the Master Servicer Collection Account pursuant to Section 4.02. If, after
      taking into account such Subsequent Recoveries, the amount of a Realized Loss
      is
      reduced, the amount of such Subsequent Recoveries will be applied to increase
      the Current Principal Amount of the related Class of Subordinate Certificates
      with the highest payment priority to which Realized Losses have been allocated,
      but not by more than the amount of Realized Losses previously allocated to
      that
      Class of Subordinate Certificates pursuant to Section 6.03. The amount of any
      remaining Subsequent Recoveries will be applied to sequentially increase the
      Current Principal Amount of the related Subordinate Certificates, beginning
      with
      the Class of such Subordinate Certificates with the next highest payment
      priority, up to the amount of such Realized Losses previously allocated to
      such
      Class of Certificates pursuant to Section 6.03. Holders of such Certificates
      will not be entitled to any payment in respect of current interest on the amount
      of such increases for any Interest Accrual Period preceding the Distribution
      Date on which such increase occurs. Any such increases shall be applied to
      the
      Current Principal Amount of each Subordinate Certificate of such Class in
      accordance with its respective Fractional Undivided Interest.

     

    Section
      6.02 [Reserved.] 

     

    Section
      6.03 Allocation
      of Losses. 

     

    On
      or
      prior to each Determination Date, the Master Servicer shall determine the amount
      of any Realized Loss in respect of each Mortgage Loan that occurred during
      the
      immediately preceding calendar month, based on information provided by the
      Servicer.

     

    (a) (i) Realized
      Losses with respect to a Mortgage Loan will be allocated on a pro rata basis
      between the PO Percentage of the Scheduled Principal Balance of such Mortgage
      Loan and the Non-PO Percentage of such Scheduled Principal Balance.

     

    (ii) On
      each
      Distribution Date, the PO Percentage of the principal portion of any Realized
      Loss on a Discount Mortgage Loan and any Class PO Certificate Cash Shortfall
      will be allocated to the Class PO Certificates and Components thereof until
      the
      Current Principal Amount of the Components of the Class PO Certificates is
      reduced to zero. With
      respect to any Distribution Date through the Cross-Over Date, the aggregate
      of
      all amounts so allocable to the Components of the Class PO Certificates on
      such
      date in respect of any Realized Losses and any Class PO Certificate Cash
      Shortfalls and all amounts previously allocated in respect of such Realized
      Losses or Class PO Certificate Cash Shortfalls and not distributed on prior
      Distribution Dates will be the “Class PO Certificate Deferred Amount.”
To
      the
      extent funds are available therefor on any Distribution Date through the
      Cross-Over Date, distributions in respect of the Group I Class PO Certificate
      Deferred Amount for the Class I-PO Component of the Class PO Certificates from
      the Group I Available Funds will be made in accordance with priority
      fifth
      of
      clause (I)(i) above and distributions in respect of the Group II Class PO
      Certificate Deferred Amount for the Class II-PO Component of the Class PO
      Certificates from the Group II Available Funds will be made in accordance with
      priority
      fifth
      of
      clause (II)(i) above. No interest shall accrue on the Class PO Certificate
      Deferred Amount. On each Distribution Date through the Cross-Over Date, the
      Current Principal Amount of the lowest ranking Class of Subordinate Certificates
      then outstanding will be reduced by the amount of any distributions in respect
      of any Class PO Certificate Deferred Amount on such Distribution Date in
      accordance with the priorities set forth above, through the operation of the
      Subordinate Certificate Writedown Amount. After the Cross-Over Date, no more
      distributions will be made in respect of, and applicable Realized Losses and
      Class PO Certificate Cash Shortfalls allocable to the Components of the Class
      PO
      Certificates will not be added to, the Class PO Certificate Deferred Amount.
      

     

    (iii) The
      Non-PO Percentage of the principal portion of Realized Losses on the Mortgage
      Loans will be allocated on any Distribution Date as follows: first, to the
      Class
      B-6 Certificates; second, to the Class B-5 Certificates; third, to the Class
      B-4
      Certificates; fourth, to the Class B-3 Certificates; fifth, to the Class B-2
      Certificates; and sixth, to the Class B-1 Certificates, in each case until
      the
      Current Principal Amount of such Class has been reduced to zero.

     

    (iv) Thereafter,
      the principal portion of Realized Losses on the Mortgage Loans will be allocated
      on any Distribution Date to the outstanding Class or Classes of Senior
      Certificates (other than the Class I-A1-2, Class I-A2-2, Class BX and Class
      X
      Certificates), pro rata, based upon their respective Current Principal
      Amounts.

     

    (v) Notwithstanding
      the foregoing, no such allocation of any Realized Loss shall be made on a
      Distribution Date to any Class of Certificates (other than the Class I-A1-2,
      Class I-A2-2, Class BX and Class X Certificates) to the extent that such
      allocation would result in the reduction of the aggregate Current Principal
      Amounts of all the Certificates (other than the Class I-A1-2, Class I-A2-2,
      Class BX and Class X Certificates) as of such Distribution Date, after giving
      effect to all distributions and prior allocations of Realized Losses on the
      Mortgage Loans in the related Loan Group on such date, to an amount less than
      the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of
      the
      first day of the month of such Distribution Date (such limitation, the “Loss
      Allocation Limit”).

     

    (b) Any
      Realized Losses allocated to a Class of Certificates shall be allocated among
      the related Certificates of such Class (other than the Interest Only
      Certificates) in proportion to their respective Current Principal Amounts.
      Any
      allocation of Realized Losses shall be accomplished by reducing the Current
      Principal Amount of the related Certificates on the related Distribution
      Date.

     

    (c) Realized
      Losses shall be allocated on the Distribution Date in the month following the
      month in which such loss was incurred and, in the case of the principal portion
      thereof, after giving effect to distributions made on such Distribution
      Date.

     

    (d) Any
      Subordinate Certificate Writedown Amount shall effect a corresponding reduction
      in the Current Principal Amount of (i) if prior to the Cross-Over Date, the
      Current Principal Amounts of the Subordinate Certificates, in the reverse order
      of their numerical Class designations and (ii) from and after the Cross-Over
      Date, the Senior Certificates, in accordance with priorities set forth in clause
      (b) above, which reduction shall occur on such Distribution Date after giving
      effect to distributions made on such Distribution Date.

     

    (e) Any
      Net
      Interest Shortfall will be allocated among the Classes of Certificates in
      proportion to the respective amounts of Accrued Certificate Interest that would
      have been allocated thereto in the absence of such Net Interest Shortfall for
      such Distribution Date. The interest portion of any Realized Losses with respect
      to the Mortgage Loans occurring on or prior to the Cross-Over Date will not
      be
      allocated among any Certificates, but will reduce the amount of Available Funds
      on the related Distribution Date. As a result of the subordination of the
      Subordinate Certificates in right of distribution, such Realized Losses on
      the
      Mortgage Loans will be borne by the Subordinate Certificates, in inverse order
      of their numerical Class designations. Following the Cross-Over Date, the
      interest portion of Realized Losses on the Mortgage Loans will be allocated
      to
      the Senior Certificates.

     

    Section
      6.04 Payments. 

     

    (a) On
      each
      Distribution Date, other than the final Distribution Date, the Trustee shall
      distribute to each Certificateholder of record as of the immediately preceding
      Record Date the Certificateholder’s pro rata share of its Class (based on the
      aggregate Fractional Undivided Interest represented by such Holder’s
      Certificates) of all amounts required to be distributed on such Distribution
      Date to such Class. The Trustee shall calculate the amount to be distributed
      to
      each Class and, based on such amounts, the Trustee shall determine the amount
      to
      be distributed to each Certificateholder. All of the Trustee’s calculations of
      payments shall be based solely on information provided to the Trustee by the
      Master Servicer. The Trustee shall not be required to confirm, verify or
      recompute any such information but shall be entitled to rely conclusively on
      such information.

     

    (b) Payment
      of the above amounts to each Certificateholder shall be made (i) by check mailed
      to each Certificateholder entitled thereto at the address appearing in the
      Certificate Register or (ii) upon receipt by the Trustee on or before the fifth
      Business Day preceding the Record Date of written instructions from a
      Certificateholder by wire transfer to a United States dollar account maintained
      by the payee at any United States depository institution with appropriate
      facilities for receiving such a wire transfer; provided, however, that the
      final
      payment in respect of each Class of Certificates will be made only upon
      presentation and surrender of such respective Certificates at the office or
      agency of the Trustee specified in the notice to Certificateholders of such
      final payment.

     

    Section
      6.05 Statements
      to Certificateholders. 

     

    (a) Concurrently
      with each distribution to Holders of the Certificates, the Trustee shall make
      available to the parties hereto, each Rating Agency and each such Holder via
      the
      Trustee’s internet website as set forth below, a Certificates Distribution
      Report containing the following information with respect to the Certificates
      and
      the Mortgage Loans, expressed with respect to clauses (i) through (vii) in
      the
      aggregate and as a Fractional Undivided Interest representing an initial Current
      Principal Amount of $1,000, or in the case of the Residual Certificates, an
      initial Current Principal Amount of $50 each:

     

    (i) the
      Current Principal Amount (or Notional Amount) of each Class of Certificates
      immediately prior to such Distribution Date;

     

    (ii) the
      amount of the distribution allocable to principal on each applicable Class
      of
      Certificates;

     

    (iii) the
      aggregate amount of interest accrued at the related Pass-Through Rate with
      respect to each Class during the related Interest Accrual Period;

     

    (iv) the
      Net
      Interest Shortfall and any other adjustments to interest at the related
      Pass-Through Rate necessary to account for any difference between interest
      accrued and aggregate interest distributed with respect to each Class of
      Certificates;

     

    (v) the
      amount of the distribution allocable to interest on each Class of
      Certificates;

     

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

     

    (vii) the
      Current Principal Amount (or Notional Amount) of each Class of Certificates
      after such Distribution Date;

     

    (viii) the
      amount of any Monthly Advances, Compensating Interest Payments and outstanding
      unreimbursed advances by the Master Servicer or the Servicers included in such
      distribution;

     

    (ix) the
      aggregate amount of any Realized Losses (listed separately for each category
      of
      Realized Loss) during the preceding calendar month and cumulatively since the
      Cut-off Date and the amount and source (separately identified) of any
      distribution in respect thereof included in such distribution;

     

    (x) with
      respect to each Mortgage Loan which incurred a Realized Loss during the
      preceding calendar month, (i) the loan number, (ii) the Scheduled Principal
      Balance of such Mortgage Loan as of the Cut-off Date, (ii) the Scheduled
      Principal Balance of such Mortgage Loan as of the beginning of the related
      Due
      Period, (iii) the Net Liquidation Proceeds with respect to such Mortgage Loan
      and (iv) the amount of the Realized Loss with respect to such Mortgage
      Loan;

     

    (xi) the
      amount of Scheduled Principal and Principal Prepayments, (including but
      separately identifying the principal amount of Principal Prepayments, Insurance
      Proceeds, the purchase price in connection with the purchase of Mortgage Loans,
      cash deposits in connection with substitutions of Mortgage Loans and Net
      Liquidation Proceeds) and the number and principal balance of Mortgage Loans
      purchased or substituted for during the relevant period and cumulatively since
      the Cut-off Date;

     

    (xii) the
      number of Mortgage Loans (excluding REO Property) remaining in the Trust Fund
      as
      of the end of the preceding calendar month;

     

    (xiii) information
      regarding any Mortgage Loan delinquencies as of the end of the previous calendar
      month, including the aggregate number and aggregate Outstanding Principal
      Balance of Mortgage Loans using the MBA method of calculation (a) Delinquent
      30
      to 59 days on a contractual basis, (b) Delinquent 60 to 89 days on a contractual
      basis, and (c) Delinquent 90 or more days on a contractual basis, in each case
      as of the close of business on the last Business Day of the immediately
      preceding month;

     

    (xiv) the
      number of Mortgage Loans in the foreclosure process as of the end of the related
      Due Period and the aggregate Outstanding Principal Balance of such Mortgage
      Loans;

     

    (xv) the
      number and aggregate Outstanding Principal Balance of all Mortgage Loans as
      to
      which the Mortgaged Property was REO Property as of the end of the preceding
      calendar month;

     

    (xvi) the
      book
      value (the sum of (A) the Outstanding Principal Balance of the Mortgage Loan,
      (B) accrued interest through the date of foreclosure and (C) foreclosure
      expenses) of any REO Property; provided that, in the event that such information
      is not available to the Trustee on the Distribution Date, such information
      shall
      be furnished promptly after it becomes available;

     

    (xvii) the
      amount of Realized Losses allocated to each Class of Certificates since the
      prior Distribution Date and in the aggregate for all prior Distribution Dates;
      and

     

    (xviii) the
      Average Loss Severity Percentage;

     

    (xix) [Reserved]

     

    (xx) the
      then
      applicable Subgroup Senior Percentage, Subgroup Senior Prepayment Percentage,
      Subordinate Percentage and Subordinate Prepayment Percentage for each
      Subgroup.

     

    The
      information set forth above shall be calculated or reported, as the case may
      be,
      by the Trustee, based solely on, and to the extent of, information provided
      to
      the Trustee by the Master Servicer. The Trustee may conclusively rely on such
      information and shall not be required to confirm, verify or recalculate any
      such
      information.

     

    The
      Trustee may make available each month, to any interested party, the Certificates
      Distribution Report to Holders of the Certificates via the Trustee’s website
      initially located at “www.usbank.com/abs.” Assistance in using the website can
      be obtained by calling the Trustee’s customer service desk at (800) 934-6802.
      Parties that are unable to use the above distribution option are entitled to
      have a paper copy mailed to them via first class mail by calling the Trustee’s
      customer service desk and indicating such. The Trustee shall have the right
      to
      change the way such reports are distributed in order to make such distribution
      more convenient and/or more accessible to the parties, and the Trustee shall
      provide timely and adequate notification to all parties regarding any such
      change.

     

    (b) By
      April
      30 of each year beginning in 2007, the Trustee will furnish such report to
      each
      Holder of the Certificates of record at any time during the prior calendar
      year
      as to the aggregate of amounts reported pursuant to subclauses (a)(ii) and
      (a)(v) above with respect to the Certificates, plus information with respect
      to
      the amount of servicing compensation and such other customary information as
      the
      Trustee may determine to be necessary and/or to be required by the Internal
      Revenue Service or by a federal or state law or rules or regulations to enable
      such Holders to prepare their tax returns for such calendar year. Such
      obligations shall be deemed to have been satisfied to the extent that
      substantially comparable information shall be provided by the Trustee pursuant
      to the requirements of the Code.

     

    Section
      6.06 Monthly
      Advances. 

     

    The
      Master Servicer shall cause the related Servicer to remit any Advance required
      pursuant to the terms of the related Servicing Agreement. The related Servicer
      shall be obligated to make any such Advance only to the extent that such advance
      would not be a Nonrecoverable Advance. If the related Servicer shall have
      determined that it has made a Nonrecoverable Advance or that a proposed Advance
      or a lesser portion of such Advance would constitute a Nonrecoverable Advance,
      the related Servicer shall deliver (i) to the Trustee for the benefit of the
      Certificateholders funds constituting the remaining portion of such Advance,
      if
      applicable, and (ii) to the Master Servicer an Officer’s Certificate setting
      forth the basis for such determination. Subject
      to the Master Servicer’s recoverability determination, in the event that a
      Servicer (other than the Company) fails to make a required Advance, the Master
      Servicer, as successor servicer, shall be required to remit the amount of such
      Advance to the Master Servicer Collection Account.
      If EMC
      or the Master Servicer were required to make an Advance but failed to do so,
      the
      Trustee upon receiving notice or becoming aware of such failure, and pursuant
      to
      the applicable terms of this Agreement, shall appoint a successor servicer
      or
      Master Servicer, as applicable, who will make such Advance, or the Trustee
      as
      successor master servicer shall be
      required to remit the amount of such Advance to the Master Servicer Collection
      Account, unless
      the Trustee shall have determined that such Advance is a Nonrecoverable Advance.
      If the Trustee cannot find a successor servicer to replace the Company as
      Servicer the Trustee shall become the successor servicer and shall be required
      to remit the amount of such Advance to the Master Servicer Collection Account,
      unless the Trustee shall have determined that such Advance is a Nonrecoverable
      Advance.

     

    Section
      6.07 Compensating
      Interest Payments. 

     

    The
      Master Servicer shall deliver to the Trustee for deposit in the Distribution
      Account not later than each Business Day preceding the related Distribution
      Date
      an amount equal to the sum of the aggregate amounts paid by the Servicers under
      the related Servicing Agreement with respect to subclauses (a) and (b) of the
      definition of Interest Shortfall with respect to the Mortgage Loans for the
      related Distribution Date. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      VII

    The
      Master Servicer

     

    Section
      7.01 Liabilities
      of the Master Servicer. 

     

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

     

    Section
      7.02 Merger
      or Consolidation of the Master Servicer. 

     

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

     

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

     

    Section
      7.03 Indemnification
      of the Trustee and the Master Servicer 

     

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

     

    (b) [Reserved].

     

    (c) The
      Trust
      Fund will indemnify any Indemnified Person for any loss, liability or expense
      of
      any Indemnified Person not otherwise covered by the Master Servicer’s
      indemnification pursuant to Subsection (a) above.

     

    Section
      7.04 Limitations
      on Liability of the Master Servicer and Others. 

     

    Subject
      to the obligation of the Master Servicer to indemnify the Indemnified Persons
      pursuant to Section 7.03:

     

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

     

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

     

    (c) The
      Master Servicer, the Custodian and any director, officer, employee or agent
      of
      the Master Servicer or the Custodian, and the Trustee, to the extent it becomes
      a party to the EMC Servicing Agreement pursuant to Section 3.03, and any
      officer, director, employee or agent of the Trustee, shall be indemnified by
      the
      Trust and held harmless thereby against any loss, liability or expense
      (including reasonable legal fees and disbursements of counsel) incurred on
      their
      part that may be sustained in connection with, arising out of, or related to,
      any claim or legal action (including any pending or threatened claim or legal
      action) relating to this Agreement, the Certificates or any Servicing Agreement
      (except to the extent that the Master Servicer or the Trustee, as the case
      may
      be, is indemnified by the Servicer thereunder), other than (i) any such loss,
      liability or expense related to the Master Servicer’s failure to perform its
      duties in compliance with this Agreement (except as any such loss, liability
      or
      expense shall be otherwise reimbursable pursuant to this Agreement), or to
      the
      Custodian’s failure to perform its duties under the Custodial Agreement,
      respectively, or (ii) any such loss, liability or expense incurred by reason
      of
      the Master Servicer’s or the Custodian’s willful misfeasance, bad faith or gross
      negligence in the performance of duties hereunder or under the Custodial
      Agreement, as applicable, or by reason of reckless disregard of obligations
      and
      duties hereunder or under the Custodial Agreement, as applicable.

     

    (d) The
      Master Servicer shall not be under any obligation to appear in, prosecute or
      defend any legal action that is not incidental to its duties under this
      Agreement and that in its opinion may involve it in any expense or liability;
      provided, however, the Master Servicer may in its discretion, with the consent
      of the Trustee (which consent shall not be unreasonably withheld), undertake
      any
      such action which it may deem necessary or desirable with respect to this
      Agreement and the rights and duties of the parties hereto and the interests
      of
      the Holders of the Certificates hereunder. In such event, the legal expenses
      and
      costs of such action and any liability resulting therefrom shall be expenses,
      costs and liabilities of the Trust Fund and the Master Servicer shall be
      entitled to be reimbursed therefor out of the Master Servicer Collection Account
      as provided by Section 4.03. Nothing in this Subsection 7.04(d) shall affect
      the
      Master Servicer’s obligation to supervise, or to take such actions as are
      necessary to ensure, the servicing and administration of the Mortgage Loans
      pursuant to Section 3.01.

     

    (e) In
      taking
      or recommending any course of action pursuant to this Agreement, unless
      specifically required to do so pursuant to this Agreement, the Master Servicer
      shall not be required to investigate or make recommendations concerning
      potential liabilities which the Trust might incur as a result of such course
      of
      action by reason of the condition of the Mortgaged Properties but shall give
      notice to the Trustee if it has notice of such potential
      liabilities.

     

    (f) The
      Master Servicer shall not be liable for any acts or omissions of the related
      Servicers.

     

    (g) The
      Master Servicer may perform any of its duties hereunder or exercise its rights
      hereunder either directly or through Affiliates, agents or
      attorneys.

     

    Section
      7.05 Master
      Servicer Not to Resign. 

     

    Except
      as
      provided in Section 7.07, the Master Servicer shall not resign from the
      obligations and duties hereby imposed on it except (i) with the prior consent
      of
      the Trustee (which
      consent shall not be unreasonably withheld or delayed)
      or (ii)
      upon a determination that any such duties hereunder are no longer permissible
      under applicable law and such impermissibility cannot be cured; provided,
      however, in the event that the Trustee resigns or is terminated or removed
      in
      accordance with the provisions hereof, the Master Servicer shall resign. Any
      such determination permitting the resignation of the Master Servicer shall
      be
      evidenced by an Opinion of Independent Counsel addressed to the Trustee to
      such
      effect delivered to the Trustee. No such resignation by the Master Servicer
      shall become effective until the Trustee or a successor to the Master Servicer
      reasonably satisfactory to the Trustee shall have assumed the responsibilities
      and obligations of the Master Servicer in accordance with Section 8.02 hereof.
      The Trustee shall notify the Rating Agencies of the resignation of the Master
      Servicer.

     

    Section
      7.06 Successor
      Master Servicer. 

     

    In
      connection with the appointment of any successor master servicer or the
      assumption of the duties of the Master Servicer, the Seller or the Trustee
      may
      make such arrangements for the compensation of such successor master servicer
      out of payments on the Mortgage Loans as the Seller or the Trustee and such
      successor master servicer shall agree. If the successor master servicer does
      not
      agree that such market value is a fair price, such successor master servicer
      shall obtain two quotations of market value from third parties actively engaged
      in the servicing of single-family mortgage loans. Notwithstanding the foregoing,
      in no event shall the compensation of any Successor Master Servicer exceed
      that
      permitted the Master Servicer hereunder without the consent of all of the
      Certificateholders..

     

    Section
      7.07 Sale
      and Assignment of Master Servicing. 

     

    The
      Master Servicer may sell and assign its rights and delegate its duties and
      obligations in its entirety as Master Servicer under this Agreement; provided,
      however, that: (i) the purchaser or transferee accepting such assignment and
      delegation (a) shall be a Person which shall be qualified to service mortgage
      loans for Fannie Mae or Freddie Mac; (b) shall have a net worth of not less
      than
      $10,000,000 (unless otherwise approved by each Rating Agency pursuant to clause
      (ii) below); (c) shall be reasonably satisfactory to the Trustee (as evidenced
      in a writing signed by the Trustee); and (d) shall execute and deliver to the
      Trustee an agreement, in form and substance reasonably satisfactory to the
      Trustee, which contains an assumption by such Person of the due and punctual
      performance and observance of each covenant and condition to be performed or
      observed by it as master servicer under this Agreement, any custodial agreement
      from and after the effective date of such agreement; (ii) each Rating Agency
      shall be given prior written notice of the identity of the proposed successor
      to
      the Master Servicer and each Rating Agency’s rating of the Certificates in
      effect immediately prior to such assignment, sale and delegation will not be
      downgraded, qualified or withdrawn as a result of such assignment, sale and
      delegation, as evidenced by a letter to such effect delivered to the Master
      Servicer and the Trustee; and (iii) the Master Servicer assigning and selling
      the master servicing shall deliver to the Trustee an Officer’s Certificate and
      an Opinion of Independent Counsel addressed to the Trustee, each stating that
      all conditions precedent to such action under this Agreement have been completed
      and such action is permitted by and complies with the terms of this Agreement.
      No such assignment or delegation shall affect any liability of the Master
      Servicer arising prior to the effective date thereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      VIII

    Default

     

    Section
      8.01 Events
      of Default. 

     

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

     

    (i)  Any
      failure by the Master Servicer to remit to the Trustee any amounts received
      or
      collected by the Master Servicer in respect of the Mortgage Loans and required
      to be remitted by it (other than any Advance) pursuant to this Agreement, which
      failure shall continue unremedied for one Business Day after the date on which
      written notice of such failure shall have been given to the Master Servicer
      by
      the Trustee or the Depositor, or to the Trustee and the Master Servicer by
      the
      Holders of Certificates evidencing not less than 25% of the Voting Rights
      evidenced by the Certificates; or

     

    (ii) any
      failure by the Master Servicer to observe or perform in any material respect
      any
      other of the covenants or agreements on the part of the Master Servicer
      contained in this Agreement or any breach of a representation or warranty by
      the
      Master Servicer, which failure or breach shall continue unremedied for a period
      of 60 days after the date on which written notice of such failure, properly
      requiring the same to be remedied, shall have been given to the Master Servicer
      by the Trustee or to the Master Servicer and the Trustee by the Holders of
      Certificates evidencing Fractional Undivided Interests aggregating not less
      than
      25% of the Trust Fund; or

     

    (iii) There
      is
      entered against the Master Servicer a decree or order by a court or agency
      or
      supervisory authority having jurisdiction in the premises for the appointment
      of
      a conservator, receiver or liquidator in any insolvency, readjustment of debt,
      marshaling of assets and liabilities or similar proceedings, or for the winding
      up or liquidation of its affairs, and the continuance of any such decree or
      order is unstayed and in effect for a period of 60 consecutive days, or an
      involuntary case is commenced against the Master Servicer under any applicable
      insolvency or reorganization statute and the petition is not dismissed within
      60
      days after the commencement of the case; or

     

    (iv) The
      Master Servicer consents to the appointment of a conservator or receiver or
      liquidator in any insolvency, readjustment of debt, marshaling of assets and
      liabilities or similar proceedings of or relating to the Master Servicer or
      substantially all of its property; or the Master Servicer admits in writing
      its
      inability to pay its debts generally as they become due, files a petition to
      take advantage of any applicable insolvency or reorganization statute, makes
      an
      assignment for the benefit of its creditors, or voluntarily suspends payment
      of
      its obligations;

     

    (v) The
      Master Servicer assigns or delegates its duties or rights under this Agreement
      in contravention of the provisions permitting such assignment or delegation
      under Sections 7.05 or 7.07; or

     

    (vi) The
      Master Servicer fails to deposit or cause to be deposited, in the Distribution
      Account any Monthly Advance required to be made by the Master Servicer (other
      than a Nonrecoverable Advance) by the close of business on the Business Day
      prior to the related Distribution Date.

     

    In
      each
      and every such case, so long as such Event of Default with respect to the Master
      Servicer shall not have been remedied, either the Trustee or the Holders of
      Certificates evidencing Fractional Undivided Interests aggregating not less
      than
      51% of the principal of the Trust Fund, by notice in writing to the Master
      Servicer (and to the Trustee if given by such Holders of the Certificates),
      with
      a copy to the Rating Agencies, may terminate all of the rights and obligations
      (but not the liabilities) of the Master Servicer under this Agreement and in
      and
      to the Mortgage Loans and/or the REO Property serviced by the Master Servicer
      and the proceeds thereof. Upon the receipt by the Master Servicer of the written
      notice, all authority and power of the Master Servicer under this Agreement,
      whether with respect to the Certificates, the Mortgage Loans, REO Property
      or
      under any other related agreements (but only to the extent that such other
      agreements relate to the Mortgage Loans or related REO Property) shall, subject
      to Section 8.02, automatically and without further action pass to and be vested
      in the Trustee pursuant to this Section 8.01; and, without limitation, the
      Trustee is hereby authorized and empowered to execute and deliver, on behalf
      of
      the Master Servicer as attorney-in-fact or otherwise, any and all documents
      and
      other instruments and to do or accomplish all other acts or things necessary
      or
      appropriate to effect the purposes of such notice of termination, whether to
      complete the transfer and endorsement or assignment of the Mortgage Loans and
      related documents, or otherwise. The Master Servicer agrees to cooperate with
      the Trustee in effecting the termination of the Master Servicer’s rights and
      obligations hereunder, including, without limitation, the transfer to the
      Trustee of (i) the property and amounts which are then or should be part of
      the
      Trust or which thereafter become part of the Trust; and (ii) originals or copies
      of all documents of the Master Servicer reasonably requested by the Trustee
      to
      enable it to assume the Master Servicer’s duties thereunder. All reasonable and
      properly documented costs and expenses incurred by the Trustee in connection
      with such transfer shall be reimbursed to the Trustee by the Master Servicer
      within 30 days of request therefor or, if the Master Servicer fails to pay
      any
      such amount, reimbursed from amounts on deposit in the Distribution Amount.
      In
      addition to any other amounts which are then, or, notwithstanding the
      termination of its activities under this Agreement, may become payable to the
      Master Servicer under this Agreement, the Master Servicer shall be entitled
      to
      receive, out of any amount received on account of a Mortgage Loan or related
      REO
      Property, that portion of such payments which it would have received as
      reimbursement under this Agreement if notice of termination had not been given.
      The termination of the rights and obligations of the Master Servicer shall
      not
      affect any obligations incurred by the Master Servicer prior to such
      termination.

     

    Notwithstanding
      the foregoing, if an Event of Default described in clause (vi) of this Section
      8.01 shall occur, the Trustee upon receiving notice or becoming aware of such
      failure, and pursuant to the applicable terms of this Agreement, shall, by
      notice in writing to the Master Servicer, which may be delivered by telecopy,
      immediately terminate all of the rights and obligations of the Master Servicer
      thereafter arising under this Agreement, but without prejudice to any rights
      it
      may have as a Holder of the Certificates or to reimbursement of Monthly Advances
      and other advances of its own funds, and the Trustee shall act as provided
      in
      Section 8.02 to carry out the duties of the Master Servicer, including the
      obligation to make any Monthly Advance the nonpayment of which was an Event
      of
      Default described in clause (vi) of this Section 8.01. Any such action taken
      by
      the Trustee must be prior to the distribution on the relevant Distribution
      Date.

     

    Section
      8.02 Trustee
      to Act; Appointment of Successor. 

     

    (a) Upon
      the
      receipt by the Master Servicer of a notice of termination pursuant to Section
      8.01 or an Opinion of Independent Counsel pursuant to Section 7.05 to the effect
      that the Master Servicer is legally unable to act or to delegate its duties
      to a
      Person which is legally able to act, the Trustee shall automatically become
      the
      successor in all respects to the Master Servicer in its capacity under this
      Agreement and the transactions set forth or provided for herein and shall
      thereafter have all the rights and powers of, and be subject to all the
      responsibilities, duties, liabilities and limitations on liabilities relating
      thereto placed on the Master Servicer by the terms and provisions hereof
      (including the requirement to make Monthly Advances pursuant to Section 6.06);
      provided, however, that the Trustee shall have no obligation whatsoever with
      respect to any liability (other than advances deemed recoverable and not
      previously made) incurred by the Master Servicer at or prior to the time of
      termination. As compensation therefor, the Trustee shall be entitled to
      compensation which the Master Servicer would have been entitled to retain if
      the
      Master Servicer had continued to act hereunder, except for those amounts due
      the
      Master Servicer as reimbursement permitted under this Agreement for advances
      previously made or expenses previously incurred. Notwithstanding the above,
      the
      Trustee may, if it shall be unwilling so to act, or shall, if it is legally
      unable so to act, appoint or petition a court of competent jurisdiction to
      appoint, any established housing and home finance institution which is a Fannie
      Mae- or Freddie Mac-approved servicer, and with respect to a successor to the
      Master Servicer only, having a net worth of not less than $10,000,000, as the
      successor to the Master Servicer hereunder in the assumption of all or any
      part
      of the responsibilities, duties or liabilities of the Master Servicer hereunder;
      provided, that the Trustee shall obtain a letter from each Rating Agency that
      the ratings, if any, on each of the Certificates will not be lowered as a result
      of the selection of the successor to the Master Servicer. Pending appointment
      of
      a successor to the Master Servicer hereunder, the Trustee shall act in such
      capacity as hereinabove provided. In connection with such appointment and
      assumption, the Trustee may make such arrangements for the compensation of
      such
      successor out of payments on the Mortgage Loans as it and such successor shall
      agree; provided, however, that the provisions of Section 7.06 shall apply,
      the
      compensation shall not be in excess of that which the Master Servicer would
      have
      been entitled to if the Master Servicer had continued to act hereunder, and
      that
      such successor shall undertake and assume the obligations of the Master Servicer
      to pay compensation to any third Person acting as an agent or independent
      contractor in the performance of master servicing responsibilities hereunder.
      The Trustee and such successor shall take such action, consistent with this
      Agreement, as shall be necessary to effectuate any such succession.

     

    (b) If
      the
      Trustee shall succeed to any duties of the Master Servicer respecting the
      Mortgage Loans as provided herein, it shall do so in a separate capacity and
      not
      in its capacity as Trustee and, accordingly, the provisions of Article IX shall
      be inapplicable to the Trustee in its duties as the successor to the Master
      Servicer in the servicing of the Mortgage Loans (although such provisions shall
      continue to apply to the Trustee in its capacity as Trustee); the provisions
      of
      Article VII, however, shall apply to it in its capacity as successor master
      servicer.

     

    Section
      8.03 Notification
      to Certificateholders. 

     

    Upon
      any
      termination or appointment of a successor to the Master Servicer, the Trustee
      shall give prompt written notice thereof to Holders of the Certificates at
      their
      respective addresses appearing in the Certificate Register and to the Rating
      Agencies.

     

    Section
      8.04 Waiver
      of Defaults. 

     

    The
      Trustee shall transmit by mail to all Holders of the Certificates, within 60
      days after the occurrence of any Event of Default actually known to a
      Responsible Officer of the Trustee, unless such Event of Default shall have
      been
      cured, notice of each such Event of Default. The Holders of Certificates
      evidencing Fractional Undivided Interests aggregating not less than 51% of
      the
      Trust Fund may, on behalf of all Holders of the Certificates, waive any default
      by the Master Servicer in the performance of its obligations hereunder and
      the
      consequences thereof, except a default in the making of or the causing to be
      made any required distribution on the Certificates, which default may only
      be
      waived by Holders of Certificates evidencing Fractional Undivided Interests
      aggregating 100% of the Trust Fund. Upon any such waiver of a past default,
      such
      default shall be deemed to cease to exist, and any Event of Default arising
      therefrom shall be deemed to have been timely remedied for every purpose of
      this
      Agreement. No such waiver shall extend to any subsequent or other default or
      impair any right consequent thereon except to the extent expressly so waived.
      The Trustee shall give notice of any such waiver to the Rating
      Agencies.

     

    Section
      8.05 List
      of Certificateholders. 

     

    Upon
      written request of three or more Holders of Certificates of record, for purposes
      of communicating with other Holders of Certificates with respect to their rights
      under this Agreement, the Trustee will afford such Certificateholders access
      during business hours to the most recent list of related Certificateholders
      held
      by the Trustee.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      IX

    Concerning
      the Trustee 

     

    Section
      9.01 Duties
      of Trustee. 

     

    (a) The
      Trustee, prior to the occurrence of an Event of Default and after the curing
      or
      waiver of all Events of Default which may have occurred undertakes to perform
      such duties and only such duties as are specifically set forth in this Agreement
      as duties of the Trustee. If an Event of Default has occurred and has not been
      cured or waived, the Trustee shall exercise such of the rights and powers vested
      in it by this Agreement use the same degree of care and skill in their exercise,
      as a prudent person would exercise under the circumstances in the conduct of
      his
      own affairs.

     

    (b) Upon
      receipt of all resolutions, certificates, statements, opinions, reports,
      documents, orders or other instruments which are specifically required to be
      furnished to the Trustee pursuant to any provision of this Agreement, the
      Trustee shall examine them to determine whether they are on their face in the
      form required by this Agreement; provided, however, that the Trustee shall
      not
      be responsible for the accuracy or content of any resolution, certificate,
      statement, opinion, report, document, order or other instrument furnished
      hereunder; provided, further, that the Trustee shall not be responsible for
      the
      accuracy or verification of any calculation provided to it pursuant to this
      Agreement.

     

    (c) On
      each
      Distribution Date, the Trustee shall make monthly distributions and the final
      distribution to the related Certificateholders from funds in the Distribution
      Account, as provided in Sections 6.01 and 10.01 herein based solely on the
      report of the Trustee.

     

    (d) No
      provision of this Agreement shall be construed to relieve the Trustee from
      liability for its own negligent action, its own negligent failure to act or
      its
      own willful misconduct; provided, however, that:

     

    (i) Prior
      to
      the occurrence of an Event of Default, and after the curing or waiver of all
      such Events of Default which may have occurred, the duties and obligations
      of
      the Trustee shall be determined solely by the express provisions of this
      Agreement, the Trustee shall not be liable except for the performance of their
      respective duties and obligations as are specifically set forth in this
      Agreement, no implied covenants or obligations shall be read into this Agreement
      against the Trustee and, in the absence of bad faith on the part of the Trustee,
      the Trustee may conclusively rely, as to the truth of the statements and the
      correctness of the opinions expressed therein, upon any certificates or opinions
      furnished to the Trustee, and conforming to the requirements of this
      Agreement;

     

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

     

    (iii) The
      Trustee shall not be liable with respect to any action taken, suffered or
      omitted to be taken by it in good faith in accordance with the directions of
      the
      Holders of Certificates evidencing Fractional Undivided Interests aggregating
      not less than 25% of the portion of the Trust Fund related to such Certificates,
      if such action or non-action relates to the time, method and place of conducting
      any proceeding for any remedy available to the Trustee, or exercising any trust
      or other power conferred upon the Trustee under this Agreement;

     

    (iv) The
      Trustee shall not be required to take notice or be deemed to have notice or
      knowledge of any default or Event of Default unless a Responsible Officer of
      the
      Trustee’s Corporate Trust Office shall have actual knowledge thereof. In the
      absence of such notice, the Trustee may conclusively assume there is no such
      default or Event of Default;

     

    (v) The
      Trustee shall not in any way be liable by reason of any insufficiency in any
      Account held by or in the name of Trustee unless it is determined by a court
      of
      competent jurisdiction that the Trustee’s gross negligence or willful misconduct
      was the primary cause of such insufficiency (except to the extent that the
      Trustee is obligor and has defaulted thereon);

     

    (vi) Anything
      in this Agreement to the contrary notwithstanding, in no event shall the Trustee
      be liable for special, indirect or consequential loss or damage of any kind
      whatsoever (including but not limited to lost profits), even if the Trustee
      has
      been advised of the likelihood of such loss or damage and regardless of the
      form
      of action;

     

    (vii) None
      of
      the Depositor or the Trustee shall be responsible for the acts or omissions
      of
      the other, it being understood that this Agreement shall not be construed to
      render them partners, joint venturers or agents of one another and

     

    (viii) The
      Trustee shall not be required to expend or risk its own funds or otherwise
      incur
      financial liability in the performance of any of its duties hereunder, or in
      the
      exercise of any of its rights or powers, if there is reasonable ground for
      believing that the repayment of such funds or adequate indemnity against such
      risk or liability is not reasonably assured to it, and none of the provisions
      contained in this Agreement shall in any event require the Trustee to perform,
      or be responsible for the manner of performance of, any of the obligations
      of
      the Master Servicer under the Servicing Agreements, except during such time,
      if
      any, as the Trustee shall be the successor to, and be vested with the rights,
      duties, powers and privileges of, the Master Servicer in accordance with the
      terms of this Agreement.

     

    (e) All
      funds
      received by the Master Servicer and the Trustee and required to be deposited
      in
      the Master Servicer Collection Account pursuant to this Agreement will be
      promptly so deposited by the Master Servicer or the Trustee, as
      applicable.

     

    (f) Except
      for those actions that the Trustee is required to take hereunder, the Trustee
      shall not have any obligation or liability to take any action or to refrain
      from
      taking any action hereunder in the absence of written direction as provided
      hereunder.

     

    Section
      9.02 Certain
      Matters Affecting the Trustee. 

     

    Except
      as
      otherwise provided in Section 9.01:

     

    (i) The
      Trustee may rely and shall be protected in acting or refraining from acting
      in
      reliance on any resolution, certificate of the Depositor, the Master Servicer
      or
      a Servicer, certificate of auditors or any other certificate, statement,
      instrument, opinion, report, notice, request, consent, order, appraisal, bond
      or
      other paper or document believed by it to be genuine and to have been signed
      or
      presented by the proper party or parties;

     

    (ii) The
      Trustee may consult with counsel and any advice of such counsel or any Opinion
      of Counsel shall be full and complete authorization and protection with respect
      to any action taken or suffered or omitted by it hereunder in good faith and
      in
      accordance with such advice or Opinion of Counsel;

     

    (iii) The
      Trustee shall not be under any obligation to exercise any of the trusts or
      powers vested in it by this Agreement, other than its obligation to give notices
      pursuant to this Agreement, or to institute, conduct or defend any litigation
      hereunder or in relation hereto at the request, order or direction of any of
      the
      Certificateholders pursuant to the provisions of this Agreement, unless such
      Certificateholders shall have offered to the Trustee reasonable security or
      indemnity against the costs, expenses and liabilities which may be incurred
      therein or thereby. Nothing contained herein shall, however, relieve the Trustee
      of the obligation, upon the occurrence of an Event of Default of which a
      Responsible Officer of the Trustee has actual knowledge (which has not been
      cured or waived), to exercise such of the rights and powers vested in it by
      this
      Agreement, and to use the same degree of care and skill in their exercise,
      as a
      prudent person would exercise under the circumstances in the conduct of his
      own
      affairs;

     

    (iv) Prior
      to
      the occurrence of an Event of Default hereunder and after the curing or waiver
      of all Events of Default which may have occurred, the Trustee shall not be
      liable for any action taken, suffered or omitted by it in good faith and
      believed by it to be authorized or within the discretion or rights or powers
      conferred upon it by this Agreement;

     

    (v) The
      Trustee shall not be bound to make any investigation into the facts or matters
      stated in any resolution, certificate, statement, instrument, opinion, report,
      notice, request, consent, order, approval, bond or other paper or document,
      unless requested in writing to do so by Holders of Certificates evidencing
      Fractional Undivided Interests aggregating not less than 25% of the portion
      of
      the Trust Fund related to such Certificates, and provided that the payment
      within a reasonable time to the Trustee of the costs, expenses or liabilities
      likely to be incurred by it in the making of such investigation is, in the
      opinion of the Trustee reasonably assured to the Trustee by the security
      afforded to it by the terms of this Agreement. The Trustee may require
      reasonable indemnity against such expense or liability as a condition to taking
      any such action. The reasonable expense of every such examination shall be
      paid
      by the related Certificateholders requesting the investigation;

     

    (vi) The
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or through Affiliates, agents or attorneys; provided,
      however, that the Trustee may not appoint any agent to perform its custodial
      functions with respect to the Mortgage Files or paying agent functions under
      this Agreement without the express written consent of the Master Servicer,
      which
      consent will not be unreasonably withheld. The Trustee shall not be liable
      or
      responsible for the misconduct or negligence of any of the Trustee’s agents or
      attorneys or a custodian or paying agent appointed hereunder by the Trustee
      with
      due care and, when required, with the consent of the Master
      Servicer;

     

    (vii) Should
      the Trustee deem the nature of any action required on its part, to be unclear,
      the Trustee may require prior to such action that it be provided by the
      Depositor with reasonable further instructions;

     

    (viii) The
      right
      of the Trustee to perform any discretionary act enumerated in this Agreement
      shall not be construed as a duty, and the Trustee shall not be accountable
      for
      other than its negligence or willful misconduct in the performance of any such
      act;

     

    (ix) The
      Trustee shall not be required to give any bond or surety with respect to the
      execution of the trust created hereby or the powers granted hereunder, except
      as
      provided in Section 9.07; and

     

    (x) The
      Trustee shall not have any duty to conduct any affirmative investigation as
      to
      the occurrence of any condition requiring the repurchase of any Mortgage Loan
      by
      the Seller pursuant to this Agreement or the Mortgage Loan Purchase Agreement,
      as applicable, or the eligibility of any Mortgage Loan for purposes of this
      Agreement.

     

    Section
      9.03 Trustee
      Not Liable for Certificates or Mortgage Loans. 

     

    The
      recitals contained herein and in the Certificates (other than the signature
      and
      countersignature of the Trustee on such Certificates) shall be taken as the
      statements of the Depositor, and neither the Trustee, nor the Custodian on
      its
      behalf, shall have any responsibility for their correctness. The Trustee does
      not make any representation as to the validity or sufficiency of the
      Certificates (other than the signature and countersignature of the Trustee
      on
      the such Certificates) or of any Mortgage Loan; provided, however, that the
      foregoing shall not relieve the Trustee, or the Custodian on its behalf, of
      the
      obligation to review the Mortgage Files pursuant to Sections 2.02 and 2.04.
      The
      Trustee’s signature and countersignature (or countersignature of its agent) on
      the Certificates shall be solely in its capacity as Trustee and shall not
      constitute the Certificates an obligation of the Trustee in any other capacity.
      The Trustee shall not be accountable for the use or application by the Depositor
      of any of the Certificates or of the proceeds of such Certificates, or for
      the
      use or application of any funds paid to the Depositor with respect to the
      Mortgage Loans. The Trustee shall not be responsible for the legality or
      validity of this Agreement or any document or instrument relating to this
      Agreement, the validity of the execution of this Agreement or of any supplement
      hereto or instrument of further assurance, or the validity, priority, perfection
      or sufficiency of the security for the Certificates issued hereunder or intended
      to be issued hereunder. The Trustee shall not at any time have any
      responsibility or liability for or with respect to the legality, validity and
      enforceability of any Mortgage or any Mortgage Loan, or the perfection and
      priority of any Mortgage or the maintenance of any such perfection and priority,
      or for or with respect to the sufficiency of either Trust Fund, or any portion
      of either Trust Fund or its ability to make the payments to be distributed
      to
      Certificateholders, under this Agreement. The Trustee shall not have any
      responsibility for filing any financing statement or continuation statement
      in
      any public office at any time or to otherwise perfect or maintain the perfection
      of any security interest or lien granted to it hereunder or to record this
      Agreement.

     

    Section
      9.04 Trustee
      May Own Certificates. 

     

    The
      Trustee in its individual capacity or in any capacity other than as Trustee
      hereunder may become the owner or pledgee of any Certificates with the same
      rights it would have if it were not Trustee and may otherwise deal with the
      parties hereto.

     

    Section
      9.05 Trustee’s
      Fees and Expenses. 

     

    The
      Trustee will be entitled to recover, from the Distribution Account pursuant
      to
      Section 4.05, the Trustee Fee, all reasonable out-of-pocket expenses,
      disbursements and advances and the expenses of the Trustee in connection with
      any Event of Default, any breach of this Agreement or any claim or legal action
      (including any pending or threatened claim or legal action) or incurred or
      made
      by the Trustee in the administration of the trusts hereunder (including the
      reasonable compensation, expenses and disbursements of its counsel) except
      any
      such expense, disbursement or advance as may arise from its negligence or
      intentional misconduct or which is the responsibility of the Certificateholders.
      If funds in the Distribution Account are insufficient therefor, the Trustee
      shall recover such expenses from the Depositor and the Depositor hereby agrees
      to pay such expenses, disbursements or advances upon demand. Such compensation
      and reimbursement obligation shall not be limited by any provision of law in
      regard to the compensation of a trustee of an express trust.

     

    Section
      9.06 Eligibility
      Requirements for Trustee. 

     

    The
      Trustee and any successor Trustee shall during the entire duration of this
      Agreement be a state bank or trust company or a national banking association
      organized and doing business under the laws of such state or the United States
      of America, authorized under such laws to exercise corporate trust powers,
      having a combined capital and surplus and undivided profits of at least
      $40,000,000 or, in the case of a successor Trustee, $50,000,000, subject to
      supervision or examination by federal or state authority and, in the case of
      the
      Trustee, rated “BBB” or higher by S&P or Fitch and “Baa2” or higher by
      Moody’s with respect to their long-term rating and rated “BBB” or higher by
      S&P or Fitch and “Baa2” or higher by Moody’s with respect to any outstanding
      long-term unsecured unsubordinated debt, and, in the case of a successor Trustee
      other than pursuant to Section 9.10, rated in one of the two highest long-term
      debt categories of, or otherwise acceptable to, each of the Rating Agencies.
      If
      the Trustee publishes reports of condition at least annually, pursuant to law
      or
      to the requirements of the aforesaid supervising or examining authority, then
      for the purposes of this Section 9.06 the combined capital and surplus of such
      corporation shall be deemed to be its total equity capital (combined capital
      and
      surplus) as set forth in its most recent report of condition so published.
      In
      case at any time the Trustee shall cease to be eligible in accordance with
      the
      provisions of this Section 9.06, the Trustee shall resign immediately in the
      manner and with the effect specified in Section 9.08.

     

    The
      Trustee may not be the Seller, an originator of any of the Mortgage Loans,
      the
      Master Servicer, a Servicer, the Depositor or an affiliate of the Depositor
      unless the Trustee is in an institutional trust department of U.S. Bank National
      Association. 

     

    Section
      9.07 Insurance. 

     

    The
      Trustee at its own expense, shall at all times maintain and keep in full force
      and effect: (i) fidelity insurance, (ii) theft of documents insurance and (iii)
      forgery insurance (which may be collectively satisfied by a “Financial
      Institution Bond” and/or a “Bankers’ Blanket Bond”). All such insurance shall be
      in amounts, with standard coverage and subject to deductibles, as are customary
      for insurance typically maintained by banks or their affiliates which act as
      custodians for investor-owned mortgage pools. A certificate of an officer of
      the
      Trustee as to the Trustee’s compliance with this Section 9.07 shall be furnished
      to any Certificateholder upon reasonable written request.

     

    Section
      9.08 Resignation
      and Removal of the Trustee. 

     

    (a) The
      Trustee may at any time resign and be discharged from the Trust hereby created
      by giving written notice thereof to the Depositor, the Seller and the Master
      Servicer, with a copy to the Rating Agencies. Upon receiving such notice of
      resignation, the Depositor shall promptly appoint a successor trustee by written
      instrument, in triplicate, one copy of which instrument shall be delivered
      to
      each of the resigning trustee and the successor trustee. If no successor trustee
      shall have been so appointed and have accepted appointment within 30 days after
      the giving of such notice of resignation, the resigning Trustee may petition
      any
      court of competent jurisdiction for the appointment of a successor
      trustee.

     

    (b) If
      at any
      time the Trustee shall cease to be eligible in accordance with the provisions
      of
      Section 9.06 and shall fail to resign after written request therefor by the
      Depositor or if at any time the Trustee shall become incapable of acting, or
      shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee, or
      of
      its property shall be appointed, or any public officer shall take charge or
      control of the Trustee, or of its property or affairs for the purpose of
      rehabilitation, conservation or liquidation, then the Depositor shall promptly
      remove the Trustee, and appoint a successor Trustee, by written instrument,
      in
      triplicate, one copy of which instrument shall be delivered to the Trustee,
      so
      removed, the successor Trustee.

     

    (c) The
      Holders of Certificates evidencing Fractional Undivided Interests aggregating
      not less than 51% of the portion of the Trust Fund related to such Certificates,
      may at any time remove the Trustee and appoint a successor Trustee for the
      related Trust Fund by written instrument or instruments, in quadruplicate,
      signed by such Holders or their attorneys-in-fact duly authorized, one complete
      set of which instruments shall be delivered to the Depositor, and the Trustee
      so
      removed and the successor so appointed. In the event that the Trustee is removed
      by the Holders of Certificates in accordance with this Section 9.08(c), the
      Holders of such Certificates shall be responsible for paying any compensation
      payable to a successor Trustee, in excess of the amount paid to the predecessor
      Trustee.

     

    (d) No
      resignation or removal of the Trustee and appointment of a successor Trustee
      pursuant to any of the provisions of this Section 9.08 shall become effective
      except upon appointment of and acceptance of such appointment by the successor
      Trustee as provided in Section 9.09.

     

    Section
      9.09 Successor
      Trustee. 

     

    (a) Any
      successor Trustee appointed as provided in Section 9.08 shall execute,
      acknowledge and deliver to the Depositor and to its predecessor Trustee an
      instrument accepting such appointment hereunder. The resignation or removal
      of
      the predecessor Trustee shall then become effective and such successor Trustee,
      without any further act, deed or conveyance, shall become fully vested with
      all
      the rights, powers, duties and obligations of its predecessor hereunder, with
      like effect as if originally named as Trustee herein. The predecessor Trustee
      shall after payment of its outstanding fees and expenses promptly deliver to
      the
      successor Trustee all assets and records of the Trust held by it hereunder,
      and
      the Depositor and the predecessor Trustee shall execute and deliver such
      instruments and do such other things as may reasonably be required for more
      fully and certainly vesting and confirming in the successor Trustee, all such
      rights, powers, duties and obligations.

     

    (b) No
      successor Trustee shall accept appointment as provided in this Section 9.09
      unless at the time of such acceptance such successor Trustee shall be eligible
      under the provisions of Section 9.06.

     

    (c) Upon
      acceptance of appointment by a successor trustee as provided in this Section
      9.09, the successor trustee shall mail notice of the succession of such trustee
      hereunder to all Certificateholders at their addresses as shown in the
      Certificate Register and to the Rating Agencies. The Depositor shall cause
      such
      notice to be mailed at the expense of the Trust Fund.

     

    Section
      9.10 Merger
      or Consolidation of Trustee. 

     

    Any
      state
      bank or trust company or national banking association into which the Trustee
      may
      be merged or converted or with which it may be consolidated or any state bank
      or
      trust company or national banking association resulting from any merger,
      conversion or consolidation to which the Trustee shall be a party, or any state
      bank or trust company or national banking association succeeding to all or
      substantially all of the corporate trust business of the Trustee shall be the
      successor of the Trustee hereunder, provided such state bank or trust company
      or
      national banking association shall be eligible under the provisions of Section
      9.06. Such succession shall be valid without the execution or filing of any
      paper or any further act on the part of any of the parties hereto, anything
      herein to the contrary notwithstanding.

     

    Section
      9.11 Appointment
      of Co-Trustee or Separate Trustee. 

     

    (a) Notwithstanding
      any other provisions hereof, at any time, for the purpose of meeting any legal
      requirements of any jurisdiction in which any part of the Trust or property
      constituting the same may at the time be located, the Depositor and the Trustee
      acting jointly shall have the power and shall execute and deliver all
      instruments to appoint one or more Persons approved by the Trustee and the
      Depositor to act as co-trustee or co-trustees, jointly with the Trustee, or
      separate trustee or separate trustees, of all or any part of the Trust, and
      to
      vest in such Person or Persons, in such capacity, such title to the Trust,
      or
      any part thereof, and, subject to the other provisions of this Section 9.11,
      such powers, duties, obligations, rights and trusts as the Depositor and the
      Trustee may consider necessary or desirable.

     

    (b) If
      the
      Depositor shall not have joined in such appointment within 15 days after the
      receipt by it of a written request so to do, the Trustee shall have the power
      to
      make such appointment without the Depositor.

     

    (c) No
      co-trustee or separate trustee hereunder shall be required to meet the terms
      of
      eligibility as a successor Trustee under Section 9.06 hereunder and no notice
      to
      Certificateholders of the appointment of co-trustee(s) or separate trustee(s)
      shall be required under Section 9.08 hereof.

     

    (d) In
      the
      case of any appointment of a co-trustee or separate trustee pursuant to this
      Section 9.11, all rights, powers, duties and obligations conferred or imposed
      upon the Trustee and required to be conferred on such co-trustee shall be
      conferred or imposed upon and exercised or performed by the Trustee and such
      separate trustee or co-trustee jointly, except to the extent that under any
      law
      of any jurisdiction in which any particular act or acts are to be performed
      (whether as Trustee hereunder or as successor to the Master Servicer hereunder),
      the Trustee shall be incompetent or unqualified to perform such act or acts,
      in
      which event such rights, powers, duties and obligations (including the holding
      of title to the Trust or any portion thereof in any such jurisdiction) shall
      be
      exercised and performed by such separate trustee or co-trustee at the direction
      of the Trustee.

     

    (e) Any
      notice, request or other writing given to the Trustee shall be deemed to have
      been given to each of the then separate trustees and co-trustees, as effectively
      as if given to each of them. Every instrument appointing any separate trustee
      or
      co-trustee shall refer to this Agreement and the conditions of this Article
      IX.
      Each separate trustee and co-trustee, upon its acceptance of the trusts
      conferred, shall be vested with the estates or property specified in its
      instrument of appointment, either jointly with the Trustee or separately, as
      may
      be provided therein, subject to all the provisions of this Agreement,
      specifically including every provision of this Agreement relating to the conduct
      of, affecting the liability of, or affording protection to, the Trustee. Every
      such instrument shall be filed with the Trustee.

     

    (f) To
      the
      extent not prohibited by law, any separate trustee or co-trustee may, at any
      time, request the Trustee, its agent or attorney-in-fact, with full power and
      authority, to do any lawful act under or with respect to this Agreement on
      its
      behalf and in its name. If any separate trustee or co-trustee shall die, become
      incapable of acting, resign or be removed, all of its estates, properties
      rights, remedies and trusts shall vest in and be exercised by the Trustee,
      to
      the extent permitted by law, without the appointment of a new or successor
      Trustee.

     

    (g) No
      trustee under this Agreement shall be personally liable by reason of any act
      or
      omission of another trustee under this Agreement. The Depositor and the Trustee
      acting jointly may at any time accept the resignation of or remove any separate
      trustee or co-trustee.

     

    Section
      9.12 Federal
      Information Returns and Reports to Certificateholders; REMIC
      Administration. 

     

    (a) For
      federal income tax purposes, the taxable year of each REMIC shall be a calendar
      year and the Trustee shall maintain or cause the maintenance of the books of
      each such REMIC on the accrual method of accounting.

     

    (b) The
      Trustee shall prepare, sign and file or cause to be filed with the Internal
      Revenue Service federal tax information returns or elections required to be
      made
      hereunder with respect to each REMIC, each Trust Fund, if applicable, and the
      Certificates containing such information and at the times and in the manner
      as
      may be required by the Code or applicable Treasury regulations, and shall
      furnish to each Holder of Certificates at any time during the calendar year
      for
      which such returns or reports are made such statements or information at the
      times and in the manner as may be required thereby, including, without
      limitation, reports relating to interest, original issue discount and market
      discount or premium (using a constant prepayment assumption of 300% PSA as
      described in the prospectus supplement relating to the Offered Certificates).
      The Trustee will apply for an Employee Identification Number from the Internal
      Revenue Service under Form SS-4 or any other acceptable method for all tax
      entities. In connection with the foregoing, the Trustee shall timely prepare,
      file and sign, Internal Revenue Service Form 8811, which shall provide the
      name
      and address of the person who can be contacted to obtain information required
      to
      be reported to the holders of regular interests in each REMIC (the “REMIC
      Reporting Agent”). The Trustee shall make elections to treat each REMIC as a
      REMIC (which elections shall apply to the taxable period ending December 31,
      2006 and each calendar year thereafter) in such manner as the Code or applicable
      Treasury regulations may prescribe, and as described by the Trustee. The Trustee
      shall sign all tax information returns filed pursuant to this Section and any
      other returns as may be required by the Code. The Holder of the Class R-1
      Certificate is hereby designated as the “Tax Matters Person” (within the meaning
      of Treasury Regulation Section 1.860F-4(d)) for REMIC I, the Holder of the
      Class
      R-2 Certificate is hereby designated as the “Tax Matters Person” for REMIC II,
      and the Holder of the Class R-3 Certificate is hereby designated as the “Tax
      Matters Person” for REMIC III. The Trustee is hereby designated and appointed as
      the agent of each such Tax Matters Person. Any Holder of a Residual Certificate
      will by acceptance thereof appoint the Trustee as agent and attorney-in-fact
      for
      the purpose of acting as Tax Matters Person for each REMIC during such time
      as
      the Trustee does not own any such Residual Certificate. In the event that the
      Code or applicable Treasury regulations prohibit the Trustee from signing tax
      or
      information returns or other statements, or the Trustee from acting as agent
      for
      the Tax Matters Person, the Trustee shall take whatever action that in their
      sole good faith judgment is necessary for the proper filing of such information
      returns or for the provision of a Tax Matters Person, including designation
      of
      the Holder of a Residual Certificate to sign such returns or act as Tax Matters
      Person. Each Holder of a Residual Certificate shall be bound by this
      Section.

     

    (c) The
      Trustee shall provide upon request and receipt of reasonable compensation such
      information as required in Section 860D(a)(6)(B) of the Code to the Internal
      Revenue Service, to any Person purporting to transfer a Residual Certificate
      to
      a Person other than a transferee permitted by Section 5.05(b), and to any
      regulated investment company, real estate investment trust, common trust fund,
      partnership, trust, estate, organization described in Section 1381 of the Code,
      or nominee holding an interest in a pass-through entity described in Section
      860E(e)(6) of the Code, any record holder of which is not a transferee permitted
      by Section 5.05(b) (or which is deemed by statute to be an entity with a
      disqualified member).

     

    (d) The
      Trustee shall prepare, sign and file or cause to be filed any state income
      tax
      returns required under Applicable State Law with respect to each REMIC or the
      Trust Fund.

     

    (e) Notwithstanding
      any other provision of this Agreement, the Trustee shall comply with all federal
      withholding requirements respecting payments to Certificateholders of interest,
      original issue discount or principal on the Certificates that the Trustee
      reasonably believes are applicable under the Code. The consent of
      Certificateholders shall not be required for such withholding. In the event
      the
      Trustee withholds any amount from payments of interest, original issue discount
      or principal or advances thereof to any Certificateholder pursuant to federal
      withholding requirements, the Trustee shall, together with its monthly report
      to
      such Certificateholders, indicate such amount withheld.

     

    (f) The
      Trustee agrees to indemnify the Trust Fund and the Depositor for any taxes
      and
      costs including, without limitation, any reasonable attorneys fees imposed
      on or
      incurred by such Trust Fund, the Depositor or the Master Servicer, as a result
      of a breach of the Trustee’s covenants set forth in this Section 9.12; provided,
      however, such liability and obligation to indemnify in this paragraph shall
      not
      be joint and several, and the Trustee shall not be liable or be obligated to
      indemnify the Trust Fund for the failure by the other to perform any duty under
      this Agreement or the breach by the other of any covenant in this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      X

    Termination

     

    Section
      10.01 Termination
      Upon Repurchase by the Depositor or its Designee or Liquidation of the Mortgage
      Loans.

     

    (a) Subject
      to Section 10.03, the respective obligations and responsibilities of the
      Depositor, the Trustee and the Master Servicer created hereby with respect
      to
      the Trust Fund and the related Certificates, other than the obligation of the
      Trustee to make payments to related Certificateholders as hereinafter set forth
      and the indemnification obligations under Section 7.03 hereof, shall terminate
      upon:

     

    (i) the
      repurchase by or at the direction of the Depositor or its designee of all of
      the
      Mortgage Loans and all related REO Property remaining at a price (in each case,
      the “Termination Purchase Price”) equal to the sum of (a) 100% of the
      Outstanding Principal Balance of each such Mortgage Loan (other than a Mortgage
      Loan related to REO Property) as of the date of repurchase, net of the principal
      portion of any unreimbursed Monthly Advances made by the purchaser, together
      with interest at the applicable Mortgage Interest Rate accrued but unpaid to,
      but not including, the first day of the month of repurchase, (b) the appraised
      value of any related REO Property, less the good faith estimate of the Depositor
      of liquidation expenses to be incurred in connection with its disposal thereof
      (but not more than the Outstanding Principal Balance of the related Mortgage
      Loan, together with interest at the applicable Mortgage Interest Rate accrued
      on
      that balance but unpaid to, but not including, the first day of the month of
      repurchase), such appraisal to be calculated by an appraiser mutually agreed
      upon by the Depositor and the Trustee at the expense of the Depositor, (c)
      unreimbursed out-of pocket costs of the Master Servicer, including unreimbursed
      servicing advances and the principal portion of any unreimbursed Monthly
      Advances, made on the Mortgage Loans prior to the exercise of such repurchase
      right and (d) any unreimbursed costs and expenses of the Trustee payable
      pursuant to Section 9.05 and to the Custodian pursuant to the Custodial
      Agreement; or

     

    (ii) the
      later
      of the making of the final payment or other liquidation, or any advance with
      respect thereto, of the last Mortgage Loan remaining in the Trust Fund or the
      disposition of all property acquired with respect to any Mortgage Loan;
      provided, however, that in the event that an advance has been made, but not
      yet
      recovered, at the time of such termination, the Person having made such advance
      shall be entitled to receive, notwithstanding such termination, any payments
      received subsequent thereto with respect to which such advance was made;
      or

     

    (iii) the
      payment to the Certificateholders of all amounts required to be paid to them
      pursuant to this Agreement.

     

    (b) In
      no
      event, however, shall the portion of the Trust Fund created hereby continue
      beyond the earlier of (i) the “latest possible maturity date” specified in
      Section 5.01(d) or (ii) the expiration of 21 years from the death of the last
      survivor of the descendants of Joseph P. Kennedy, the late Ambassador of the
      United States to the Court of St. James’s, living on the date of this
      Agreement.

     

    (c) The
      right
      of the Depositor or its designee to repurchase all the assets of the Trust
      Fund
      as described in Subsection 10.01(a)(i) above shall be exercisable only if (i)
      the aggregate Scheduled Principal Balance of the Mortgage Loans in Loan at
      the
      time of any such repurchase is less than 10% of the Cut-Off Date Balance, and
      the or (ii) the Depositor, based upon an Opinion of Counsel addressed to the
      Depositor and the Trustee, has determined that the REMIC status of REMIC I,
      REMIC II or REMIC III has been lost or that a substantial risk exists that
      such
      REMIC status will be lost for the then-current taxable year. At any time
      thereafter, in the case of (i) or (ii) above, the Depositor may elect to
      terminate REMIC I, REMIC II or REMIC III at any time, and upon such election,
      the Depositor or its designee, shall repurchase all the assets of the Trust
      Fund
      described in Subsection 10.01(a)(i) above.

     

    (d) The
      Trustee shall give notice of any termination to the Certificateholders, with
      a
      copy to the Master Servicer and the Rating Agencies, upon which the
      Certificateholders shall surrender their Certificates to the Trustee for payment
      of the final distribution and cancellation. Such notice shall be given by
      letter, mailed not earlier than the l5th day and not later than the 25th day
      of
      the month next preceding the month of such final distribution, and shall specify
      (i) the Distribution Date upon which final payment of the related Certificates
      will be made upon presentation and surrender of the related Certificates at
      the
      office of the Trustee therein designated, (ii) the amount of any such final
      payment and (iii) that the Record Date otherwise applicable to such Distribution
      Date is not applicable, payments being made only upon presentation and surrender
      of the related Certificates at the office of the Trustee therein
      specified.

     

    (e) If
      the
      option of the Depositor to repurchase or cause the repurchase of all the assets
      in the Trust Fund as described in Subsection 10.01(a)(i) above, is exercised,
      the Depositor and/or its designee shall deliver to the Trustee for deposit
      in
      the Distribution Account, by the Business Day prior to the applicable
      Distribution Date, an amount equal to the related Termination Purchase Price.
      Upon presentation and surrender of the related Certificates by the related
      Certificateholders, the Trustee shall distribute to such Certificateholders
      an
      amount determined as follows: with respect to each related Certificate (other
      than the Interest Only Certificates), the outstanding Current Principal Amount,
      plus with respect to each such Certificate, one month’s interest thereon at the
      applicable Pass-Through Rate; and with respect to the Class R Certificates,
      the
      percentage interest evidenced thereby multiplied by the difference, if any,
      between the above described repurchase price and the aggregate amount to be
      distributed to the Holders of the Certificates (other than the Class R
      Certificates). If the proceeds with respect to the related Mortgage Loans are
      not sufficient to pay all of the related Senior Certificates in full, any such
      deficiency shall be allocated first, to the related Subordinate Certificates,
      in
      inverse order of their numerical designations and then to the related Senior
      Certificates on a pro rata basis. Upon deposit of the related Termination
      Purchase Price and following such final Distribution Date, the Trustee shall
      release promptly to the Depositor and/or its designee the related Mortgage
      Files
      for the remaining Mortgage Loans, and the related portions of the Accounts
      with
      respect thereto shall terminate, subject to the Trustee’s obligation to hold any
      amounts payable to the related Certificateholders in trust without interest
      pending final distributions pursuant to Subsection 10.01(g). Any other amounts
      remaining in the Accounts will belong to the Depositor.

     

    (f) In
      the
      event that this Agreement is terminated by reason of the payment or liquidation
      of all Mortgage Loans or the disposition of all property acquired with respect
      to all Mortgage Loans under Subsection 10.01(a)(ii) above, the Master Servicer
      shall deliver to the Trustee for deposit in the Distribution Account all
      distributable amounts remaining in the Master Servicer Collection Account.
      Upon
      the presentation and surrender of the related Certificates, the Trustee shall
      distribute to the remaining related Certificateholders, pursuant to the written
      direction of the Trustee and in accordance with their respective interests,
      all
      related distributable amounts remaining in the Distribution Account. Upon
      deposit by the Master Servicer of such distributable amounts, and following
      such
      final Distribution Date, the Paying Agent shall release promptly to the
      Depositor or its designee the related Mortgage Files for the remaining Mortgage
      Loans, and the In the event that this Agreement is terminated by reason of
      the
      payment or liquidation of all Mortgage Loans or the disposition of all property
      acquired with respect to all Mortgage Loans under Subsection 10.01(a)(ii) above,
      the Master Servicer shall deliver to the Trustee for deposit in the Distribution
      Account all distributable amounts remaining in the Master Servicer Collection
      Account and the Distribution Account shall terminate, subject to the Paying
      Agent’s obligation to hold any amounts payable to the related Certificateholders
      in trust without interest pending final distributions pursuant to this
      Subsection 10.01(f).

     

    (g) If
      not
      all of the Certificateholders shall surrender their Certificates for
      cancellation within six months after the time specified in the above-mentioned
      written notice, the Trustee shall give a second written notice to the remaining
      Certificateholders to surrender their Certificates for cancellation and receive
      the final distribution with respect thereto. If within six months after the
      second notice, not all the related Certificates shall have been surrendered
      for
      cancellation, the Trustee may take appropriate steps, or appoint any agent
      to
      take appropriate steps, to contact the related remaining Certificateholders
      concerning surrender of their Certificates, and the cost thereof shall be paid
      out of the funds and other assets which remain subject to this
      Agreement.

     

    Section
      10.02 [Reserved]. 

     

    Section
      10.03 Additional
      Termination Requirements with respect to the Certificates. 

     

    (a) If
      the
      option of the Depositor to repurchase all of the Mortgage Loans and related
      properties under Subsection 10.01(a)(i) above is exercised, the Trust Fund
      and
      each REMIC shall be terminated in accordance with the following additional
      requirements, unless the Trustee has been furnished with an Opinion of Counsel
      addressed to the Trustee to the effect that the failure of the Trust to comply
      with the requirements of this Section 10.03 will not (i) result in the
      imposition of taxes on “prohibited transactions” as defined in Section 860F of
      the Code on any REMIC or (ii) cause any REMIC to fail to qualify as a REMIC
      at
      any time that any Certificates are outstanding:

     

     

    (i) The
      Depositor shall establish a 90-day liquidation period and notify the Trustee
      thereof, and the Trustee shall in turn specify the first day of such period
      in a
      statement attached to the tax return for each of REMIC I, REMIC II and REMIC
      III
      pursuant to Treasury Regulation Section 1.860F-1. The Depositor shall satisfy
      all the requirements of a qualified liquidation under Section 860F of the Code
      and any regulations thereunder, as evidenced by an Opinion of Counsel addressed
      to the Trustee obtained at the expense of the Depositor;

     

     

    (ii) During
      such 90-day liquidation period, and at or prior to the time of making the final
      payment on the Certificates, the Trustee shall sell all of the assets of REMIC
      I
      for cash; and

     

     

    (iii) At
      the
      time of the making of the final payment on the Certificates, the Trustee shall
      distribute or credit, or cause to be distributed or credited, to the Holders
      of
      the Residual Certificates all cash on hand (other than cash retained to meet
      claims), and REMIC I shall terminate at that time.

     

    (b) By
      their
      acceptance of the Certificates, the Holders thereof hereby authorize the
      adoption of a 90-day liquidation period and the adoption of a plan of complete
      liquidation for REMIC I, REMIC II and REMIC III, which authorization shall
      be
      binding upon all successor Certificateholders.

     

    (c) The
      Trustee as agent for each REMIC hereby agrees to adopt and sign such a plan
      of
      complete liquidation meeting the requirements for a qualified liquidation under
      Section 860F of the Code and any regulations thereunder upon the written request
      of the Depositor and the receipt of the Opinion of Counsel referred to in clause
      (a)(i) above and to take such other action in connection therewith as may be
      reasonably requested by the Depositor.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

    ARTICLE
      XI

    Miscellaneous
      Provisions

     

    Section
      11.01 Intent
      of Parties. 

     

    The
      parties intend that each of REMIC I, REMIC II and REMIC III shall be treated
      as
      a REMIC for federal income tax purposes and that the provisions of this
      Agreement should be construed in furtherance of this intent.

     

    Section
      11.02 Amendment. 

     

    (a) This
      Agreement may be amended from time to time by the Depositor, the Master Servicer
      and the Trustee, but without notice to or the consent of any of the related
      Certificateholders, to cure any ambiguity, to correct or supplement any
      provisions herein or therein that may be defective or inconsistent with any
      other provisions herein or therein, to comply with any changes in the Code,
      to
      revise any provision to reflect the obligations of the parties to this Agreement
      as they relate to Regulation AB or to make any other provisions with respect
      to
      matters or questions arising under this Agreement which shall not be
      inconsistent with the provisions of this Agreement; provided, however, that
      such
      action shall not, as evidenced by an Opinion of Counsel, addressed to the
      Trustee, adversely affect in any material respect the interests of any related
      Certificateholder or cause any REMIC to fail to qualify as a REMIC for federal
      income tax purposes as evidenced by an Opinion of Counsel addressed to the
      Trustee but not at the Trustee’s expense.

     

    (b) With
      respect to the Certificates, this Agreement may also be amended from time to
      time by the Master Servicer, the Depositor and the Trustee, and the Holders
      of
      Certificates evidencing Fractional Undivided Interests aggregating not less
      than
      51% of the applicable Class or Classes, if such amendment affects only such
      Class or Classes, for the purpose of adding any provisions to or changing in
      any
      manner or eliminating any of the provisions of this Agreement or of modifying
      in
      any manner the rights of the related Certificateholders; provided, however,
      that
      no such amendment shall (i) reduce in any manner the amount of, or delay the
      timing of, payments received on Mortgage Loans which are required to be
      distributed on any Certificate without the consent of the Holder of such
      Certificate, (ii) reduce the aforesaid percentage of Certificates the Holders
      of
      which are required to consent to any such amendment, without the consent of
      the
      Holders of all Certificates then outstanding, or (iii) cause any related REMIC
      to fail to qualify as a REMIC for federal income tax purposes, as evidenced
      by
      an Opinion of Counsel addressed to the Trustee which shall be provided to the
      Trustee other than at the Trustee’s expense. Notwithstanding any other provision
      of this Agreement, for purposes of giving or withholding of consents pursuant
      to
      this first paragraph of Section 11.02(b), Certificates registered in the name
      of
      or held for the benefit of the Depositor, the Master Servicer, or the Trustee
      or
      any Affiliate thereof shall be entitled to vote their Fractional Undivided
      Interests with respect to matters affecting such Certificates.

     

    (c) Promptly
      after the execution of any such amendment, the Trustee shall furnish a copy
      of
      such amendment or written notification of the substance of such amendment to
      each related Certificateholder, with a copy to the Rating Agencies.

     

    (d) In
      the
      case of an amendment under Subsection 11.02(b) above, it shall not be necessary
      for the related Certificateholders to approve the particular form of such an
      amendment. Rather, it shall be sufficient if the related Certificateholders
      approve the substance of the amendment. The manner of obtaining such consents
      and of evidencing the authorization of the execution thereof by related
      Certificateholders shall be subject to such reasonable regulations as the
      Trustee may prescribe.

     

    (e) Prior
      to
      the execution of any amendment to this Agreement, the Trustee shall be entitled
      to receive and rely upon an Opinion of Counsel addressed to the Trustee stating
      that the execution of such amendment is authorized or permitted by this
      Agreement. The Trustee may, but shall not be obligated to, enter into any such
      amendment which affects the Trustee’s own rights, duties or immunities under
      this Agreement.

     

    Section
      11.03 Recordation
      of Agreement. 

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all the counties
      or
      other comparable jurisdictions in which any or all of the Mortgaged Properties
      are situated, and in any other appropriate public recording office or elsewhere.
      The Depositor shall effect such recordation, at the expense of the Trust upon
      the request in writing of a Certificateholder, but only if such direction is
      accompanied by an Opinion of Counsel (provided at the expense of the
      Certificateholder requesting recordation) to the effect that such recordation
      would materially and beneficially affect the interests of the Certificateholders
      or is required by law.

     

    Section
      11.04 Limitation
      on Rights of Certificateholders. 

     

    (a) The
      death
      or incapacity of any Certificateholder shall not terminate this Agreement or
      the
      Trust, nor entitle such Certificateholder’s legal representatives or heirs to
      claim an accounting or to take any action or proceeding in any court for a
      partition or winding up of the Trust, nor otherwise affect the rights,
      obligations and liabilities of the parties hereto or any of them.

     

    (b) Except
      as
      expressly provided in this Agreement, no Certificateholders shall have any
      right
      to vote or in any manner otherwise control the operation and management of
      the
      Trust, or the obligations of the parties hereto, nor shall anything herein
      set
      forth, or contained in the terms of the Certificates, be construed so as to
      establish the Certificateholders from time to time as partners or members of
      an
      association; nor shall any Certificateholders be under any liability to any
      third Person by reason of any action taken by the parties to this Agreement
      pursuant to any provision hereof.

     

    (c) No
      Certificateholder shall have any right by virtue of any provision of this
      Agreement to institute any suit, action or proceeding in equity or at law upon,
      under or with respect to this Agreement against the Depositor, the Trustee,
      the
      Master Servicer or any successor to any such parties unless (i) such
      Certificateholder previously shall have given to the Trustee a written notice
      of
      a continuing default, as herein provided, (ii) the Holders of Certificates
      evidencing Fractional Undivided Interests aggregating not less than 51% of
      the
      Trust Fund shall have made written request upon the Trustee to institute such
      action, suit or proceeding in its own name as Trustee hereunder and shall have
      offered to the Trustee such reasonable indemnity as it may require against
      the
      costs and expenses and liabilities to be incurred therein or thereby, and (iii)
      the Trustee, for 60 days after its receipt of such notice, request and offer
      of
      indemnity, shall have neglected or refused to institute any such action, suit
      or
      proceeding.

     

    (d) No
      one or
      more Certificateholders shall have any right by virtue of any provision of
      this
      Agreement to affect the rights of any other Certificateholders or to obtain
      or
      seek to obtain priority or preference over any other such Certificateholder,
      or
      to enforce any right under this Agreement, except in the manner herein provided
      and for the equal, ratable and common benefit of all Certificateholders. For
      the
      protection and enforcement of the provisions of this Section 11.04, each and
      every Certificateholder and the Trustee shall be entitled to such relief as
      can
      be given either at law or in equity.

     

    Section
      11.05 Acts
      of Certificateholders. 

     

    (a) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Agreement to be given or taken by Certificateholders
      may
      be embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such Certificateholders in person or by an agent duly appointed
      in writing. Except as herein otherwise expressly provided, such action shall
      become effective when such instrument or instruments are delivered to the
      Trustee and, where it is expressly required, to the Depositor. Proof of
      execution of any such instrument or of a writing appointing any such agent
      shall
      be sufficient for any purpose of this Agreement and conclusive in favor of
      the
      Trustee and the Depositor, if made in the manner provided in this Section
      11.05.

     

    (b) The
      fact
      and date of the execution by any Person of any such instrument or writing may
      be
      proved by the affidavit of a witness of such execution or by a certificate
      of a
      notary public or other officer authorized by law to take acknowledgments of
      deeds, certifying that the individual signing such instrument or writing
      acknowledged to him the execution thereof. Where such execution is by a signer
      acting in a capacity other than his or her individual capacity, such certificate
      or affidavit shall also constitute sufficient proof of his or her authority.
      The
      fact and date of the execution of any such instrument or writing, or the
      authority of the individual executing the same, may also be proved in any other
      manner which the Trustee deems sufficient.

     

    (c) The
      ownership of Certificates (notwithstanding any notation of ownership or other
      writing on such Certificates, except an endorsement in accordance with Section
      5.02 made on a Certificate presented in accordance with Section 5.04) shall
      be
      proved by the Certificate Register, and neither the Trustee, the Depositor,
      the
      Master Servicer nor any successor to any such parties shall be affected by
      any
      notice to the contrary.

     

    (d) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action of the holder of any Certificate shall bind every future holder of the
      same Certificate and the holder of every Certificate issued upon the
      registration of transfer or exchange thereof, if applicable, or in lieu thereof
      with respect to anything done, omitted or suffered to be done by the Trustee,
      the Depositor, the Master Servicer or any successor to any such party in
      reliance thereon, whether or not notation of such action is made upon such
      Certificates.

     

    (e) In
      determining whether the Holders of the requisite percentage of Certificates
      evidencing Fractional Undivided Interests have given any request, demand,
      authorization, direction, notice, consent or waiver hereunder, Certificates
      owned by the Trustee, the Depositor, the Master Servicer or any Affiliate
      thereof shall be disregarded, except as otherwise provided in Section 11.02(b)
      and except that, in determining whether the Trustee shall be protected in
      relying upon any such request, demand, authorization, direction, notice, consent
      or waiver, only Certificates which a Responsible Officer of the Trustee actually
      knows to be so owned shall be so disregarded. Certificates which have been
      pledged in good faith to the Trustee, the Depositor, the Master Servicer or
      any
      Affiliate thereof may be regarded as outstanding if the pledgor establishes
      to
      the satisfaction of the Trustee the pledgor’s right to act with respect to such
      Certificates and that the pledgor is not an Affiliate of the Trustee, the
      Depositor, or the Master Servicer, as the case may be.

     

    Section
      11.06 Governing
      Law. 

     

    THIS
      AGREEMENT AND THE CERTIFICATES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS
      OF
      THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAWS RULES (OTHER
      THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW, WHICH THE PARTIES HERETO
      EXPRESSLY RELY UPON IN THE CHOICE OF SUCH LAW AS THE GOVERNING LAW HEREUNDER)
      AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
      DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     

    Section
      11.07 Notices. 

     

    All
      demands and notices hereunder shall be in writing and shall be deemed given
      when
      delivered at (including delivery by facsimile) or mailed by registered mail,
      return receipt requested, postage prepaid, or by recognized overnight courier,
      to (i) in the case of the Depositor, 383 Madison Avenue, New York, New York
      10179, Attention: Vice President-Servicing, telecopier number: (212) 272-5591,
      or to such other address as may hereafter be furnished to the other parties
      hereto in writing; (ii) in the case of the Trustee, at its Corporate Trust
      Office, or such other address as may hereafter be furnished to the other parties
      hereto in writing; (iii) in the case of the Seller, 2780 Lake Vista Drive,
      Lewisville, Texas 75067, Attention: President or General Counsel, facsimile
      number: (469) 759-4714, or to such other address as may hereafter be furnished
      to the other parties hereto in writing; (iv) in the case of the Master Servicer,
      2780 Lake Vista Drive, Lewisville, Texas 75067, Attention: Michelle Viner,
      facsimile number: (214) 626-4889, telecopier number: (214) 626-3287, or to
      such
      other address as may hereafter be furnished to the other parties hereto in
      writing, and (v) in the case of the Rating Agencies, Moody’s Investors Service,
      Inc, 99 Church Street, New York, New York 10007, , and Standard & Poor’s, a
      division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New
      York
      10041, or such other address as may be hereafter furnished to the Depositor,
      Trustee and Master Servicer in writing by Fitch or Standard & Poor’s. Any
      notice delivered to the Depositor, the Master Servicer or the Trustee under
      this
      Agreement shall be effective only upon receipt. Any notice required or permitted
      to be mailed to a Certificateholder, unless otherwise provided herein, shall
      be
      given by first-class mail, postage prepaid, at the address of such
      Certificateholder as shown in the Certificate Register. Any notice so mailed
      within the time prescribed in this Agreement shall be conclusively presumed
      to
      have been duly given when mailed, whether or not the Certificateholder receives
      such notice.

     

    Section
      11.08 Severability
      of Provisions. 

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severed from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the holders thereof.

     

    Section
      11.09 Successors
      and Assigns. 

     

    The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the respective successors and assigns of the parties hereto.

     

    Section
      11.10 Article
      and Section Headings. 

     

    The
      article and section headings herein are for convenience of reference only,
      and
      shall not limit or otherwise affect the meaning hereof.

     

    Section
      11.11 Counterparts. 

     

    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.

     

    Section
      11.12 Notice
      to Rating Agencies. 

     

    The
      article and section headings herein are for convenience of reference only,
      and
      shall not limited or otherwise affect the meaning hereof. The Trustee shall
      promptly provide notice to each Rating Agency with respect to each of the
      following of which a Responsible Officer of the Trustee has actual
      knowledge:

     

    1. Any
      material change or amendment to this Agreement or the Servicing
      Agreements;

     

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

     

    3. The
      resignation or termination of the Master Servicer or the Trustee;

     

    4. The
      repurchase or substitution of Mortgage Loans;

     

    5. The
      final
      payment to Certificateholders; and

     

    6. Any
      change in the location of the In the event that this Agreement is terminated
      by
      reason of the payment or liquidation of all Mortgage Loans or the disposition
      of
      all property acquired with respect to all Mortgage Loans under Subsection
      10.01(a)(ii) above, the Master Servicer shall deliver to the Trustee for deposit
      in the Distribution Account all distributable amounts remaining in the Master
      Servicer Collection Account or the Distribution Account.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    
      	
              STRUCTURED
                ASSET MORTGAGE INVESTMENTS II INC., as Depositor

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	
              /s/
                Baron Silverstein

            
	
              Name:

            	
              Baron
                Silverstein

            
	
              Title:

            	
              Vice
                President

            
	 	 
	 	 
	
              U.S.
                BANK NATIONAL ASSOCIATION, as Trustee

            
	 	 
	 	 
	
              By:

            	
              /s/
                Maryellen Hunter

            
	
              Name:

            	
              Maryellen
                Hunter

            
	
              Title:

            	
              Assistant
                Vice President

            
	 	 
	 	 
	
              EMC
                MORTGAGE CORPORATION, as Master Servicer and Seller

            
	 	 
	 	 
	
              By:

            	
              /s/
                Mark Novachek

            
	
              Name:

            	
              Mark
                Novachek

            
	
              Title:

            	
              Assistant
                Secretary

            
	 	 

    

    

     

    

    Accepted
      and Agreed as to

    Sections
      2.01, 2.02, 2.03, 2.04 and 9.09(c)

     

    in
      its
      capacity as Seller

     

    EMC
      MORTGAGE CORPORATION

     

    

     

    
      	
              By:

            	
              /s/
                Jenna Kemp

            
	
              Name:

            	
              Jenna
                Kemp

            
	
              Title:

            	
              Senior
                Vice President

            

    

    

     

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

    

     

    On
      the
      30th day of November, 2006 before me, a notary public in and for said State,
      personally appeared ___________________, known to me to be a
      _______________________ of Structured Asset Mortgage Investments II Inc., the
      corporation that executed the within instrument, and also known to me to be
      the
      person who executed it on behalf of said corporation, and acknowledged to me
      that such corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 
	 	
              Notary
                Public

            

    

    

     

    [Notarial
      Seal]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF

            	
              )

            	 

    

    

     

    On
      the
      30th day of November, 2006 before me, a notary public in and for said State,
      personally appeared ____________, known to me to be a ____________ of U.S.
      Bank
      National Association, the entity that executed the within instrument, and also
      known to me to be the person who executed it on behalf of said entity, and
      acknowledged to me that such entity executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written. 

     

    
      	 	 
	 	
              Notary
                Public

            

    

    

     

    [Notarial
      Seal]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      	
              STATE
                OF TEXAS

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF DALLAS

            	
              )

            	 

    

    

     

    On
      the
      30th day of November, 2006 before me, a notary public in and for said State,
      personally appeared _______________, known to me to be a __________________
      of
      EMC Mortgage Corporation, the corporation that executed the within instrument,
      and also known to me to be the person who executed it on behalf of said
      corporation, and acknowledged to me that such corporation executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written. 

     

    
      	 	 
	 	
              Notary
                Public

            

    

    

     

    [Notarial
      Seal]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF TEXAS

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF DALLAS

            	
              )

            	 

    

    

     

    On
      the
      30th day of November, 2006 before me, a notary public in and for said State,
      personally appeared ____________, known to me to be ____________ of EMC Mortgage
      Corporation, the corporation that executed the within instrument, and also
      known
      to me to be the person who executed it on behalf of said corporation, and
      acknowledged to me that such corporation executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written. 

     

    
      	 	 
	 	
              Notary
                Public

            

    

    

     

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      A-1

     

    FORM
      OF CLASS [_]-A[_]-[_] CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR
      INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE
      DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE
      OF
      1986 (THE “CODE”).

     

    [THE
      CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL
      PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING
      THE
      INITIAL ISSUANCE OF THE CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS
      CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
      ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY
      OF THE TRUSTEE NAMED HEREIN.]

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
      OR PAYMENT, AND ANY CERTIFICATE ISSUED WILL BE REGISTERED IN THE NAME OF CEDE
      & CO. OR SUCH OTHER
      NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY AND ANY PAYMENT WILL BE MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
      OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE
      THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Certificate
                No.1

            	
              [Adjustable
                Pass-Through Rate][Pass-Through Rate: [___]%]

            
	 	 
	
              Class
                [_]-[A][_]-[_] Senior

            	 
	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date:

              November
                1, 2006

            	
              Aggregate
                Initial [Current Principal][Notional] Amount of this Senior Certificate
                as
                of the Cut-off Date:

              $[_____________]

            
	 	 
	
              First
                Distribution Date:

              December
                26, 2006

            	
              Initial
                [Current Principal][Notional] Amount of this Senior Certificate as
                of the
                Cut-off Date: $[_____________]

            
	 	 
	
              Master
                Servicer:

              EMC
                Mortgage Corporation

            	
              CUSIP:
                [____________]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [_________]

            	 
	 	 

    

    PRIME
      MORTGAGE TRUST 2006-2

    MORTGAGE
      PASS-THROUGH CERTIFICATE

    SERIES
      2006-2

     

    evidencing
      a fractional undivided interest in the distributions allocable to the Class
      [_]-[A][_]-[_] Certificates with respect to a portion of a Trust Fund consisting
      primarily of a pool of fixed rate mortgage loans secured by first liens on
      one-to-four family residential properties sold by STRUCTURED ASSET MORTGAGE
      INVESTMENTS II INC.

     

    This
      Certificate is payable solely from the assets of the Trust Fund, and does not
      represent an obligation of or interest in Structured Asset Mortgage Investments
      II Inc., the Master Servicer or the Trustee referred to below or any of their
      affiliates or any other person. Neither this Certificate nor the underlying
      Mortgage Loans are guaranteed or insured by any governmental entity or by
      Structured Asset Mortgage Investments II Inc., the Master Servicer or the
      Trustee or any of their affiliates or any other person. None of Structured
      Asset
      Mortgage Investments II Inc., the Master Servicer or any of their affiliates
      will have any obligation with respect to any certificate or other obligation
      secured by or payable from payments on the Certificates.

     

    This
      certifies that Cede & Co. is the registered owner of the Fractional
      Undivided Interest evidenced hereby in the beneficial ownership interest of
      Certificates of the same Class as this Certificate in a portion of a trust
      (the
“Trust Fund”) primarily consisting of fixed rate mortgage loans secured by first
      liens on one- to four- family residential properties (collectively, the
“Mortgage Loans”) sold by Structured Asset Mortgage Investments II Inc. (“SAMI
      II”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to SAMI
      II. EMC will act as master servicer of the Mortgage Loans (the “Master
      Servicer”, which term includes any successors thereto under the Agreement
      referred to below). The Trust Fund was created pursuant to the Pooling and
      Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among EMC Mortgage Corporation, as seller (the “Seller”) and
      master servicer, SAMI II, as depositor (the “Depositor”) and U.S. Bank National
      Association as trustee (the “Trustee”), a summary of certain of the pertinent
      provisions of which is set forth hereafter. To the extent not defined herein,
      capitalized terms used herein shall have the meaning ascribed to them in the
      Agreement. This Certificate is issued under and is subject to the terms,
      provisions and conditions of the Agreement, to which Agreement the Holder of
      this Certificate by virtue of its acceptance hereof assents and by which such
      Holder is bound.

     

    [Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Current Principal
      Amount hereof at a per annum rate equal to the Pass-Through Rate set forth
      above
      and as further described in the Agreement. The Trustee will distribute on the
      25th day of each month, or, if such 25th day is not a Business Day, the
      immediately following Business Day (each, a “Distribution Date”), commencing on
      the First Distribution Date specified above, to the Person in whose name this
      Certificate is registered at the close of business on the last Business Day
      of
      the calendar month preceding the month of such Distribution Date, an amount
      equal to the product of the Fractional Undivided Interest evidenced by this
      Certificate and the amount (of interest and principal, if any) required to
      be
      distributed to the Holders of Certificates of the same Class as this
      Certificate. The Assumed Final Distribution Date is the Distribution Date in
      the
      month immediately following the month of the latest scheduled maturity date
      of
      any Mortgage Loan and is not likely to be the date on which the Current
      Principal Amount of this Class of Certificates will be reduced to
      zero.]

     

    [Interest
      on this Certificate will accrue from and including the 25th day of the calendar
      month preceding the month in which a Distribution Date (as hereinafter defined)
      occurs to and including the 24th day of the calendar month in which that
      Distribution Date occurs on the [Current Principal][Notional] Amount hereof
      at a
      per annum rate equal to the Pass-Through Rate set forth above and as further
      described in the Agreement. The Trustee will distribute on the 25th day of
      each
      month, or, if such 25th day is not a Business Day, the immediately following
      Business Day (each, a “Distribution Date”), commencing on the First Distribution
      Date specified above, to the Person in whose name this Certificate is registered
      at the close of business on the Business Day immediately preceding such
      Distribution Date, an amount equal to the product of the Fractional Undivided
      Interest evidenced by this Certificate and the amount (of interest [and
      principal], if any) required to be distributed to the Holders of Certificates
      of
      the same Class as this Certificate. The Assumed Final Distribution Date is
      the
      Distribution Date in the month immediately following the month of the latest
      scheduled maturity date of any Mortgage Loan and is not likely to be the date
      on
      which the [Current Principal][Notional] Amount of this Class of Certificates
      will be reduced to zero. [The Class [_]-A[_]-[_] Certificates have no Current
      Principal Amount.]]

     

    Distributions
      on this Certificate will be made by the Trustee by check mailed to the address
      of the Person entitled thereto as such name and address shall appear on the
      Certificate Register or, if such Person so requests by notifying the Trustee
      in
      writing as specified in the Agreement by wire transfer. Notwithstanding the
      above, the final distribution on this Certificate will be made after due notice
      by the Trustee of the pendency of such distribution and only upon presentation
      and surrender of this Certificate at the office or agency appointed by the
      Trustee for that purpose and designated in such notice. The Initial [Current
      Principal][Notional] Amount of this Certificate is set forth above. [The Current
      Principal Amount hereof will be reduced to the extent of distributions allocable
      to principal hereon and any Realized Losses allocable hereto.]

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      set
      forth on the face hereof (the “Certificates”). The Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the Trust Fund for payment hereunder and that the Trustee is
      not
      liable to the Certificateholders for any amount payable under this Certificate
      or the Agreement or, except as expressly provided in the Agreement, subject
      to
      any liability under the Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced hereby, and the rights, duties and immunities
      of the Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer and the Trustee and the rights of the Certificateholders under
      the Agreement from time to time by the parties thereto with the consent of
      the
      Holders of Certificates, and with the consent of the Insurer with respect to
      amendments related to the Mortgage Pass-Through Certificates, evidencing
      Fractional Undivided Interests aggregating not less than 51% of the portion
      of
      the Trust Fund related to such Certificates (or in certain cases, Holders of
      Certificates of affected Classes evidencing such percentage of the Fractional
      Undivided Interests thereof). Any such consent by the Holder of this Certificate
      shall be conclusive and binding on such Holder and upon all future Holders
      of
      this Certificate and of any Certificate issued upon the transfer hereof or
      in
      lieu hereof whether or not notation of such consent is made upon this
      Certificate. The Agreement also permits the amendment thereof, in certain
      limited circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable with the Trustee upon surrender
      of this Certificate for registration of transfer at the offices or agencies
      maintained by the Trustee for such purposes, duly endorsed by, or accompanied
      by
      a written instrument of transfer in form satisfactory to the Trustee duly
      executed by the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Certificates in authorized denominations
      representing a like aggregate Fractional Undivided Interest will be issued
      to
      the designated transferee.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      the
      Classes and denominations specified in the Agreement. As provided in the
      Agreement and subject to certain limitations therein set forth, this Certificate
      is exchangeable for one or more new Certificates evidencing the same Class
      and
      in the same aggregate Fractional Undivided Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made to the Certificateholders for any such registration
      of transfer, but the Trustee may require payment of a sum sufficient to cover
      any tax or other governmental charge payable in connection therewith. The
      Depositor, the Master Servicer, the Trustee and any agent of any of them may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and none of the Depositor, the Master Servicer, the
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby (other
      than the obligations to make payments to Certificateholders with respect to
      the
      termination of the Agreement) shall terminate upon the earlier of (i) the later
      of the (A) final payment or other liquidation (or Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and (B) disposition of
      all
      property acquired upon foreclosure or deed in lieu of foreclosure of any
      Mortgage Loan and the remittance of all funds due under the Agreement, or (ii)
      the optional repurchase by the party named in the Agreement of all the Mortgage
      Loans and other assets of the Trust Fund in accordance with the terms of the
      Agreement. Such optional repurchase may be made only on or after the
      Distribution Date on which the aggregate unpaid principal balance of the
      Mortgage Loans is less than the percentage of the aggregate Outstanding
      Principal Balance specified in the Agreement of the Mortgage Loans at the
      Cut-off Date. The exercise of such right will effect the early retirement of
      the
      Certificates. In no event, however, will the Trust Fund created by the Agreement
      continue beyond the earlier of (i) the “latest possible maturity date” specified
      in Section 5.01(d) of the Agreement or (ii) the expiration of 21 years after
      the
      death of certain persons identified in the Agreement.

     

    Unless
      this Certificate has been countersigned by an authorized signatory of the
      Trustee by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement, or be valid for any purpose.

     

    

     

    

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

    

    

    Dated:
      November 30,
      2006                   
    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Not
      in
      its individual capacity but solely as Trustee

    

    

    By:
      ________________________________

    Authorized
      Signatory

    

    

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is
      one of the Class [_]-A[_]-[_] Certificates referred to in the within-mentioned
      Agreement.

    

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Authorized
      signatory of U.S. Bank National Association, 

    not
      in
      its individual capacity but solely as Trustee

    

    By:
      ________________________________

    Authorized
      Signatory

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
      __________________________________ (Please print or typewrite name and address
      including postal zip code of assignee) a Fractional Undivided Interest evidenced
      by the within Mortgage Pass-Through Certificate and hereby authorizes the
      transfer of registration of such interest to assignee on the Certificate
      Register of the Trust Fund.

     

    I
      (We)
      further direct the Certificate Registrar to issue a new Certificate of a like
      denomination and Class, to the above named assignee and deliver such Certificate
      to the following address

     

    
      	 
	 
	 

    

    

    
      	
              Dated:

            	
              __________________________________________

            

    

    Signature
      by or on behalf of assignor

     

    __________________________________________

    Signature
      Guaranteed

     

     

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

     

    Distributions
      shall be made, by wire transfer or otherwise, in immediately available funds
      to
      _________________________________ for the account of _________________________
      account number _____________, or, if mailed by check, to
      ______________________________. Applicable statements should be mailed to
      _____________________________________________.

     

    This
      information is provided by __________________,
      the assignee named above, or ________________________, as its
      agent.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    EXHIBIT
      A-2

    FORM
      OF CLASS B-[_] CERTIFICATE

     

    THIS
      CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES,
      [AND
      THE CLASS B-[_] CERTIFICATES], AS DESCRIBED IN THE AGREEMENT (AS DEFINED
      BELOW).

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR
      INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE
      DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE
      OF
      1986 (THE “CODE”).

     

    THE
      CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL
      PAYMENTS HEREON AND ANY REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING
      THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS
      CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
      ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY
      OF THE TRUSTEE NAMED HEREIN.

     

    [UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
      OR PAYMENT, AND ANY CERTIFICATE ISSUED WILL BE REGISTERED IN THE NAME OF CEDE
      & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
      DEPOSITORY TRUST COMPANY AND ANY PAYMENT WILL BE MADE TO CEDE & CO. ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.]

     

    [For
      the Class B-1, Class B-2, Class B-3 and Class BX Certificates] [EACH BENEFICIAL
      OWNER OF THIS CERTIFICATE OR ANY INTEREST HEREIN SHALL BE DEEMED TO HAVE
      REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS CERTIFICATE OR
      INTEREST HEREIN, THAT EITHER (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT
      TO
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED OR SECTION
      4975
      OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (“PLAN”), OR INVESTING WITH
      ASSETS OF A PLAN OR (II) IT HAS ACQUIRED AND IS HOLDING SUCH CERTIFICATE IN
      RELIANCE ON PROHIBITED TRANSACTION EXEMPTION 90-30, AS AMENDED FROM TIME TO
      TIME
      (“EXEMPTION”), AND THAT IT UNDERSTANDS THAT THERE ARE CERTAIN CONDITIONS TO THE
      AVAILABILITY OF THE EXEMPTION, INCLUDING THAT THE CERTIFICATE MUST BE RATED,
      AT
      THE TIME OF PURCHASE, NOT LOWER THAN “BBB-“ (OR ITS EQUIVALENT) BY STANDARD
& POOR’S, FITCH, INC. OR MOODY’S INVESTORS SERVICE, INC., AND THE
      CERTIFICATE IS SO RATED OR (III) (1) IT IS AN INSURANCE COMPANY, (2) THE SOURCE
      OF FUNDS USED TO ACQUIRE OR HOLD THE CERTIFICATE OR INTEREST HEREIN IS AN
“INSURANCE COMPANY GENERAL ACCOUNT”, AS SUCH TERM IS DEFINED IN PROHIBITED
      TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60, AND (3) THE CONDITIONS IN SECTIONS I
      AND III OF PTCE 95-60 HAVE BEEN SATISFIED.]

     

    [THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
      HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
      MAY
      BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
      THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
      144A
      UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
      BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
      (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A
      QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
      PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
      TO
      AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
      (IF
      AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR”
WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION
      D
      UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH
      PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT,
      SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE
      FORM
      PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER
      EVIDENCE ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER
      IS IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH
      CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES
      AND
      ANY OTHER APPLICABLE JURISDICTION.]

     

    [For
      the Class B-4, Class B-5 and Class B-6 Certificates] [THIS CERTIFICATE MAY
      NOT
      BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF, AN EMPLOYEE BENEFIT
      PLAN
      OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE I OF THE EMPLOYEE
      RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION 4975 OF THE
      INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE TRANSFEREE CERTIFIES
      OR
      REPRESENTS THAT THE PROPOSED TRANSFER AND HOLDING OF A CERTIFICATE AND THE
      SERVICING, MANAGEMENT AND OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT
      RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL
      OR
      CLASS PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO,
      PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14, PTCE 91-38, PTCE 90-1,
      PTCE 95-60 OR PTCE 96-23 AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL
      OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE MASTER SERVICER OR THE TRUSTEE,
      WHICH WILL BE DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR
      A
      GLOBAL CERTIFICATE OR UNLESS THE OPINION SPECIFIED IN SECTION 5.07 OF THE
      AGREEMENT IS PROVIDED.] 

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Certificate
                No.1

            	
              Variable
                Pass-Through Rate

            
	 	 
	
              Class
                B-[_]
                Subordinate

            	 
	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date: November 1,
                2006

            	
              Aggregate
                Initial Current Principal Amount of this Subordinate Certificate
                as of the
                Cut-off Date: $[_________]

            
	 	 
	
              First
                Distribution Date:

              December
                26, 2006

            	
              Initial
                Current Principal Amount of this Subordinate Certificate as of the
                Cut-off
                Date: $[_________]

            
	 	 
	
              Master
                Servicer:

              EMC
                Mortgage Corporation

            	
              CUSIP:
                [____________]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [____________]

            	
               

            
	 	 

    

    PRIME
      MORTGAGE TRUST 2006-2

    MORTGAGE
      PASS-THROUGH CERTIFICATE

    SERIES
      2006-2

     

    evidencing
      a fractional undivided interest in the distributions allocable to the Class
      B-[_] Certificates with respect to a portion of a Trust Fund consisting
      primarily of a pool of fixed rate mortgage loans secured by first liens on
      one-to-four family residential properties sold by STRUCTURED ASSET MORTGAGE
      INVESTMENTS II INC.

     

    This
      Certificate is payable solely from the assets of the Trust Fund, and does not
      represent an obligation of or interest in Structured Asset Mortgage Investments
      II Inc., the Master Servicer or the Trustee referred to below or any of their
      affiliates or any other person. Neither this Certificate nor the underlying
      Mortgage Loans are guaranteed or insured by any governmental entity or by
      Structured Asset Mortgage Investments II Inc., the Master Servicer or the
      Trustee or any of their affiliates or any other person. None of Structured
      Asset
      Mortgage Investments II Inc., the Master Servicer or any of their affiliates
      will have any obligation with respect to any certificate or other obligation
      secured by or payable from payments on the Certificates.

     

    This
      certifies that [_______] is the registered owner of the Fractional Undivided
      Interest evidenced hereby in the beneficial ownership interest of Certificates
      of the same Class as this Certificate in a portion of a trust (the “Trust Fund”)
      primarily consisting of fixed rate mortgage loans secured by first liens on
      one-
      to four- family residential properties (collectively, the “Mortgage Loans”) sold
      by Structured Asset Mortgage Investments II Inc. (“SAMI II”). The Mortgage Loans
      were sold by EMC Mortgage Corporation (“EMC”) to SAMI II. EMC will act as master
      servicer of the Mortgage Loans (the “Master Servicer”, which term includes any
      successors thereto under the Agreement referred to below). The Trust Fund was
      created pursuant to the Pooling and Servicing Agreement dated as of the Cut-off
      Date specified above (the “Agreement”), among EMC as seller (the “Seller”) and
      master servicer, SAMI II, as depositor (the “Depositor”) and U.S. Bank National
      Association as trustee (the “Trustee”), a summary of certain of the pertinent
      provisions of which is set forth hereafter. To the extent not defined herein,
      capitalized terms used herein shall have the meaning ascribed to them in the
      Agreement. This Certificate is issued under and is subject to the terms,
      provisions and conditions of the Agreement, to which Agreement the Holder of
      this Certificate by virtue of its acceptance hereof assents and by which such
      Holder is bound.

     

    Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Current Principal
      Amount hereof at a per annum rate equal to the Pass-Through Rate set forth
      above
      and as further described in the Agreement. The Trustee will distribute on the
      25th day of each month, or, if such 25th day is not a Business Day, the
      immediately following Business Day (each, a “Distribution Date”), commencing on
      the First Distribution Date specified above, to the Person in whose name this
      Certificate is registered at the close of business on the last Business Day
      of
      the calendar month preceding the month of such Distribution Date, an amount
      equal to the product of the Fractional Undivided Interest evidenced by this
      Certificate and the amount (of interest and principal, if any) required to
      be
      distributed to the Holders of Certificates of the same Class as this
      Certificate. The Assumed Final Distribution Date is the Distribution Date in
      the
      month immediately following the month of the latest scheduled maturity date
      of
      any Mortgage Loan and is not likely to be the date on which the Current
      Principal Amount of this Class of Certificates will be reduced to
      zero.

     

    Distributions
      on this Certificate will be made by the Trustee by check mailed to the address
      of the Person entitled thereto as such name and address shall appear on the
      Certificate Register or, if such Person so requests by notifying the Trustee
      in
      writing as specified in the Agreement by wire transfer. Notwithstanding the
      above, the final distribution on this Certificate will be made after due notice
      by the Trustee of the pendency of such distribution and only upon presentation
      and surrender of this Certificate at the office or agency appointed by the
      Trustee for that purpose and designated in such notice. The Initial Current
      Principal Amount of this Certificate is set forth above. The Current Principal
      Amount hereof will be reduced to the extent of distributions allocable to
      principal hereon and any Realized Losses allocable hereto.

     

    [No
      transfer of this Class B-[_] Certificate will be made unless such transfer
      is
      (i) exempt from the registration requirements of the Securities act of 1933,
      as
      amended, and any applicable state securities laws or is made in accordance
      with
      said Act and laws and (ii) made in accordance with Section 5.02 of the
      Agreement. In the event that such transfer is to be made the Trustee shall
      register such transfer if, (i) made to a transferee who has provided the Trustee
      with evidence as to its QIB status; or (ii) (A) the transferor has advised
      the
      Trustee in writing that the Certificate is being transferred to an Institutional
      Accredited Investor and (B) prior to such transfer the transferee furnishes
      to
      the Trustee an Investment Letter; provided that if based upon an Opinion of
      Counsel to the effect that (A) and (B) above are met sufficient to confirm
      that
      such transfer is being made pursuant to an exemption from, or in a transaction
      not subject to, the registration requirements of the Securities Act and other
      applicable laws.]

     

    [For
      the
      Class B-1, Class B-2, Class B-3 and Class BX Certificates] [Each beneficial
      owner of this Certificate or any interest herein shall be deemed to have
      represented, by virtue of its acquisition or holding of this certificate or
      interest herein, that either (i) it is not an employee benefit plan subject
      to
      the Employee Retirement Income Security Act of 1974, as amended or section
      4975
      of the Internal Revenue Code of 1986, as amended (“Plan”), or investing with
      assets of a Plan or (ii) it has acquired and is holding such certificate in
      reliance on Prohibited Transaction Exemption 90-30, as amended from time to
      time
      (“Exemption”), and that it understands that there are certain conditions to the
      availability of the Exemption, including that the certificate must be rated,
      at
      the time of purchase, not lower than “BBB-“ (or its equivalent) by Standard
& Poor’s, Fitch, Inc. or Moody’s Investors Service, Inc., and the
      certificate is so rated or (iii) (1) it is an insurance company, (2) the source
      of funds used to acquire or hold the certificate or interest therein is an
      “insurance company general account”, as such term is defined in Prohibited
      Transaction Class Exemption (“PTCE”) 95-60, and (3) the conditions in Sections I
      and III of PTCE 95-60 have been satisfied.]

     

    [For
      the
      Class B-4, Class B-5 and Class B-6 Certificates] [This Certificate may not
      be
      acquired directly or indirectly by, or on behalf of, an employee benefit plan
      or
      other retirement arrangement which is subject to Title I of the Employee
      Retirement Income Security Act of 1974, as amended, or Section 4975 of the
      Internal Revenue Code of 1986, as amended, unless the transferee certifies
      or
      represents that the proposed transfer and holding of a Certificate and the
      servicing, management and operation of the trust and its assets: (i) will not
      result in any prohibited transaction which is not covered under an individual
      or
      class prohibited transaction exemption, including, but not limited to,
      Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 91-38, PTCE 90-1,
      PTCE 95-60 or PTCE 96-23 and (ii) will not give rise to any additional
      obligations on the part of the Depositor, the Master Servicer or the Trustee,
      which will be deemed represented by an owner of a Book-Entry Certificate or
      a
      Global Certificate or unless the opinion specified in section 5.07 of the
      Agreement is provided.]

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      set
      forth on the face hereof (the “Certificates”). The Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the Trust Fund for payment hereunder and that the Trustee is
      not
      liable to the Certificateholders for any amount payable under this Certificate
      or the Agreement or, except as expressly provided in the Agreement, subject
      to
      any liability under the Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced hereby, and the rights, duties and immunities
      of the Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer and the Trustee and the rights of the Certificateholders under
      the Agreement from time to time by the parties thereto with the consent of
      the
      Holders of Certificates, and with the consent of the Insurer with respect to
      amendments related to the Mortgage Pass-Through Certificates, evidencing
      Fractional Undivided Interests aggregating not less than 51% of the portion
      of
      the Trust Fund related to such Certificates (or in certain cases, Holders of
      Certificates of affected Classes evidencing such percentage of the Fractional
      Undivided Interests thereof). Any such consent by the Holder of this Certificate
      shall be conclusive and binding on such Holder and upon all future Holders
      of
      this Certificate and of any Certificate issued upon the transfer hereof or
      in
      lieu hereof whether or not notation of such consent is made upon this
      Certificate. The Agreement also permits the amendment thereof, in certain
      limited circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable with the Trustee upon surrender
      of this Certificate for registration of transfer at the offices or agencies
      maintained by the Trustee for such purposes, duly endorsed by, or accompanied
      by
      a written instrument of transfer in form satisfactory to the Trustee duly
      executed by the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Certificates in authorized denominations
      representing a like aggregate Fractional Undivided Interest will be issued
      to
      the designated transferee.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      the
      Classes and denominations specified in the Agreement. As provided in the
      Agreement and subject to certain limitations therein set forth, this Certificate
      is exchangeable for one or more new Certificates evidencing the same Class
      and
      in the same aggregate Fractional Undivided Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made to the Certificateholders for any such registration
      of transfer, but the Trustee may require payment of a sum sufficient to cover
      any tax or other governmental charge payable in connection therewith. The
      Depositor, the Master Servicer, the Trustee and any agent of any of them may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and none of the Depositor, the Master Servicer, the
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby (other
      than the obligations to make payments to Certificateholders with respect to
      the
      termination of the Agreement) shall terminate upon the earlier of (i) the later
      of the (A) final payment or other liquidation (or Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and (B) disposition of
      all
      property acquired upon foreclosure or deed in lieu of foreclosure of any
      Mortgage Loan and the remittance of all funds due under the Agreement, or (ii)
      the optional repurchase by the party named in the Agreement of all the Mortgage
      Loans and other assets of the Trust Fund in accordance with the terms of the
      Agreement. Such optional repurchase may be made only on or after the
      Distribution Date on which the aggregate unpaid principal balance of the
      Mortgage Loans is less than the percentage of the aggregate Outstanding
      Principal Balance specified in the Agreement of the Mortgage Loans at the
      Cut-off Date. The exercise of such right will effect the early retirement of
      the
      Certificates. In no event, however, will the Trust Fund created by the Agreement
      continue beyond the earlier of (i) the “latest possible maturity date” specified
      in Section 5.01(d) of the Agreement or (ii) the expiration of 21 years after
      the
      death of certain persons identified in the Agreement.

     

    Unless
      this Certificate has been countersigned by an authorized signatory of the
      Trustee by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement, or be valid for any purpose.

     

    

     

    

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

    

    

    Dated:
      November 30,
      2006                   
    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Not
      in
      its individual capacity but solely as Trustee

    

    

    By:
      _________________________________

    Authorized
      Signatory

    

    

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is
      one of the Class B-[_] Certificates referred to in the within-mentioned
      Agreement.

    

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Authorized
      signatory of U.S. Bank National Association, 

    not
      in
      its individual capacity but solely as Trustee

    

    By:
      _________________________________

    Authorized
      Signatory

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

     

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
      __________________________________ (Please print or typewrite name and address
      including postal zip code of assignee) a Fractional Undivided Interest evidenced
      by the within Mortgage Pass-Through Certificate and hereby authorizes the
      transfer of registration of such interest to assignee on the Certificate
      Register of the Trust Fund.

     

    I
      (We)
      further direct the Certificate Registrar to issue a new Certificate of a like
      denomination and Class, to the above named assignee and deliver such Certificate
      to the following address

     

    
      	 
	 
	 

    

    

    
      	
              Dated:

            	
              __________________________________________

            

    

    Signature
      by or on behalf of assignor

     

    __________________________________________

    Signature
      Guaranteed

     

     

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

     

    Distributions
      shall be made, by wire transfer or otherwise, in immediately available funds
      to
      _________________________________ for the account of _________________________
      account number _____________, or, if mailed by check, to
      ______________________________. Applicable statements should be mailed to
      ______________________________________________.

     

    This
      information is provided by __________________,
      the assignee named above, or ________________________, as its
      agent.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
      A-3

     

    FORM
      OF CLASS PO CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR
      INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE
      DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE
      OF
      1986 (THE “CODE”).

     

    THE
      CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL
      PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING
      THE
      INITIAL ISSUANCE OF THE CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS
      CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
      ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY
      OF THE TRUSTEE NAMED HEREIN.

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
      OR PAYMENT, AND ANY CERTIFICATE ISSUED WILL BE REGISTERED IN THE NAME OF CEDE
      & CO. OR SUCH OTHER
      NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY AND ANY PAYMENT WILL BE MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
      OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE
      THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Certificate
                No.1

            	
              Pass-Through
                Rate: 0.000%

            
	 	 
	
              Class
                PO Senior

            	 
	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date:

              November
                1, 2006

            	
              Aggregate
                Initial Current Principal Amount of this Senior Certificate as of
                the
                Cut-off Date:

              $[_____________]

            
	 	 
	
              First
                Distribution Date:

              December
                26, 2006

            	
              Initial
                Current Principal Amount of this Senior Certificate as of the Cut-off
                Date: $[_____________]

            
	 	 
	
              Master
                Servicer:

              EMC
                Mortgage Corporation

            	
              CUSIP:
                [____________]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [____________]

            	 
	 	 

    

    PRIME
      MORTGAGE TRUST 2006-2

    MORTGAGE
      PASS-THROUGH CERTIFICATE

    SERIES
      2006-2

     

    evidencing
      a fractional undivided interest in the distributions allocable to the Class
      PO
      Certificates with respect to a portion of a Trust Fund consisting primarily
      of a
      pool of fixed rate mortgage loans secured by first liens on one-to-four family
      residential properties sold by STRUCTURED ASSET MORTGAGE INVESTMENTS II
      INC.

     

    This
      Certificate is payable solely from the assets of the Trust Fund, and does not
      represent an obligation of or interest in Structured Asset Mortgage Investments
      II Inc., the Master Servicer or the Trustee referred to below or any of their
      affiliates or any other person. Neither this Certificate nor the underlying
      Mortgage Loans are guaranteed or insured by any governmental entity or by
      Structured Asset Mortgage Investments II Inc., the Master Servicer or the
      Trustee or any of their affiliates or any other person. None of Structured
      Asset
      Mortgage Investments II Inc., the Master Servicer or any of their affiliates
      will have any obligation with respect to any certificate or other obligation
      secured by or payable from payments on the Certificates.

     

    This
      certifies that Cede & Co. is the registered owner of the Fractional
      Undivided Interest evidenced hereby in the beneficial ownership interest of
      Certificates of the same Class as this Certificate in a portion of a trust
      (the
“Trust Fund”) primarily consisting of fixed rate mortgage loans secured by first
      liens on one- to four- family residential properties (collectively, the
“Mortgage Loans”) sold by Structured Asset Mortgage Investments II Inc. (“SAMI
      II”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to SAMI
      II. EMC will act as master servicer of the Mortgage Loans (the “Master
      Servicer”, which term includes any successors thereto under the Agreement
      referred to below). The Trust Fund was created pursuant to the Pooling and
      Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among EMC Mortgage Corporation, as seller (the “Seller”) and
      master servicer, SAMI II, as depositor (the “Depositor”) and U.S. Bank National
      Association as trustee (the “Trustee”), a summary of certain of the pertinent
      provisions of which is set forth hereafter. To the extent not defined herein,
      capitalized terms used herein shall have the meaning ascribed to them in the
      Agreement. This Certificate is issued under and is subject to the terms,
      provisions and conditions of the Agreement, to which Agreement the Holder of
      this Certificate by virtue of its acceptance hereof assents and by which such
      Holder is bound.

     

    The
      Trustee will distribute on the 25th day of each month, or, if such 25th day
      is
      not a Business Day, the immediately following Business Day (each, a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered at the close of
      business on the last Business Day of the calendar month preceding the month
      of
      such Distribution Date, an amount equal to the product of the Fractional
      Undivided Interest evidenced by this Certificate and the amount of principal
      required to be distributed to the Holders of Certificates of the same Class
      as
      this Certificate. The Assumed Final Distribution Date is the Distribution Date
      in the month immediately following the month of the latest scheduled maturity
      date of any Mortgage Loan and is not likely to be the date on which the Current
      Principal Amount of this Class of Certificates will be reduced to
      zero.

     

    Distributions
      on this Certificate will be made by the Trustee by check mailed to the address
      of the Person entitled thereto as such name and address shall appear on the
      Certificate Register or, if such Person so requests by notifying the Trustee
      in
      writing as specified in the Agreement by wire transfer. Notwithstanding the
      above, the final distribution on this Certificate will be made after due notice
      by the Trustee of the pendency of such distribution and only upon presentation
      and surrender of this Certificate at the office or agency appointed by the
      Trustee for that purpose and designated in such notice. The Initial Current
      Principal Amount of this Certificate is set forth above. The Current Principal
      Amount hereof will be reduced to the extent of distributions allocable to
      principal hereon and any Realized Losses allocable hereto.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      set
      forth on the face hereof (the “Certificates”). The Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the Trust Fund for payment hereunder and that the Trustee is
      not
      liable to the Certificateholders for any amount payable under this Certificate
      or the Agreement or, except as expressly provided in the Agreement, subject
      to
      any liability under the Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced hereby, and the rights, duties and immunities
      of the Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer and the Trustee and the rights of the Certificateholders under
      the Agreement from time to time by the parties thereto with the consent of
      the
      Holders of Certificates, and with the consent of the Insurer with respect to
      amendments related to the Mortgage Pass-Through Certificates, evidencing
      Fractional Undivided Interests aggregating not less than 51% of the portion
      of
      the Trust Fund related to such Certificates (or in certain cases, Holders of
      Certificates of affected Classes evidencing such percentage of the Fractional
      Undivided Interests thereof). Any such consent by the Holder of this Certificate
      shall be conclusive and binding on such Holder and upon all future Holders
      of
      this Certificate and of any Certificate issued upon the transfer hereof or
      in
      lieu hereof whether or not notation of such consent is made upon this
      Certificate. The Agreement also permits the amendment thereof, in certain
      limited circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable with the Trustee upon surrender
      of this Certificate for registration of transfer at the offices or agencies
      maintained by the Trustee for such purposes, duly endorsed by, or accompanied
      by
      a written instrument of transfer in form satisfactory to the Trustee duly
      executed by the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Certificates in authorized denominations
      representing a like aggregate Fractional Undivided Interest will be issued
      to
      the designated transferee.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      the
      Classes and denominations specified in the Agreement. As provided in the
      Agreement and subject to certain limitations therein set forth, this Certificate
      is exchangeable for one or more new Certificates evidencing the same Class
      and
      in the same aggregate Fractional Undivided Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made to the Certificateholders for any such registration
      of transfer, but the Trustee may require payment of a sum sufficient to cover
      any tax or other governmental charge payable in connection therewith. The
      Depositor, the Master Servicer, the Trustee and any agent of any of them may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and none of the Depositor, the Master Servicer, the
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby (other
      than the obligations to make payments to Certificateholders with respect to
      the
      termination of the Agreement) shall terminate upon the earlier of (i) the later
      of the (A) final payment or other liquidation (or Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and (B) disposition of
      all
      property acquired upon foreclosure or deed in lieu of foreclosure of any
      Mortgage Loan and the remittance of all funds due under the Agreement, or (ii)
      the optional repurchase by the party named in the Agreement of all the Mortgage
      Loans and other assets of the Trust Fund in accordance with the terms of the
      Agreement. Such optional repurchase may be made only on or after the
      Distribution Date on which the aggregate unpaid principal balance of the
      Mortgage Loans is less than the percentage of the aggregate Outstanding
      Principal Balance specified in the Agreement of the Mortgage Loans at the
      Cut-off Date. The exercise of such right will effect the early retirement of
      the
      Certificates. In no event, however, will the Trust Fund created by the Agreement
      continue beyond the earlier of (i) the “latest possible maturity date” specified
      in Section 5.01(d) of the Agreement or (ii) the expiration of 21 years after
      the
      death of certain persons identified in the Agreement.

     

    Unless
      this Certificate has been countersigned by an authorized signatory of the
      Trustee by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement, or be valid for any purpose.

     

    

     

    

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

    

    Dated:
      November 30, 2006    

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Not
      in
      its individual capacity but solely as Trustee

    

    

    By:
      _________________________________

    Authorized
      Signatory

    

    

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is
      one of the Class PO Certificates referred to in the within-mentioned
      Agreement.

    

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Authorized
      signatory of U.S. Bank National Association, 

    not
      in
      its individual capacity but solely as Trustee

    

    By:
      _________________________________

    Authorized
      Signatory

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
      __________________________________ (Please print or typewrite name and address
      including postal zip code of assignee) a Fractional Undivided Interest evidenced
      by the within Mortgage Pass-Through Certificate and hereby authorizes the
      transfer of registration of such interest to assignee on the Certificate
      Register of the Trust Fund.

     

    I
      (We)
      further direct the Certificate Registrar to issue a new Certificate of a like
      denomination and Class, to the above named assignee and deliver such Certificate
      to the following address

     

    
      	 
	 
	 

    

    

    
      	
              Dated:

            	
              __________________________________________

            

    

    Signature
      by or on behalf of assignor

     

    __________________________________________

    Signature
      Guaranteed

     

     

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

     

    Distributions
      shall be made, by wire transfer or otherwise, in immediately available funds
      to
      _________________________________ for the account of _________________________
      account number _____________, or, if mailed by check, to
      ______________________________. Applicable statements should be mailed to
      _____________________________________________.

     

    This
      information is provided by __________________,
      the assignee named above, or ________________________, as its
      agent.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    

    

    EXHIBIT
      A-4

    

    FORM
      OF CLASS R-[__] CERTIFICATE

     

    THIS
      CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON,
      A
      PUBLICLY TRADED PARTNERSHIP OR A DISQUALIFIED ORGANIZATION (AS DEFINED
      BELOW).

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “RESIDUAL
      INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” AS THOSE TERMS ARE
      DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE
      OF
      1986 (THE “CODE”).

     

    THIS
      CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF,
      AN
      EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE
      I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, AND/OR
      SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE
      PROPOSED TRANSFEREE PROVIDES THE TRUSTEE WITH AN OPINION OF COUNSEL ADDRESSED
      TO
      THE TRUSTEE, DEPOSITOR AND MASTER SERVICER AND ON WHICH THEY MAY RELY THAT
      IS
      SATISFACTORY TO THE TRUSTEE THAT THE PURCHASE OF CERTIFICATES ON BEHALF OF
      SUCH
      PERSON WILL NOT RESULT IN OR CONSTITUTE A NONEXEMPT PROHIBITED TRANSACTION,
      IS
      PERMISSIBLE UNDER APPLICABLE LAW AND WILL NOT GIVE RISE TO ANY ADDITIONAL
      OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE MASTER SERVICER OR THE
      TRUSTEE.

     

    ANY
      RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
      IF
      THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE TRUSTEE THAT (1)
      SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION
      THEREOF, ANY POSSESSION OF THE UNITED STATES, OR ANY AGENCY OR INSTRUMENTALITY
      OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY WHICH IS A CORPORATION
      IF
      ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND EXCEPT FOR THE FREDDIE MAC, A
      MAJORITY OF ITS BOARD OF DIRECTORS IS NOT SELECTED BY SUCH GOVERNMENTAL UNIT),
      (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
      INSTRUMENTALITY OF EITHER OF THE FOREGOING, (C) ANY ORGANIZATION (OTHER THAN
      CERTAIN FARMERS’ COOPERATIVES DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS
      EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION
      IS
      SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING THE TAX IMPOSED
      BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE INCOME), (D) RURAL
      ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED IN SECTION 1381(a)(2)(C) OF THE
      CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER SECTION 775(a) OF THE CODE (ANY
      SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), (C), (D) OR (E) BEING
      HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (F) AN AGENT OF A
      DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE
      ASSESSMENT OR COLLECTION OF TAX, (3) SUCH TRANSFEREE SATISFIES CERTAIN
      ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
      TRANSFEREE AND (4) SUCH TRANSFEREE IS A UNITED STATES PERSON. NOTWITHSTANDING
      THE REGISTRATION IN THE CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR OTHER
      DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT
      OF A
      DISQUALIFIED ORGANIZATION OR A NON-UNITED STATES PERSON, SUCH REGISTRATION
      SHALL
      BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL
      NOT
      BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT
      NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER
      OF
      THIS CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE
      CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Certificate
                No.1

            	
              Pass-Through
                Rate: _____%

            
	 	 
	
              Class
                R-[__]

            	 
	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date: November 1,
                2006

            	
              Aggregate
                Initial Current Principal Amount of this Certificate as of the Cut-off
                Date:

              $___________

            
	 	 
	
              First
                Distribution Date:

              December
                26, 2006

            	
              Initial
                Current Principal Amount of this Certificate as of the Cut-off Date:
                $_________

            
	 	 
	
              Master
                Servicer:

              EMC
                Mortgage Corporation

            	
              CUSIP:
                [_____________]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [____________]

            	 
	 	 

    

    PRIME
      MORTGAGE TRUST 2006-2

    MORTGAGE
      PASS-THROUGH CERTIFICATE

    SERIES
      2006-2

     

    evidencing
      a fractional undivided interest in the distributions allocable to the Class
      R-[__] Certificates with respect to a portion of a Trust Fund (as defined below)
      consisting primarily of a pool of fixed rate mortgage loans secured by first
      liens on one-to-four family residential properties sold by STRUCTURED ASSET
      MORTGAGE INVESTMENTS II INC.

     

    This
      Certificate is payable solely from the assets of the Trust Fund, and does not
      represent an obligation of or interest in Structured Asset Mortgage Investments
      II Inc., the Master Servicer or the Trustee referred to below or any of their
      affiliates or any other person. Neither this Certificate nor the underlying
      Mortgage Loans are guaranteed or insured by any governmental entity or by
      Structured Asset Mortgage Investments II Inc., the Master Servicer or the
      Trustee or any of their affiliates or any other person. None of Structured
      Asset
      Mortgage Investments II Inc., the Master Servicer or any of their affiliates
      will have any obligation with respect to any certificate or other obligation
      secured by or payable from payments on the Certificates.

     

    This
      certifies that Bear, Stearns Securities Corp. is the registered owner of the
      Fractional Undivided Interest evidenced hereby in the beneficial ownership
      interest of Certificates of the same Class as this Certificate in a portion
      of a
      trust (the “Trust Fund”) primarily consisting of fixed rate mortgage loans
      secured by first liens on one- to four- family residential properties
      (collectively, the “Mortgage Loans”) sold by Structured Asset Mortgage
      Investments II Inc. (“SAMI II”). The Mortgage Loans were sold by EMC Mortgage
      Corporation (“EMC”) to SAMI II. EMC will act as master servicer of the Mortgage
      Loans (the “Master Servicer”, which term includes any successors thereto under
      the Agreement referred to below). The Trust Fund was created pursuant to the
      Pooling and Servicing Agreement dated as of the Cut-off Date specified above
      (the “Agreement’), among SAMI II, as depositor (the “Depositor”), EMC, as seller
      and master servicer and U.S. Bank National Association, as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
      forth hereafter. To the extent not defined herein, capitalized terms used herein
      shall have the meaning ascribed to them in the Agreement. This Certificate
      is
      issued under and is subject to the terms, provisions and conditions of the
      Agreement, to which Agreement the Holder of this Certificate by virtue of its
      acceptance hereof assents and by which such Holder is bound.

     

    Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Current Principal
      Amount hereof at a per annum rate equal to the Pass-Through Rate set forth
      above
      and as further described in the Agreement. The Trustee will distribute on the
      25th day of each month, or, if such 25th day is not a Business Day, the
      immediately following Business Day (each, a “Distribution Date”), commencing on
      the First Distribution Date specified above, to the Person in whose name this
      Certificate is registered at the close of business on the last Business Day
      of
      the calendar month preceding the month of such Distribution Date, an amount
      equal to the product of the Fractional Undivided Interest evidenced by this
      Certificate and the amount (of interest and principal, if any) required to
      be
      distributed to the Holders of Certificates of the same Class as this
      Certificate. The Assumed Final Distribution Date is the Distribution Date in
      the
      month immediately following the month of the latest scheduled maturity date
      of
      any Mortgage Loan and is not likely to be the date on which the Current
      Principal Amount of this Class of Certificates will be reduced to
      zero.

     

    Distributions
      on this Certificate will be made by the Trustee by check mailed to the address
      of the Person entitled thereto as such name and address shall appear on the
      Certificate Register or, if such Person so requests by notifying the Trustee
      in
      writing as specified in the Agreement by wire transfer. Notwithstanding the
      above, the final distribution on this Certificate will be made after due notice
      by the Trustee of the pendency of such distribution and only upon presentation
      and surrender of this Certificate at the office or agency appointed by the
      Trustee for that purpose and designated in such notice. The Initial Current
      Principal Amount of this Certificate is set forth above. The Current Principal
      Amount hereof will be reduced to the extent of distributions allocable to
      principal hereon and any Realized Losses allocable hereto.

     

    Each
      Holder of this Certificate will be deemed to have agreed to be bound by the
      restrictions set forth in the Agreement to the effect that (i) each person
      holding or acquiring any Ownership Interest in this Certificate must be a United
      States Person and a Permitted Transferee, (ii) the transfer of any Ownership
      Interest in this Certificate will be conditioned upon the delivery to SAMI
      II
      and the Trustee of, among other things, an affidavit to the effect that it
      is a
      United States Person and Permitted Transferee, (iii) any attempted or purported
      transfer of any Ownership Interest in this Certificate in violation of such
      restrictions will be absolutely null and void and will vest no rights in the
      purported transferee, and (iv) if any person other than a United States Person
      and a Permitted Transferee acquires any Ownership Interest in this Certificate
      in violation of such restrictions, then the Depositor will have the right,
      in
      its sole discretion and without notice to the Holder of this Certificate, to
      sell this Certificate to a purchaser selected by the Depositor, which purchaser
      may be the Depositor, or any affiliate of the Depositor, on such terms and
      conditions as the Depositor may choose.

     

    This
      certificate may not be acquired directly or indirectly by, or on behalf of,
      an
      employee benefit plan or other retirement arrangement which is subject to title
      I of the Employee Retirement Income Security Act of 1974, as amended, and/or
      section 4975 of the Internal Revenue Code of 1986, as amended, unless the
      proposed transferee provides the Trustee with an opinion of counsel addressed
      to
      the Trustee and Master Servicer and on which they may rely (which shall not
      be
      at the expense of the Trustee or Master Servicer) which is acceptable to the
      Trustee, that the purchase of this Certificate will not result in or constitute
      a nonexempt prohibited transaction, is permissible under applicable law and
      will
      not give rise to any additional fiduciary obligations on the part of the
      Depositor, the Master Servicer or the Trustee.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      set
      forth on the face hereof (the “Certificates”). The Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the Trust Fund for payment hereunder and that the Trustee is
      not
      liable to the Certificateholders for any amount payable under this Certificate
      or the Agreement or, except as expressly provided in the Agreement, subject
      to
      any liability under the Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced hereby, and the rights, duties and immunities
      of the Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer and the Trustee and the rights of the Certificateholders under
      the Agreement from time to time by the parties thereto with the consent of
      the
      Holders of Certificates, and with the consent of the Insurer with respect to
      amendments related to the Mortgage Pass-Through Certificates, evidencing
      Fractional Undivided Interests aggregating not less than 51% of the portion
      of
      the Trust Fund related to such Certificates (or in certain cases, Holders of
      Certificates of affected Classes evidencing such percentage of the Fractional
      Undivided Interests thereof). Any such consent by the Holder of this Certificate
      shall be conclusive and binding on such Holder and upon all future Holders
      of
      this Certificate and of any Certificate issued upon the transfer hereof or
      in
      lieu hereof whether or not notation of such consent is made upon this
      Certificate. The Agreement also permits the amendment thereof, in certain
      limited circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable with the Trustee upon surrender
      of this Certificate for registration of transfer at the offices or agencies
      maintained by the Trustee for such purposes, duly endorsed by, or accompanied
      by
      a written instrument of transfer in form satisfactory to the Trustee duly
      executed by the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Certificates in authorized denominations
      representing a like aggregate Fractional Undivided Interest will be issued
      to
      the designated transferee.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      the
      Classes and denominations specified in the Agreement. As provided in the
      Agreement and subject to certain limitations therein set forth, this Certificate
      is exchangeable for one or more new Certificates evidencing the same Class
      and
      in the same aggregate Fractional Undivided Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made to the Certificateholders for any such registration
      of transfer, but the Trustee may require payment of a sum sufficient to cover
      any tax or other governmental charge payable in connection therewith. The
      Depositor, the Master Servicer, the Trustee and any agent of any of them may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and none of the Depositor, the Master Servicer, the
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby (other
      than the obligations to make payments to Certificateholders with respect to
      the
      termination of the Agreement) shall terminate upon the earlier of (i) the later
      of the (A) final payment or other liquidation (or Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and (B) disposition of
      all
      property acquired upon foreclosure or deed in lieu of foreclosure of any
      Mortgage Loan and the remittance of all funds due under the Agreement, or (ii)
      the optional repurchase by the party named in the Agreement of all the Mortgage
      Loans and other assets of the Trust Fund in accordance with the terms of the
      Agreement. Such optional repurchase may be made only on or after the
      Distribution Date on which the aggregate unpaid principal balance of the
      Mortgage Loans is less than the percentage of the aggregate Outstanding
      Principal Balance specified in the Agreement of the Mortgage Loans at the
      Cut-off Date. The exercise of such right will effect the early retirement of
      the
      Certificates. In no event, however, will the Trust Fund created by the Agreement
      continue beyond the earlier of (i) the “latest possible maturity date” specified
      in Section 5.01(d) of the Agreement or (ii) the expiration of 21 years after
      the
      death of certain persons identified in the Agreement.

     

    Unless
      this Certificate has been countersigned by an authorized signatory of the
      Trustee by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement, or be valid for any purpose.

     

    

    

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

    

    

    Dated:
      November 30,
      2006                   
    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Not
      in
      its individual capacity but solely as Trustee

    

    

    By:
      _________________________________

    Authorized
      Signatory

    

    

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is
      one of the Class R-[_] Certificates referred to in the within-mentioned
      Agreement.

    

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Authorized
      signatory of U.S. Bank National Association, 

    not
      in
      its individual capacity but solely as Trustee

    

    By:
      _________________________________

    Authorized
      Signatory

    

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
      __________________________________ (Please print or typewrite name and address
      including postal zip code of assignee) a Fractional Undivided Interest evidenced
      by the within Mortgage Pass-Through Certificate and hereby authorizes the
      transfer of registration of such interest to assignee on the Certificate
      Register of the Trust Fund.

     

    I
      (We)
      further direct the Certificate Registrar to issue a new Certificate of a like
      denomination and Class, to the above named assignee and deliver such Certificate
      to the following address

     

    
      	 
	 
	 

    

    

    
      	
              Dated:

            	
              __________________________________________

            

    

    Signature
      by or on behalf of assignor

     

    __________________________________________

    Signature
      Guaranteed

     

     

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

     

    Distributions
      shall be made, by wire transfer or otherwise, in immediately available funds
      to
      _________________________________ for the account of _________________________
      account number _____________, or, if mailed by check, to
      ______________________________. Applicable statements should be mailed to
      _____________________________________________.

     

    This
      information is provided by __________________,
      the assignee named above, or ________________________, as its
      agent.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    

    EXHIBIT
      A-5

     

    FORM
      OF CLASS
      X CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR
      INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE
      DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE
      OF
      1986 (THE “CODE”).

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
      OR PAYMENT, AND ANY CERTIFICATE ISSUED WILL BE REGISTERED IN THE NAME OF CEDE
      & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
      DEPOSITORY TRUST COMPANY AND ANY PAYMENT WILL BE MADE TO CEDE & CO., ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Certificate
                No.1

            	
              Variable
                Pass-Through Rate

            
	 	 
	
              Class
                X Senior

            	 
	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date:

              November
                30, 2006

            	
              Aggregate
                Initial Notional Amount of this Senior Certificate as of the Cut-off
                Date:

              $[________]

            
	 	 
	
              First
                Distribution Date:

              December
                26, 2006

            	
              Initial
                Notional Amount of this Senior Certificate as of the Cut-off
                Date:

              $[________]

            
	 	 
	
              Master
                Servicer:

              EMC
                Mortgage Corporation

            	
              CUSIP:
                [________]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [________]

            	 
	 	 

    

    PRIME
      MORTGAGE TRUST 2006-2

    MORTGAGE
      PASS-THROUGH CERTIFICATE

    SERIES
      2006-2

     

    evidencing
      a fractional undivided interest in the distributions allocable to the Class
      X
      Certificates with respect to a portion of a Trust Fund consisting primarily
      of a
      pool of fixed rate mortgage loans secured by first liens on one-to-four family
      residential properties sold by STRUCTURED ASSET MORTGAGE INVESTMENTS II
      INC.

     

    This
      Certificate is payable solely from the assets of the Trust Fund, and does not
      represent an obligation of or interest in Structured Asset Mortgage Investments
      II Inc., the Master Servicer or the Trustee referred to below or any of their
      affiliates or any other person. Neither this Certificate nor the underlying
      Mortgage Loans are guaranteed or insured by any governmental entity or by
      Structured Asset Mortgage Investments II Inc., the Master Servicer or the
      Trustee or any of their affiliates or any other person. None of the Structured
      Asset Mortgage Investments II Inc., the Master Servicer or any of their
      affiliates will have any obligation with respect to any certificate or other
      obligation secured by or payable from payments on the Certificates.

     

    This
      certifies that Cede & Co. is the registered owner of the Fractional
      Undivided Interest evidenced hereby in the beneficial ownership interest of
      Certificates of the same Class as this Certificate in a portion of a trust
      (the
“Trust Fund”) primarily consisting of fixed rate mortgage loans secured by first
      liens on one- to four- family residential properties (collectively, the
“Mortgage Loans”) sold by Structured Asset Mortgage Investments II Inc. (“SAMI
      II”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to SAMI
      II. EMC will act as master servicer of the Mortgage Loans (the “Master
      Servicer”, which term includes any successors thereto under the Agreement
      referred to below). The Trust Fund was created pursuant to the Pooling and
      Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among SAMI II, as depositor (the “Depositor”), EMC Mortgage
      Corporation, as seller and master servicer, and U.S. Bank National Association,
      as trustee (the “Trustee”), a summary of certain of the pertinent provisions of
      which is set forth hereafter. To the extent not defined herein, capitalized
      terms used herein shall have the meaning ascribed to them in the Agreement.
      This
      Certificate is issued under and is subject to the terms, provisions and
      conditions of the Agreement, to which Agreement the Holder of this Certificate
      by virtue of its acceptance hereof assents and by which such Holder is
      bound.

     

    Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Notional Amount hereof
      at a per annum rate equal to the Pass-Through Rate set forth above and as
      further described in the Agreement. The Trustee will distribute on the 25th
      day
      of each month, or, if such 25th day is not a Business Day, the immediately
      following Business Day (each, a “Distribution Date”), commencing on the First
      Distribution Date specified above, to the Person in whose name this Certificate
      is registered at the close of business on the last Business Day of the calendar
      month preceding the month of such Distribution Date, an amount equal to the
      product of the Fractional Undivided Interest evidenced by this Certificate
      and
      the amount (of interest and principal, if any) required to be distributed to
      the
      Holders of Certificates of the same Class as this Certificate. The Assumed
      Final
      Distribution Date is the Distribution Date in the month immediately following
      the month of the latest scheduled maturity date of any Mortgage Loan and is
      not
      likely to be the date on which the Notional Amount of this Class of Certificates
      will be reduced to zero.

     

    Distributions
      on this Certificate will be made by the Paying Agent by check mailed to the
      address of the Person entitled thereto as such name and address shall appear
      on
      the Certificate Register or, if such Person so requests by notifying the Trustee
      in writing as specified in the Agreement by wire transfer. Notwithstanding
      the
      above, the final distribution on this Certificate will be made after due notice
      by the Paying Agent of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Trustee for that purpose and designated in such notice. The Initial
      Notional Amount of this Certificate is set forth above. The Notional Amount
      hereof will be reduced to the extent of distributions allocable to principal
      hereon and any Realized Losses allocable hereto.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      set
      forth on the face hereof (the “Certificates”). The Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the Trust Fund for payment hereunder and that the Trustee is
      not
      liable to the Certificateholders for any amount payable under this Certificate
      or the Agreement or, except as expressly provided in the Agreement, subject
      to
      any liability under the Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced hereby, and the rights, duties and immunities
      of the Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer and the Trustee and the rights of the Certificateholders under
      the Agreement from time to time by the parties thereto with the consent of
      the
      Holders of Certificates, evidencing Fractional Undivided Interests aggregating
      not less than 51% of the portion of the Trust Fund related to such Certificates
      (or in certain cases, Holders of Certificates of affected Classes evidencing
      such percentage of the Fractional Undivided Interests thereof). Any such consent
      by the Holder of this Certificate shall be conclusive and binding on such Holder
      and upon all future Holders of this Certificate and of any Certificate issued
      upon the transfer hereof or in lieu hereof whether or not notation of such
      consent is made upon this Certificate. The Agreement also permits the amendment
      thereof, in certain limited circumstances, without the consent of the Holders
      of
      any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable with the certificate registrar
      upon surrender of this Certificate for registration of transfer at the offices
      or agencies maintained by the Trustee for such purposes, duly endorsed by,
      or
      accompanied by a written instrument of transfer in form satisfactory to the
      Trustee duly executed by the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates in authorized
      denominations representing a like aggregate Fractional Undivided Interest will
      be issued to the designated transferee.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      the
      Classes and denominations specified in the Agreement. As provided in the
      Agreement and subject to certain limitations therein set forth, this Certificate
      is exchangeable for one or more new Certificates evidencing the same Class
      and
      in the same aggregate Fractional Undivided Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made to the Certificateholders for any such registration
      of transfer, but the Trustee may require payment of a sum sufficient to cover
      any tax or other governmental charge payable in connection therewith. The
      Depositor, the Master Servicer, the Trustee and any agent of any of them may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and none of the Depositor, the Master Servicer, the
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby (other
      than the obligations to make payments to Certificateholders with respect to
      the
      termination of the Agreement) shall terminate upon the earlier of (i) the later
      of the (A) final payment or other liquidation (or Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and (B) disposition of
      all
      property acquired upon foreclosure or deed in lieu of foreclosure of any
      Mortgage Loan and the remittance of all funds due under the Agreement, or (ii)
      the optional repurchase by the party named in the Agreement of all the Mortgage
      Loans and other assets of the Trust Fund in accordance with the terms of the
      Agreement. Such optional repurchase may be made only on or after the
      Distribution Date on which the aggregate unpaid principal balance of the
      Mortgage Loans is less than the percentage of the aggregate Outstanding
      Principal Balance specified in the Agreement of the Mortgage Loans at the
      Cut-off Date. The exercise of such right will effect the early retirement of
      the
      Certificates. In no event, however, will the Trust Fund created by the Agreement
      continue beyond the earlier of (i) the “latest possible maturity date” specified
      in Section 5.01(d) of the Agreement or (ii) the expiration of 21 years after
      the
      death of certain persons identified in the Agreement.

     

    Unless
      this Certificate has been countersigned by an authorized signatory of the
      Trustee by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement, or be valid for any purpose.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

    

    

    Dated:
      November 30,
      2006                   
    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Not
      in
      its individual capacity but solely as Trustee

    

    

    By:
      _________________________________

    Authorized
      Signatory

    

    

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is
      one of the Class X Certificates referred to in the within-mentioned
      Agreement.

    

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Authorized
      signatory of U.S. Bank National Association, 

    not
      in
      its individual capacity but solely as Trustee

    

    By:
      _________________________________

    Authorized
      Signatory

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
      __________________________________ (Please print or typewrite name and address
      including postal zip code of assignee) a Fractional Undivided Interest evidenced
      by the within Mortgage Pass-Through Certificate and hereby authorizes the
      transfer of registration of such interest to assignee on the Certificate
      Register of the Trust Fund.

     

    I
      (We)
      further direct the Certificate Registrar to issue a new Certificate of a like
      denomination and Class, to the above named assignee and deliver such Certificate
      to the following address

     

    
      	 
	 
	 

    

    

    
      	
              Dated:

            	
              __________________________________________

            

    

    Signature
      by or on behalf of assignor

     

    __________________________________________

    Signature
      Guaranteed

     

     

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

     

    Distributions
      shall be made, by wire transfer or otherwise, in immediately available funds
      to
      _________________________________ for the account of _________________________
      account number _____________, or, if mailed by check, to
      ______________________________. Applicable statements should be mailed to
      _____________________________________________.

     

    This
      information is provided by __________________, the assignee named above, or
      ________________________, as its agent.

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
      B

     

    MORTGAGE
      LOAN SCHEDULE

     

LOAN_ID            LOAN_SEQ            CITY1                                     STATE         ZIP_CODE
------------------------------------------------------------------------------------------------------------
     15832932            15832932      KAILUA                                    HI                   96734
     16015803            16015803      NORTHRIDGE                                CA                   91324
     16015807            16015807      WASHINGTON                                DC                   20009
     16015810            16015810      PALM BEACH GARDENS                        FL                   33418
     16015821            16015821      WASHINGTON                                DC                   20012
     16015822            16015822      WASHINGTON                                DC                   20016
     16015833            16015833      WASHINGTON                                DC                   20016
     16015843            16015843      CLIFTON                                   VA                   20124
     16015863            16015863      ARLINGTON                                 VA                   22205
     16015865            16015865      ROCKVILLE                                 MD                   20852
     16015870            16015870      OCEAN CITY                                NJ                    8226
     15438581            15438581      MAMMOTH LAKE                              CA                   93546
     16657104            16657104      SAN CLEMENTE                              CA                   92672
     16657108            16657108      MONTGOMERY TWP                            NJ                    8502
     16657116            16657116      SUMMERFIELD                               NC                   27358
     16657122            16657122      LOS ANGELES                               CA                   90068
     16657049            16657049      ABERDEEN                                  WA                   98520
     16657131            16657131      CORPUS CHRIS                              TX                   78404
     16657051            16657051      SCRANTON                                  PA                   18504
     16657137            16657137      SANTA CRUZ                                CA                   95060
     16657056            16657056      JOHNSTOWN                                 PA                   15901
     16657060            16657060      EDWARDS                                   CO                   81632
     16658049            16658049      EL CAJON                                  CA                   92021
     16657161            16657161      PARADISE VAL                              AZ                   85253
     16657089            16657089      MIAMI                                     FL                   33150
     16657415            16657415      HAMPTON BAYS                              NY                   11946
     16657177            16657177      WATSONVILLE                               CA                   95076
     16657096            16657096      KULA                                      HI                   96790
     16657500            16657500      SAN LUIS OBISPO                           CA                   93405
     16657423            16657423      MIAMI                                     FL                   33133
     16657425            16657425      SOUTH OZONE                               NY                   11420
     16657506            16657506      BURBANK                                   CA                   91501
     16657427            16657427      STATEN ISLAN                              NY                   10307
     16657428            16657428      SCOTTSDALE                                AZ                   85254
     16657187            16657187      SNOWMASS VIL                              CO                   81615
     16657430            16657430      DUNDEE                                    OR                   97115
     16657516            16657516      WALNUT CREEK                              CA                   94596
     16657518            16657518      CHARLOTTE                                 NC                   28212
     16657439            16657439      FORT MYERS                                FL                   33919
     16657520            16657520      CHARLOTTE                                 NC                   28203
     16657602            16657602      VISTA                                     CA                   92081
     16657523            16657523      SANTA ROSA                                CA                   95403
     16657443            16657443      NORTH HILLS                               CA                   91343
     16657605            16657605      PIEDMONT                                  CA                   94610
     16657606            16657606      RANCHO CUCAM                              CA                   91701
     16657611            16657611      SANTA CRUZ                                CA                   95060
     16657612            16657612      BERKELEY                                  CA                   94707
     16657532            16657532      MENLO PARK                                CA                   94025
     16657533            16657533      MISSION VIEJ                              CA                   92691
     16657452            16657452      NEW YORK                                  NY                   10036
     16657453            16657453      NEW YORK                                  NY                   10036
     16657454            16657454      FLUSHING                                  NY                   11367
     16657537            16657537      LAGUNA BEACH                              CA                   92651
     16657456            16657456      LAKE HAVASU                               AZ                   86406
     16657457            16657457      SETAUKET                                  NY                   11733
     16657459            16657459      MORGAN HILL                               CA                   95037
     16657460            16657460      ROSEVILLE                                 CA                   95747
     16657624            16657624      SILVER SPRIN                              MD                   20910
     16657543            16657543      ROSLYN HEIGH                              NY                   11577
     16657463            16657463      FARMINGTON                                MN                   55024
     16657545            16657545      SEA CLIFF                                 NY                   11579
     16657546            16657546      LOS ANGELES                               CA                   90027
     16657465            16657465      MEMPHIS                                   TN                   38108
     16657466            16657466      WONDER LAKE                               IL                   60097
     16657711            16657711      BATON ROUGE                               LA                   70817
     16657470            16657470      SARASOTA                                  FL                   34241
     16657553            16657553      BRENTWOOD                                 CA                   94513
     16657472            16657472      ASPEN                                     CO                   81611
     16657554            16657554      MEMPHIS                                   TN                   38108
     16657555            16657555      MEMPHIS                                   TN                   38108
     16657476            16657476      MEMPHIS                                   TN                   38108
     16657477            16657477      SAN FRANCISC                              CA                   94107
     16657559            16657559      GAINESVILLE                               GA                   30506
     16657479            16657479      ROCKPORT                                  TX                   78382
     16657804            16657804      TORRANCE                                  CA                   90505
     16657562            16657562      ORINDA                                    CA                   94563
     16657567            16657567      TEMPLE TERRA                              FL                   33617
     16657568            16657568      WELLS                                     ME                    4090
     16657570            16657570      SANTA ANA                                 CA                   92705
     16657490            16657490      SILVER SPRIN                              MD                   20904
     16657491            16657491      PITTSBURG                                 CA                   94565
     16657492            16657492      DALLAS                                    TX                   75229
     16657494            16657494      SOUTH BARRINGTON                          IL                   60010
     16657657            16657657      ATLANTA                                   GA                   30307
     16657497            16657497      LAGUNA BEACH                              CA                   92651
     16657659            16657659      BRADENTON BE                              FL                   34217
     16657499            16657499      LAGUNA BEACH                              CA                   92651
     16657581            16657581      OCEANSIDE                                 NY                   11572
     16657664            16657664      LOS ANGELES                               CA                   90066
     16657584            16657584      LAS VEGAS                                 NV                   89131
     16657585            16657585      LOS ANGELES                               CA                   90046
     16657595            16657595      CHARLESTON                                SC                   29401
     16657598            16657598      FREMONT                                   CA                   94536
     16657688            16657688      AUSTIN                                    TX                   78730
     16657693            16657693      SHERMAN                                   TX                   75092
     16657788            16657788      WATSONVILLE                               CA                   95076
     16657995            16657995      ROUND HILL                                VA                   20141
     16657999            16657999      MARGATE CITY                              NJ                    8402
     16657041            16657041      EMERALD ISLE                              NC                   28594
     16657044            16657044      TEMECULA                                  CA                   92592
     16657045            16657045      CORONA                                    CA                   92880
     16657065            16657065      ATLANTA                                   GA                   30331
     16657078            16657078      SAN FRANCISCO                             CA                   94123
     16657085            16657085      SAINT HELENA                              CA                   94574
     16657086            16657086      TAMPA                                     FL                   33612
     16657087            16657087      TAMPA                                     FL                   33612
     16657090            16657090      TAMPA                                     FL                   33612
     16657106            16657106      MIAMI                                     FL                   33150
     16657112            16657112      SAINT JAMES                               NY                   11780
     16657117            16657117      RANCHO SANTA                              CA                   92067
     16657119            16657119      MIAMI                                     FL                   33150
     16657120            16657120      FORT WAYNE                                IN                   46802
     16657121            16657121      LEES SUMMIT                               MO                   64081
     16657125            16657125      OCEANSIDE                                 NY                   11572
     16657132            16657132      ESCONDIDO                                 CA                   92026
     16657134            16657134      EAGLE LAKE                                MN                   56024
     16657149            16657149      WILMINGTON                                DE                   19802
     16657154            16657154      MYRTLE BEACH                              SC                   29588
     16657158            16657158      BROOKLYN                                  NY                   11238
     16657163            16657163      CHELAN FALLS                              WA                   98817
     16657166            16657166      AMARILLO                                  TX                   79109
     16657171            16657171      STATE COLLEG                              PA                   16801
     16657173            16657173      EAST HAMPTON                              NY                   11937
     16657180            16657180      AMARILLO                                  TX                   79107
     16657181            16657181      AMARILLO                                  TX                   79107
     16657182            16657182      AMARILLO                                  TX                   79109
     16657183            16657183      EL DORADO HILLS                           CA                   95762
     16657189            16657189      MIAMI                                     FL                   33193
     16657191            16657191      WEST PALM BE                              FL                   33409
     16657192            16657192      COLORADO SPR                              CO                   80907
     16657197            16657197      OCEAN CITY                                NJ                    8226
     16657203            16657203      BILTMORE LAKE                             NC                   28715
     16657206            16657206      LA MESA                                   CA                   91941
     16657209            16657209      PAWLING                                   NY                   12564
     16657211            16657211      SEATTLE                                   WA                   98102
     16657220            16657220      SEATTLE                                   WA                   98178
     16657224            16657224      CINCINNATI                                OH                   45219
     16657226            16657226      COROLLA                                   NC                   27927
     16657231            16657231      BOSTON                                    MA                    2115
     16657233            16657233      WICHITA                                   KS                   67217
     16657234            16657234      NAPA                                      CA                   94558
     16657237            16657237      HUNTINGTON                                NY                   11743
     16657240            16657240      NEW HAVEN                                 CT                    6519
     16657241            16657241      VIENNA                                    VA                   22182
     16657246            16657246      SAMMAMISH                                 WA                   98074
     16657248            16657248      STONE HARBOR                              NJ                    8247
     16657250            16657250      LOS ANGELES                               CA                   90046
     16657260            16657260      MIRAMAR BEACH                             FL                   32550
     16657268            16657268      FORT MILL                                 SC                   29715
     16657270            16657270      BOULDER                                   CO                   80304
     16657275            16657275      MIRAMAR                                   FL                   33025
     16657276            16657276      BOYTON BEACH                              FL                   33435
     16657277            16657277      JOPLIN                                    MO                   64804
     16657279            16657279      PORTLAND                                  OR                   97219
     16657280            16657280      WASHINGTON                                GA                   30673
     16657281            16657281      JOPLIN                                    MO                   64804
     16657283            16657283      KANKAKEE                                  IL                   60901
     16657294            16657294      MEDFORD                                   WI                   54451
     16657295            16657295      LOS ANGELES                               CA                   90036
     16657296            16657296      SIOUX FALLS                               SD                   57104
     16657297            16657297      NORTH LAS VE                              NV                   89032
     16657298            16657298      WYLIE                                     TX                   75098
     16657300            16657300      LONG BEACH                                CA                   90802
     16657303            16657303      JANESVILLE                                WI                   53545
     16657306            16657306      BLUE HILL                                 ME                    4614
     16657313            16657313      SALT LAKE CI                              UT                   84105
     16657316            16657316      TRENTON                                   NJ                    8611
     16657319            16657319      KNOXVILLE                                 IA                   50138
     16657325            16657325      PORT HUENEME                              CA                   93041
     16657327            16657327      PALM BAY                                  FL                   32908
     16657332            16657332      ATHENS                                    GA                   30605
     16657336            16657336      ATLANTIC CITY                             NJ                    8401
     16657337            16657337      CODY                                      WY                   82414
     16657338            16657338      MILLSBORO                                 DE                   19966
     16657345            16657345      GRAND MARAIS                              MN                   55604
     16657346            16657346      RENO                                      NV                   89509
     16657348            16657348      SANTA CRUZ                                CA                   95062
     16657349            16657349      BETHLEHEM                                 PA                   18018
     16657352            16657352      FOWLER                                    IL                   62338
     16657361            16657361      BALTIMORE                                 MD                   21206
     16657363            16657363      CLIFTON HEIG                              PA                   19018
     16657368            16657368      SEATTLE                                   WA                   98199
     16657369            16657369      MILL CREEK                                WA                   98012
     16657371            16657371      TROY                                      OH                   45373
     16657374            16657374      MARINETTE                                 WI                   54143
     16657383            16657383      CAPE CORAL                                FL                   33993
     16657385            16657385      LEHIGH ACRES                              FL                   33971
     16657386            16657386      LEHIGH ACRES                              FL                   33971
     16657387            16657387      CAPE CORAL                                FL                   33909
     16657388            16657388      LEHIGH ACRES                              FL                   33971
     16657389            16657389      LEHIGH ACRES                              FL                   33971
     16657390            16657390      LEHIGH ACRES                              FL                   33971
     16657391            16657391      LEHIGH ACRES                              FL                   33971
     16657393            16657393      LEHIGH ACRES                              FL                   33971
     16657411            16657411      LOUISVILLE                                KY                   40206
     16657433            16657433      EAST PATCHOG                              NY                   11772
     16657451            16657451      MARION                                    NY                   14505
     16657486            16657486      SAN DIEGO                                 CA                   92124
     16657508            16657508      GREAT NECK                                NY                   11021
     16657517            16657517      MALIBU                                    CA                   90265
     16657519            16657519      ATWATER                                   CA                   95301
     16657549            16657549      NORTHRIDGE                                CA                   91326
     16657550            16657550      WESTBURY                                  NY                   11590
     16657577            16657577      PHOENIX                                   AZ                   85012
     16657580            16657580      LOS ANGELES                               CA                   91326
     16657582            16657582      LIBERTY HILL                              SC                   29074
     16657586            16657586      JAMAICA                                   NY                   11432
     16657587            16657587      JAMAICA                                   NY                   11432
     16657588            16657588      SHORT HILLS                               NJ                    7078
     16657590            16657590      CALABASAS                                 CA                   91301
     16657592            16657592      OXNARD                                    CA                   93035
     16657600            16657600      LAS VEGAS                                 NV                   89110
     16657608            16657608      LAKELAND                                  FL                   33810
     16657614            16657614      LAGUNA BEACH                              CA                   92651
     16657617            16657617      WASHINGTON                                DC                   20015
     16657623            16657623      RED OAK                                   TX                   75154
     16657628            16657628      WELLS                                     ME                    4090
     16657632            16657632      KINNELON                                  NJ                    7405
     16657633            16657633      FORT WASHING                              MD                   20744
     16657635            16657635      TULSA                                     OK                   74127
     16657638            16657638      KILDEER                                   IL                   60047
     16657640            16657640      OAKTON                                    VA                   22124
     16657647            16657647      ATLANTA                                   GA                   30328
     16657653            16657653      BIG BEAR LAK                              CA                   92315
     16657654            16657654      FOSTER CITY                               CA                   94404
     16657658            16657658      CARLSBAD                                  CA                   92009
     16657661            16657661      WAITE PARK                                MN                   56387
     16657666            16657666      EL CAJON                                  CA                   92021
     16657667            16657667      ALEXANDRIA T                              NJ                    8867
     16657669            16657669      VALLEY SPRINGS                            CA                   95252
     16657671            16657671      LONG BEACH                                CA                   90815
     16657677            16657677      TOLLAND                                   CT                    6084
     16657678            16657678      PANAMA CITY                               FL                   32407
     16657679            16657679      WHITE PLAINS                              NY                   10606
     16657681            16657681      SAN PEDRO                                 CA                   90731
     16657685            16657685      VALLEY VILLA                              CA                   91607
     16657687            16657687      WATERBURY                                 CT                    6708
     16657692            16657692      HONOLULU                                  HI                   96821
     16657695            16657695      UPPER DARBY                               PA                   19082
     16657698            16657698      SHERWOOD                                  OR                   97140
     16657700            16657700      RYE                                       NY                   10580
     16657703            16657703      HERMOSA BEAC                              CA                   90254
     16657704            16657704      HINSDALE                                  IL                   60521
     16657721            16657721      LONGVIEW                                  WA                   98632
     16657366            16657366      CLEARWATER                                FL                   33767
     16657552            16657552      OLNEY                                     MD                   20832
     16657643            16657643      CAPE CORAL                                FL                   33904
     16657645            16657645      MANASSAS                                  VA                   20112
     16657684            16657684      GREENSBORO                                NC                   27406
     16657723            16657723      LOS ANGELES                               CA                   91604
     16657724            16657724      VIENNA                                    VA                   22180
     16657725            16657725      ARCADIA                                   CA                   91006
     16657727            16657727      BERKELEY                                  CA                   94709
     16657733            16657733      LAKEVILLE                                 PA                   18438
     16657736            16657736      COLLEYVILLE                               TX                   76034
     16657737            16657737      BRONX                                     NY                   10465
     16657738            16657738      HUNTINGTON B                              CA                   92646
     16657739            16657739      BRENTWOOD                                 TN                   37027
     16657743            16657743      MANASSAS                                  VA                   20112
     16657745            16657745      JAMISON                                   PA                   18929
     16657746            16657746      LAKE ELSINOR                              CA                   92532
     16657748            16657748      SOUTH PASADE                              CA                   91030
     16657750            16657750      SCOTTSDALE                                AZ                   85255
     16657751            16657751      PLAINSBORO                                NJ                    8536
     16657753            16657753      PALO ALTO                                 CA                   94303
     16657754            16657754      SAN ANTONIO                               TX                   78217
     16657755            16657755      BEACH HAVEN                               NJ                    8008
     16657756            16657756      TUSTIN                                    CA                   92780
     16657759            16657759      EDMOND                                    OK                   73034
     16657761            16657761      HOUSTON                                   TX                   77077
     16657764            16657764      ESCONDIDO                                 CA                   92029
     16657765            16657765      LEAVENWORTH                               WA                   98826
     16657771            16657771      GLENS FALLS                               NY                   12801
     16657773            16657773      GREENVILLE                                TX                   75402
     16657776            16657776      CLAREMONT                                 CA                   91711
     16657777            16657777      ASHLAND                                   PA                   17921
     16657778            16657778      SOUTHLAKE                                 TX                   76092
     16657779            16657779      NORCROSS                                  GA                   30071
     16657780            16657780      ELLICOTT CIT                              MD                   21043
     16657784            16657784      LOS ANGELES                               CA                   91326
     16657786            16657786      ALBUQUERQUE                               NM                   87105
     16657790            16657790      PASADENA                                  CA                   91106
     16657792            16657792      LAKE ARIEL                                PA                   18436
     16657793            16657793      PEORIA                                    IL                   61606
     16657794            16657794      COLUMBIA                                  MD                   21045
     16657797            16657797      SALEM                                     OR                   97301
     16657798            16657798      SHERMAN OAKS                              CA                   91403
     16657805            16657805      CAMAS                                     WA                   98607
     16657807            16657807      EL CAJON                                  CA                   92020
     16657808            16657808      LAGUNA NIGUE                              CA                   92677
     16657810            16657810      HILTON HEAD                               SC                   29928
     16657818            16657818      IRVINE                                    CA                   92603
     16657821            16657821      OXNARD                                    CA                   93035
     16657822            16657822      ATLANTA                                   GA                   30324
     16657828            16657828      REDMOND                                   WA                   98053
     16657829            16657829      MOORE                                     OK                   73160
     16657830            16657830      EDMONDS                                   WA                   98020
     16657832            16657832      BURLINGAME                                CA                   94010
     16657834            16657834      BAKERSFIELD                               CA                   93307
     16657835            16657835      PHILADELPHIA                              PA                   19147
     16657837            16657837      INMAN                                     SC                   29349
     16657841            16657841      LAKE ALFRED                               FL                   33850
     16657846            16657846      SAN FRANSISC                              CA                   94103
     16657850            16657850      SANTA ROSA                                CA                   94504
     16657851            16657851      SAN FRANCISC                              CA                   94127
     16657854            16657854      FOOTHILL RAN                              CA                   92610
     16657855            16657855      RIFLE                                     CO                   81650
     16657858            16657858      LAS VEGAS                                 NV                   89115
     16657860            16657860      SCOTTSDALE                                AZ                   85255
     16657861            16657861      MILFORD                                   DE                   19963
     16657870            16657870      MILWAUKEE                                 WI                   53223
     16657871            16657871      BOCA RATON                                FL                   33432
     16657876            16657876      WOODBRIDGE                                VA                   22191
     16657878            16657878      SUNNY ISLES                               FL                   33160
     16657879            16657879      JACKSONVILLE                              FL                   32224
     16657880            16657880      SANTA BARBAR                              CA                   93109
     16657885            16657885      NEW PORT RIC                              FL                   34655
     16657887            16657887      EDMONDS                                   WA                   98026
     16657888            16657888      ARTESIA                                   CA                   90701
     16657889            16657889      SANTA BARBAR                              CA                   93108
     16657894            16657894      MORGANTOWN                                WV                   26501
     16657896            16657896      MULLICA HILL                              NJ                    8062
     16657897            16657897      HAPPY VALLEY                              OR                   97086
     16657898            16657898      HUNTINGTON                                NY                   11743
     16657905            16657905      MONTEREY                                  CA                   93940
     16657906            16657906      SILVER SPRIN                              MD                   20905
     16657910            16657910      SAN ANSELMO                               CA                   94960
     16657912            16657912      SCARSDALE                                 NY                   10583
     16657915            16657915      PHOENIX                                   AZ                   85013
     16657916            16657916      SAN JOSE                                  CA                   95126
     16657917            16657917      PERRIS                                    CA                   92571
     16657919            16657919      ZELIENOPLE                                PA                   16063
     16657920            16657920      SUFFOLK                                   VA                   23434
     16657923            16657923      LOS ANGELES                               CA                   90064
     16657924            16657924      PORTLAND                                  OR                   97213
     16657925            16657925      STUART                                    FL                   34996
     16657927            16657927      LYNWOOD                                   IL                   60411
     16657930            16657930      PISMO BEACH                               CA                   93449
     16657937            16657937      MIAMI                                     FL                   33177
     16657938            16657938      HERMITAGE                                 TN                   37076
     16657939            16657939      DAYTON                                    OH                   45406
     16657908            16657908      CAMPBELL                                  CA                   95008
     16657943            16657943      DIAMOND BAR                               CA                   91765
     16657944            16657944      CASTLE ROCK                               CO                   80108
     16657951            16657951      AURORA                                    CO                   80016
     16657952            16657952      WINDERMERE                                FL                   34786
     16657953            16657953      DIAMOND BAR                               CA                   91765
     16657954            16657954      CHELAN                                    WA                   98816
     16657957            16657957      BROOKLYN                                  NY                   11220
     16657960            16657960      KIRBY                                     TX                   78219
     16657961            16657961      SHOREWOOD                                 IL                   60431
     16657962            16657962      CENTREVILLE                               VA                   20120
     16657964            16657964      PANAMA CITY                               FL                   32413
     16657965            16657965      DECATUR                                   GA                   30030
     16657969            16657969      SAN CARLOS                                CA                   94070
     16657972            16657972      CLEARWATER                                FL                   33755
     16657976            16657976      SAN JOSE                                  CA                   95129
     16657978            16657978      GRANDVIEW                                 NY                   10960
     16657982            16657982      MCKINNEY                                  TX                   75070
     16657983            16657983      TUCSON                                    AZ                   85716
     16657984            16657984      TUCSON                                    AZ                   85716
     16657985            16657985      TUCSON                                    AZ                   85716
     16657986            16657986      TUCSON                                    AZ                   85716
     16657988            16657988      TUCSON                                    AZ                   85716
     16657989            16657989      TUCSON                                    AZ                   85716
     16657991            16657991      COROLLA                                   NC                   27927
     16657994            16657994      SAN FRANCISC                              CA                   94115
     16657996            16657996      OAKLAND                                   CA                   94618
     16657998            16657998      LANSING                                   MI                   48911
     16658001            16658001      SEA ISLE CIT                              NJ                    8243
     16658003            16658003      SEATTLE                                   WA                   98125
     16658004            16658004      TACOMA                                    WA                   98403
     16658008            16658008      STONE MOUNTAIN                            GA                   30083
     16658010            16658010      PARIS                                     MI                   49338
     16658011            16658011      MYRTLE BEACH                              SC                   29572
     16658012            16658012      PROVINCETOWN                              MA                    2657
     16658013            16658013      NATIONAL CIT                              CA                   91950
     16658014            16658014      LAFAYETTE                                 CA                   94549
     16658017            16658017      BENSALEM                                  PA                   19020
     16658018            16658018      SEYMOUR                                   MO                   65746
     16658020            16658020      SAN JOSE                                  CA                   95124
     16658025            16658025      ANCHORAGE                                 AK                   99516
     16658033            16658033      CARMEL                                    CA                   93923
     16658039            16658039      SEATTLE                                   WA                   98178
     16658046            16658046      NORTHRIDGE A                              CA                   91325
     16658053            16658053      FARGO                                     ND                   58102
     16658060            16658060      LOS ALTOS                                 CA                   94022
     16658063            16658063      MIAMI                                     FL                   33130
     16658073            16658073      SAN PABLO                                 CA                   94806
     16658078            16658078      HAYWARD                                   CA                   94544
     16658080            16658080      NORTH LAUDER                              FL                   33068
     16658086            16658086      LODI                                      CA                   95242
     16658088            16658088      SAN FRANCISC                              CA                   94121
     16658089            16658089      PARK CITY                                 UT                   84060
     16658091            16658091      PALM BEACH G                              FL                   33418
     14425830            14425830      STATEN ISLAND                             NY                   10314
     15628322            15628322      SANTA BARBARA                             CA                   93105
     16243109            16243109      Suwanee                                   GA                   30024
     15757419            15757419      PHILADELPHIA                              PA                   19118
     16341408            16341408      MEDFORD                                   OR                   97504
     16341423            16341423      ASHLAND                                   OR                   97520
     16319910            16319910      PALM HARBOR                               FL                   34684
     16319915            16319915      NICEVILLE                                 FL                   32578
     16375684            16375684      PONTE VEDRA BEACH                         FL                   32082
     16375685            16375685      MENIFEE                                   CA                   92584
     16375701            16375701      NORTHBROOK                                IL                   60062
     16375711            16375711      NOVATO                                    CA                   94945
     16375714            16375714      FORT WASHINGTON                           MD                   20744
     16396190            16396190      CLEARWATER                                FL                   33755
     16396195            16396195      BIRMINGHAM                                AL                   35242
     16396198            16396198      HENDERSONVILLE                            TN                   37075
     16396208            16396208      FRANKLIN                                  TN                   37064
     16396209            16396209      ORLANDO                                   FL                   32814
     16396210            16396210      WINDERMERE                                FL                   34786
     16396232            16396232      FRANKLIN                                  TN                   37064
     16396241            16396241      MAYLENE                                   AL                   35114
     15338945            15338945      LONG BEACH                                CA                   90807
     15498288            15498288      CHAPEL HILL                               NC                   27516
     15628273            15628273      RAMONA                                    CA                   92065
     15628284            15628284      OJAI                                      CA                   93023
     15628300            15628300      SAN RAMON                                 CA                   94582
     15628380            15628380      BOCA RATON                                FL                   33431
     15765233            15765233      HUNTINGTON BEACH                          CA                   92646
     16206035            16206035      Elizabeth                                 CO                   80107
     16341407            16341407      PORTLAND                                  OR                   97236
     16341410            16341410      MEDFORD                                   OR                   97504
     16341412            16341412      SALEM                                     OR                   97304
     16341413            16341413      EUGENE                                    OR                   97404
     16341414            16341414      BEND                                      OR                   97701
     16341415            16341415      PORTLAND                                  OR                   97211
     16341416            16341416      HAPPY VALLEY                              OR                   97236
     16341417            16341417      KEIZER                                    OR                   97303
     16341418            16341418      SEASIDE                                   OR                   97138
     16341419            16341419      CORVALLIS                                 OR                   97330
     16341420            16341420      SHERWOOD                                  OR                   97140
     16341421            16341421      RIDGEFIELD                                WA                   98642
     16341422            16341422      PORTLAND                                  OR                   97217
     16341424            16341424      PORTLAND                                  OR                   97205
     16319907            16319907      PENSACOLA BEACH                           FL                   32561
     16319908            16319908      NEW ORLEANS                               LA                   70118
     16319909            16319909      BIRMINGHAM                                AL                   35209
     16319912            16319912      NAPLES                                    FL                   34119
     16319913            16319913      THOMPSONS STATION                         TN                   37179
     16319916            16319916      TAMPA                                     FL                   33626
     16319917            16319917      COCOA BEACH                               FL                   32931
     16319922            16319922      BIRMINGHAM                                AL                   35213
     16319925            16319925      BIRMINGHAM                                AL                   35216
     16319926            16319926      ALEXANDER CITY                            AL                   35010
     16319929            16319929      VESTAVIA HILLS                            AL                   35216
     16319930            16319930      APISON                                    TN                   37302
     16319931            16319931      POINT CLEAR                               AL                   36564
     16319932            16319932      MIRAMAR BEACH                             FL                   32550
     16319935            16319935      BIRMINGHAM                                AL                   35222
     16319936            16319936      BIRMINGHAM                                AL                   35244
     16319937            16319937      BRENTWOOD                                 TN                   37027
     16319938            16319938      ALABASTER                                 AL                   35007
     16375678            16375678      FRANKLIN                                  MA                    2038
     16375679            16375679      BROOMFIELD                                CO                   80020
     16375680            16375680      WESTMINSTER                               CA                   92683
     16375681            16375681      SOUTH SAN FRANCISCO                       CA                   94080
     16375682            16375682      REDWOOD CITY                              CA                   94062
     16375683            16375683      LAMBERTVILLE                              NJ                    8530
     16375686            16375686      YORBA LINDA                               CA                   92887
     16375687            16375687      CHICAGO                                   IL                   60614
     16375688            16375688      SIMI VALLEY                               CA                   93065
     16375690            16375690      SAN JOSE                                  CA                   95124
     16375692            16375692      SAN MATEO                                 CA                   94402
     16375693            16375693      LAFAYETTE                                 CA                   94549
     16375694            16375694      SAN JOSE                                  CA                   95130
     16375695            16375695      OAKLAND                                   CA                   94609
     16375696            16375696      WALNUT                                    CA                   91789
     16375697            16375697      POTOMAC                                   MD                   20854
     16375699            16375699      BENICIA                                   CA                   94510
     16375700            16375700      DANVILLE                                  CA                   94526
     16375702            16375702      REDMOND                                   WA                   98052
     16375703            16375703      BLOOMFIELD HILLS                          MI                   48304
     16375704            16375704      SCOTTSDALE                                AZ                   85259
     16375705            16375705      EXETER                                    CA                   93221
     16375706            16375706      VIRGINIA BEACH                            VA                   23455
     16375707            16375707      HUNTINGTON BEACH                          CA                   92648
     16375708            16375708      SAN FRANCISCO                             CA                   94132
     16375709            16375709      VALLEJO                                   CA                   94590
     16375710            16375710      DOBBS FERRY                               NY                   10522
     16396193            16396193      BIRMINGHAM                                AL                   35223
     16396194            16396194      HUNTSVILLE                                AL                   35801
     16396196            16396196      FAIRHOPE                                  AL                   36532
     16396197            16396197      NASHVILLE                                 TN                   37220
     16396200            16396200      NASHVILLE                                 TN                   37215
     16396201            16396201      BIRMINGHAM                                AL                   35242
     16396202            16396202      BIRMINGHAM                                AL                   35210
     16396205            16396205      TAMPA                                     FL                   33611
     16396206            16396206      BIRMINGHAM                                AL                   35226
     16396207            16396207      SARASOTA                                  FL                   34241
     16396211            16396211      COVINGTON                                 LA                   70433
     16396214            16396214      HUNTSVILLE                                AL                   35801
     16396215            16396215      GRETNA                                    LA                   70056
     16396217            16396217      ALABASTER                                 AL                   35007
     16396218            16396218      AUBURN                                    AL                   36830
     16396219            16396219      CROPWELL                                  AL                   35054
     16396221            16396221      TAMPA                                     FL                   33625
     16396222            16396222      TAMPA                                     FL                   33625
     16396223            16396223      NAPLES                                    FL                   34113
     16396226            16396226      SHREVEPORT                                LA                   71106
     16396227            16396227      INDIAN SPRINGS                            AL                   35124
     16396230            16396230      NAPLES                                    FL                   34108
     16396231            16396231      RIDGELAND                                 MS                   39157
     16396234            16396234      TAMPA                                     FL                   33647
     16396235            16396235      NAPLES                                    FL                   34112
     16396237            16396237      LITHIA                                    FL                   33547
     16396239            16396239      FAIRHOPE                                  AL                   36532
     16396240            16396240      CLEARWATER BEACH                          FL                   33767
     16396242            16396242      BIRMINGHAM                                AL                   35242
     16396243            16396243      NASHVILLE                                 TN                   37211
     16396246            16396246      GULF SHORES                               AL                   36542
     16396247            16396247      JACKSON                                   TN                   38305
     16396248            16396248      BIRMINGHAM                                AL                   35244
     15498289            15498289      GOLD RIVER                                CA                   95670
     15590615            15590615      RIVER VALE                                NJ                    7675
     15628389            15628389      UPPER SADDLE RI                           NJ                    7458
     15628411            15628411      PALO ALTO                                 CA                   94306
     15765225            15765225      SAN FRANCISCO                             CA                   94116
     16341409            16341409      CHARBONNEAU                               OR                   97070
     16341411            16341411      EUGENE                                    OR                   97405
     16319906            16319906      TRUSSVILLE                                AL                   35173
     16319934            16319934      BIRMINGHAM                                AL                   35242
     16375689            16375689      HAWTHORNE                                 CA                   90250
     16375698            16375698      ASHBURN                                   VA                   20148
     16375712            16375712      PLACERVILLE                               CA                   95667
     16396199            16396199      HOMEWOOD                                  AL                   35209
     16396204            16396204      ORANGE BEACH                              AL                   36561
     16396213            16396213      CLERMONT                                  FL                   34711
     16396216            16396216      TAMPA                                     FL                   33618
     16396220            16396220      MIRAMAR BEACH                             FL                   32550
     16396225            16396225      NORTH VENICE                              FL                   34275
     16396233            16396233      PUNTA GORDA                               FL                   33983
     16396236            16396236      TUSCALOOSA                                AL                   35401
     15765213            15765213      MANOR                                     TX                   78653
     16396238            16396238      OXFORD                                    MS                   38655
     15498275            15498275      FOLSOM                                    CA                   95630
     16396191            16396191      NAPLES                                    FL                   34105
     16396224            16396224      LEEDS                                     AL                   35094
     16319911            16319911      ORLANDO                                   FL                   32821
     16396229            16396229      GULF SHORES                               AL                   36542
     16657043            16657043      DECATUR                                   AL                   35601
     16657053            16657053      GARNER                                    NC                   27529
     16657063            16657063      VIRGINIA BEA                              VA                   23464
     16657102            16657102      CHESAPEAKE                                VA                   23320
     16657138            16657138      FORT WAYNE                                IN                   46804
     16657222            16657222      HOWARD                                    OH                   43028
     16657236            16657236      WOOSTER                                   OH                   44691
     16657255            16657255      ALLIANCE                                  OH                   44601
     16657284            16657284      EDEN PRAIRIE                              MN                   55344
     16657317            16657317      ANTHEM                                    AZ                   85086
     16657334            16657334      ATLANTIC CITY                             NJ                    8401
     16657373            16657373      SOUTHAVEN                                 MS                   38671
     16657375            16657375      ALBUQUERQUE                               NM                   87106
     16657446            16657446      BETHEL                                    NC                   27812
     16657469            16657469      LEVELLAND                                 TX                   79336
     16657579            16657579      RALEIGH                                   NC                   27617
     16657639            16657639      COLUMBIA                                  SC                   29204
     16657642            16657642      CHARLOTTE                                 NC                   28273
     16657649            16657649      MATTHEWS                                  NC                   28105
     16657652            16657652      KEITHVILLE                                LA                   71047
     16657676            16657676      DURHAM                                    NC                   27713
     16657702            16657702      PINEVILLE                                 NC                   28134
     16657787            16657787      SPRINGDALE                                AR                   72764
     16657843            16657843      OAKLYN                                    NJ                    8107
     16657872            16657872      BELMONT                                   NC                   28012
     16657940            16657940      LOS ANGELES                               CA                   90022
     16657950            16657950      ORANGE                                    NJ                    7050
     16657971            16657971      BOTHELL                                   WA                   98011
     16658071            16658071      ORLANDO                                   FL                   32824
     16657399            16657399      WAUKESHA                                  WI                   53186
     16657655            16657655      LEAVENWORTH                               WA                   98826
     16657768            16657768      ROSEVILLE                                 CA                   95747

LOAN_ID            PROPTYPE                     CURRENT_                    SERV_FEE           LPMI         MSERV
                                                GROSS_COUPON
-----------------------------------------------------------------------------------------------------------------------
     15832932      Single Family                                 5.375               0.25            0           0.013
     16015803      Single Family                                 5.375               0.25            0           0.013
     16015807      Hi-Rise Condo                                 5.375               0.25            0           0.013
     16015810      PUD                                           5.375               0.25            0           0.013
     16015821      Single Family                                     6               0.25            0           0.013
     16015822      PUD                                             5.5               0.25            0           0.013
     16015833      Condominium                                    5.75               0.25            0           0.013
     16015843      PUD                                           5.875               0.25            0           0.013
     16015863      Single Family                                 5.375               0.25            0           0.013
     16015865      Single Family                                 5.375               0.25            0           0.013
     16015870      Condominium                                    5.75               0.25            0           0.013
     15438581      Condominium                                    5.75               0.25            0           0.013
     16657104      2-4 Family                                     7.25               0.25            0           0.013
     16657108      Condominium                                    8.25               0.25            0           0.013
     16657116      Single Family                                  6.75               0.25        0.625           0.013
     16657122      Single Family                                     7               0.25            0           0.013
     16657049      Single Family                                 7.375               0.25            0           0.013
     16657131      2-4 Family                                        8               0.25            0           0.013
     16657051      2-4 Family                                    7.375               0.25            0           0.013
     16657137      Single Family                                 5.875               0.25            0           0.013
     16657056      2-4 Family                                      6.5               0.25            0           0.013
     16657060      Single Family                                 6.125               0.25            0           0.013
     16658049      Single Family                                   6.5               0.25            0           0.013
     16657161      Single Family                                 6.625               0.25            0           0.013
     16657089      Hi-Rise Condo                                 7.875               0.25            0           0.013
     16657415      Single Family                                 6.625               0.25            0           0.013
     16657177      Single Family                                   6.5               0.25            0           0.013
     16657096      Single Family                                 6.625               0.25            0           0.013
     16657500      Single Family                                 6.625               0.25            0           0.013
     16657423      Condominium                                     6.5               0.25            0           0.013
     16657425      2-4 Family                                      6.5               0.25            0           0.013
     16657506      Single Family                                 6.875               0.25            0           0.013
     16657427      2-4 Family                                      6.5               0.25            0           0.013
     16657428      Single Family                                     7               0.25            0           0.013
     16657187      Condominium                                       7               0.25            0           0.013
     16657430      Single Family                                 6.875               0.25            0           0.013
     16657516      Single Family                                   6.5               0.25            0           0.013
     16657518      Single Family                                   8.5               0.25            0           0.013
     16657439      Single Family                                 6.625               0.25            0           0.013
     16657520      2-4 Family                                    7.875               0.25            0           0.013
     16657602      Single Family                                 6.625               0.25            0           0.013
     16657523      Single Family                                 6.625               0.25            0           0.013
     16657443      Single Family                                   6.5               0.25            0           0.013
     16657605      Single Family                                 6.875               0.25            0           0.013
     16657606      Single Family                                 6.625               0.25            0           0.013
     16657611      Single Family                                  6.75               0.25            0           0.013
     16657612      Single Family                                  6.75               0.25            0           0.013
     16657532      Single Family                                  6.75               0.25            0           0.013
     16657533      Single Family                                 6.375               0.25            0           0.013
     16657452      Hi-Rise Condo                                 6.875               0.25            0           0.013
     16657453      Hi-Rise Condo                                 6.875               0.25            0           0.013
     16657454      Single Family                                 6.375               0.25            0           0.013
     16657537      Single Family                                   6.5               0.25            0           0.013
     16657456      Single Family                                  6.75               0.25            0           0.013
     16657457      Single Family                                   7.5               0.25            0           0.013
     16657459      Single Family                                     8               0.25            0           0.013
     16657460      Single Family                                   6.5               0.25            0           0.013
     16657624      Single Family                                  6.75               0.25            0           0.013
     16657543      Single Family                                 6.625               0.25            0           0.013
     16657463      Single Family                                     7               0.25            0           0.013
     16657545      Single Family                                 6.625               0.25            0           0.013
     16657546      Single Family                                 6.625               0.25            0           0.013
     16657465      Single Family                                  7.75               0.25            0           0.013
     16657466      Single Family                                 8.375               0.25            0           0.013
     16657711      Single Family                                   7.5               0.25            0           0.013
     16657470      Single Family                                  6.75               0.25            0           0.013
     16657553      Single Family                                 6.625               0.25            0           0.013
     16657472      Condominium                                    6.25               0.25            0           0.013
     16657554      Single Family                                 7.875               0.25            0           0.013
     16657555      Single Family                                 7.875               0.25            0           0.013
     16657476      Single Family                                 7.875               0.25            0           0.013
     16657477      Condominium                                    6.75               0.25            0           0.013
     16657559      Single Family                                 7.125               0.25            0           0.013
     16657479      Single Family                                 7.875               0.25            0           0.013
     16657804      Single Family                                 6.625               0.25            0           0.013
     16657562      Single Family                                  6.75               0.25            0           0.013
     16657567      Single Family                                   6.5               0.25            0           0.013
     16657568      Single Family                                     6               0.25            0           0.013
     16657570      Single Family                                 6.875               0.25            0           0.013
     16657490      Single Family                                  6.75               0.25            0           0.013
     16657491      Single Family                                  6.75               0.25            0           0.013
     16657492      Single Family                                     6               0.25            0           0.013
     16657494      Single Family                                  6.25               0.25            0           0.013
     16657657      Single Family                                 6.625               0.25            0           0.013
     16657497      Single Family                                   6.5               0.25            0           0.013
     16657659      Single Family                                  6.75               0.25            0           0.013
     16657499      2-4 Family                                    6.625               0.25            0           0.013
     16657581      Single Family                                  6.75               0.25            0           0.013
     16657664      Single Family                                 6.125               0.25            0           0.013
     16657584      Single Family                                  6.25               0.25            0           0.013
     16657585      Single Family                                  6.75               0.25            0           0.013
     16657595      2-4 Family                                    6.875               0.25            0           0.013
     16657598      Single Family                                   6.5               0.25            0           0.013
     16657688      Single Family                                 6.375               0.25            0           0.013
     16657693      Single Family                                 6.375               0.25            0           0.013
     16657788      Single Family                                 6.625               0.25            0           0.013
     16657995      Single Family                                  6.75               0.25            0           0.013
     16657999      Hi-Rise Condo                                 7.375               0.25            0           0.013
     16657041      Single Family                                 6.625               0.25            0           0.013
     16657044      Single Family                                     7               0.25            0           0.013
     16657045      Single Family                                 6.875               0.25            0           0.013
     16657065      Single Family                                  7.75               0.25            0           0.013
     16657078      2-4 Family                                     6.75               0.25            0           0.013
     16657085      Single Family                                  6.25               0.25            0           0.013
     16657086      2-4 Family                                    7.625               0.25            0           0.013
     16657087      2-4 Family                                    7.625               0.25            0           0.013
     16657090      2-4 Family                                    7.625               0.25            0           0.013
     16657106      Condominium                                   8.375               0.25            0           0.013
     16657112      Single Family                                 6.875               0.25            0           0.013
     16657117      PUD                                           6.875               0.25            0           0.013
     16657119      Condominium                                   7.625               0.25            0           0.013
     16657120      2-4 Family                                    8.375               0.25            0           0.013
     16657121      Single Family                                   6.5               0.25            0           0.013
     16657125      2-4 Family                                    7.875               0.25            0           0.013
     16657132      Single Family                                   7.5               0.25            0           0.013
     16657134      Single Family                                 6.625               0.25            0           0.013
     16657149      2-4 Family                                    8.375               0.25            0           0.013
     16657154      Single Family                                  7.75               0.25            0           0.013
     16657158      2-4 Family                                    6.625               0.25            0           0.013
     16657163      Single Family                                 6.875               0.25            0           0.013
     16657166      Single Family                                 7.875               0.25            0           0.013
     16657171      Single Family                                 6.375               0.25            0           0.013
     16657173      Single Family                                 6.875               0.25            0           0.013
     16657180      Single Family                                 7.875               0.25            0           0.013
     16657181      Single Family                                 8.125               0.25            0           0.013
     16657182      Single Family                                 7.875               0.25            0           0.013
     16657183      Single Family                                   6.5               0.25            0           0.013
     16657189      Condominium                                   6.875               0.25            0           0.013
     16657191      Condominium                                    7.25               0.25            0           0.013
     16657192      2-4 Family                                        7               0.25            0           0.013
     16657197      Condominium                                   7.125               0.25            0           0.013
     16657203      PUD                                            6.75               0.25            0           0.013
     16657206      Single Family                                  6.75               0.25            0           0.013
     16657209      Single Family                                 6.625               0.25            0           0.013
     16657211      Single Family                                 6.375               0.25            0           0.013
     16657220      Single Family                                 6.875               0.25            0           0.013
     16657224      2-4 Family                                     6.75               0.25            0           0.013
     16657226      Single Family                                 6.875               0.25            0           0.013
     16657231      Single Family                                   6.5               0.25            0           0.013
     16657233      Single Family                                 7.375               0.25            0           0.013
     16657234      Single Family                                   6.5               0.25            0           0.013
     16657237      Single Family                                 6.875               0.25            0           0.013
     16657240      2-4 Family                                    8.375               0.25            0           0.013
     16657241      Single Family                                 6.625               0.25            0           0.013
     16657246      Condominium                                       7               0.25            0           0.013
     16657248      Single Family                                  7.25               0.25            0           0.013
     16657250      Single Family                                 6.875               0.25            0           0.013
     16657260      Hi-Rise Condo                                 6.375               0.25            0           0.013
     16657268      Single Family                                 6.625               0.25            0           0.013
     16657270      Single Family                                 7.875               0.25            0           0.013
     16657275      Condominium                                     8.5               0.25            0           0.013
     16657276      Hi-Rise Condo                                 8.625               0.25            0           0.013
     16657277      2-4 Family                                     8.75               0.25            0           0.013
     16657279      Single Family                                     8               0.25            0           0.013
     16657280      Single Family                                   8.5               0.25            0           0.013
     16657281      2-4 Family                                     8.75               0.25            0           0.013
     16657283      Single Family                                  8.75               0.25            0           0.013
     16657294      Single Family                                 8.625               0.25            0           0.013
     16657295      Single Family                                 8.375               0.25            0           0.013
     16657296      2-4 Family                                    7.625               0.25            0           0.013
     16657297      Single Family                                 8.375               0.25            0           0.013
     16657298      Single Family                                   8.5               0.25            0           0.013
     16657300      Hi-Rise Condo                                 6.625               0.25            0           0.013
     16657303      2-4 Family                                    8.625               0.25            0           0.013
     16657306      Single Family                                  8.25               0.25            0           0.013
     16657313      Single Family                                 7.625               0.25            0           0.013
     16657316      Single Family                                  8.25               0.25            0           0.013
     16657319      Single Family                                 8.375               0.25            0           0.013
     16657325      Single Family                                 6.875               0.25            0           0.013
     16657327      Single Family                                   8.5               0.25            0           0.013
     16657332      Condominium                                   8.625               0.25            0           0.013
     16657336      Single Family                                  8.25               0.25            0           0.013
     16657337      Single Family                                 7.625               0.25            0           0.013
     16657338      Single Family                                 7.375               0.25            0           0.013
     16657345      2-4 Family                                     8.25               0.25            0           0.013
     16657346      PUD                                               7               0.25            0           0.013
     16657348      Single Family                                  6.75               0.25            0           0.013
     16657349      Condominium                                    6.75               0.25            0           0.013
     16657352      Single Family                                   8.5               0.25            0           0.013
     16657361      2-4 Family                                    7.875               0.25            0           0.013
     16657363      Single Family                                 8.125               0.25            0           0.013
     16657368      Single Family                                  6.75               0.25            0           0.013
     16657369      Single Family                                 6.875               0.25            0           0.013
     16657371      Single Family                                  8.25               0.25            0           0.013
     16657374      Single Family                                 8.125               0.25            0           0.013
     16657383      Single Family                                 7.875               0.25            0           0.013
     16657385      Single Family                                 8.125               0.25            0           0.013
     16657386      Single Family                                 8.375               0.25            0           0.013
     16657387      Single Family                                   8.5               0.25            0           0.013
     16657388      Single Family                                 8.625               0.25            0           0.013
     16657389      Single Family                                 8.625               0.25            0           0.013
     16657390      Single Family                                 8.125               0.25            0           0.013
     16657391      Single Family                                   8.5               0.25            0           0.013
     16657393      Single Family                                     8               0.25            0           0.013
     16657411      Single Family                                  6.75               0.25            0           0.013
     16657433      Single Family                                 6.625               0.25            0           0.013
     16657451      2-4 Family                                     7.25               0.25            0           0.013
     16657486      Single Family                                   6.5               0.25            0           0.013
     16657508      Single Family                                   6.5               0.25            0           0.013
     16657517      Single Family                                   6.5               0.25            0           0.013
     16657519      Single Family                                  6.75               0.25            0           0.013
     16657549      Single Family                                   6.5               0.25            0           0.013
     16657550      Single Family                                 5.875               0.25            0           0.013
     16657577      Single Family                                 6.875               0.25            0           0.013
     16657580      Single Family                                  6.75               0.25            0           0.013
     16657582      Single Family                                 6.625               0.25            0           0.013
     16657586      2-4 Family                                    6.875               0.25            0           0.013
     16657587      2-4 Family                                    6.875               0.25            0           0.013
     16657588      Single Family                                  6.75               0.25            0           0.013
     16657590      Single Family                                 6.625               0.25            0           0.013
     16657592      Single Family                                   6.5               0.25            0           0.013
     16657600      Condominium                                       8               0.25            0           0.013
     16657608      Single Family                                 8.125               0.25            0           0.013
     16657614      Condominium                                     6.5               0.25            0           0.013
     16657617      PUD                                           6.375               0.25            0           0.013
     16657623      Single Family                                   6.5               0.25            0           0.013
     16657628      Single Family                                  6.25               0.25            0           0.013
     16657632      Single Family                                   6.5               0.25            0           0.013
     16657633      Single Family                                   6.5               0.25            0           0.013
     16657635      Single Family                                   8.5               0.25            0           0.013
     16657638      Single Family                                 6.625               0.25            0           0.013
     16657640      Single Family                                 6.625               0.25            0           0.013
     16657647      Single Family                                 6.375               0.25            0           0.013
     16657653      Single Family                                 6.625               0.25            0           0.013
     16657654      Single Family                                 6.875               0.25            0           0.013
     16657658      2-4 Family                                    6.625               0.25            0           0.013
     16657661      Single Family                                 8.625               0.25            0           0.013
     16657666      Single Family                                  6.75               0.25            0           0.013
     16657667      Single Family                                  6.75               0.25            0           0.013
     16657669      Single Family                                 6.625               0.25            0           0.013
     16657671      Single Family                                  6.75               0.25            0           0.013
     16657677      Single Family                                 6.625               0.25            0           0.013
     16657678      Single Family                                 7.375               0.25            0           0.013
     16657679      Single Family                                   6.5               0.25            0           0.013
     16657681      Single Family                                 6.625               0.25            0           0.013
     16657685      Single Family                                 6.875               0.25            0           0.013
     16657687      2-4 Family                                     8.25               0.25            0           0.013
     16657692      Single Family                                 6.375               0.25            0           0.013
     16657695      Single Family                                   8.5               0.25            0           0.013
     16657698      Single Family                                   6.5               0.25            0           0.013
     16657700      Single Family                                  6.75               0.25            0           0.013
     16657703      Single Family                                 6.625               0.25            0           0.013
     16657704      Single Family                                  6.75               0.25            0           0.013
     16657721      2-4 Family                                      8.5               0.25            0           0.013
     16657366      Single Family                                 6.875               0.25            0           0.013
     16657552      Single Family                                  6.75               0.25            0           0.013
     16657643      Single Family                                  6.75               0.25            0           0.013
     16657645      Single Family                                  6.75               0.25            0           0.013
     16657684      Single Family                                  8.25               0.25            0           0.013
     16657723      Single Family                                 6.625               0.25            0           0.013
     16657724      Single Family                                  6.75               0.25            0           0.013
     16657725      Single Family                                 6.625               0.25            0           0.013
     16657727      2-4 Family                                    6.875               0.25            0           0.013
     16657733      Single Family                                 6.375               0.25            0           0.013
     16657736      Single Family                                  6.75               0.25            0           0.013
     16657737      Single Family                                 7.875               0.25            0           0.013
     16657738      Single Family                                  6.75               0.25            0           0.013
     16657739      Single Family                                 6.625               0.25            0           0.013
     16657743      Single Family                                  6.75               0.25            0           0.013
     16657745      Single Family                                     7               0.25            0           0.013
     16657746      Single Family                                 6.625               0.25            0           0.013
     16657748      Condominium                                       7               0.25            0           0.013
     16657750      Single Family                                 6.625               0.25            0           0.013
     16657751      Single Family                                 6.875               0.25            0           0.013
     16657753      Single Family                                 6.125               0.25            0           0.013
     16657754      Single Family                                   8.5               0.25            0           0.013
     16657755      2-4 Family                                      6.5               0.25            0           0.013
     16657756      Single Family                                 6.625               0.25            0           0.013
     16657759      Single Family                                 8.125               0.25            0           0.013
     16657761      Single Family                                  6.75               0.25            0           0.013
     16657764      Single Family                                  6.75               0.25            0           0.013
     16657765      Single Family                                  6.75               0.25            0           0.013
     16657771      2-4 Family                                      8.5               0.25            0           0.013
     16657773      Single Family                                 6.875               0.25            0           0.013
     16657776      Single Family                                 6.625               0.25            0           0.013
     16657777      Single Family                                  8.75               0.25            0           0.013
     16657778      Single Family                                   6.5               0.25            0           0.013
     16657779      2-4 Family                                    8.375               0.25            0           0.013
     16657780      Single Family                                 6.875               0.25            0           0.013
     16657784      Single Family                                 6.875               0.25            0           0.013
     16657786      Single Family                                  8.25               0.25            0           0.013
     16657790      Single Family                                 6.625               0.25            0           0.013
     16657792      Single Family                                     8               0.25            0           0.013
     16657793      Single Family                                 8.375               0.25            0           0.013
     16657794      Single Family                                  6.75               0.25            0           0.013
     16657797      Single Family                                  8.25               0.25            0           0.013
     16657798      Single Family                                 6.625               0.25            0           0.013
     16657805      Single Family                                  6.75               0.25            0           0.013
     16657807      Single Family                                 6.875               0.25            0           0.013
     16657808      Single Family                                  6.75               0.25            0           0.013
     16657810      Single Family                                 6.875               0.25            0           0.013
     16657818      Single Family                                 6.625               0.25            0           0.013
     16657821      Single Family                                  6.75               0.25            0           0.013
     16657822      Single Family                                     7               0.25            0           0.013
     16657828      Single Family                                 6.875               0.25            0           0.013
     16657829      Single Family                                  7.75               0.25            0           0.013
     16657830      Single Family                                  6.75               0.25            0           0.013
     16657832      Single Family                                 6.625               0.25            0           0.013
     16657834      Single Family                                 7.875               0.25            0           0.013
     16657835      2-4 Family                                        7               0.25            0           0.013
     16657837      Single Family                                 8.625               0.25            0           0.013
     16657841      2-4 Family                                    8.875               0.25            0           0.013
     16657846      Hi-Rise Condo                                 6.625               0.25            0           0.013
     16657850      Single Family                                 6.625               0.25            0           0.013
     16657851      Single Family                                  6.75               0.25            0           0.013
     16657854      Single Family                                     7               0.25            0           0.013
     16657855      Single Family                                 7.625               0.25            0           0.013
     16657858      Condominium                                   8.375               0.25            0           0.013
     16657860      Single Family                                  6.75               0.25            0           0.013
     16657861      Single Family                                 8.625               0.25            0           0.013
     16657870      Condominium                                    7.25               0.25            0           0.013
     16657871      Hi-Rise Condo                                     7               0.25            0           0.013
     16657876      PUD                                               7               0.25            0           0.013
     16657878      Hi-Rise Condo                                 6.625               0.25            0           0.013
     16657879      Single Family                                  6.75               0.25            0           0.013
     16657880      2-4 Family                                     6.75               0.25            0           0.013
     16657885      Single Family                                   8.5               0.25            0           0.013
     16657887      Single Family                                  6.75               0.25            0           0.013
     16657888      Single Family                                 6.875               0.25            0           0.013
     16657889      Single Family                                 6.625               0.25            0           0.013
     16657894      Single Family                                  8.25               0.25            0           0.013
     16657896      Single Family                                     7               0.25            0           0.013
     16657897      Single Family                                 6.625               0.25            0           0.013
     16657898      Single Family                                 6.625               0.25            0           0.013
     16657905      Single Family                                 6.875               0.25            0           0.013
     16657906      Single Family                                  6.75               0.25            0           0.013
     16657910      Single Family                                 6.875               0.25            0           0.013
     16657912      Condominium                                       7               0.25            0           0.013
     16657915      Single Family                                   6.5               0.25            0           0.013
     16657916      Single Family                                  6.25               0.25            0           0.013
     16657917      Single Family                                 6.875               0.25            0           0.013
     16657919      Single Family                                  7.25               0.25            0           0.013
     16657920      Single Family                                   7.5               0.25            0           0.013
     16657923      Single Family                                 6.875               0.25            0           0.013
     16657924      2-4 Family                                    6.875               0.25            0           0.013
     16657925      Single Family                                     7               0.25            0           0.013
     16657927      2-4 Family                                    7.875               0.25            0           0.013
     16657930      Single Family                                 6.875               0.25            0           0.013
     16657937      Single Family                                 6.875               0.25            0           0.013
     16657938      2-4 Family                                    7.375               0.25            0           0.013
     16657939      2-4 Family                                    8.625               0.25            0           0.013
     16657908      Single Family                                  6.75               0.25            0           0.013
     16657943      PUD                                             6.5               0.25            0           0.013
     16657944      Single Family                                 6.625               0.25            0           0.013
     16657951      Single Family                                     7               0.25            0           0.013
     16657952      Single Family                                 6.875               0.25            0           0.013
     16657953      Single Family                                  6.75               0.25            0           0.013
     16657954      Single Family                                  6.75               0.25            0           0.013
     16657957      2-4 Family                                    6.625               0.25            0           0.013
     16657960      Single Family                                  6.75               0.25            0           0.013
     16657961      Single Family                                     7               0.25            0           0.013
     16657962      Single Family                                  6.75               0.25            0           0.013
     16657964      Single Family                                 6.875               0.25            0           0.013
     16657965      Single Family                                   6.5               0.25            0           0.013
     16657969      Single Family                                 6.625               0.25            0           0.013
     16657972      Condominium                                    7.25               0.25            0           0.013
     16657976      Single Family                                   6.5               0.25            0           0.013
     16657978      Single Family                                  6.75               0.25            0           0.013
     16657982      Single Family                                   7.5               0.25            0           0.013
     16657983      2-4 Family                                     8.75               0.25            0           0.013
     16657984      2-4 Family                                     8.75               0.25            0           0.013
     16657985      2-4 Family                                     8.75               0.25            0           0.013
     16657986      2-4 Family                                     8.75               0.25            0           0.013
     16657988      2-4 Family                                     8.75               0.25            0           0.013
     16657989      2-4 Family                                     8.75               0.25            0           0.013
     16657991      Single Family                                 7.625               0.25            0           0.013
     16657994      Condominium                                   6.625               0.25            0           0.013
     16657996      Single Family                                 6.625               0.25            0           0.013
     16657998      Single Family                                 8.125               0.25            0           0.013
     16658001      Condominium                                   6.875               0.25            0           0.013
     16658003      Single Family                                  6.75               0.25            0           0.013
     16658004      Single Family                                 6.875               0.25            0           0.013
     16658008      Single Family                                 8.125               0.25            0           0.013
     16658010      2-4 Family                                     8.25               0.25            0           0.013
     16658011      Hi-Rise Condo                                  7.25               0.25            0           0.013
     16658012      Single Family                                 6.375               0.25            0           0.013
     16658013      Single Family                                 6.875               0.25            0           0.013
     16658014      Single Family                                  6.75               0.25            0           0.013
     16658017      Single Family                                 6.875               0.25            0           0.013
     16658018      Single Family                                 8.125               0.25            0           0.013
     16658020      Single Family                                  6.75               0.25            0           0.013
     16658025      Single Family                                  6.75               0.25            0           0.013
     16658033      Single Family                                  7.25               0.25            0           0.013
     16658039      Single Family                                 6.875               0.25            0           0.013
     16658046      Single Family                                 6.875               0.25            0           0.013
     16658053      Single Family                                 7.125               0.25            0           0.013
     16658060      Single Family                                   6.5               0.25            0           0.013
     16658063      Hi-Rise Condo                                 7.125               0.25            0           0.013
     16658073      Single Family                                 6.625               0.25            0           0.013
     16658078      Single Family                                   7.5               0.25            0           0.013
     16658080      2-4 Family                                        7               0.25            0           0.013
     16658086      2-4 Family                                    7.125               0.25            0           0.013
     16658088      2-4 Family                                    6.875               0.25            0           0.013
     16658089      Single Family                                 6.875               0.25            0           0.013
     16658091      Single Family                                 6.875               0.25            0           0.013
     14425830      Condominium                                   5.375               0.25            0           0.013
     15628322      Single Family                                   5.5               0.25            0           0.013
     16243109      Single Family                                 7.125               0.25            0           0.013
     15757419      Single Family                                 5.875               0.25            0           0.013
     16341408      Single Family                                 6.125               0.25            0           0.013
     16341423      2-4 Family                                        7               0.25            0           0.013
     16319910      Single Family                                   6.5               0.25            0           0.013
     16319915      PUD                                             6.5               0.25            0           0.013
     16375684      PUD                                           6.375               0.25            0           0.013
     16375685      Single Family                                 6.875               0.25            0           0.013
     16375701      Single Family                                 6.375               0.25            0           0.013
     16375711      Single Family                                  6.25               0.25            0           0.013
     16375714      Single Family                                 6.625               0.25            0           0.013
     16396190      Single Family                                 6.875               0.25            0           0.013
     16396195      PUD                                               6               0.25            0           0.013
     16396198      Single Family                                   6.5               0.25            0           0.013
     16396208      PUD                                             6.5               0.25            0           0.013
     16396209      PUD                                            6.25               0.25            0           0.013
     16396210      PUD                                            6.75               0.25            0           0.013
     16396232      PUD                                           6.625               0.25            0           0.013
     16396241      PUD                                             6.5               0.25            0           0.013
     15338945      Single Family                                 5.625               0.25            0           0.013
     15498288      PUD                                            5.75               0.25            0           0.013
     15628273      Single Family                                  5.25               0.25            0           0.013
     15628284      Single Family                                 5.375               0.25            0           0.013
     15628300      PUD                                             5.5               0.25            0           0.013
     15628380      Single Family                                   5.5               0.25            0           0.013
     15765233      Single Family                                  5.75               0.25            0           0.013
     16206035      Single Family                                 6.375               0.25            0           0.013
     16341407      PUD                                           6.625               0.25            0           0.013
     16341410      Single Family                                 6.375               0.25            0           0.013
     16341412      Single Family                                 6.625               0.25            0           0.013
     16341413      2-4 Family                                    6.875               0.25            0           0.013
     16341414      Single Family                                   6.5               0.25            0           0.013
     16341415      Single Family                                 6.875               0.25            0           0.013
     16341416      PUD                                             6.5               0.25            0           0.013
     16341417      Single Family                                   6.5               0.25            0           0.013
     16341418      Single Family                                   6.5               0.25            0           0.013
     16341419      Single Family                                   6.5               0.25            0           0.013
     16341420      Condominium                                     6.5               0.25            0           0.013
     16341421      Single Family                                  6.75               0.25            0           0.013
     16341422      Single Family                                 6.625               0.25            0           0.013
     16341424      Single Family                                 6.625               0.25            0           0.013
     16319907      Hi-Rise Condo                                 6.375               0.25            0           0.013
     16319908      Single Family                                 5.875               0.25            0           0.013
     16319909      Single Family                                 5.875               0.25            0           0.013
     16319912      PUD                                               6               0.25            0           0.013
     16319913      Single Family                                  6.75               0.25            0           0.013
     16319916      PUD                                             6.5               0.25            0           0.013
     16319917      Single Family                                 6.375               0.25            0           0.013
     16319922      Single Family                                 5.875               0.25            0           0.013
     16319925      Single Family                                  6.25               0.25            0           0.013
     16319926      PUD                                           5.875               0.25            0           0.013
     16319929      PUD                                           5.875               0.25            0           0.013
     16319930      Single Family                                     6               0.25            0           0.013
     16319931      PUD                                           6.125               0.25            0           0.013
     16319932      PUD                                            6.25               0.25            0           0.013
     16319935      Single Family                                  6.25               0.25            0           0.013
     16319936      PUD                                               6               0.25            0           0.013
     16319937      Single Family                                 6.375               0.25            0           0.013
     16319938      PUD                                           5.875               0.25            0           0.013
     16375678      Single Family                                   6.5               0.25            0           0.013
     16375679      PUD                                            5.75               0.25            0           0.013
     16375680      Single Family                                 6.125               0.25            0           0.013
     16375681      Single Family                                  6.25               0.25            0           0.013
     16375682      Single Family                                   6.5               0.25            0           0.013
     16375683      Single Family                                 6.625               0.25            0           0.013
     16375686      Single Family                                 6.375               0.25            0           0.013
     16375687      Hi-Rise Condo                                 6.375               0.25            0           0.013
     16375688      PUD                                           6.375               0.25            0           0.013
     16375690      Single Family                                 6.375               0.25            0           0.013
     16375692      PUD                                             6.5               0.25            0           0.013
     16375693      PUD                                             6.5               0.25            0           0.013
     16375694      Single Family                                   6.5               0.25            0           0.013
     16375695      Single Family                                 6.375               0.25            0           0.013
     16375696      Single Family                                  6.25               0.25            0           0.013
     16375697      Single Family                                   6.5               0.25            0           0.013
     16375699      Single Family                                 6.625               0.25            0           0.013
     16375700      PUD                                             6.5               0.25            0           0.013
     16375702      Single Family                                   6.5               0.25            0           0.013
     16375703      Single Family                                 6.625               0.25            0           0.013
     16375704      PUD                                             6.5               0.25            0           0.013
     16375705      PUD                                             6.5               0.25            0           0.013
     16375706      Single Family                                   6.5               0.25            0           0.013
     16375707      PUD                                             6.5               0.25            0           0.013
     16375708      Single Family                                   6.5               0.25            0           0.013
     16375709      Single Family                                   6.5               0.25            0           0.013
     16375710      Single Family                                   6.5               0.25            0           0.013
     16396193      Single Family                                 5.875               0.25            0           0.013
     16396194      Single Family                                  6.25               0.25            0           0.013
     16396196      PUD                                           6.375               0.25            0           0.013
     16396197      Single Family                                  6.25               0.25            0           0.013
     16396200      PUD                                           6.125               0.25            0           0.013
     16396201      PUD                                           6.125               0.25            0           0.013
     16396202      Townhouse                                      6.25               0.25            0           0.013
     16396205      Hi-Rise Condo                                 6.625               0.25            0           0.013
     16396206      PUD                                            6.25               0.25            0           0.013
     16396207      PUD                                             6.5               0.25            0           0.013
     16396211      Single Family                                   6.5               0.25            0           0.013
     16396214      Single Family                                  6.25               0.25            0           0.013
     16396215      Townhouse                                     6.375               0.25            0           0.013
     16396217      PUD                                            6.25               0.25            0           0.013
     16396218      Single Family                                     6               0.25            0           0.013
     16396219      PUD                                             6.5               0.25            0           0.013
     16396221      PUD                                           6.625               0.25            0           0.013
     16396222      PUD                                           6.375               0.25            0           0.013
     16396223      Condominium                                     6.5               0.25            0           0.013
     16396226      Single Family                                     6               0.25            0           0.013
     16396227      Single Family                                 6.375               0.25            0           0.013
     16396230      Single Family                                   6.5               0.25            0           0.013
     16396231      Single Family                                  6.25               0.25            0           0.013
     16396234      PUD                                            6.25               0.25            0           0.013
     16396235      Condominium                                     6.5               0.25            0           0.013
     16396237      PUD                                            6.75               0.25            0           0.013
     16396239      Single Family                                 6.375               0.25            0           0.013
     16396240      Hi-Rise Condo                                 6.375               0.25            0           0.013
     16396242      PUD                                           6.375               0.25            0           0.013
     16396243      PUD                                             6.5               0.25            0           0.013
     16396246      Hi-Rise Condo                                 6.125               0.25            0           0.013
     16396247      PUD                                           6.375               0.25            0           0.013
     16396248      PUD                                           6.625               0.25            0           0.013
     15498289      PUD                                               6               0.25            0           0.013
     15590615      Single Family                                 5.875               0.25            0           0.013
     15628389      Single Family                                   5.5               0.25            0           0.013
     15628411      Single Family                                   5.5               0.25            0           0.013
     15765225      Single Family                                 5.875               0.25            0           0.013
     16341409      PUD                                           6.375               0.25            0           0.013
     16341411      Single Family                                   6.5               0.25            0           0.013
     16319906      PUD                                               6               0.25            0           0.013
     16319934      PUD                                           6.625               0.25            0           0.013
     16375689      Single Family                                  5.75               0.25            0           0.013
     16375698      PUD                                             6.5               0.25            0           0.013
     16375712      PUD                                            6.75               0.25            0           0.013
     16396199      Single Family                                  6.25               0.25            0           0.013
     16396204      Hi-Rise Condo                                   6.5               0.25            0           0.013
     16396213      PUD                                           6.625               0.25            0           0.013
     16396216      PUD                                           6.375               0.25            0           0.013
     16396220      PUD                                             6.5               0.25            0           0.013
     16396225      PUD                                           6.625               0.25            0           0.013
     16396233      PUD                                             6.5               0.25            0           0.013
     16396236      Condominium                                   6.375               0.25            0           0.013
     15765213      Single Family                                  6.25               0.25            0           0.013
     16396238      Condominium                                   6.625               0.25            0           0.013
     15498275      PUD                                           6.125               0.25            0           0.013
     16396191      Condominium                                   6.625               0.25            0           0.013
     16396224      Single Family                                 6.625               0.25            0           0.013
     16319911      Hi-Rise Condo                                 6.875               0.25            0           0.013
     16396229      Single Family                                 6.375               0.25            0           0.013
     16657043      Single Family                                   7.5               0.25        0.625           0.013
     16657053      Single Family                                  6.75               0.25        0.625           0.013
     16657063      Single Family                                 6.625               0.25        0.625           0.013
     16657102      Single Family                                 7.125               0.25        0.625           0.013
     16657138      Single Family                                   7.5               0.25        0.625           0.013
     16657222      Single Family                                 7.375               0.25        0.625           0.013
     16657236      Single Family                                  7.25               0.25        0.625           0.013
     16657255      Single Family                                 7.625               0.25        0.625           0.013
     16657284      Single Family                                 6.875               0.25            0           0.013
     16657317      Single Family                                  8.75               0.25            0           0.013
     16657334      Hi-Rise Condo                                 7.375               0.25            0           0.013
     16657373      Single Family                                  7.25               0.25            0           0.013
     16657375      Condominium                                       8               0.25            0           0.013
     16657446      Single Family                                 7.375               0.25        0.625           0.013
     16657469      Single Family                                 7.875               0.25        0.625           0.013
     16657579      Single Family                                   7.5               0.25        0.625           0.013
     16657639      Single Family                                   7.5               0.25        0.625           0.013
     16657642      Single Family                                 7.125               0.25        0.625           0.013
     16657649      Single Family                                 7.625               0.25        0.625           0.013
     16657652      Single Family                                 7.375               0.25        0.625           0.013
     16657676      Single Family                                   7.5               0.25        0.625           0.013
     16657702      Single Family                                 7.625               0.25        0.625           0.013
     16657787      Single Family                                 6.875               0.25            0           0.013
     16657843      Single Family                                   6.5               0.25            0           0.013
     16657872      Single Family                                 7.875               0.25        0.625           0.013
     16657940      2-4 Family                                    6.875               0.25            0           0.013
     16657950      2-4 Family                                      6.5               0.25            0           0.013
     16657971      Single Family                                  6.75               0.25            0           0.013
     16658071      Single Family                                  7.75               0.25            0           0.013
     16657399      Single Family                                     6               0.25            0           0.013
     16657655      Single Family                                 5.375               0.25            0           0.013
     16657768      Single Family                                 6.125               0.25            0           0.013

LOAN_ID            CURRENT_               MATURITY_           STATED_                    STATED_REM             AMORT
                   NET_COUPON             DATE                ORIGINAL_TERM              _TERM                  _TERM1
---------------------------------------------------------------------------------------------------------------------------
     15832932                  5.112            20351001                        360                    347             360
     16015803                  5.112            20201101                        180                    168             180
     16015807                  5.112            20351001                        360                    347             360
     16015810                  5.112            20351101                        360                    348             360
     16015821                  5.737            20201201                        180                    169             180
     16015822                  5.237            20351201                        360                    349             360
     16015833                  5.487            20210101                        180                    170             180
     16015843                  5.612            20201201                        180                    169             180
     16015863                  5.112            20351001                        360                    347             360
     16015865                  5.112            20201001                        180                    167             180
     16015870                  5.487            20201001                        180                    167             180
     15438581                  5.487            20200501                        180                    162             180
     16657104                  6.987            20360701                        360                    356             360
     16657108                  7.987            20360701                        360                    356             360
     16657116                  5.862            20360701                        360                    356             360
     16657122                  6.737            20360801                        360                    357             360
     16657049                  7.112            20360401                        360                    353             360
     16657131                  7.737            20360701                        360                    356             360
     16657051                  7.112            20360701                        360                    356             360
     16657137                  5.612            20210701                        180                    176             180
     16657056                  6.237            20360401                        360                    353             360
     16657060                  5.862            20210601                        180                    175             180
     16658049                  6.237            20360701                        360                    356             360
     16657161                  6.362            20210701                        180                    176             180
     16657089                  7.612            20360701                        360                    356             360
     16657415                  6.362            20360701                        360                    356             360
     16657177                  6.237            20210701                        180                    176             180
     16657096                  6.362            20360601                        360                    355             360
     16657500                  6.362            20360701                        360                    356             360
     16657423                  6.237            20360701                        360                    356             360
     16657425                  6.237            20360701                        360                    356             360
     16657506                  6.612            20360701                        360                    356             360
     16657427                  6.237            20360601                        360                    355             360
     16657428                  6.737            20360701                        360                    356             360
     16657187                  6.737            20360701                        360                    356             360
     16657430                  6.612            20360701                        360                    356             360
     16657516                  6.237            20360701                        360                    356             360
     16657518                  8.237            20360701                        360                    356             360
     16657439                  6.362            20360701                        360                    356             360
     16657520                  7.612            20360701                        360                    356             360
     16657602                  6.362            20360701                        360                    356             360
     16657523                  6.362            20360701                        360                    356             360
     16657443                  6.237            20360701                        360                    356             360
     16657605                  6.612            20360701                        360                    356             360
     16657606                  6.362            20360601                        360                    355             360
     16657611                  6.487            20360701                        360                    356             360
     16657612                  6.487            20360701                        360                    356             360
     16657532                  6.487            20360701                        360                    356             360
     16657533                  6.112            20360701                        360                    356             360
     16657452                  6.612            20360701                        360                    356             360
     16657453                  6.612            20360701                        360                    356             360
     16657454                  6.112            20360701                        360                    356             360
     16657537                  6.237            20360701                        360                    356             360
     16657456                  6.487            20210601                        180                    175             180
     16657457                  7.237            20360701                        360                    356             360
     16657459                  7.737            20210701                        180                    176             180
     16657460                  6.237            20360601                        360                    355             360
     16657624                  6.487            20360701                        360                    356             360
     16657543                  6.362            20360701                        360                    356             360
     16657463                  6.737            20360701                        360                    356             360
     16657545                  6.362            20360701                        360                    356             360
     16657546                  6.362            20360701                        360                    356             360
     16657465                  7.487            20360601                        360                    355             360
     16657466                  8.112            20360701                        360                    356             360
     16657711                  7.237            20360901                        360                    358             360
     16657470                  6.487            20360601                        360                    355             360
     16657553                  6.362            20360701                        360                    356             360
     16657472                  5.987            20360701                        360                    356             360
     16657554                  7.612            20360701                        360                    356             360
     16657555                  7.612            20360701                        360                    356             360
     16657476                  7.612            20360601                        360                    355             360
     16657477                  6.487            20360701                        360                    356             360
     16657559                  6.862            20360701                        360                    356             360
     16657479                  7.612            20360601                        360                    355             360
     16657804                  6.362            20360701                        360                    356             360
     16657562                  6.487            20360701                        360                    356             360
     16657567                  6.237            20360601                        360                    355             360
     16657568                  5.737            20210701                        180                    176             180
     16657570                  6.612            20360701                        360                    356             360
     16657490                  6.487            20360601                        360                    355             360
     16657491                  6.487            20360701                        360                    356             360
     16657492                  5.737            20210601                        180                    175             180
     16657494                  5.987            20210801                        180                    177             180
     16657657                  6.362            20360701                        360                    356             360
     16657497                  6.237            20360701                        360                    356             360
     16657659                  6.487            20360501                        360                    354             360
     16657499                  6.362            20360701                        360                    356             360
     16657581                  6.487            20360701                        360                    356             360
     16657664                  5.862            20210701                        180                    176             180
     16657584                  5.987            20360701                        360                    356             360
     16657585                  6.487            20210701                        180                    176             180
     16657595                  6.612            20360701                        360                    356             360
     16657598                  6.237            20360701                        360                    356             360
     16657688                  6.112            20360701                        360                    356             360
     16657693                  6.112            20360701                        360                    356             360
     16657788                  6.362            20360701                        360                    356             360
     16657995                  6.487            20360701                        360                    356             360
     16657999                  7.112            20360701                        360                    356             360
     16657041                  6.362            20360801                        360                    357             360
     16657044                  6.737            20360801                        360                    357             360
     16657045                  6.612            20360801                        360                    357             360
     16657065                  7.487            20360901                        360                    358             360
     16657078                  6.487            20360801                        360                    357             360
     16657085                  5.987            20360801                        360                    357             360
     16657086                  7.362            20360901                        360                    358             360
     16657087                  7.362            20360901                        360                    358             360
     16657090                  7.362            20360901                        360                    358             360
     16657106                  8.112            20360801                        360                    357             360
     16657112                  6.612            20360901                        360                    358             360
     16657117                  6.612            20360801                        360                    357             360
     16657119                  7.362            20360801                        360                    357             360
     16657120                  8.112            20360801                        360                    357             360
     16657121                  6.237            20210901                        180                    178             180
     16657125                  7.612            20360801                        360                    357             360
     16657132                  7.237            20360801                        360                    357             360
     16657134                  6.362            20360701                        360                    356             360
     16657149                  8.112            20360701                        360                    356             360
     16657154                  7.487            20360901                        360                    358             360
     16657158                  6.362            20360901                        360                    358             360
     16657163                  6.612            20360901                        360                    358             360
     16657166                  7.612            20360901                        360                    358             360
     16657171                  6.112            20210801                        180                    177             180
     16657173                  6.612            20360801                        360                    357             360
     16657180                  7.612            20360901                        360                    358             360
     16657181                  7.862            20360901                        360                    358             360
     16657182                  7.612            20360901                        360                    358             360
     16657183                  6.237            20360701                        360                    356             360
     16657189                  6.612            20360801                        360                    357             360
     16657191                  6.987            20360901                        360                    358             360
     16657192                  6.737            20360801                        360                    357             360
     16657197                  6.862            20360701                        360                    356             360
     16657203                  6.487            20360901                        360                    358             360
     16657206                  6.487            20360801                        360                    357             360
     16657209                  6.362            20360901                        360                    358             360
     16657211                  6.112            20360801                        360                    357             360
     16657220                  6.612            20360801                        360                    357             360
     16657224                  6.487            20360701                        360                    356             360
     16657226                  6.612            20360801                        360                    357             360
     16657231                  6.237            20360901                        360                    358             360
     16657233                  7.112            20360801                        360                    357             360
     16657234                  6.237            20360801                        360                    357             360
     16657237                  6.612            20360901                        360                    358             360
     16657240                  8.112            20360801                        360                    357             360
     16657241                  6.362            20360801                        360                    357             360
     16657246                  6.737            20360901                        360                    358             360
     16657248                  6.987            20360801                        360                    357             360
     16657250                  6.612            20360901                        360                    358             360
     16657260                  6.112            20210801                        180                    177             180
     16657268                  6.362            20360801                        360                    357             360
     16657270                  7.612            20360901                        360                    358             360
     16657275                  8.237            20360901                        360                    358             360
     16657276                  8.362            20360801                        360                    357             360
     16657277                  8.487            20360901                        360                    358             360
     16657279                  7.737            20360901                        360                    358             360
     16657280                  8.237            20360801                        360                    357             360
     16657281                  8.487            20360901                        360                    358             360
     16657283                  8.487            20360801                        360                    357             360
     16657294                  8.362            20360901                        360                    358             360
     16657295                  8.112            20360801                        360                    357             360
     16657296                  7.362            20360901                        360                    358             360
     16657297                  8.112            20360901                        360                    358             360
     16657298                  8.237            20360901                        360                    358             360
     16657300                  6.362            20360801                        360                    357             360
     16657303                  8.362            20360801                        360                    357             360
     16657306                  7.987            20360901                        360                    358             360
     16657313                  7.362            20360901                        360                    358             360
     16657316                  7.987            20360901                        360                    358             360
     16657319                  8.112            20360801                        360                    357             360
     16657325                  6.612            20360901                        360                    358             360
     16657327                  8.237            20360801                        360                    357             360
     16657332                  8.362            20360801                        360                    357             360
     16657336                  7.987            20360901                        360                    358             360
     16657337                  7.362            20360901                        360                    358             360
     16657338                  7.112            20360901                        360                    358             360
     16657345                  7.987            20360901                        360                    358             360
     16657346                  6.737            20360801                        360                    357             360
     16657348                  6.487            20360901                        360                    358             360
     16657349                  6.487            20360801                        360                    357             360
     16657352                  8.237            20360901                        360                    358             360
     16657361                  7.612            20360901                        360                    358             360
     16657363                  7.862            20360901                        360                    358             360
     16657368                  6.487            20360901                        360                    358             360
     16657369                  6.612            20360901                        360                    358             360
     16657371                  7.987            20360901                        360                    358             480
     16657374                  7.862            20360901                        360                    358             360
     16657383                  7.612            20360901                        360                    358             360
     16657385                  7.862            20360901                        360                    358             360
     16657386                  8.112            20360801                        360                    357             360
     16657387                  8.237            20360901                        360                    358             360
     16657388                  8.362            20360801                        360                    357             360
     16657389                  8.362            20360801                        360                    357             360
     16657390                  7.862            20360901                        360                    358             360
     16657391                  8.237            20360801                        360                    357             360
     16657393                  7.737            20360801                        360                    357             360
     16657411                  6.487            20360901                        360                    358             360
     16657433                  6.362            20360701                        360                    356             360
     16657451                  6.987            20360801                        360                    357             360
     16657486                  6.237            20360701                        360                    356             360
     16657508                  6.237            20210801                        180                    177             180
     16657517                  6.237            20360901                        360                    358             360
     16657519                  6.487            20360801                        360                    357             360
     16657549                  6.237            20360801                        360                    357             360
     16657550                  5.612            20210801                        180                    177             180
     16657577                  6.612            20360801                        360                    357             360
     16657580                  6.487            20360801                        360                    357             360
     16657582                  6.362            20360801                        360                    357             360
     16657586                  6.612            20360801                        360                    357             360
     16657587                  6.612            20360801                        360                    357             360
     16657588                  6.487            20360801                        360                    357             360
     16657590                  6.362            20360901                        360                    358             360
     16657592                  6.237            20360801                        360                    357             360
     16657600                  7.737            20360801                        360                    357             360
     16657608                  7.862            20360801                        360                    357             360
     16657614                  6.237            20360801                        360                    357             360
     16657617                  6.112            20360701                        360                    356             360
     16657623                  6.237            20160701                        120                    116             120
     16657628                  5.987            20210801                        180                    177             180
     16657632                  6.237            20360901                        360                    358             360
     16657633                  6.237            20360801                        360                    357             360
     16657635                  8.237            20360801                        360                    357             360
     16657638                  6.362            20360801                        360                    357             360
     16657640                  6.362            20360701                        360                    356             360
     16657647                  6.112            20360801                        360                    357             360
     16657653                  6.362            20360801                        360                    357             360
     16657654                  6.612            20360801                        360                    357             360
     16657658                  6.362            20360701                        360                    356             360
     16657661                  8.362            20360801                        360                    357             360
     16657666                  6.487            20360801                        360                    357             360
     16657667                  6.487            20360901                        360                    358             360
     16657669                  6.362            20360801                        360                    357             360
     16657671                  6.487            20360801                        360                    357             360
     16657677                  6.362            20360801                        360                    357             360
     16657678                  7.112            20360801                        360                    357             360
     16657679                  6.237            20360801                        360                    357             360
     16657681                  6.362            20360901                        360                    358             360
     16657685                  6.612            20360801                        360                    357             360
     16657687                  7.987            20360901                        360                    358             360
     16657692                  6.112            20360701                        360                    356             360
     16657695                  8.237            20360801                        360                    357             360
     16657698                  6.237            20360801                        360                    357             360
     16657700                  6.487            20360801                        360                    357             360
     16657703                  6.362            20360801                        360                    357             360
     16657704                  6.487            20360801                        360                    357             360
     16657721                  8.237            20360801                        360                    357             360
     16657366                  6.612            20360901                        360                    358             360
     16657552                  6.487            20360801                        360                    357             360
     16657643                  6.487            20360701                        360                    356             360
     16657645                  6.487            20360901                        360                    358             360
     16657684                  7.987            20360801                        360                    357             360
     16657723                  6.362            20360801                        360                    357             360
     16657724                  6.487            20360801                        360                    357             360
     16657725                  6.362            20210901                        180                    178             180
     16657727                  6.612            20360801                        360                    357             360
     16657733                  6.112            20360901                        360                    358             360
     16657736                  6.487            20360801                        360                    357             360
     16657737                  7.612            20360901                        360                    358             360
     16657738                  6.487            20360801                        360                    357             360
     16657739                  6.362            20360901                        360                    358             360
     16657743                  6.487            20360801                        360                    357             360
     16657745                  6.737            20360701                        360                    356             360
     16657746                  6.362            20360801                        360                    357             360
     16657748                  6.737            20360801                        360                    357             360
     16657750                  6.362            20360701                        360                    356             360
     16657751                  6.612            20360801                        360                    357             360
     16657753                  5.862            20360801                        360                    357             360
     16657754                  8.237            20360801                        360                    357             360
     16657755                  6.237            20360801                        360                    357             360
     16657756                  6.362            20360901                        360                    358             360
     16657759                  7.862            20360801                        360                    357             360
     16657761                  6.487            20360801                        360                    357             360
     16657764                  6.487            20360801                        360                    357             360
     16657765                  6.487            20360801                        360                    357             360
     16657771                  8.237            20360901                        360                    358             360
     16657773                  6.612            20360701                        360                    356             360
     16657776                  6.362            20360801                        360                    357             360
     16657777                  8.487            20360901                        360                    358             360
     16657778                  6.237            20360801                        360                    357             360
     16657779                  8.112            20360801                        360                    357             360
     16657780                  6.612            20360801                        360                    357             360
     16657784                  6.612            20360801                        360                    357             360
     16657786                  7.987            20360801                        360                    357             360
     16657790                  6.362            20360801                        360                    357             360
     16657792                  7.737            20360801                        360                    357             360
     16657793                  8.112            20360901                        360                    358             360
     16657794                  6.487            20360801                        360                    357             360
     16657797                  7.987            20360801                        360                    357             360
     16657798                  6.362            20360801                        360                    357             360
     16657805                  6.487            20360801                        360                    357             360
     16657807                  6.612            20360801                        360                    357             360
     16657808                  6.487            20360801                        360                    357             360
     16657810                  6.612            20360901                        360                    358             360
     16657818                  6.362            20210901                        180                    178             180
     16657821                  6.487            20360901                        360                    358             360
     16657822                  6.737            20360801                        360                    357             360
     16657828                  6.612            20360801                        360                    357             360
     16657829                  7.487            20360801                        360                    357             360
     16657830                  6.487            20360801                        360                    357             360
     16657832                  6.362            20360801                        360                    357             360
     16657834                  7.612            20360801                        360                    357             360
     16657835                  6.737            20360801                        360                    357             360
     16657837                  8.362            20360901                        360                    358             360
     16657841                  8.612            20360801                        360                    357             360
     16657846                  6.362            20360801                        360                    357             360
     16657850                  6.362            20360801                        360                    357             360
     16657851                  6.487            20360901                        360                    358             360
     16657854                  6.737            20360901                        360                    358             360
     16657855                  7.362            20360801                        360                    357             360
     16657858                  8.112            20360801                        360                    357             360
     16657860                  6.487            20360901                        360                    358             360
     16657861                  8.362            20360801                        360                    357             360
     16657870                  6.987            20360901                        360                    358             360
     16657871                  6.737            20360801                        360                    357             360
     16657876                  6.737            20360801                        360                    357             360
     16657878                  6.362            20360901                        360                    358             360
     16657879                  6.487            20360901                        360                    358             360
     16657880                  6.487            20360901                        360                    358             360
     16657885                  8.237            20360801                        360                    357             360
     16657887                  6.487            20360901                        360                    358             360
     16657888                  6.612            20360901                        360                    358             360
     16657889                  6.362            20360901                        360                    358             360
     16657894                  7.987            20360901                        360                    358             360
     16657896                  6.737            20360901                        360                    358             360
     16657897                  6.362            20360901                        360                    358             360
     16657898                  6.362            20360901                        360                    358             360
     16657905                  6.612            20360901                        360                    358             360
     16657906                  6.487            20360901                        360                    358             360
     16657910                  6.612            20360901                        360                    358             360
     16657912                  6.737            20360901                        360                    358             360
     16657915                  6.237            20360901                        360                    358             360
     16657916                  5.987            20360901                        360                    358             360
     16657917                  6.612            20360901                        360                    358             360
     16657919                  6.987            20210901                        180                    178             180
     16657920                  7.237            20360801                        360                    357             360
     16657923                  6.612            20360901                        360                    358             360
     16657924                  6.612            20360901                        360                    358             360
     16657925                  6.737            20360901                        360                    358             360
     16657927                  7.612            20360901                        360                    358             360
     16657930                  6.612            20360801                        360                    357             360
     16657937                  6.612            20360801                        360                    357             360
     16657938                  7.112            20360901                        360                    358             360
     16657939                  8.362            20360901                        360                    358             360
     16657908                  6.487            20360901                        360                    358             360
     16657943                  6.237            20360901                        360                    358             360
     16657944                  6.362            20360901                        360                    358             360
     16657951                  6.737            20360801                        360                    357             360
     16657952                  6.612            20360901                        360                    358             360
     16657953                  6.487            20360901                        360                    358             360
     16657954                  6.487            20360901                        360                    358             360
     16657957                  6.362            20360901                        360                    358             360
     16657960                  6.487            20360901                        360                    358             360
     16657961                  6.737            20360901                        360                    358             360
     16657962                  6.487            20360701                        360                    356             360
     16657964                  6.612            20360901                        360                    358             360
     16657965                  6.237            20360901                        360                    358             480
     16657969                  6.362            20360901                        360                    358             360
     16657972                  6.987            20360901                        360                    358             360
     16657976                  6.237            20360901                        360                    358             360
     16657978                  6.487            20360901                        360                    358             360
     16657982                  7.237            20360901                        360                    358             360
     16657983                  8.487            20360901                        360                    358             360
     16657984                  8.487            20360901                        360                    358             360
     16657985                  8.487            20360901                        360                    358             360
     16657986                  8.487            20360901                        360                    358             360
     16657988                  8.487            20360901                        360                    358             360
     16657989                  8.487            20360901                        360                    358             360
     16657991                  7.362            20360901                        360                    358             360
     16657994                  6.362            20360901                        360                    358             360
     16657996                  6.362            20360901                        360                    358             360
     16657998                  7.862            20360901                        360                    358             360
     16658001                  6.612            20360801                        360                    357             360
     16658003                  6.487            20360801                        360                    357             360
     16658004                  6.612            20360901                        360                    358             360
     16658008                  7.862            20360901                        360                    358             360
     16658010                  7.987            20360901                        360                    358             360
     16658011                  6.987            20360801                        360                    357             360
     16658012                  6.112            20360801                        360                    357             360
     16658013                  6.612            20360901                        360                    358             360
     16658014                  6.487            20360901                        360                    358             360
     16658017                  6.612            20360901                        360                    358             360
     16658018                  7.862            20360901                        360                    358             360
     16658020                  6.487            20360901                        360                    358             360
     16658025                  6.487            20360801                        360                    357             360
     16658033                  6.987            20360801                        360                    357             360
     16658039                  6.612            20360901                        360                    358             360
     16658046                  6.612            20360901                        360                    358             360
     16658053                  6.862            20360901                        360                    358             360
     16658060                  6.237            20360901                        360                    358             360
     16658063                  6.862            20360901                        360                    358             360
     16658073                  6.362            20360901                        360                    358             360
     16658078                  7.237            20360901                        360                    358             360
     16658080                  6.737            20360901                        360                    358             360
     16658086                  6.862            20360901                        360                    358             360
     16658088                  6.612            20360801                        360                    357             360
     16658089                  6.612            20360801                        360                    357             360
     16658091                  6.612            20360801                        360                    357             360
     14425830                  5.112            20231101                        240                    204             240
     15628322                  5.237            20350701                        360                    344             360
     16243109                  6.862            20360601                        360                    355             360
     15757419                  5.612            20181101                        180                    144             180
     16341408                  5.862            20360601                        360                    355             360
     16341423                  6.737            20360701                        360                    356             360
     16319910                  6.237            20210501                        180                    174             180
     16319915                  6.237            20210501                        180                    174             180
     16375684                  6.112            20360701                        360                    356             360
     16375685                  6.612            20360701                        360                    356             360
     16375701                  6.112            20360701                        360                    356             360
     16375711                  5.987            20360701                        360                    356             360
     16375714                  6.362            20360701                        360                    356             360
     16396190                  6.612            20210701                        180                    176             180
     16396195                  5.737            20210701                        180                    176             180
     16396198                  6.237            20210701                        180                    176             180
     16396208                  6.237            20210701                        180                    176             180
     16396209                  5.987            20210701                        180                    176             180
     16396210                  6.487            20210701                        180                    176             180
     16396232                  6.362            20210701                        180                    176             180
     16396241                  6.237            20210801                        180                    177             180
     15338945                  5.362            20350401                        360                    341             360
     15498288                  5.487            20350601                        360                    343             360
     15628273                  4.987            20350701                        360                    344             360
     15628284                  5.112            20350601                        360                    343             360
     15628300                  5.237            20350701                        360                    344             360
     15628380                  5.237            20350701                        360                    344             360
     15765233                  5.487            20350901                        360                    346             360
     16206035                  6.112            20360301                        360                    352             360
     16341407                  6.362            20360601                        360                    355             360
     16341410                  6.112            20360501                        360                    354             360
     16341412                  6.362            20360601                        360                    355             360
     16341413                  6.612            20360601                        360                    355             360
     16341414                  6.237            20360601                        360                    355             360
     16341415                  6.612            20360601                        360                    355             360
     16341416                  6.237            20360601                        360                    355             360
     16341417                  6.237            20360601                        360                    355             360
     16341418                  6.237            20360601                        360                    355             360
     16341419                  6.237            20360601                        360                    355             360
     16341420                  6.237            20360601                        360                    355             360
     16341421                  6.487            20360601                        360                    355             360
     16341422                  6.362            20360701                        360                    356             360
     16341424                  6.362            20360701                        360                    356             360
     16319907                  6.112            20210601                        180                    175             180
     16319908                  5.612            20210401                        180                    173             180
     16319909                  5.612            20210501                        180                    174             180
     16319912                  5.737            20210501                        180                    174             180
     16319913                  6.487            20210501                        180                    174             180
     16319916                  6.237            20210501                        180                    174             180
     16319917                  6.112            20210501                        180                    174             180
     16319922                  5.612            20210401                        180                    173             180
     16319925                  5.987            20210401                        180                    173             180
     16319926                  5.612            20210401                        180                    173             180
     16319929                  5.612            20210501                        180                    174             180
     16319930                  5.737            20210501                        180                    174             180
     16319931                  5.862            20210501                        180                    174             180
     16319932                  5.987            20210501                        180                    174             180
     16319935                  5.987            20210601                        180                    175             180
     16319936                  5.737            20210501                        180                    174             180
     16319937                  6.112            20210501                        180                    174             180
     16319938                  5.612            20210501                        180                    174             180
     16375678                  6.237            20360701                        360                    356             360
     16375679                  5.487            20210701                        180                    176             180
     16375680                  5.862            20360701                        360                    356             360
     16375681                  5.987            20360701                        360                    356             360
     16375682                  6.237            20360701                        360                    356             360
     16375683                  6.362            20360601                        360                    355             360
     16375686                  6.112            20360601                        360                    355             360
     16375687                  6.112            20360601                        360                    355             360
     16375688                  6.112            20360701                        360                    356             360
     16375690                  6.112            20360701                        360                    356             360
     16375692                  6.237            20360701                        360                    356             360
     16375693                  6.237            20360701                        360                    356             360
     16375694                  6.237            20360701                        360                    356             360
     16375695                  6.112            20360801                        360                    357             360
     16375696                  5.987            20210701                        180                    176             180
     16375697                  6.237            20360701                        360                    356             360
     16375699                  6.362            20360701                        360                    356             360
     16375700                  6.237            20360701                        360                    356             360
     16375702                  6.237            20360701                        360                    356             360
     16375703                  6.362            20360701                        360                    356             360
     16375704                  6.237            20360701                        360                    356             360
     16375705                  6.237            20360701                        360                    356             360
     16375706                  6.237            20360701                        360                    356             360
     16375707                  6.237            20360701                        360                    356             360
     16375708                  6.237            20360701                        360                    356             360
     16375709                  6.237            20360701                        360                    356             360
     16375710                  6.237            20360701                        360                    356             360
     16396193                  5.612            20210401                        180                    173             180
     16396194                  5.987            20210701                        180                    176             180
     16396196                  6.112            20210701                        180                    176             180
     16396197                  5.987            20210701                        180                    176             180
     16396200                  5.862            20210701                        180                    176             180
     16396201                  5.862            20210701                        180                    176             180
     16396202                  5.987            20210701                        180                    176             180
     16396205                  6.362            20210701                        180                    176             180
     16396206                  5.987            20210701                        180                    176             180
     16396207                  6.237            20210801                        180                    177             180
     16396211                  6.237            20210701                        180                    176             180
     16396214                  5.987            20210701                        180                    176             180
     16396215                  6.112            20210701                        180                    176             180
     16396217                  5.987            20210801                        180                    177             180
     16396218                  5.737            20210701                        180                    176             180
     16396219                  6.237            20210701                        180                    176             180
     16396221                  6.362            20210701                        180                    176             180
     16396222                  6.112            20210701                        180                    176             180
     16396223                  6.237            20210701                        180                    176             180
     16396226                  5.737            20210701                        180                    176             180
     16396227                  6.112            20210701                        180                    176             180
     16396230                  6.237            20210701                        180                    176             180
     16396231                  5.987            20210701                        180                    176             180
     16396234                  5.987            20210701                        180                    176             180
     16396235                  6.237            20210801                        180                    177             180
     16396237                  6.487            20210801                        180                    177             180
     16396239                  6.112            20210801                        180                    177             180
     16396240                  6.112            20210701                        180                    176             180
     16396242                  6.112            20210801                        180                    177             180
     16396243                  6.237            20210801                        180                    177             180
     16396246                  5.862            20210701                        180                    176             180
     16396247                  6.112            20210801                        180                    177             180
     16396248                  6.362            20210701                        180                    176             180
     15498289                  5.737            20350601                        360                    343             360
     15590615                  5.612            20350601                        360                    343             360
     15628389                  5.237            20350701                        360                    344             360
     15628411                  5.237            20350801                        360                    345             360
     15765225                  5.612            20350901                        360                    346             360
     16341409                  6.112            20360501                        360                    354             360
     16341411                  6.237            20360601                        360                    355             360
     16319906                  5.737            20210501                        180                    174             180
     16319934                  6.362            20210501                        180                    174             180
     16375689                  5.487            20210701                        180                    176             180
     16375698                  6.237            20360701                        360                    356             360
     16375712                  6.487            20360801                        360                    357             360
     16396199                  5.987            20210701                        180                    176             180
     16396204                  6.237            20210701                        180                    176             180
     16396213                  6.362            20210701                        180                    176             180
     16396216                  6.112            20210701                        180                    176             180
     16396220                  6.237            20210701                        180                    176             180
     16396225                  6.362            20210701                        180                    176             180
     16396233                  6.237            20210701                        180                    176             180
     16396236                  6.112            20210701                        180                    176             180
     15765213                  5.987            20350901                        360                    346             360
     16396238                  6.362            20210701                        180                    176             180
     15498275                  5.862            20350501                        360                    342             360
     16396191                  6.362            20210601                        180                    175             180
     16396224                  6.362            20210701                        180                    176             180
     16319911                  6.612            20210501                        180                    174             180
     16396229                  6.112            20210701                        180                    176             180
     16657043                  6.612            20360801                        360                    357             360
     16657053                  5.862            20360401                        360                    353             360
     16657063                  5.737            20360701                        360                    356             360
     16657102                  6.237            20360701                        360                    356             360
     16657138                  6.612            20360701                        360                    356             360
     16657222                  6.487            20360801                        360                    357             360
     16657236                  6.362            20360801                        360                    357             360
     16657255                  6.737            20360801                        360                    357             360
     16657284                  6.612            20360901                        360                    358             480
     16657317                  8.487            20360801                        360                    357             480
     16657334                  7.112            20360801                        360                    357             480
     16657373                  6.987            20360901                        360                    358             480
     16657375                  7.737            20360901                        360                    358             480
     16657446                  6.487            20360601                        360                    355             360
     16657469                  6.987            20360601                        360                    355             360
     16657579                  6.612            20360701                        360                    356             360
     16657639                  6.612            20360801                        360                    357             360
     16657642                  6.237            20360801                        360                    357             360
     16657649                  6.737            20360701                        360                    356             360
     16657652                  6.487            20360801                        360                    357             360
     16657676                  6.612            20360801                        360                    357             360
     16657702                  6.737            20360801                        360                    357             360
     16657787                  6.612            20360801                        360                    357             480
     16657843                  6.237            20360801                        360                    357             480
     16657872                  6.987            20360901                        360                    358             360
     16657940                  6.612            20360901                        360                    358             480
     16657950                  6.237            20360901                        360                    358             480
     16657971                  6.487            20360901                        360                    358             480
     16658071                  7.487            20360901                        360                    358             480
     16657399                  5.737            20351101                        360                    348             360
     16657655                  5.112            20210401                        180                    173             180
     16657768                  5.862            20360801                        360                    357             360

LOAN_ID            ORIGINAL_          FIRST_PAY      PAYMENT           CURRENT_             LOAN_TO
                   BALANCE            _DATE                            BALANCE              _VALUE
------------------------------------------------------------------------------------------------------------
     15832932             505000            20051101      2827.85             496373.3          38.84999847
     16015803             708622            20051201      5743.14             677021.8          53.47999954
     16015807             512000            20051101      2867.05            504337.77                   80
     16015810             436000            20051201      1952.92               436000          58.13000107
     16015821             503852            20060101      4251.79             484310.5          64.18000031
     16015822             615000            20060101       3491.9            607423.17          61.56000137
     16015833             568000            20060201      4716.73            547613.64                   80
     16015843             450000            20060101      3767.03            432369.56          63.38000107
     16015863             950000            20051101      5319.73            935576.59          79.16999817
     16015865             700000            20051101      5673.26            665987.04                   70
     16015870             499500            20051101       4147.9            465203.64          54.34999847
     15438581            1155000            20050601      9591.24           1078924.86                   70
     16657104             650000            20060801      4434.15            636545.85          73.86000061
     16657108             186750            20060801      1402.99            186268.73                   90
     16657116             419000            20060801      2717.63             416985.9                  100
     16657122             520000            20060901      3033.33               520000                   80
     16657049              51375            20060501       354.83             50944.62          82.19999695
     16657131             118800            20060801       871.71            118381.97                   90
     16657051              67995            20060801       469.62             67786.16                   90
     16657137             552500            20060801      4625.08            544762.89          63.13999939
     16657056              46400            20060501       293.28             46086.58                   80
     16657060             900000            20060701      7655.62            884533.52          66.66999817
     16658049             424000            20060801      2679.97            422454.27                   80
     16657161            1030000            20060801      9043.34           1016001.17          46.81999969
     16657089              63422            20060801       459.85              63245.7          86.87999725
     16657415             536250            20060801      2960.34            536212.69          69.19000244
     16657177             471000            20060801      4102.92            464742.71          58.88000107
     16657096            1000000            20060701      6403.11            995539.63                   40
     16657500             556000            20060801      3069.58               556000                   80
     16657423             574400            20060801      3111.33               574400                   80
     16657425             588000            20060801      3716.56            585848.01          79.13999939
     16657506             556000            20060801      3652.52            554115.43                   80
     16657427             692000            20060701      4373.91            688722.09                   80
     16657428             550400            20060801      3661.82            548579.48                   80
     16657187             750000            20060801      4989.77            747519.32          58.13999939
     16657430             882000            20060801      5794.11            879010.49          75.70999908
     16657516             637500            20060801      4029.43            635175.99                   75
     16657518              93000            20060801       715.09             92772.23                   75
     16657439             596000            20060801      3816.25            593879.15                   80
     16657520             109600            20060801       719.25               109600                   80
     16657602             472000            20060801      3022.27             470320.4                   80
     16657523             528750            20060801      3385.64            526868.49                   75
     16657443             752000            20060801      4753.15            749258.52                   80
     16657605             740000            20060801      4010.42               700000                   80
     16657606             480000            20060701      3073.49            477859.04                   80
     16657611             704000            20060801      3953.13            702779.29                   80
     16657612             475000            20060801      2671.88               475000          52.77999878
     16657532            1137500            20060801      6398.44              1137500                   65
     16657533             446000            20060801      2782.46            444334.45          55.40000153
     16657452             588800            20060801         3868            586804.26                   80
     16657453             489600            20060801      3216.32            487940.49                   80
     16657454             637000            20060801      3974.05            634621.15                   70
     16657537             500000            20060801      2708.33               500000          28.01000023
     16657456             460000            20060701      4070.58            392163.21                   80
     16657457             689600            20060801      4821.78            687533.57                   80
     16657459             455000            20060801      4348.22            449687.62                   70
     16657460             687000            20060701      4342.31            683557.62          73.87000275
     16657624             460000            20060801      2983.55            458402.34                   80
     16657543             900000            20060801       5762.8            896797.41                56.25
     16657463             148000            20060801       863.33               148000          79.56999969
     16657545             667000            20060801      2200.05               398500          79.98000336
     16657546             613000            20060801      3925.11            610818.65          47.15000153
     16657465              49600            20060701       355.34             49422.65                   80
     16657466             101250            20060801       769.57             100995.6          72.31999969
     16657711              95000            20061001       664.25             94858.55          79.16999817
     16657470             500000            20060701      3242.99            497801.92          74.06999969
     16657553             625000            20060801      4001.94            622775.96          64.08999634
     16657472             450000            20060801      2770.73            448278.69          35.15999985
     16657554              55200            20060801       400.24             55046.54                   80
     16657555              51200            20060801       371.24             51057.65                   80
     16657476              54400            20060701       394.44             54210.33                   80
     16657477             480000            20060801      3113.27            478332.93          58.54000092
     16657559             520000            20060801       3087.5               520000                   80
     16657479              97000            20060701       703.32             96661.79          74.66999817
     16657804             844000            20060801      5404.22            840996.69                   80
     16657562            1400000            20060801       7874.3              1399875          63.63999939
     16657567             465000            20060701      2939.12            462875.25                   75
     16657568             825000            20060801      6961.82            813567.33          38.36999893
     16657570             474950            20060801      3120.08            473340.18                   70
     16657490             532000            20060701       2992.5               532000                   80
     16657491             476000            20060801      3087.33            474156.66          74.95999908
     16657492             760400            20060701      6416.69            747195.16                   80
     16657494            1800000            20060901     15433.61            1781729.3          51.43000031
     16657657             999950            20060801      5519.03            999673.97          68.95999908
     16657497             700000            20060801      4424.48            693266.01          66.66999817
     16657659             503500            20060601      3265.69            500862.13          39.02999878
     16657499             725000            20060801      4642.25            722058.41          53.70000076
     16657581             433600            20060801      2812.32            432094.04                   80
     16657664             600000            20060801      5103.75            591772.27                   60
     16657584             536000            20060801      3300.24            533165.06          74.97000122
     16657585            1920000            20060801     16990.26            1879688.9          54.86000061
     16657595             604000            20060801      3967.85            601952.73                   80
     16657598             696000            20060801      4399.19            693462.69                   80
     16657688             689200            20060801      4299.71            686625.36          59.93000031
     16657693             667750            20060801      4165.89            665256.34          74.94000244
     16657788             438000            20060801      2804.56            436441.42          68.98000336
     16657995             540000            20060801      3502.43            538124.52                   80
     16657999             552000            20060801      3812.53            550304.33                   80
     16657041             600000            20060901      3841.87            598403.11          50.84999847
     16657044             742463            20060901      4939.62            740626.56          76.73999786
     16657045             485000            20060901       3186.1            483770.62          67.23000336
     16657065             568000            20061001      4069.22            567195.63                   80
     16657078             645000            20060901      4183.46            643324.61          28.67000008
     16657085            2000000            20060901     12314.34           1994277.28          30.03000069
     16657086             150600            20061001      1065.94             150381.3                   80
     16657087             150600            20061001      1065.94             150381.3                   80
     16657090             150600            20061001      1065.94             150381.3                   80
     16657106              63422            20060901       442.63                63422          86.87999725
     16657112             600000            20061001      3941.57             598888.4                   80
     16657117            1430000            20060901      8192.71              1430000          52.95999908
     16657119              65250            20060901       461.84             65107.41                   90
     16657120              65160            20060901       495.26             65037.15                   90
     16657121             660000            20061001      5749.31             655639.6          66.52999878
     16657125             480000            20060901      3480.33            479002.49                   80
     16657132             553500            20060901      3870.15            552259.96                   75
     16657134             484000            20060801      3099.11            481630.76                   80
     16657149             128520            20060801       976.84            128197.13                   90
     16657154             213600            20061001      1530.26            213297.51                   80
     16657158             875000            20061001      5602.72            873451.76          64.80999756
     16657163              47097            20061001       309.39             47017.65          84.09999847
     16657166              44000            20061001       319.03             43939.24                   80
     16657171             627200            20060901      5420.58            620900.91                   80
     16657173             496080            20060901      3258.89             494756.6                   80
     16657180              44000            20061001       319.03             43939.24                   80
     16657181              50400            20061001       374.22             50333.84                   80
     16657182              48000            20061001       348.03             47933.72                   80
     16657183             581000            20060801      3672.32            578881.92          55.81000137
     16657189             176800            20060901      1161.45            176350.73                   80
     16657191             141750            20061001       966.98            141528.19                   75
     16657192             202880            20060901      1349.77            202377.95                   80
     16657197            1000000            20060801      6737.19            996772.64          42.91999817
     16657203             500000            20061001      3242.99             499136.6          77.72000122
     16657206             460000            20060901       2587.5               460000                   80
     16657209             472000            20061001      3022.27            471164.82          76.12999725
     16657211             418000            20060901      2607.78            416832.36          61.29000092
     16657220             861250            20060901      4934.24               861250                   65
     16657224              73440            20060801       476.33             73184.94                   80
     16657226             458400            20060901      3011.36            457238.03                   80
     16657231            1250000            20061001      7900.85           1247733.84          56.81999969
     16657233              64000            20060901       442.03                63853          91.43000031
     16657234             717520            20060901      3886.57               717520                   80
     16657237             799000            20061001      5248.86            795642.18          79.91000366
     16657240             284400            20060901      2161.65            283865.97                   90
     16657241             475000            20060901      3041.48            473668.14                   50
     16657246             238400            20061001      1586.08            238008.04          79.47000122
     16657248             521800            20060901       3559.6            520571.43          27.11000061
     16657250             563000            20061001      3698.51            562051.31          62.56000137
     16657260            1210000            20060901     10457.43           1197847.76                 60.5
     16657268             630000            20060901      4033.96            628323.27          39.38000107
     16657270             520000            20061001      3770.36            519281.93          73.76000214
     16657275             263970            20061001      1869.79               263970                   90
     16657276             120000            20060901       933.35            119738.58          65.93000031
     16657277              57420            20061001       451.72              57353.7          89.19999695
     16657279             559920            20061001      4108.49            559166.12                   80
     16657280              35250            20060901       271.04             35185.49                   75
     16657281              57420            20061001       451.72              57353.7          89.19999695
     16657283              21600            20060901       169.93             21562.44                   90
     16657294             172000            20061001      1236.25               172000                   80
     16657295             640000            20060901      4864.46            638798.27                   80
     16657296             120000            20061001       849.35            119825.75                   80
     16657297             265500            20061001      1852.97               265500                   90
     16657298             103270            20061001       794.06            103144.43                   90
     16657300             688000            20060901      4405.34             686168.9                   80
     16657303              88000            20060901       684.45             87843.03                   80
     16657306             152000            20061001      1141.93            151805.47          72.37999725
     16657313             149953            20061001      1061.36            149735.25          74.98000336
     16657316              77400            20061001       581.48             77300.96                   90
     16657319              76142            20060901       578.73             75999.52                   95
     16657325             503000            20061001      3304.35            501875.19          79.97000122
     16657327             179650            20060901       1270.4               179350                   80
     16657332             112280            20060901        873.3            111073.92                   95
     16657336             165600            20061001       1244.1            165388.07                   80
     16657337              64000            20061001       452.99             63879.38                   80
     16657338             650000            20061001      4489.39            648781.91          86.66999817
     16657345             160200            20061001      1203.53            159994.99                   90
     16657346            1350000            20060901      8981.58           1346660.85                   75
     16657348            1250000            20061001      8107.48           1247841.49          45.54000092
     16657349             151200            20060901        850.5               151200                   80
     16657352              51300            20061001       394.45             51237.62                   95
     16657361             138400            20061001       1003.5            138208.87                   80
     16657363             108900            20061001       808.58            108757.04                   90
     16657368             720000            20061001         4050               720000                   80
     16657369             547200            20061001         3135               547200                   80
     16657371             453007            20061001       3235.1            452764.81                   95
     16657374              99750            20061001       740.64             99619.06                   95
     16657383             256500            20061001      1683.28               256500                   90
     16657385             219424            20061001      1485.68               219424          78.37000275
     16657386             209320            20060901      1460.88               209320          77.52999878
     16657387             261000            20061001      1848.75               261000                   90
     16657388             203500            20060901      1462.66               203500          76.79000092
     16657389             203500            20060901      1462.66               203500          76.79000092
     16657390             228500            20061001      1547.14               228500          88.91000366
     16657391             220648            20060901      1562.92               220648          78.23999786
     16657393             200000            20060901      1333.33               200000          74.62999725
     16657411             560000            20061001       3147.9            559626.15                   80
     16657433             440000            20060801      2817.37            438320.01                   80
     16657451              44100            20060901       300.84             43996.17                   90
     16657486             477500            20060801      3018.12            475606.69                64.75
     16657508            1650000            20060901     14373.27            1633604.2                   44
     16657517            1325000            20061001      7177.08              1325000          45.68999863
     16657519             523000            20060901      2941.88               523000          58.11000061
     16657549             764800            20060901      4834.06            762714.57                   80
     16657550             680000            20060901      5692.41            672875.51          79.06999969
     16657577             440000            20060901      2890.49            438884.67          56.40999985
     16657580             902400            20060901         5076               902400          79.98999786
     16657582             650000            20060901      4162.02            648270.02          78.79000092
     16657586             574000            20060901      3770.77            572544.99                   70
     16657587             574000            20060901      3770.77            572544.98                   70
     16657588             896000            20060901      5811.44            893672.64                   80
     16657590             672000            20061001      4302.89            670810.95                   80
     16657592             974344            20060901      6158.52             971377.6                   80
     16657600              63000            20060901       462.27             62872.32          64.94999695
     16657608             242000            20060901      1638.54               242000          79.76999664
     16657614             999999            20060901      6320.67               994204          58.81999969
     16657617             920000            20060801       5739.6             916564.3                   80
     16657623             668000            20060801         7585            636792.86                   80
     16657628             800000            20060901      6859.38            791879.69                   64
     16657632             880000            20061001       5562.2            878404.63                   80
     16657633             506025            20060901      3198.42             504645.2          70.76999664
     16657635              63200            20060901       485.95             63084.31                   80
     16657638             664000            20060901      4251.66            662232.77                   80
     16657640             774000            20060801      4956.01            771245.74                   80
     16657647             853600            20060901      5325.35            851215.58                   80
     16657653             880000            20060901      4858.33               880000                   80
     16657654             600000            20060901      3941.57            598479.08          61.54000092
     16657658             708500            20060801       4536.6            705978.83                   65
     16657661              75600            20060901       588.01             75435.31                   90
     16657666             688000            20060901      3861.56               686500                   80
     16657667             799200            20061001       5183.6            797819.93          79.95999908
     16657669            1169500            20060901      7488.44            1166387.4          58.47999954
     16657671             480000            20060901      3113.27            478352.05          74.41999817
     16657677             565000            20060901      3617.76             563355.6          70.19000244
     16657678             780000            20060901      5387.27             777668.1                   60
     16657679             600000            20060901      3792.41            598363.94          73.16999817
     16657681             499999            20061001      3201.55            499114.29          72.45999908
     16657685             810000            20060901      5321.12            807946.78          75.34999847
     16657687             204000            20061001      1532.58            203738.93                   80
     16657692             704000            20060801         3740               704000                   80
     16657695              67500            20060901       519.02             67376.44                   90
     16657698             999999            20060901      6320.67            997271.26          66.66999817
     16657700             703200            20060901       3955.5               703200                   80
     16657703             790000            20060901      5058.46            787897.43          65.83000183
     16657704             692500            20060901      4491.54            690701.22          75.48000336
     16657721              90000            20060901       692.02             89835.25                   75
     16657366             894000            20061001      5872.94            892493.57          55.88000107
     16657552             448000            20060901      2905.72            446836.32          77.91000366
     16657643             999999            20060801      6485.97            996525.88          70.18000031
     16657645             980000            20061001       5512.5               980000                   80
     16657684              32900            20060901       247.17             32836.62                   70
     16657723             999900            20060901      6402.47            997238.79          75.18000031
     16657724             712000            20060901         4005               712000                   80
     16657725            1175000            20061001     10316.43           1167319.96                   50
     16657727             864800            20060901      4954.58               864800                   80
     16657733             856000            20061001      5340.33            854410.11                   80
     16657736             480000            20060901      3113.27            476078.02                   75
     16657737             136000            20061001       986.09            135812.19                   80
     16657738             668000            20060901       3757.5               668000                   80
     16657739             700000            20061001      3864.58               700000                   80
     16657743             656000            20060901         3690               656000                   80
     16657745             457600            20060801      3044.42            456086.44                   80
     16657746             428000            20060901      2362.92               428000          72.54000092
     16657748             750000            20060901      4989.77            748144.91          75.76000214
     16657750             960000            20060801      6146.99            956583.87                   80
     16657751             525000            20060901      3448.88             523669.2                   75
     16657753             744242            20060901      4522.09            742060.81          59.54000092
     16657754              89100            20060901        685.1              88936.9                   90
     16657755             320000            20060901      2022.62            319127.43          35.95999908
     16657756             670000            20061001       3697.3               669700          78.81999969
     16657759              75050            20060901       557.24             74844.99          89.98999786
     16657761             830770            20060901      5388.36            828612.07                   80
     16657764             680000            20060901      4410.47            678233.69                   80
     16657765             573750            20060901      3227.34               573750                   75
     16657771             148000            20061001      1137.99            147820.04                   80
     16657773              83200            20060801       476.67                83200                   80
     16657776             950100            20060901      6083.59            947489.71          65.33999634
     16657777              26100            20061001       205.33             26069.85                   90
     16657778             768000            20060901      4854.28            765905.84                   80
     16657779             144000            20060901       1094.5             143729.6                   90
     16657780             515000            20060901      3383.18            513583.21          79.23000336
     16657784             909000            20060901      5971.48            906695.85          76.08999634
     16657786              88800            20060901       667.12             88628.94                   80
     16657790             452000            20060901      2492.63            451495.42          64.94000244
     16657792             148000            20060901      1085.97            147700.07                   80
     16657793             112000            20061001       851.28            111811.23          72.26000214
     16657794             519200            20060901      3367.52            517851.37                   80
     16657797             107250            20060901       805.73             107043.4                   75
     16657798             988000            20060901      5454.58               988000                   80
     16657805             684000            20060901      3847.51            683999.99          79.98999786
     16657807            1000000            20060901      6569.29            997465.16          55.56000137
     16657808             984000            20060901      6382.21            981444.04                   80
     16657810             717500            20061001      4713.46            716290.97                   70
     16657818             999999            20061001      8779.93             993462.8                   25
     16657821             700000            20061001      4540.19            698791.23          46.66999817
     16657822             444000            20060901      2589.88            443979.94                   80
     16657828             572000            20060901      3757.63            570550.08                   80
     16657829             100400            20060901       719.28            100186.04                   80
     16657830             600000            20060901      3891.59            598441.49                   80
     16657832             738400            20060901      4728.06            736434.76                   80
     16657834             526500            20060901      3817.49            525352.56                   90
     16657835             320000            20060901      1866.67               320000                   80
     16657837              80800            20061001       580.75                80800                   80
     16657841             193500            20060901      1539.57            193172.13                   90
     16657846             600000            20060901      3841.87            598403.11          43.63999939
     16657850             944000            20060901      6044.54            941487.56                   80
     16657851             952000            20061001      6174.65            950356.08                   80
     16657854             749900            20061001       4358.4            747153.72          78.94999695
     16657855             185250            20060901      1176.43            185142.78                   95
     16657858              49450            20060901       375.86             49319.37          89.91000366
     16657860             680000            20061001      4410.47            678825.77                   80
     16657861              68400            20060901       532.01             68277.97                   90
     16657870             102400            20061001       698.55            102239.75                   80
     16657871             776000            20060901      5162.75             774080.6                   80
     16657876             440000            20060901      2566.67               440000                   80
     16657878            1469000            20061001      9406.17           1466400.71                   65
     16657879             450000            20061001         2529               449600          67.16000366
     16657880             734000            20061001      4760.71            732732.52          62.47000122
     16657885              89000            20060901       630.42                89000                  100
     16657887             775635            20061001      4362.95               775635                   80
     16657888             450000            20061001      2956.18            449241.73                   60
     16657889             800000            20061001      4416.67               800000          33.33000183
     16657894              94410            20061001       709.27             94289.16                   90
     16657896             772000            20061001      5136.14            770730.69                   80
     16657897             479000            20061001      3067.09            478152.45          79.98999786
     16657898             840000            20061001       4637.5               840000                   80
     16657905             520000            20061001      3416.03            519123.77                   80
     16657906             865000            20061001      5610.37            863506.31          64.12000275
     16657910             999999            20061001      6569.28            998313.94          61.54000092
     16657912             684000            20061001      4550.67            682875.39                   80
     16657915             165000            20061001       893.75               165000                   75
     16657916             680000            20061001      4186.88            678706.22          57.63000107
     16657917             426000            20061001      2798.52            425282.16                   75
     16657919             644000            20061001      5878.84            639716.26                   70
     16657920              60775            20060901       424.95             60638.83                   85
     16657923             770000            20061001      5058.35             768702.5                   55
     16657924             188500            20061001      1079.95               188500                   65
     16657925             900250            20061001      5989.39            898769.72                   65
     16657927             228000            20061001      1653.16            227685.15                   80
     16657930             700000            20060901       4598.5            698225.61          54.25999832
     16657937             428000            20060901      2452.08               428000                   80
     16657938              90000            20061001       553.12             90000.01                   80
     16657939              53100            20061001       413.01             53037.07                   90
     16657908             832000            20061001         4680               832000          75.76999664
     16657943            1000000            20061001      6320.68            998187.07          33.33000183
     16657944             513900            20061001      3290.56            512990.69          74.48000336
     16657951             451900            20060901       3006.5            450782.22                   80
     16657952             600000            20061001      3941.57            598988.96                   80
     16657953             922500            20061001      5983.32            920907.01                   75
     16657954             940000            20061001       5287.5               940000                   80
     16657957             425000            20061001      2346.35               425000          55.56000137
     16657960              66400            20061001       430.67             66285.34                   80
     16657961             184000            20061001      1073.33               184000          64.55999756
     16657962             490000            20060801      2756.25               490000          72.58999634
     16657964             650000            20061001      3723.96               650000          76.47000122
     16657965             496000            20061001      2903.87            495564.42                   80
     16657969             550000            20061001      3521.71            549026.82          52.38000107
     16657972             154800            20061001       935.25               154800                   80
     16657976             530000            20061001      3349.96            529039.14          53.04999924
     16657978             688000            20061001      4462.35            686811.97                   80
     16657982             448000            20061001      3132.48            447332.95                   80
     16657983             153578            20061001       1208.2            153400.64          89.90000153
     16657984             153578            20061001       1208.2            153400.64          89.90000153
     16657985             153578            20061001       1208.2            153400.64          89.90000153
     16657986             153578            20061001       1208.2            153400.64          89.90000153
     16657988             153578            20061001       1208.2            153400.64          89.90000153
     16657989             153578            20061001       1208.2            153400.64          89.90000153
     16657991             768000            20061001      5435.86            766884.75                   32
     16657994             944000            20061001      6044.54            942329.66                   80
     16657996             550000            20061001      3521.71            549026.81                   55
     16657998             117000            20061001       868.72            116846.41                   90
     16658001             815000            20060901      5353.97            812934.12          46.04999924
     16658003             539000            20060901      3031.88               539000                   80
     16658004             600000            20061001      3941.57            594610.88          68.97000122
     16658008              77600            20061001       525.42                77600                   80
     16658010              81000            20061001       608.53             80877.37                   90
     16658011             994000            20060901      6005.42               994000          64.97000122
     16658012             650000            20060901      4055.15            648184.32          68.41999817
     16658013             440000            20061001      2890.49            438433.87                   80
     16658014             490000            20061001      2756.25               490000          58.33000183
     16658017             706000            20061001      4637.92            704810.34          79.65000153
     16658018              62370            20061001        463.1             62257.04                   90
     16658020             665000            20061001      1629.74            289731.25                   76
     16658025             650000            20060901      4215.89            647012.45          75.58000183
     16658033             697900            20060901      4216.48               697900                   70
     16658039             455200            20061001      2990.34            454432.95                   80
     16658046             900000            20061001      5912.36            710268.79                   80
     16658053              94400            20061001       635.99             94248.56                   80
     16658060             780000            20061001      4930.13            778525.73          47.27000046
     16658063             252080            20061001      1487.84            250583.27                   80
     16658073             357000            20061001      1937.56            350954.21                   70
     16658078             350000            20061001       2187.5               350000          61.61999893
     16658080             288000            20061001      1678.13               287680                   80
     16658086             320000            20061001         1900               320000          71.11000061
     16658088             800000            20060901      5255.43            797972.14          69.26000214
     16658089             461500            20060901      3031.73            460330.18                   65
     16658091             488000            20060901      3205.81            486763.01                   80
     14425830             185000            20031201      1259.57            168203.18          72.26999664
     15628322             600000            20050801      2713.67            592073.54          63.15999985
     16243109            2600000            20060701     17516.68           2589479.88                   52
     15757419             300000            20031201      2511.36            259064.29          55.56000137
     16341408             756000            20060701      4593.54            752288.35                   80
     16341423             250000            20060801      1663.26             249173.1          45.13000107
     16319910             323200            20060601      1746.59            322447.95                   80
     16319915             172000            20060601       931.67               172000                   80
     16375684             500000            20060801      3119.35            498132.79          37.04000092
     16375685             500000            20060801      3284.64            496819.72          68.48999786
     16375701             465000            20060801         2901            463263.46          68.37999725
     16375711             546000            20060801      3361.82            543911.47          78.55999756
     16375714             511000            20060801      3271.99            509181.64          77.41999817
     16396190             164000            20060801       939.58               164000                   80
     16396195            1530000            20060801      7611.75              1522350                63.75
     16396198             334000            20060801      1797.12             331776.6          79.15000153
     16396208             315920            20060801      1711.23               315920                   80
     16396209             415000            20060801       2160.9            414891.93          44.15000153
     16396210             500000            20060801       2812.5               500000          77.63999939
     16396232             283200            20060801       1563.5            283199.72                   80
     16396241             316000            20060901      1711.67               316000                   80
     15338945             690000            20050501      3234.38               690000          64.79000092
     15498288             600000            20050701      3501.44            588932.35                   80
     15628273             379500            20050801      1660.31               379500          60.72000122
     15628284             420000            20050701      1849.88            412995.49                   80
     15628300             750000            20050801      3429.73            748304.75          55.15000153
     15628380             650000            20050801      2977.69            649677.27                   52
     15765233             435000            20051001      2538.54            428438.75          58.38999939
     16206035             536900            20060401      2849.63            536400.55          78.95999908
     16341407             449000            20060701         2875            446997.28          79.98000336
     16341410             709000            20060601      4423.24            705007.23          64.44999695
     16341412             233272            20060701      1493.67            232231.51                   80
     16341413             186800            20060701      1070.21               186800                   80
     16341414             335600            20060701       1679.2               310006          79.90000153
     16341415             192500            20060701      1264.59            189996.05                   70
     16341416             577600            20060701      3650.82             574960.8                   80
     16341417             151920            20060701       815.86            150620.23                   80
     16341418             372000            20060701      2351.29            370300.24                   80
     16341419             556000            20060701       3514.3             553127.5                   80
     16341420             151852            20060701       822.53               151852                   80
     16341421             453000            20060701      2548.13               453000          77.76999664
     16341422             201600            20060801         1113               201600                   80
     16341424             612000            20060801       3918.7            609822.25                   80
     16319907             581068            20060701      3086.92               581068                   80
     16319908             600000            20060501      2841.82            580457.12          42.86000061
     16319909             405000            20060601       1982.6            404956.45          78.63999939
     16319912            1000000            20060601         5000              1000000          57.13999939
     16319913             515000            20060601      2896.88               515000          41.20000076
     16319916             348000            20060601       1883.3             347685.6                   80
     16319917             999950            20060601      4781.25               900000          74.06999969
     16319922             400000            20060501      1958.33               400000          30.77000046
     16319925             800000            20060501      4166.67               800000                   80
     16319926             750000            20060501      3634.39            742342.82          75.26999664
     16319929             999999            20060601      4827.29               985999          71.43000031
     16319930             225000            20060601      1112.04            222407.05          58.43999863
     16319931             545000            20060601      2781.77               545000          57.66999817
     16319932            2000000            20060601     10416.67              2000000          60.61000061
     16319935             330000            20060701      1718.75               330000          58.93000031
     16319936             300000            20060601       741.72            148343.45                   80
     16319937            1000000            20060601       5245.2            987331.09          58.81999969
     16319938             161000            20060601       788.23               161000          70.95999908
     16375678             680000            20060801      4298.06            677521.01                   80
     16375679             510000            20060801      4235.09            502782.94          72.44000244
     16375680             540000            20060801       3281.1            537884.47                   80
     16375681             440000            20060801      2709.16            438316.94          61.61999893
     16375682             590000            20060801       3729.2            587849.09          62.24000168
     16375683             470000            20060701      3009.46             467903.6          79.66000366
     16375686             500000            20060701      3119.35            497659.77          65.79000092
     16375687             500000            20060701      2644.34            497757.54          62.52999878
     16375688             475000            20060801      2963.38            473226.13          45.24000168
     16375690             471000            20060801      2938.43            469241.08          61.09000015
     16375692             589600            20060801      3726.67            587450.58                   80
     16375693             592800            20060801         3211               592800                   80
     16375694             650000            20060801      4108.44            647630.16          71.43000031
     16375695             432000            20060901         2295               432000                   80
     16375696             660000            20060801      5658.99            649536.53          79.51999664
     16375697             581000            20060801      3672.32            578881.92          60.84000015
     16375699             524000            20060801      2891.95             523825.3          56.34000015
     16375700             561000            20060801      3038.75               561000          73.81999969
     16375702             480000            20060801      3033.93            478250.13                   80
     16375703             432000            20060801         2385               432000          68.34999847
     16375704             475000            20060801      3002.32            473268.34          76.37000275
     16375705             439000            20060801      2774.78            437399.61          54.88000107
     16375706             543800            20060801      3437.19            541817.53                 43.5
     16375707             497000            20060801      3141.38            495188.15                 35.5
     16375708             460000            20060801      2907.51            458323.02          78.90000153
     16375709             544000            20060801      3438.45            541649.72                   80
     16375710             600000            20060801      3792.41             597410.5          45.86999893
     16396193             550000            20060501       2574.8            525915.83                 62.5
     16396194             700000            20060801      6001.96            561896.99          63.63999939
     16396196             632000            20060801       3357.5               632000                   80
     16396197             800000            20060801      4004.64            768890.08          62.02000046
     16396200             576000            20060801         2940               576000                   80
     16396201             383700            20060801      1958.47               383700          42.93000031
     16396202              82400            20060801       429.11             82389.38                   80
     16396205             350000            20060801      1626.21            294559.11          33.81999969
     16396206             475400            20060801      2475.44            475285.28          79.88999939
     16396207             666000            20060901      3605.33            665598.92          77.88999939
     16396211             425000            20060801      2302.08               425000                   50
     16396214             268500            20060801      1398.44               268500          74.06999969
     16396215             104000            20060801        552.5               104000                   80
     16396217             265050            20060901      1380.47               265050                   95
     16396218             124000            20060801      1046.38            122281.62                   80
     16396219             780000            20060801       3680.4            679458.33                   80
     16396221             206500            20060801      1138.39            206199.45                   70
     16396222             336000            20060801         1785               336000                   80
     16396223             184000            20060801       996.67            183999.92          79.30999756
     16396226             638800            20060801      3153.08            630615.62                   80
     16396227             655200            20060801      3480.75               655200                   80
     16396230            1800000            20060801         9750              1800000          66.81999969
     16396231             400000            20060801      2062.19            395940.23          44.93999863
     16396234             135000            20060801       701.56            134699.48          45.45000076
     16396235             164000            20060901       888.33               164000                   80
     16396237             319000            20060901      1794.38               319000          69.34999847
     16396239             435000            20060901      2310.94               435000          59.18000031
     16396240             184000            20060801       974.45            183426.68          21.39999962
     16396242             575000            20060901      3054.69               575000          46.93999863
     16396243             300000            20060901         1625               300000          74.34999847
     16396246             274312            20060801      1400.13               274312                   80
     16396247             163294            20060901        867.5               163294                   80
     16396248             192000            20060801      1055.95            191267.15                   80
     15498289             670000            20050701      4016.99            658196.08          79.86000061
     15590615             675000            20050701      3992.88            662444.28          69.23000336
     15628389            1000000            20050801      4583.31               999995          38.45999908
     15628411             700000            20050901      3172.78            692242.28                   56
     15765225             550000            20051001      3253.46            541894.69          64.70999908
     16341409             650000            20060601      4055.15            646339.54          71.86000061
     16341411             500000            20060701      3160.34            497715.35                   80
     16319906             375000            20060601       908.76            181752.02          74.88999939
     16319934             502500            20060601      2774.22               502500                   75
     16375689             566000            20060801      4700.12            557990.49                   80
     16375698             588000            20060801         3185               588000                   80
     16375712             432500            20060901      2805.19            431376.57          79.72000122
     16396199             640000            20060801      3333.33               640000                   80
     16396204             560000            20060801      3033.33               560000                   80
     16396213             294400            20060801      1625.33               294400          79.98999786
     16396216             297000            20060801      1574.21            296322.34          39.18000031
     16396220             399920            20060801      2162.31            399194.99                   80
     16396225             209900            20060801      1158.82            209899.98          64.90000153
     16396233             100000            20060801       871.11             98671.48          37.49000168
     16396236             112000            20060801          595               112000                   80
     15765213              78280            20051001       481.98             77156.04                   80
     16396238             479600            20060801      2647.79               479600                   80
     15498275             442000            20050601      2685.64            433666.94          70.72000122
     16396191             230460            20060701      1272.33               230460                   80
     16396224             124000            20060801       684.58               124000                   80
     16319911             214900            20060601       1231.2               214900          79.58999634
     16396229             819000            20060801      4350.94               819000          74.44999695
     16657043             101500            20060901        709.7            101272.61                  100
     16657053             133000            20060501       862.64            131997.05                  100
     16657063             288000            20060801       1844.1             286974.2                  100
     16657102             319900            20060801      2155.23            318817.26                  100
     16657138             154900            20060801      1083.08            154435.86                  100
     16657222              79000            20060901       545.63             78818.56                  100
     16657236             164950            20060901      1125.25            164475.51          97.02999878
     16657255             134900            20060901       954.81            134508.85                  100
     16657284             184800            20061001      1131.66            184653.76                   80
     16657317             273775            20060901      2059.25             273584.7          79.36000061
     16657334             327750            20060901      2126.61            327149.89                   95
     16657373              73800            20061001       472.08             73728.44          55.49000168
     16657375             153900            20061001      1070.08            153784.61                   95
     16657446             220000            20060701      1519.49            219152.61                  100
     16657469              73900            20060701       535.83             73642.33                  100
     16657579             211000            20060801      1316.88               210700                  100
     16657639             136500            20060901        852.9            136463.36                  100
     16657642             161000            20060901      1084.69            160611.44                  100
     16657649             224400            20060801      1425.71            224373.69                  100
     16657652             175000            20060901      1208.68            174598.06                  100
     16657676             124000            20060901       867.03            123722.18                  100
     16657702             195646            20060901      1243.17               195646                  100
     16657787             104300            20060901        638.7            104175.82                   70
     16657843              41000            20060901       240.04             40945.84          26.45000076
     16657872              65000            20061001        471.3             64910.04                  100
     16657940             420000            20061001      2571.97            419667.61          68.29000092
     16657950             221000            20061001      1293.86            220805.92          71.29000092
     16657971             346000            20061001      2087.61            345716.46          79.54000092
     16658071             272000            20061001      1840.41            271511.77                   80
     16657399             192000            20051201       957.74            191506.56                   80
     16657655             300000            20060501       2431.4            292165.51          54.54999924
     16657768             312000            20060901       1592.5               312000                   80

LOAN_ID            MI                             MERS_ID1                                   MARGIN          NEXT_RATE_
                                                                                                             ADJ_DATE1
------------------------------------------------------------------------------------------------------------------------------
     15832932      No MI                                                                              0
     16015803      No MI                          M10001530535104996                                  0
     16015807      No MI                          M10001530535107205                                  0
     16015810      No MI                          M10001530535108104                                  0
     16015821      No MI                          M10001530531103476                                  0
     16015822      No MI                          M10001530535113898                                  0
     16015833      No MI                          M10001530535119036                                  0
     16015843      No MI                          M10001530535121263                                  0
     16015863      No MI                          M10001530585037093                                  0
     16015865      No MI                          M10001530585040512                                  0
     16015870      No MI                          M10001530585049117                                  0
     15438581      No MI                          1.00E+17                                            0
     16657104      No MI                          1.00E+17                                            0
     16657108      GE Capital MI                  1.00E+17                                            0
     16657116      United Guaranty                1.00E+17                                            0
     16657122      No MI                          1.00E+17                                            0
     16657049      PMI                            1.00E+17                                            0
     16657131      GE Capital MI                  1.00E+17                                            0
     16657051      GE Capital MI                  1.00E+17                                            0
     16657137      No MI                          1.00E+17                                            0
     16657056      No MI                          1.00E+17                                            0
     16657060      No MI                          1.00E+17                                            0
     16658049      No MI                          1.00E+17                                            0
     16657161      No MI                          1.00E+17                                            0
     16657089      Republic MIC                   1.00E+17                                            0
     16657415      No MI                                                                              0
     16657177      No MI                          1.00E+17                                            0
     16657096      No MI                          1.00E+17                                            0
     16657500      No MI                          1.00E+17                                            0
     16657423      No MI                                                                              0
     16657425      No MI                                                                              0
     16657506      No MI                                                                              0
     16657427      No MI                                                                              0
     16657428      No MI                                                                              0
     16657187      No MI                          1.00E+17                                            0
     16657430      No MI                          1.00E+17                                            0
     16657516      No MI                          1.00E+17                                            0
     16657518      No MI                                                                              0
     16657439      No MI                                                                              0
     16657520      No MI                                                                              0
     16657602      No MI                          1.00E+17                                            0
     16657523      No MI                          1.00E+17                                            0
     16657443      No MI                                                                              0
     16657605      No MI                                                                              0
     16657606      No MI                          1.00E+17                                            0
     16657611      No MI                                                                              0
     16657612      No MI                          1.00E+17                                            0
     16657532      No MI                          1.00E+17                                            0
     16657533      No MI                                                                              0
     16657452      No MI                                                                              0
     16657453      No MI                                                                              0
     16657454      No MI                                                                              0
     16657537      No MI                                                                              0
     16657456      No MI                          1.00E+17                                            0
     16657457      No MI                                                                              0
     16657459      No MI                                                                              0
     16657460      No MI                          1.00E+17                                            0
     16657624      No MI                                                                              0
     16657543      No MI                                                                              0
     16657463      No MI                                                                              0
     16657545      No MI                                                                              0
     16657546      No MI                                                                              0
     16657465      No MI                                                                              0
     16657466      No MI                                                                              0
     16657711      No MI                                                                              0
     16657470      No MI                                                                              0
     16657553      No MI                                                                              0
     16657472      No MI                                                                              0
     16657554      No MI                                                                              0
     16657555      No MI                                                                              0
     16657476      No MI                                                                              0
     16657477      No MI                          1.00E+17                                            0
     16657559      No MI                                                                              0
     16657479      No MI                                                                              0
     16657804      No MI                          1.00E+17                                            0
     16657562      No MI                          1.00E+17                                            0
     16657567      No MI                          1.00E+17                                            0
     16657568      No MI                                                                              0
     16657570      No MI                          1.00E+17                                            0
     16657490      No MI                          1.00E+17                                            0
     16657491      No MI                                                                              0
     16657492      No MI                          1.00E+17                                            0
     16657494      No MI                                                                              0
     16657657      No MI                                                                              0
     16657497      No MI                                                                              0
     16657659      No MI                          1.00E+17                                            0
     16657499      No MI                                                                              0
     16657581      No MI                                                                              0
     16657664      No MI                          1.00E+17                                            0
     16657584      No MI                                                                              0
     16657585      No MI                          1.00E+17                                            0
     16657595      No MI                          1.00E+17                                            0
     16657598      No MI                                                                              0
     16657688      No MI                          1.00E+17                                            0
     16657693      No MI                          1.00E+17                                            0
     16657788      No MI                          1.00E+17                                            0
     16657995      No MI                          1.00E+17                                            0
     16657999      No MI                                                                              0
     16657041      No MI                          1.00E+17                                            0
     16657044      No MI                          1.00E+17                                            0
     16657045      No MI                          1.00E+17                                            0
     16657065      No MI                          1.00E+17                                            0
     16657078      No MI                          1.00E+17                                            0
     16657085      No MI                          1.00E+17                                            0
     16657086      No MI                          1.00E+17                                            0
     16657087      No MI                          1.00E+17                                            0
     16657090      No MI                          1.00E+17                                            0
     16657106      Republic MIC                   1.00E+17                                            0
     16657112      No MI                          1.00E+17                                            0
     16657117      No MI                          1.00E+17                                            0
     16657119      United Guaranty                1.00E+17                                            0
     16657120      Radian Guaranty                1.00E+17                                            0
     16657121      No MI                          1.00E+17                                            0
     16657125      No MI                          1.00E+17                                            0
     16657132      No MI                          1.00E+17                                            0
     16657134      No MI                          1.00E+17                                            0
     16657149      Republic MIC                   1.00E+17                                            0
     16657154      No MI                          1.00E+17                                            0
     16657158      No MI                          1.00E+17                                            0
     16657163      Mortgage Guaranty In           1.00E+17                                            0
     16657166      No MI                          1.00E+17                                            0
     16657171      No MI                          1.00E+17                                            0
     16657173      No MI                          1.00E+17                                            0
     16657180      No MI                          1.00E+17                                            0
     16657181      No MI                          1.00E+17                                            0
     16657182      No MI                          1.00E+17                                            0
     16657183      No MI                          1.00E+17                                            0
     16657189      No MI                          1.00E+17                                            0
     16657191      No MI                          1.00E+17                                            0
     16657192      No MI                          1.00E+17                                            0
     16657197      No MI                          1.00E+17                                            0
     16657203      No MI                          1.00E+17                                            0
     16657206      No MI                          1.00E+17                                            0
     16657209      No MI                          1.00E+17                                            0
     16657211      No MI                          1.00E+17                                            0
     16657220      No MI                          1.00E+17                                            0
     16657224      No MI                          1.00E+17                                            0
     16657226      No MI                          1.00E+17                                            0
     16657231      No MI                          1.00E+17                                            0
     16657233      Republic MIC                   1.00E+17                                            0
     16657234      No MI                          1.00E+17                                            0
     16657237      No MI                          1.00E+17                                            0
     16657240      GE Capital MI                  1.00E+17                                            0
     16657241      No MI                          1.00E+17                                            0
     16657246      No MI                          1.00E+17                                            0
     16657248      No MI                          1.00E+17                                            0
     16657250      No MI                          1.00E+17                                            0
     16657260      No MI                          1.00E+17                                            0
     16657268      No MI                          1.00E+17                                            0
     16657270      No MI                          1.00E+17                                            0
     16657275      PMI                            1.00E+17                                            0
     16657276      No MI                          1.00E+17                                            0
     16657277      PMI                            1.00E+17                                            0
     16657279      No MI                          1.00E+17                                            0
     16657280      No MI                          1.00E+17                                            0
     16657281      GE Capital MI                  1.00E+17                                            0
     16657283      PMI                            1.00E+17                                            0
     16657294      No MI                          1.00E+17                                            0
     16657295      No MI                          1.00E+17                                            0
     16657296      No MI                          1.00E+17                                            0
     16657297      Republic MIC                   1.00E+17                                            0
     16657298      GE Capital MI                  1.00E+17                                            0
     16657300      No MI                          1.00E+17                                            0
     16657303      No MI                          1.00E+17                                            0
     16657306      No MI                          1.00E+17                                            0
     16657313      No MI                          1.00E+17                                            0
     16657316      GE Capital MI                  1.00E+17                                            0
     16657319      Republic MIC                   1.00E+17                                            0
     16657325      No MI                          1.00E+17                                            0
     16657327      No MI                          1.00E+17                                            0
     16657332      Republic MIC                   1.00E+17                                            0
     16657336      No MI                          1.00E+17                                            0
     16657337      No MI                          1.00E+17                                            0
     16657338      Republic MIC                   1.00E+17                                            0
     16657345      GE Capital MI                  1.00E+17                                            0
     16657346      No MI                          1.00E+17                                            0
     16657348      No MI                          1.00E+17                                            0
     16657349      No MI                          1.00E+17                                            0
     16657352      GE Capital MI                  1.00E+17                                            0
     16657361      No MI                          1.00E+17                                            0
     16657363      GE Capital MI                  1.00E+17                                            0
     16657368      No MI                          1.00E+17                                            0
     16657369      No MI                          1.00E+17                                            0
     16657371      PMI                            1.00E+17                                            0
     16657374      Republic MIC                   1.00E+17                                            0
     16657383      Republic MIC                                                                       0
     16657385      No MI                                                                              0
     16657386      No MI                                                                              0
     16657387      PMI                                                                                0
     16657388      No MI                                                                              0
     16657389      No MI                                                                              0
     16657390      GE Capital MI                                                                      0
     16657391      No MI                                                                              0
     16657393      No MI                                                                              0
     16657411      No MI                                                                              0
     16657433      No MI                                                                              0
     16657451      GE Capital MI                                                                      0
     16657486      No MI                                                                              0
     16657508      No MI                          1.00E+17                                            0
     16657517      No MI                                                                              0
     16657519      No MI                          1.00E+17                                            0
     16657549      No MI                          1.00E+17                                            0
     16657550      No MI                                                                              0
     16657577      No MI                                                                              0
     16657580      No MI                          1.00E+17                                            0
     16657582      No MI                                                                              0
     16657586      No MI                                                                              0
     16657587      No MI                                                                              0
     16657588      No MI                          1.00E+17                                            0
     16657590      No MI                                                                              0
     16657592      No MI                          1.00E+17                                            0
     16657600      No MI                                                                              0
     16657608      No MI                                                                              0
     16657614      No MI                                                                              0
     16657617      No MI                          1.00E+17                                            0
     16657623      No MI                          1.00E+17                                            0
     16657628      No MI                                                                              0
     16657632      No MI                          1.00E+17                                            0
     16657633      No MI                          1.00E+17                                            0
     16657635      No MI                                                                              0
     16657638      No MI                                                                              0
     16657640      No MI                          1.00E+17                                            0
     16657647      No MI                          1.00E+17                                            0
     16657653      No MI                                                                              0
     16657654      No MI                                                                              0
     16657658      No MI                                                                              0
     16657661      PMI                                                                                0
     16657666      No MI                                                                              0
     16657667      No MI                                                                              0
     16657669      No MI                                                                              0
     16657671      No MI                                                                              0
     16657677      No MI                                                                              0
     16657678      No MI                                                                              0
     16657679      No MI                                                                              0
     16657681      No MI                          1.00E+17                                            0
     16657685      No MI                          1.00E+17                                            0
     16657687      No MI                                                                              0
     16657692      No MI                          1.00E+17                                            0
     16657695      GE Capital MI                                                                      0
     16657698      No MI                                                                              0
     16657700      No MI                                                                              0
     16657703      No MI                                                                              0
     16657704      No MI                          1.00E+17                                            0
     16657721      No MI                                                                              0
     16657366      No MI                          1.00E+17                                            0
     16657552      No MI                          1.00E+17                                            0
     16657643      No MI                                                                              0
     16657645      No MI                          1.00E+17                                            0
     16657684      No MI                                                                              0
     16657723      No MI                          1.00E+17                                            0
     16657724      No MI                                                                              0
     16657725      No MI                                                                              0
     16657727      No MI                          1.00E+17                                            0
     16657733      No MI                                                                              0
     16657736      No MI                                                                              0
     16657737      No MI                                                                              0
     16657738      No MI                          1.00E+17                                            0
     16657739      No MI                                                                              0
     16657743      No MI                          1.00E+17                                            0
     16657745      No MI                          1.00E+17                                            0
     16657746      No MI                                                                              0
     16657748      No MI                                                                              0
     16657750      No MI                          1.00E+17                                            0
     16657751      No MI                                                                              0
     16657753      No MI                                                                              0
     16657754      PMI                                                                                0
     16657755      No MI                                                                              0
     16657756      No MI                                                                              0
     16657759      PMI                                                                                0
     16657761      No MI                          1.00E+17                                            0
     16657764      No MI                                                                              0
     16657765      No MI                          1.00E+17                                            0
     16657771      No MI                                                                              0
     16657773      No MI                          1.00E+17                                            0
     16657776      No MI                                                                              0
     16657777      PMI                                                                                0
     16657778      No MI                          1.00E+17                                            0
     16657779      GE Capital MI                                                                      0
     16657780      No MI                          1.00E+17                                            0
     16657784      No MI                          1.00E+17                                            0
     16657786      No MI                                                                              0
     16657790      No MI                                                                              0
     16657792      No MI                                                                              0
     16657793      No MI                                                                              0
     16657794      No MI                                                                              0
     16657797      No MI                                                                              0
     16657798      No MI                                                                              0
     16657805      No MI                          1.00E+17                                            0
     16657807      No MI                          1.00E+17                                            0
     16657808      No MI                                                                              0
     16657810      No MI                                                                              0
     16657818      No MI                                                                              0
     16657821      No MI                                                                              0
     16657822      No MI                                                                              0
     16657828      No MI                          1.00E+17                                            0
     16657829      No MI                                                                              0
     16657830      No MI                          1.00E+17                                            0
     16657832      No MI                          1.00E+17                                            0
     16657834      Republic MIC                                                                       0
     16657835      No MI                                                                              0
     16657837      No MI                                                                              0
     16657841      Republic MIC                                                                       0
     16657846      No MI                          1.00E+17                                            0
     16657850      No MI                          1.00E+17                                            0
     16657851      No MI                                                                              0
     16657854      No MI                                                                              0
     16657855      United Guaranty                                                                    0
     16657858      Republic MIC                                                                       0
     16657860      No MI                          1.00E+17                                            0
     16657861      GE Capital MI                                                                      0
     16657870      No MI                                                                              0
     16657871      No MI                                                                              0
     16657876      No MI                          1.00E+17                                            0
     16657878      No MI                                                                              0
     16657879      No MI                                                                              0
     16657880      No MI                                                                              0
     16657885      GE Capital MI                                                                      0
     16657887      No MI                          1.00E+17                                            0
     16657888      No MI                                                                              0
     16657889      No MI                                                                              0
     16657894      PMI                                                                                0
     16657896      No MI                                                                              0
     16657897      No MI                                                                              0
     16657898      No MI                                                                              0
     16657905      No MI                                                                              0
     16657906      No MI                                                                              0
     16657910      No MI                                                                              0
     16657912      No MI                                                                              0
     16657915      No MI                                                                              0
     16657916      No MI                                                                              0
     16657917      No MI                                                                              0
     16657919      No MI                                                                              0
     16657920      GE Capital MI                                                                      0
     16657923      No MI                                                                              0
     16657924      No MI                                                                              0
     16657925      No MI                          1.00E+17                                            0
     16657927      No MI                                                                              0
     16657930      No MI                                                                              0
     16657937      No MI                                                                              0
     16657938      No MI                                                                              0
     16657939      GE Capital MI                                                                      0
     16657908      No MI                          1.00E+17                                            0
     16657943      No MI                                                                              0
     16657944      No MI                                                                              0
     16657951      No MI                                                                              0
     16657952      No MI                                                                              0
     16657953      No MI                                                                              0
     16657954      No MI                                                                              0
     16657957      No MI                                                                              0
     16657960      No MI                                                                              0
     16657961      No MI                                                                              0
     16657962      No MI                          1.00E+17                                            0
     16657964      No MI                                                                              0
     16657965      No MI                                                                              0
     16657969      No MI                                                                              0
     16657972      No MI                                                                              0
     16657976      No MI                                                                              0
     16657978      No MI                                                                              0
     16657982      No MI                                                                              0
     16657983      PMI                                                                                0
     16657984      PMI                                                                                0
     16657985      GE Capital MI                                                                      0
     16657986      GE Capital MI                                                                      0
     16657988      GE Capital MI                                                                      0
     16657989      PMI                                                                                0
     16657991      No MI                                                                              0
     16657994      No MI                                                                              0
     16657996      No MI                                                                              0
     16657998      PMI                                                                                0
     16658001      No MI                          1.00E+17                                            0
     16658003      No MI                                                                              0
     16658004      No MI                                                                              0
     16658008      No MI                                                                              0
     16658010      Republic MIC                                                                       0
     16658011      No MI                          1.00E+17                                            0
     16658012      No MI                          1.00E+17                                            0
     16658013      No MI                                                                              0
     16658014      No MI                          1.00E+17                                            0
     16658017      No MI                                                                              0
     16658018      Republic MIC                                                                       0
     16658020      No MI                                                                              0
     16658025      No MI                          1.00E+17                                            0
     16658033      No MI                          1.00E+17                                            0
     16658039      No MI                                                                              0
     16658046      No MI                                                                              0
     16658053      No MI                                                                              0
     16658060      No MI                                                                              0
     16658063      No MI                                                                              0
     16658073      No MI                                                                              0
     16658078      No MI                                                                              0
     16658080      No MI                                                                              0
     16658086      No MI                                                                              0
     16658088      No MI                          1.00E+17                                            0
     16658089      No MI                          1.00E+17                                            0
     16658091      No MI                          1.00E+17                                            0
     14425830      No MI                          1.00E+17                                            0              19000101
     15628322      No MI                          1.00E+17                                            0
     16243109      No MI                          1.00E+17                                            0
     15757419      No MI                                                                              0
     16341408      No MI                          1.00E+17                                            0              19000101
     16341423      No MI                          1.00E+17                                            0              19000101
     16319910      No MI                          1.00E+17                                            0              19000101
     16319915      No MI                          1.00E+17                                            0              19000101
     16375684      No MI                          1.00E+17                                            0              19000101
     16375685      No MI                          1.00E+17                                            0              19000101
     16375701      No MI                          1.00E+17                                            0              19000101
     16375711      No MI                          1.00E+17                                            0              19000101
     16375714      No MI                          1.00E+17                                            0              19000101
     16396190      No MI                                                                              0
     16396195      No MI                          1.00E+17                                            0
     16396198      No MI                          1.00E+17                                            0
     16396208      No MI                          1.00E+17                                            0
     16396209      No MI                                                                              0
     16396210      No MI                          1.00E+17                                            0
     16396232      No MI                          1.00E+17                                            0
     16396241      No MI                          1.00E+17                                            0
     15338945      No MI                          1.00E+17                                            0              19000101
     15498288      No MI                          1.00E+17                                            0
     15628273      No MI                          1.00E+17                                            0
     15628284      No MI                          1.00E+17                                            0
     15628300      No MI                          1.00E+17                                            0
     15628380      No MI                          1.00E+17                                            0
     15765233      No MI                          1.00E+17                                            0
     16206035      No MI                          1.00E+17                                            0
     16341407      No MI                          1.00E+17                                            0              19000101
     16341410      No MI                          1.00E+17                                            0              19000101
     16341412      No MI                          1.00E+17                                            0              19000101
     16341413      No MI                          1.00E+17                                            0              19000101
     16341414      No MI                          1.00E+17                                            0              19000101
     16341415      No MI                          1.00E+17                                            0              19000101
     16341416      No MI                          1.00E+17                                            0              19000101
     16341417      No MI                          1.00E+17                                            0              19000101
     16341418      No MI                          1.00E+17                                            0              19000101
     16341419      No MI                          1.00E+17                                            0              19000101
     16341420      No MI                          1.00E+17                                            0              19000101
     16341421      No MI                          1.00E+17                                            0              19000101
     16341422      No MI                          1.00E+17                                            0              19000101
     16341424      No MI                          1.00E+17                                            0              19000101
     16319907      No MI                          1.00E+17                                            0              19000101
     16319908      No MI                          1.00E+17                                            0              19000101
     16319909      No MI                          1.00E+17                                            0              19000101
     16319912      No MI                          1.00E+17                                            0              19000101
     16319913      No MI                          1.00E+17                                            0              19000101
     16319916      No MI                          1.00E+17                                            0              19000101
     16319917      No MI                          1.00E+17                                            0              19000101
     16319922      No MI                          1.00E+17                                            0              19000101
     16319925      No MI                          1.00E+17                                            0              19000101
     16319926      No MI                          1.00E+17                                            0              19000101
     16319929      No MI                          1.00E+17                                            0              19000101
     16319930      No MI                          1.00E+17                                            0              19000101
     16319931      No MI                          1.00E+17                                            0              19000101
     16319932      No MI                          1.00E+17                                            0              19000101
     16319935      No MI                          1.00E+17                                            0              19000101
     16319936      No MI                          1.00E+17                                            0              19000101
     16319937      No MI                          1.00E+17                                            0              19000101
     16319938      No MI                          1.00E+17                                            0              19000101
     16375678      No MI                          1.00E+17                                            0              19000101
     16375679      No MI                          1.00E+17                                            0              19000101
     16375680      No MI                          1.00E+17                                            0              19000101
     16375681      No MI                          1.00E+17                                            0              19000101
     16375682      No MI                          1.00E+17                                            0              19000101
     16375683      No MI                          1.00E+17                                            0              19000101
     16375686      No MI                          1.00E+17                                            0              19000101
     16375687      No MI                          1.00E+17                                            0              19000101
     16375688      No MI                          1.00E+17                                            0              19000101
     16375690      No MI                          1.00E+17                                            0              19000101
     16375692      No MI                          1.00E+17                                            0              19000101
     16375693      No MI                          1.00E+17                                            0              19000101
     16375694      No MI                          1.00E+17                                            0              19000101
     16375695      No MI                          1.00E+17                                            0              19000101
     16375696      No MI                          1.00E+17                                            0              19000101
     16375697      No MI                          1.00E+17                                            0              19000101
     16375699      No MI                          1.00E+17                                            0              19000101
     16375700      No MI                          1.00E+17                                            0              19000101
     16375702      No MI                          1.00E+17                                            0              19000101
     16375703      No MI                          1.00E+17                                            0              19000101
     16375704      No MI                          1.00E+17                                            0              19000101
     16375705      No MI                          1.00E+17                                            0              19000101
     16375706      No MI                          1.00E+17                                            0              19000101
     16375707      No MI                          1.00E+17                                            0              19000101
     16375708      No MI                          1.00E+17                                            0              19000101
     16375709      No MI                          1.00E+17                                            0              19000101
     16375710      No MI                          1.00E+17                                            0              19000101
     16396193      No MI                          1.00E+17                                            0
     16396194      No MI                          1.00E+17                                            0
     16396196      No MI                          1.00E+17                                            0
     16396197      No MI                          1.00E+17                                            0
     16396200      No MI                          1.00E+17                                            0
     16396201      No MI                          1.00E+17                                            0
     16396202      No MI                          1.00E+17                                            0
     16396205      No MI                          1.00E+17                                            0
     16396206      No MI                          1.00E+17                                            0
     16396207      No MI                          1.00E+17                                            0
     16396211      No MI                          1.00E+17                                            0
     16396214      No MI                          1.00E+17                                            0
     16396215      No MI                          1.00E+17                                            0
     16396217      United Guaranty                1.00E+17                                            0
     16396218      No MI                          1.00E+17                                            0
     16396219      No MI                          1.00E+17                                            0
     16396221      No MI                          1.00E+17                                            0
     16396222      No MI                          1.00E+17                                            0
     16396223      No MI                          1.00E+17                                            0
     16396226      No MI                          1.00E+17                                            0
     16396227      No MI                          1.00E+17                                            0
     16396230      No MI                          1.00E+17                                            0
     16396231      No MI                          1.00E+17                                            0
     16396234      No MI                          1.00E+17                                            0
     16396235      No MI                          1.00E+17                                            0
     16396237      No MI                          1.00E+17                                            0
     16396239      No MI                          1.00E+17                                            0
     16396240      No MI                          1.00E+17                                            0
     16396242      No MI                          1.00E+17                                            0
     16396243      No MI                          1.00E+17                                            0
     16396246      No MI                          1.00E+17                                            0
     16396247      No MI                          1.00E+17                                            0
     16396248      No MI                          1.00E+17                                            0
     15498289      No MI                          1.00E+17                                            0
     15590615      No MI                          1.00E+17                                            0
     15628389      No MI                          1.00E+17                                            0
     15628411      No MI                          1.00E+17                                            0
     15765225      No MI                          1.00E+17                                            0
     16341409      No MI                          1.00E+17                                            0              19000101
     16341411      No MI                          1.00E+17                                            0              19000101
     16319906      No MI                          1.00E+17                                            0              19000101
     16319934      No MI                          1.00E+17                                            0              19000101
     16375689      No MI                          1.00E+17                                            0              19000101
     16375698      No MI                          1.00E+17                                            0              19000101
     16375712      No MI                          1.00E+17                                            0              19000101
     16396199      No MI                          1.00E+17                                            0
     16396204      No MI                          1.00E+17                                            0
     16396213      No MI                          1.00E+17                                            0
     16396216      No MI                          1.00E+17                                            0
     16396220      No MI                          1.00E+17                                            0
     16396225      No MI                          1.00E+17                                            0
     16396233      No MI                          1.00E+17                                            0
     16396236      No MI                          1.00E+17                                            0
     15765213      No MI                          1.00E+17                                            0              19000101
     16396238      No MI                          1.00E+17                                            0
     15498275      No MI                          1.00E+17                                            0              19000101
     16396191      No MI                                                                              0
     16396224      No MI                          1.00E+17                                            0
     16319911      No MI                          1.00E+17                                            0              19000101
     16396229      No MI                          1.00E+17                                            0
     16657043      United Guaranty                1.00E+17                                            0
     16657053      United Guaranty                1.00E+17                                            0
     16657063      United Guaranty                1.00E+17                                            0
     16657102      United Guaranty                1.00E+17                                            0
     16657138      United Guaranty                1.00E+17                                            0
     16657222      United Guaranty                1.00E+17                                            0
     16657236      United Guaranty                1.00E+17                                            0
     16657255      United Guaranty                1.00E+17                                            0
     16657284      No MI                          1.00E+17                                            0
     16657317      No MI                          1.00E+17                                            0
     16657334      Triad Guaranty                 1.00E+17                                            0
     16657373      No MI                          1.00E+17                                            0
     16657375      Republic MIC                   1.00E+17                                            0
     16657446      United Guaranty                1.00E+17                                            0
     16657469      United Guaranty                                                                    0
     16657579      United Guaranty                                                                    0
     16657639      United Guaranty                1.00E+17                                            0
     16657642      United Guaranty                1.00E+17                                            0
     16657649      United Guaranty                                                                    0
     16657652      United Guaranty                1.00E+17                                            0
     16657676      United Guaranty                                                                    0
     16657702      United Guaranty                                                                    0
     16657787      No MI                                                                              0
     16657843      No MI                                                                              0
     16657872      United Guaranty                                                                    0
     16657940      No MI                                                                              0
     16657950      No MI                                                                              0
     16657971      No MI                                                                              0
     16658071      No MI                                                                              0
     16657399      No MI                          1.00E+17                                            0
     16657655      No MI                          1.00E+17                                            0
     16657768      No MI                                                                              0

LOAN_ID            MAX_         MIN_RATE           PER_RATE           GROUP_ID           LIEN                 BALLOON
                   RATE                            _CAP
---------------------------------------------------------------------------------------------------------------------------
     15832932        5.375                  0                  0      GR1                First Lien           No
     16015803        5.375                  0                  0      GR2                First Lien           No
     16015807        5.375                  0                  0      GR1                First Lien           No
     16015810        5.375                  0                  0      GR1                First Lien           No
     16015821            6                  0                  0      GR2                First Lien           No
     16015822          5.5                  0                  0      GR1                First Lien           No
     16015833         5.75                  0                  0      GR2                First Lien           No
     16015843        5.875                  0                  0      GR2                First Lien           No
     16015863        5.375                  0                  0      GR1                First Lien           No
     16015865        5.375                  0                  0      GR2                First Lien           No
     16015870         5.75                  0                  0      GR2                First Lien           No
     15438581         5.75                  0                  0      GR2                First Lien           No
     16657104         7.25                  0                  0      GR1                First Lien           No
     16657108         8.25                  0                  0      GR1                First Lien           No
     16657116         6.75                  0                  0      GR1                First Lien           No
     16657122            7                  0                  0      GR1                First Lien           No
     16657049        7.375                  0                  0      GR1                First Lien           No
     16657131            8                  0                  0      GR1                First Lien           No
     16657051        7.375                  0                  0      GR1                First Lien           No
     16657137        5.875                  0                  0      GR2                First Lien           No
     16657056          6.5                  0                  0      GR1                First Lien           No
     16657060        6.125                  0                  0      GR2                First Lien           No
     16658049          6.5                  0                  0      GR1                First Lien           No
     16657161        6.625                  0                  0      GR2                First Lien           No
     16657089        7.875                  0                  0      GR1                First Lien           No
     16657415        6.625                  0                  0      GR1                First Lien           No
     16657177          6.5                  0                  0      GR2                First Lien           No
     16657096        6.625                  0                  0      GR1                First Lien           No
     16657500        6.625                  0                  0      GR1                First Lien           No
     16657423          6.5                  0                  0      GR1                First Lien           No
     16657425          6.5                  0                  0      GR1                First Lien           No
     16657506        6.875                  0                  0      GR1                First Lien           No
     16657427          6.5                  0                  0      GR1                First Lien           No
     16657428            7                  0                  0      GR1                First Lien           No
     16657187            7                  0                  0      GR1                First Lien           No
     16657430        6.875                  0                  0      GR1                First Lien           No
     16657516          6.5                  0                  0      GR1                First Lien           No
     16657518          8.5                  0                  0      GR1                First Lien           No
     16657439        6.625                  0                  0      GR1                First Lien           No
     16657520        7.875                  0                  0      GR1                First Lien           No
     16657602        6.625                  0                  0      GR1                First Lien           No
     16657523        6.625                  0                  0      GR1                First Lien           No
     16657443          6.5                  0                  0      GR1                First Lien           No
     16657605        6.875                  0                  0      GR1                First Lien           No
     16657606        6.625                  0                  0      GR1                First Lien           No
     16657611         6.75                  0                  0      GR1                First Lien           No
     16657612         6.75                  0                  0      GR1                First Lien           No
     16657532         6.75                  0                  0      GR1                First Lien           No
     16657533        6.375                  0                  0      GR1                First Lien           No
     16657452        6.875                  0                  0      GR1                First Lien           No
     16657453        6.875                  0                  0      GR1                First Lien           No
     16657454        6.375                  0                  0      GR1                First Lien           No
     16657537          6.5                  0                  0      GR1                First Lien           No
     16657456         6.75                  0                  0      GR2                First Lien           No
     16657457          7.5                  0                  0      GR1                First Lien           No
     16657459            8                  0                  0      GR2                First Lien           No
     16657460          6.5                  0                  0      GR1                First Lien           No
     16657624         6.75                  0                  0      GR1                First Lien           No
     16657543        6.625                  0                  0      GR1                First Lien           No
     16657463            7                  0                  0      GR1                First Lien           No
     16657545        6.625                  0                  0      GR1                First Lien           No
     16657546        6.625                  0                  0      GR1                First Lien           No
     16657465         7.75                  0                  0      GR1                First Lien           No
     16657466        8.375                  0                  0      GR1                First Lien           No
     16657711          7.5                  0                  0      GR1                First Lien           No
     16657470         6.75                  0                  0      GR1                First Lien           No
     16657553        6.625                  0                  0      GR1                First Lien           No
     16657472         6.25                  0                  0      GR1                First Lien           No
     16657554        7.875                  0                  0      GR1                First Lien           No
     16657555        7.875                  0                  0      GR1                First Lien           No
     16657476        7.875                  0                  0      GR1                First Lien           No
     16657477         6.75                  0                  0      GR1                First Lien           No
     16657559        7.125                  0                  0      GR1                First Lien           No
     16657479        7.875                  0                  0      GR1                First Lien           No
     16657804        6.625                  0                  0      GR1                First Lien           No
     16657562         6.75                  0                  0      GR1                First Lien           No
     16657567          6.5                  0                  0      GR1                First Lien           No
     16657568            6                  0                  0      GR2                First Lien           No
     16657570        6.875                  0                  0      GR1                First Lien           No
     16657490         6.75                  0                  0      GR1                First Lien           No
     16657491         6.75                  0                  0      GR1                First Lien           No
     16657492            6                  0                  0      GR2                First Lien           No
     16657494         6.25                  0                  0      GR2                First Lien           No
     16657657        6.625                  0                  0      GR1                First Lien           No
     16657497          6.5                  0                  0      GR1                First Lien           No
     16657659         6.75                  0                  0      GR1                First Lien           No
     16657499        6.625                  0                  0      GR1                First Lien           No
     16657581         6.75                  0                  0      GR1                First Lien           No
     16657664        6.125                  0                  0      GR2                First Lien           No
     16657584         6.25                  0                  0      GR1                First Lien           No
     16657585         6.75                  0                  0      GR2                First Lien           No
     16657595        6.875                  0                  0      GR1                First Lien           No
     16657598          6.5                  0                  0      GR1                First Lien           No
     16657688        6.375                  0                  0      GR1                First Lien           No
     16657693        6.375                  0                  0      GR1                First Lien           No
     16657788        6.625                  0                  0      GR1                First Lien           No
     16657995         6.75                  0                  0      GR1                First Lien           No
     16657999        7.375                  0                  0      GR1                First Lien           No
     16657041        6.625                  0                  0      GR1                First Lien           No
     16657044            7                  0                  0      GR1                First Lien           No
     16657045        6.875                  0                  0      GR1                First Lien           No
     16657065         7.75                  0                  0      GR1                First Lien           No
     16657078         6.75                  0                  0      GR1                First Lien           No
     16657085         6.25                  0                  0      GR1                First Lien           No
     16657086        7.625                  0                  0      GR1                First Lien           No
     16657087        7.625                  0                  0      GR1                First Lien           No
     16657090        7.625                  0                  0      GR1                First Lien           No
     16657106        8.375                  0                  0      GR1                First Lien           No
     16657112        6.875                  0                  0      GR1                First Lien           No
     16657117        6.875                  0                  0      GR1                First Lien           No
     16657119        7.625                  0                  0      GR1                First Lien           No
     16657120        8.375                  0                  0      GR1                First Lien           No
     16657121          6.5                  0                  0      GR2                First Lien           No
     16657125        7.875                  0                  0      GR1                First Lien           No
     16657132          7.5                  0                  0      GR1                First Lien           No
     16657134        6.625                  0                  0      GR1                First Lien           No
     16657149        8.375                  0                  0      GR1                First Lien           No
     16657154         7.75                  0                  0      GR1                First Lien           No
     16657158        6.625                  0                  0      GR1                First Lien           No
     16657163        6.875                  0                  0      GR1                First Lien           No
     16657166        7.875                  0                  0      GR1                First Lien           No
     16657171        6.375                  0                  0      GR2                First Lien           No
     16657173        6.875                  0                  0      GR1                First Lien           No
     16657180        7.875                  0                  0      GR1                First Lien           No
     16657181        8.125                  0                  0      GR1                First Lien           No
     16657182        7.875                  0                  0      GR1                First Lien           No
     16657183          6.5                  0                  0      GR1                First Lien           No
     16657189        6.875                  0                  0      GR1                First Lien           No
     16657191         7.25                  0                  0      GR1                First Lien           No
     16657192            7                  0                  0      GR1                First Lien           No
     16657197        7.125                  0                  0      GR1                First Lien           No
     16657203         6.75                  0                  0      GR1                First Lien           No
     16657206         6.75                  0                  0      GR1                First Lien           No
     16657209        6.625                  0                  0      GR1                First Lien           No
     16657211        6.375                  0                  0      GR1                First Lien           No
     16657220        6.875                  0                  0      GR1                First Lien           No
     16657224         6.75                  0                  0      GR1                First Lien           No
     16657226        6.875                  0                  0      GR1                First Lien           No
     16657231          6.5                  0                  0      GR1                First Lien           No
     16657233        7.375                  0                  0      GR1                First Lien           No
     16657234          6.5                  0                  0      GR1                First Lien           No
     16657237        6.875                  0                  0      GR1                First Lien           No
     16657240        8.375                  0                  0      GR1                First Lien           No
     16657241        6.625                  0                  0      GR1                First Lien           No
     16657246            7                  0                  0      GR1                First Lien           No
     16657248         7.25                  0                  0      GR1                First Lien           No
     16657250        6.875                  0                  0      GR1                First Lien           No
     16657260        6.375                  0                  0      GR2                First Lien           No
     16657268        6.625                  0                  0      GR1                First Lien           No
     16657270        7.875                  0                  0      GR1                First Lien           No
     16657275          8.5                  0                  0      GR1                First Lien           No
     16657276        8.625                  0                  0      GR1                First Lien           No
     16657277         8.75                  0                  0      GR1                First Lien           No
     16657279            8                  0                  0      GR1                First Lien           No
     16657280          8.5                  0                  0      GR1                First Lien           No
     16657281         8.75                  0                  0      GR1                First Lien           No
     16657283         8.75                  0                  0      GR1                First Lien           No
     16657294        8.625                  0                  0      GR1                First Lien           No
     16657295        8.375                  0                  0      GR1                First Lien           No
     16657296        7.625                  0                  0      GR1                First Lien           No
     16657297        8.375                  0                  0      GR1                First Lien           No
     16657298          8.5                  0                  0      GR1                First Lien           No
     16657300        6.625                  0                  0      GR1                First Lien           No
     16657303        8.625                  0                  0      GR1                First Lien           No
     16657306         8.25                  0                  0      GR1                First Lien           No
     16657313        7.625                  0                  0      GR1                First Lien           No
     16657316         8.25                  0                  0      GR1                First Lien           No
     16657319        8.375                  0                  0      GR1                First Lien           No
     16657325        6.875                  0                  0      GR1                First Lien           No
     16657327          8.5                  0                  0      GR1                First Lien           No
     16657332        8.625                  0                  0      GR1                First Lien           No
     16657336         8.25                  0                  0      GR1                First Lien           No
     16657337        7.625                  0                  0      GR1                First Lien           No
     16657338        7.375                  0                  0      GR1                First Lien           No
     16657345         8.25                  0                  0      GR1                First Lien           No
     16657346            7                  0                  0      GR1                First Lien           No
     16657348         6.75                  0                  0      GR1                First Lien           No
     16657349         6.75                  0                  0      GR1                First Lien           No
     16657352          8.5                  0                  0      GR1                First Lien           No
     16657361        7.875                  0                  0      GR1                First Lien           No
     16657363        8.125                  0                  0      GR1                First Lien           No
     16657368         6.75                  0                  0      GR1                First Lien           No
     16657369        6.875                  0                  0      GR1                First Lien           No
     16657371         8.25                  0                  0      GR1                First Lien           Yes
     16657374        8.125                  0                  0      GR1                First Lien           No
     16657383        7.875                  0                  0      GR1                First Lien           No
     16657385        8.125                  0                  0      GR1                First Lien           No
     16657386        8.375                  0                  0      GR1                First Lien           No
     16657387          8.5                  0                  0      GR1                First Lien           No
     16657388        8.625                  0                  0      GR1                First Lien           No
     16657389        8.625                  0                  0      GR1                First Lien           No
     16657390        8.125                  0                  0      GR1                First Lien           No
     16657391          8.5                  0                  0      GR1                First Lien           No
     16657393            8                  0                  0      GR1                First Lien           No
     16657411         6.75                  0                  0      GR1                First Lien           No
     16657433        6.625                  0                  0      GR1                First Lien           No
     16657451         7.25                  0                  0      GR1                First Lien           No
     16657486          6.5                  0                  0      GR1                First Lien           No
     16657508          6.5                  0                  0      GR2                First Lien           No
     16657517          6.5                  0                  0      GR1                First Lien           No
     16657519         6.75                  0                  0      GR1                First Lien           No
     16657549          6.5                  0                  0      GR1                First Lien           No
     16657550        5.875                  0                  0      GR2                First Lien           No
     16657577        6.875                  0                  0      GR1                First Lien           No
     16657580         6.75                  0                  0      GR1                First Lien           No
     16657582        6.625                  0                  0      GR1                First Lien           No
     16657586        6.875                  0                  0      GR1                First Lien           No
     16657587        6.875                  0                  0      GR1                First Lien           No
     16657588         6.75                  0                  0      GR1                First Lien           No
     16657590        6.625                  0                  0      GR1                First Lien           No
     16657592          6.5                  0                  0      GR1                First Lien           No
     16657600            8                  0                  0      GR1                First Lien           No
     16657608        8.125                  0                  0      GR1                First Lien           No
     16657614          6.5                  0                  0      GR1                First Lien           No
     16657617        6.375                  0                  0      GR1                First Lien           No
     16657623          6.5                  0                  0      GR2                First Lien           No
     16657628         6.25                  0                  0      GR2                First Lien           No
     16657632          6.5                  0                  0      GR1                First Lien           No
     16657633          6.5                  0                  0      GR1                First Lien           No
     16657635          8.5                  0                  0      GR1                First Lien           No
     16657638        6.625                  0                  0      GR1                First Lien           No
     16657640        6.625                  0                  0      GR1                First Lien           No
     16657647        6.375                  0                  0      GR1                First Lien           No
     16657653        6.625                  0                  0      GR1                First Lien           No
     16657654        6.875                  0                  0      GR1                First Lien           No
     16657658        6.625                  0                  0      GR1                First Lien           No
     16657661        8.625                  0                  0      GR1                First Lien           No
     16657666         6.75                  0                  0      GR1                First Lien           No
     16657667         6.75                  0                  0      GR1                First Lien           No
     16657669        6.625                  0                  0      GR1                First Lien           No
     16657671         6.75                  0                  0      GR1                First Lien           No
     16657677        6.625                  0                  0      GR1                First Lien           No
     16657678        7.375                  0                  0      GR1                First Lien           No
     16657679          6.5                  0                  0      GR1                First Lien           No
     16657681        6.625                  0                  0      GR1                First Lien           No
     16657685        6.875                  0                  0      GR1                First Lien           No
     16657687         8.25                  0                  0      GR1                First Lien           No
     16657692        6.375                  0                  0      GR1                First Lien           No
     16657695          8.5                  0                  0      GR1                First Lien           No
     16657698          6.5                  0                  0      GR1                First Lien           No
     16657700         6.75                  0                  0      GR1                First Lien           No
     16657703        6.625                  0                  0      GR1                First Lien           No
     16657704         6.75                  0                  0      GR1                First Lien           No
     16657721          8.5                  0                  0      GR1                First Lien           No
     16657366        6.875                  0                  0      GR1                First Lien           No
     16657552         6.75                  0                  0      GR1                First Lien           No
     16657643         6.75                  0                  0      GR1                First Lien           No
     16657645         6.75                  0                  0      GR1                First Lien           No
     16657684         8.25                  0                  0      GR1                First Lien           No
     16657723        6.625                  0                  0      GR1                First Lien           No
     16657724         6.75                  0                  0      GR1                First Lien           No
     16657725        6.625                  0                  0      GR2                First Lien           No
     16657727        6.875                  0                  0      GR1                First Lien           No
     16657733        6.375                  0                  0      GR1                First Lien           No
     16657736         6.75                  0                  0      GR1                First Lien           No
     16657737        7.875                  0                  0      GR1                First Lien           No
     16657738         6.75                  0                  0      GR1                First Lien           No
     16657739        6.625                  0                  0      GR1                First Lien           No
     16657743         6.75                  0                  0      GR1                First Lien           No
     16657745            7                  0                  0      GR1                First Lien           No
     16657746        6.625                  0                  0      GR1                First Lien           No
     16657748            7                  0                  0      GR1                First Lien           No
     16657750        6.625                  0                  0      GR1                First Lien           No
     16657751        6.875                  0                  0      GR1                First Lien           No
     16657753        6.125                  0                  0      GR1                First Lien           No
     16657754          8.5                  0                  0      GR1                First Lien           No
     16657755          6.5                  0                  0      GR1                First Lien           No
     16657756        6.625                  0                  0      GR1                First Lien           No
     16657759        8.125                  0                  0      GR1                First Lien           No
     16657761         6.75                  0                  0      GR1                First Lien           No
     16657764         6.75                  0                  0      GR1                First Lien           No
     16657765         6.75                  0                  0      GR1                First Lien           No
     16657771          8.5                  0                  0      GR1                First Lien           No
     16657773        6.875                  0                  0      GR1                First Lien           No
     16657776        6.625                  0                  0      GR1                First Lien           No
     16657777         8.75                  0                  0      GR1                First Lien           No
     16657778          6.5                  0                  0      GR1                First Lien           No
     16657779        8.375                  0                  0      GR1                First Lien           No
     16657780        6.875                  0                  0      GR1                First Lien           No
     16657784        6.875                  0                  0      GR1                First Lien           No
     16657786         8.25                  0                  0      GR1                First Lien           No
     16657790        6.625                  0                  0      GR1                First Lien           No
     16657792            8                  0                  0      GR1                First Lien           No
     16657793        8.375                  0                  0      GR1                First Lien           No
     16657794         6.75                  0                  0      GR1                First Lien           No
     16657797         8.25                  0                  0      GR1                First Lien           No
     16657798        6.625                  0                  0      GR1                First Lien           No
     16657805         6.75                  0                  0      GR1                First Lien           No
     16657807        6.875                  0                  0      GR1                First Lien           No
     16657808         6.75                  0                  0      GR1                First Lien           No
     16657810        6.875                  0                  0      GR1                First Lien           No
     16657818        6.625                  0                  0      GR2                First Lien           No
     16657821         6.75                  0                  0      GR1                First Lien           No
     16657822            7                  0                  0      GR1                First Lien           No
     16657828        6.875                  0                  0      GR1                First Lien           No
     16657829         7.75                  0                  0      GR1                First Lien           No
     16657830         6.75                  0                  0      GR1                First Lien           No
     16657832        6.625                  0                  0      GR1                First Lien           No
     16657834        7.875                  0                  0      GR1                First Lien           No
     16657835            7                  0                  0      GR1                First Lien           No
     16657837        8.625                  0                  0      GR1                First Lien           No
     16657841        8.875                  0                  0      GR1                First Lien           No
     16657846        6.625                  0                  0      GR1                First Lien           No
     16657850        6.625                  0                  0      GR1                First Lien           No
     16657851         6.75                  0                  0      GR1                First Lien           No
     16657854            7                  0                  0      GR1                First Lien           No
     16657855        7.625                  0                  0      GR1                First Lien           No
     16657858        8.375                  0                  0      GR1                First Lien           No
     16657860         6.75                  0                  0      GR1                First Lien           No
     16657861        8.625                  0                  0      GR1                First Lien           No
     16657870         7.25                  0                  0      GR1                First Lien           No
     16657871            7                  0                  0      GR1                First Lien           No
     16657876            7                  0                  0      GR1                First Lien           No
     16657878        6.625                  0                  0      GR1                First Lien           No
     16657879         6.75                  0                  0      GR1                First Lien           No
     16657880         6.75                  0                  0      GR1                First Lien           No
     16657885          8.5                  0                  0      GR1                First Lien           No
     16657887         6.75                  0                  0      GR1                First Lien           No
     16657888        6.875                  0                  0      GR1                First Lien           No
     16657889        6.625                  0                  0      GR1                First Lien           No
     16657894         8.25                  0                  0      GR1                First Lien           No
     16657896            7                  0                  0      GR1                First Lien           No
     16657897        6.625                  0                  0      GR1                First Lien           No
     16657898        6.625                  0                  0      GR1                First Lien           No
     16657905        6.875                  0                  0      GR1                First Lien           No
     16657906         6.75                  0                  0      GR1                First Lien           No
     16657910        6.875                  0                  0      GR1                First Lien           No
     16657912            7                  0                  0      GR1                First Lien           No
     16657915          6.5                  0                  0      GR1                First Lien           No
     16657916         6.25                  0                  0      GR1                First Lien           No
     16657917        6.875                  0                  0      GR1                First Lien           No
     16657919         7.25                  0                  0      GR2                First Lien           No
     16657920          7.5                  0                  0      GR1                First Lien           No
     16657923        6.875                  0                  0      GR1                First Lien           No
     16657924        6.875                  0                  0      GR1                First Lien           No
     16657925            7                  0                  0      GR1                First Lien           No
     16657927        7.875                  0                  0      GR1                First Lien           No
     16657930        6.875                  0                  0      GR1                First Lien           No
     16657937        6.875                  0                  0      GR1                First Lien           No
     16657938        7.375                  0                  0      GR1                First Lien           No
     16657939        8.625                  0                  0      GR1                First Lien           No
     16657908         6.75                  0                  0      GR1                First Lien           No
     16657943          6.5                  0                  0      GR1                First Lien           No
     16657944        6.625                  0                  0      GR1                First Lien           No
     16657951            7                  0                  0      GR1                First Lien           No
     16657952        6.875                  0                  0      GR1                First Lien           No
     16657953         6.75                  0                  0      GR1                First Lien           No
     16657954         6.75                  0                  0      GR1                First Lien           No
     16657957        6.625                  0                  0      GR1                First Lien           No
     16657960         6.75                  0                  0      GR1                First Lien           No
     16657961            7                  0                  0      GR1                First Lien           No
     16657962         6.75                  0                  0      GR1                First Lien           No
     16657964        6.875                  0                  0      GR1                First Lien           No
     16657965          6.5                  0                  0      GR1                First Lien           Yes
     16657969        6.625                  0                  0      GR1                First Lien           No
     16657972         7.25                  0                  0      GR1                First Lien           No
     16657976          6.5                  0                  0      GR1                First Lien           No
     16657978         6.75                  0                  0      GR1                First Lien           No
     16657982          7.5                  0                  0      GR1                First Lien           No
     16657983         8.75                  0                  0      GR1                First Lien           No
     16657984         8.75                  0                  0      GR1                First Lien           No
     16657985         8.75                  0                  0      GR1                First Lien           No
     16657986         8.75                  0                  0      GR1                First Lien           No
     16657988         8.75                  0                  0      GR1                First Lien           No
     16657989         8.75                  0                  0      GR1                First Lien           No
     16657991        7.625                  0                  0      GR1                First Lien           No
     16657994        6.625                  0                  0      GR1                First Lien           No
     16657996        6.625                  0                  0      GR1                First Lien           No
     16657998        8.125                  0                  0      GR1                First Lien           No
     16658001        6.875                  0                  0      GR1                First Lien           No
     16658003         6.75                  0                  0      GR1                First Lien           No
     16658004        6.875                  0                  0      GR1                First Lien           No
     16658008        8.125                  0                  0      GR1                First Lien           No
     16658010         8.25                  0                  0      GR1                First Lien           No
     16658011         7.25                  0                  0      GR1                First Lien           No
     16658012        6.375                  0                  0      GR1                First Lien           No
     16658013        6.875                  0                  0      GR1                First Lien           No
     16658014         6.75                  0                  0      GR1                First Lien           No
     16658017        6.875                  0                  0      GR1                First Lien           No
     16658018        8.125                  0                  0      GR1                First Lien           No
     16658020         6.75                  0                  0      GR1                First Lien           No
     16658025         6.75                  0                  0      GR1                First Lien           No
     16658033         7.25                  0                  0      GR1                First Lien           No
     16658039        6.875                  0                  0      GR1                First Lien           No
     16658046        6.875                  0                  0      GR1                First Lien           No
     16658053        7.125                  0                  0      GR1                First Lien           No
     16658060          6.5                  0                  0      GR1                First Lien           No
     16658063        7.125                  0                  0      GR1                First Lien           No
     16658073        6.625                  0                  0      GR1                First Lien           No
     16658078          7.5                  0                  0      GR1                First Lien           No
     16658080            7                  0                  0      GR1                First Lien           No
     16658086        7.125                  0                  0      GR1                First Lien           No
     16658088        6.875                  0                  0      GR1                First Lien           No
     16658089        6.875                  0                  0      GR1                First Lien           No
     16658091        6.875                  0                  0      GR1                First Lien           No
     14425830        5.375                  0                  0      GR1                First Lien           No
     15628322          5.5                  0                  0      GR1                First Lien           No
     16243109        7.125                  0                  0      GR1                First Lien           No
     15757419        5.875                  0                  0      GR2                First Lien           No
     16341408        6.125                  0                  0      GR1                First Lien           No
     16341423            7                  0                  0      GR1                First Lien           No
     16319910          6.5                  0                  0      GR2                First Lien           No
     16319915          6.5                  0                  0      GR2                First Lien           No
     16375684        6.375                  0                  0      GR1                First Lien           No
     16375685        6.875                  0                  0      GR1                First Lien           No
     16375701        6.375                  0                  0      GR1                First Lien           No
     16375711         6.25                  0                  0      GR1                First Lien           No
     16375714        6.625                  0                  0      GR1                First Lien           No
     16396190        6.875                  0                  0      GR2                First Lien           No
     16396195            6                  0                  0      GR2                First Lien           No
     16396198          6.5                  0                  0      GR2                First Lien           No
     16396208          6.5                  0                  0      GR2                First Lien           No
     16396209         6.25                  0                  0      GR2                First Lien           No
     16396210         6.75                  0                  0      GR2                First Lien           No
     16396232        6.625                  0                  0      GR2                First Lien           No
     16396241          6.5                  0                  0      GR2                First Lien           No
     15338945        5.625                  0                  0      GR1                First Lien           No
     15498288         5.75                  0                  0      GR1                First Lien           No
     15628273         5.25                  0                  0      GR1                First Lien           No
     15628284        5.375                  0                  0      GR1                First Lien           No
     15628300          5.5                  0                  0      GR1                First Lien           No
     15628380          5.5                  0                  0      GR1                First Lien           No
     15765233         5.75                  0                  0      GR1                First Lien           No
     16206035        6.375                  0                  0      GR1                First Lien           No
     16341407        6.625                  0                  0      GR1                First Lien           No
     16341410        6.375                  0                  0      GR1                First Lien           No
     16341412        6.625                  0                  0      GR1                First Lien           No
     16341413        6.875                  0                  0      GR1                First Lien           No
     16341414          6.5                  0                  0      GR1                First Lien           No
     16341415        6.875                  0                  0      GR1                First Lien           No
     16341416          6.5                  0                  0      GR1                First Lien           No
     16341417          6.5                  0                  0      GR1                First Lien           No
     16341418          6.5                  0                  0      GR1                First Lien           No
     16341419          6.5                  0                  0      GR1                First Lien           No
     16341420          6.5                  0                  0      GR1                First Lien           No
     16341421         6.75                  0                  0      GR1                First Lien           No
     16341422        6.625                  0                  0      GR1                First Lien           No
     16341424        6.625                  0                  0      GR1                First Lien           No
     16319907        6.375                  0                  0      GR2                First Lien           No
     16319908        5.875                  0                  0      GR2                First Lien           No
     16319909        5.875                  0                  0      GR2                First Lien           No
     16319912            6                  0                  0      GR2                First Lien           No
     16319913         6.75                  0                  0      GR2                First Lien           No
     16319916          6.5                  0                  0      GR2                First Lien           No
     16319917        6.375                  0                  0      GR2                First Lien           No
     16319922        5.875                  0                  0      GR2                First Lien           No
     16319925         6.25                  0                  0      GR2                First Lien           No
     16319926        5.875                  0                  0      GR2                First Lien           No
     16319929        5.875                  0                  0      GR2                First Lien           No
     16319930            6                  0                  0      GR2                First Lien           No
     16319931        6.125                  0                  0      GR2                First Lien           No
     16319932         6.25                  0                  0      GR2                First Lien           No
     16319935         6.25                  0                  0      GR2                First Lien           No
     16319936            6                  0                  0      GR2                First Lien           No
     16319937        6.375                  0                  0      GR2                First Lien           No
     16319938        5.875                  0                  0      GR2                First Lien           No
     16375678          6.5                  0                  0      GR1                First Lien           No
     16375679         5.75                  0                  0      GR2                First Lien           No
     16375680        6.125                  0                  0      GR1                First Lien           No
     16375681         6.25                  0                  0      GR1                First Lien           No
     16375682          6.5                  0                  0      GR1                First Lien           No
     16375683        6.625                  0                  0      GR1                First Lien           No
     16375686        6.375                  0                  0      GR1                First Lien           No
     16375687        6.375                  0                  0      GR1                First Lien           No
     16375688        6.375                  0                  0      GR1                First Lien           No
     16375690        6.375                  0                  0      GR1                First Lien           No
     16375692          6.5                  0                  0      GR1                First Lien           No
     16375693          6.5                  0                  0      GR1                First Lien           No
     16375694          6.5                  0                  0      GR1                First Lien           No
     16375695        6.375                  0                  0      GR1                First Lien           No
     16375696         6.25                  0                  0      GR2                First Lien           No
     16375697          6.5                  0                  0      GR1                First Lien           No
     16375699        6.625                  0                  0      GR1                First Lien           No
     16375700          6.5                  0                  0      GR1                First Lien           No
     16375702          6.5                  0                  0      GR1                First Lien           No
     16375703        6.625                  0                  0      GR1                First Lien           No
     16375704          6.5                  0                  0      GR1                First Lien           No
     16375705          6.5                  0                  0      GR1                First Lien           No
     16375706          6.5                  0                  0      GR1                First Lien           No
     16375707          6.5                  0                  0      GR1                First Lien           No
     16375708          6.5                  0                  0      GR1                First Lien           No
     16375709          6.5                  0                  0      GR1                First Lien           No
     16375710          6.5                  0                  0      GR1                First Lien           No
     16396193        5.875                  0                  0      GR2                First Lien           No
     16396194         6.25                  0                  0      GR2                First Lien           No
     16396196        6.375                  0                  0      GR2                First Lien           No
     16396197         6.25                  0                  0      GR2                First Lien           No
     16396200        6.125                  0                  0      GR2                First Lien           No
     16396201        6.125                  0                  0      GR2                First Lien           No
     16396202         6.25                  0                  0      GR2                First Lien           No
     16396205        6.625                  0                  0      GR2                First Lien           No
     16396206         6.25                  0                  0      GR2                First Lien           No
     16396207          6.5                  0                  0      GR2                First Lien           No
     16396211          6.5                  0                  0      GR2                First Lien           No
     16396214         6.25                  0                  0      GR2                First Lien           No
     16396215        6.375                  0                  0      GR2                First Lien           No
     16396217         6.25                  0                  0      GR2                First Lien           No
     16396218            6                  0                  0      GR2                First Lien           No
     16396219          6.5                  0                  0      GR2                First Lien           No
     16396221        6.625                  0                  0      GR2                First Lien           No
     16396222        6.375                  0                  0      GR2                First Lien           No
     16396223          6.5                  0                  0      GR2                First Lien           No
     16396226            6                  0                  0      GR2                First Lien           No
     16396227        6.375                  0                  0      GR2                First Lien           No
     16396230          6.5                  0                  0      GR2                First Lien           No
     16396231         6.25                  0                  0      GR2                First Lien           No
     16396234         6.25                  0                  0      GR2                First Lien           No
     16396235          6.5                  0                  0      GR2                First Lien           No
     16396237         6.75                  0                  0      GR2                First Lien           No
     16396239        6.375                  0                  0      GR2                First Lien           No
     16396240        6.375                  0                  0      GR2                First Lien           No
     16396242        6.375                  0                  0      GR2                First Lien           No
     16396243          6.5                  0                  0      GR2                First Lien           No
     16396246        6.125                  0                  0      GR2                First Lien           No
     16396247        6.375                  0                  0      GR2                First Lien           No
     16396248        6.625                  0                  0      GR2                First Lien           No
     15498289            6                  0                  0      GR1                First Lien           No
     15590615        5.875                  0                  0      GR1                First Lien           No
     15628389          5.5                  0                  0      GR1                First Lien           No
     15628411          5.5                  0                  0      GR1                First Lien           No
     15765225        5.875                  0                  0      GR1                First Lien           No
     16341409        6.375                  0                  0      GR1                First Lien           No
     16341411          6.5                  0                  0      GR1                First Lien           No
     16319906            6                  0                  0      GR2                First Lien           No
     16319934        6.625                  0                  0      GR2                First Lien           No
     16375689         5.75                  0                  0      GR2                First Lien           No
     16375698          6.5                  0                  0      GR1                First Lien           No
     16375712         6.75                  0                  0      GR1                First Lien           No
     16396199         6.25                  0                  0      GR2                First Lien           No
     16396204          6.5                  0                  0      GR2                First Lien           No
     16396213        6.625                  0                  0      GR2                First Lien           No
     16396216        6.375                  0                  0      GR2                First Lien           No
     16396220          6.5                  0                  0      GR2                First Lien           No
     16396225        6.625                  0                  0      GR2                First Lien           No
     16396233          6.5                  0                  0      GR2                First Lien           No
     16396236        6.375                  0                  0      GR2                First Lien           No
     15765213         6.25                  0                  0      GR1                First Lien           No
     16396238        6.625                  0                  0      GR2                First Lien           No
     15498275        6.125                  0                  0      GR1                First Lien           No
     16396191        6.625                  0                  0      GR2                First Lien           No
     16396224        6.625                  0                  0      GR2                First Lien           No
     16319911        6.875                  0                  0      GR2                First Lien           No
     16396229        6.375                  0                  0      GR2                First Lien           No
     16657043          7.5                  0                  0      GR1                First Lien           No
     16657053         6.75                  0                  0      GR1                First Lien           No
     16657063        6.625                  0                  0      GR1                First Lien           No
     16657102        7.125                  0                  0      GR1                First Lien           No
     16657138          7.5                  0                  0      GR1                First Lien           No
     16657222        7.375                  0                  0      GR1                First Lien           No
     16657236         7.25                  0                  0      GR1                First Lien           No
     16657255        7.625                  0                  0      GR1                First Lien           No
     16657284        6.875                  0                  0      GR1                First Lien           Yes
     16657317         8.75                  0                  0      GR1                First Lien           Yes
     16657334        7.375                  0                  0      GR1                First Lien           Yes
     16657373         7.25                  0                  0      GR1                First Lien           Yes
     16657375            8                  0                  0      GR1                First Lien           Yes
     16657446        7.375                  0                  0      GR1                First Lien           No
     16657469        7.875                  0                  0      GR1                First Lien           No
     16657579          7.5                  0                  0      GR1                First Lien           No
     16657639          7.5                  0                  0      GR1                First Lien           No
     16657642        7.125                  0                  0      GR1                First Lien           No
     16657649        7.625                  0                  0      GR1                First Lien           No
     16657652        7.375                  0                  0      GR1                First Lien           No
     16657676          7.5                  0                  0      GR1                First Lien           No
     16657702        7.625                  0                  0      GR1                First Lien           No
     16657787        6.875                  0                  0      GR1                First Lien           Yes
     16657843          6.5                  0                  0      GR1                First Lien           Yes
     16657872        7.875                  0                  0      GR1                First Lien           No
     16657940        6.875                  0                  0      GR1                First Lien           Yes
     16657950          6.5                  0                  0      GR1                First Lien           Yes
     16657971         6.75                  0                  0      GR1                First Lien           Yes
     16658071         7.75                  0                  0      GR1                First Lien           Yes
     16657399            6                  0                  0      GR1                First Lien           No
     16657655        5.375                  0                  0      GR2                First Lien           No
     16657768        6.125                  0                  0      GR1                First Lien           No

LOAN_ID            IO_             PORTFOLIO                         PREPAY
                   PERIOD
---------------------------------------------------------------------------------
     15832932               0      JUMB                              No
     16015803               0      JUMB                              No
     16015807               0      JUMB                              No
     16015810             120      JUMB                              No
     16015821               0      JUMB                              No
     16015822               0      JUMB                              No
     16015833               0      JUMB                              No
     16015843               0      JUMB                              No
     16015863               0      JUMB                              No
     16015865               0      JUMB                              No
     16015870               0      JUMB                              No
     15438581               0      JUMB                              No
     16657104               0      JUMB                              No
     16657108               0      JUMB                              No
     16657116               0      JUMB                              No
     16657122             120      JUMB                              No
     16657049               0      JUMB                              No
     16657131               0      JUMB                              No
     16657051               0      JUMB                              No
     16657137               0      JUMB                              No
     16657056               0      JUMB                              No
     16657060               0      JUMB                              No
     16658049               0      JUMB                              No
     16657161               0      JUMB                              No
     16657089               0      JUMB                              No
     16657415             180      JUMB                              No
     16657177               0      JUMB                              No
     16657096               0      JUMB                              No
     16657500             120      JUMB                              No
     16657423             120      JUMB                              No
     16657425               0      JUMB                              No
     16657506               0      JUMB                              No
     16657427               0      JUMB                              No
     16657428               0      JUMB                              No
     16657187               0      JUMB                              No
     16657430               0      JUMB                              No
     16657516               0      JUMB                              No
     16657518               0      JUMB                              No
     16657439               0      JUMB                              No
     16657520             120      JUMB                              No
     16657602               0      JUMB                              No
     16657523               0      JUMB                              No
     16657443               0      JUMB                              No
     16657605             120      JUMB                              No
     16657606               0      JUMB                              No
     16657611             120      JUMB                              No
     16657612             120      JUMB                              No
     16657532             120      JUMB                              No
     16657533               0      JUMB                              No
     16657452               0      JUMB                              No
     16657453               0      JUMB                              No
     16657454               0      JUMB                              No
     16657537             120      JUMB                              No
     16657456               0      JUMB                              No
     16657457               0      JUMB                              No
     16657459               0      JUMB                              No
     16657460               0      JUMB                              No
     16657624               0      JUMB                              No
     16657543               0      JUMB                              No
     16657463             120      JUMB                              No
     16657545             120      JUMB                              No
     16657546               0      JUMB                              No
     16657465               0      JUMB                              No
     16657466               0      JUMB                              No
     16657711               0      JUMB                              No
     16657470               0      JUMB                              No
     16657553               0      JUMB                              No
     16657472               0      JUMB                              No
     16657554               0      JUMB                              No
     16657555               0      JUMB                              No
     16657476               0      JUMB                              No
     16657477               0      JUMB                              No
     16657559             120      JUMB                              No
     16657479               0      JUMB                              No
     16657804               0      JUMB                              No
     16657562             180      JUMB                              No
     16657567               0      JUMB                              No
     16657568               0      JUMB                              No
     16657570               0      JUMB                              No
     16657490             120      JUMB                              No
     16657491               0      JUMB                              No
     16657492               0      JUMB                              No
     16657494               0      JUMB                              No
     16657657             120      JUMB                              No
     16657497               0      JUMB                              No
     16657659               0      JUMB                              No
     16657499               0      JUMB                              No
     16657581               0      JUMB                              No
     16657664               0      JUMB                              No
     16657584               0      JUMB                              No
     16657585               0      JUMB                              No
     16657595               0      JUMB                              No
     16657598               0      JUMB                              No
     16657688               0      JUMB                              No
     16657693               0      JUMB                              No
     16657788               0      JUMB                              No
     16657995               0      JUMB                              No
     16657999               0      JUMB                              No
     16657041               0      MJUM                              No
     16657044               0      MJUM                              No
     16657045               0      MJUM                              No
     16657065               0      MJUM                              No
     16657078               0      MJUM                              No
     16657085               0      MJUM                              No
     16657086               0      MJUM                              No
     16657087               0      MJUM                              No
     16657090               0      MJUM                              No
     16657106             120      MJUM                              No
     16657112               0      MJUM                              No
     16657117             120      MJUM                              No
     16657119               0      MJUM                              No
     16657120               0      MJUM                              No
     16657121               0      MJUM                              No
     16657125               0      MJUM                              No
     16657132               0      MJUM                              No
     16657134               0      MJUM                              No
     16657149               0      MJUM                              No
     16657154               0      MJUM                              No
     16657158               0      MJUM                              No
     16657163               0      MJUM                              No
     16657166               0      MJUM                              No
     16657171               0      MJUM                              No
     16657173               0      MJUM                              No
     16657180               0      MJUM                              No
     16657181               0      MJUM                              No
     16657182               0      MJUM                              No
     16657183               0      MJUM                              No
     16657189               0      MJUM                              No
     16657191               0      MJUM                              No
     16657192               0      MJUM                              No
     16657197               0      MJUM                              No
     16657203               0      MJUM                              No
     16657206             180      MJUM                              No
     16657209               0      MJUM                              No
     16657211               0      MJUM                              No
     16657220             180      MJUM                              No
     16657224               0      MJUM                              No
     16657226               0      MJUM                              No
     16657231               0      MJUM                              No
     16657233               0      MJUM                              No
     16657234             180      MJUM                              No
     16657237               0      MJUM                              No
     16657240               0      MJUM                              No
     16657241               0      MJUM                              No
     16657246               0      MJUM                              No
     16657248               0      MJUM                              No
     16657250               0      MJUM                              No
     16657260               0      MJUM                              No
     16657268               0      MJUM                              No
     16657270               0      MJUM                              No
     16657275              60      MJUM                              No
     16657276               0      MJUM                              No
     16657277               0      MJUM                              No
     16657279               0      MJUM                              No
     16657280               0      MJUM                              No
     16657281               0      MJUM                              No
     16657283               0      MJUM                              No
     16657294              60      MJUM                              No
     16657295               0      MJUM                              No
     16657296               0      MJUM                              No
     16657297              60      MJUM                              No
     16657298               0      MJUM                              No
     16657300               0      MJUM                              No
     16657303               0      MJUM                              No
     16657306               0      MJUM                              No
     16657313               0      MJUM                              No
     16657316               0      MJUM                              No
     16657319               0      MJUM                              No
     16657325               0      MJUM                              No
     16657327              60      MJUM                              No
     16657332               0      MJUM                              No
     16657336               0      MJUM                              No
     16657337               0      MJUM                              No
     16657338               0      MJUM                              No
     16657345               0      MJUM                              No
     16657346               0      MJUM                              No
     16657348               0      MJUM                              No
     16657349              60      MJUM                              No
     16657352               0      MJUM                              No
     16657361               0      MJUM                              No
     16657363               0      MJUM                              No
     16657368             180      MJUM                              No
     16657369             180      MJUM                              No
     16657371               0      MJUM                              No
     16657374               0      MJUM                              No
     16657383              60      MJUM                              No
     16657385              60      MJUM                              No
     16657386              60      MJUM                              No
     16657387              60      MJUM                              No
     16657388              60      MJUM                              No
     16657389              60      MJUM                              No
     16657390              60      MJUM                              No
     16657391              60      MJUM                              No
     16657393              60      MJUM                              No
     16657411             120      MJUM                              No
     16657433               0      MJUM                              No
     16657451               0      MJUM                              No
     16657486               0      MJUM                              No
     16657508               0      MJUM                              No
     16657517             180      MJUM                              No
     16657519             120      MJUM                              No
     16657549               0      MJUM                              No
     16657550               0      MJUM                              No
     16657577               0      MJUM                              No
     16657580             120      MJUM                              No
     16657582               0      MJUM                              No
     16657586               0      MJUM                              No
     16657587               0      MJUM                              No
     16657588               0      MJUM                              No
     16657590               0      MJUM                              No
     16657592               0      MJUM                              No
     16657600               0      MJUM                              No
     16657608             120      MJUM                              No
     16657614               0      MJUM                              No
     16657617               0      MJUM                              No
     16657623               0      MJUM                              No
     16657628               0      MJUM                              No
     16657632               0      MJUM                              No
     16657633               0      MJUM                              No
     16657635               0      MJUM                              No
     16657638               0      MJUM                              No
     16657640               0      MJUM                              No
     16657647               0      MJUM                              No
     16657653             180      MJUM                              No
     16657654               0      MJUM                              No
     16657658               0      MJUM                              No
     16657661               0      MJUM                              No
     16657666             120      MJUM                              No
     16657667               0      MJUM                              No
     16657669               0      MJUM                              No
     16657671               0      MJUM                              No
     16657677               0      MJUM                              No
     16657678               0      MJUM                              No
     16657679               0      MJUM                              No
     16657681               0      MJUM                              No
     16657685               0      MJUM                              No
     16657687               0      MJUM                              No
     16657692             120      MJUM                              No
     16657695               0      MJUM                              No
     16657698               0      MJUM                              No
     16657700             120      MJUM                              No
     16657703               0      MJUM                              No
     16657704               0      MJUM                              No
     16657721               0      MJUM                              No
     16657366               0      MJUM                              No
     16657552               0      MJUM                              No
     16657643               0      MJUM                              No
     16657645             120      MJUM                              No
     16657684               0      MJUM                              No
     16657723               0      MJUM                              No
     16657724             180      MJUM                              No
     16657725               0      MJUM                              No
     16657727             120      MJUM                              No
     16657733               0      MJUM                              No
     16657736               0      MJUM                              No
     16657737               0      MJUM                              No
     16657738             120      MJUM                              No
     16657739             180      MJUM                              No
     16657743             120      MJUM                              No
     16657745               0      MJUM                              No
     16657746             180      MJUM                              No
     16657748               0      MJUM                              No
     16657750               0      MJUM                              No
     16657751               0      MJUM                              No
     16657753               0      MJUM                              No
     16657754               0      MJUM                              No
     16657755               0      MJUM                              No
     16657756             180      MJUM                              No
     16657759               0      MJUM                              No
     16657761               0      MJUM                              No
     16657764               0      MJUM                              No
     16657765             180      MJUM                              No
     16657771               0      MJUM                              No
     16657773             120      MJUM                              No
     16657776               0      MJUM                              No
     16657777               0      MJUM                              No
     16657778               0      MJUM                              No
     16657779               0      MJUM                              No
     16657780               0      MJUM                              No
     16657784               0      MJUM                              No
     16657786               0      MJUM                              No
     16657790             120      MJUM                              No
     16657792               0      MJUM                              No
     16657793               0      MJUM                              No
     16657794               0      MJUM                              No
     16657797               0      MJUM                              No
     16657798             180      MJUM                              No
     16657805             120      MJUM                              No
     16657807               0      MJUM                              No
     16657808               0      MJUM                              No
     16657810               0      MJUM                              No
     16657818               0      MJUM                              No
     16657821               0      MJUM                              No
     16657822             120      MJUM                              No
     16657828               0      MJUM                              No
     16657829               0      MJUM                              No
     16657830               0      MJUM                              No
     16657832               0      MJUM                              No
     16657834               0      MJUM                              No
     16657835             180      MJUM                              No
     16657837             120      MJUM                              No
     16657841               0      MJUM                              No
     16657846               0      MJUM                              No
     16657850               0      MJUM                              No
     16657851               0      MJUM                              No
     16657854             120      MJUM                              No
     16657855              60      MJUM                              No
     16657858               0      MJUM                              No
     16657860               0      MJUM                              No
     16657861               0      MJUM                              No
     16657870               0      MJUM                              No
     16657871               0      MJUM                              No
     16657876             120      MJUM                              No
     16657878               0      MJUM                              No
     16657879             120      MJUM                              No
     16657880               0      MJUM                              No
     16657885             120      MJUM                              No
     16657887             120      MJUM                              No
     16657888               0      MJUM                              No
     16657889             180      MJUM                              No
     16657894               0      MJUM                              No
     16657896               0      MJUM                              No
     16657897               0      MJUM                              No
     16657898             120      MJUM                              No
     16657905               0      MJUM                              No
     16657906               0      MJUM                              No
     16657910               0      MJUM                              No
     16657912               0      MJUM                              No
     16657915              60      MJUM                              No
     16657916               0      MJUM                              No
     16657917               0      MJUM                              No
     16657919               0      MJUM                              No
     16657920               0      MJUM                              No
     16657923               0      MJUM                              No
     16657924             180      MJUM                              No
     16657925               0      MJUM                              No
     16657927               0      MJUM                              No
     16657930               0      MJUM                              No
     16657937             120      MJUM                              No
     16657938             120      MJUM                              No
     16657939               0      MJUM                              No
     16657908             120      MJUM                              No
     16657943               0      MJUM                              No
     16657944               0      MJUM                              No
     16657951               0      MJUM                              No
     16657952               0      MJUM                              No
     16657953               0      MJUM                              No
     16657954             180      MJUM                              No
     16657957              60      MJUM                              No
     16657960               0      MJUM                              No
     16657961              60      MJUM                              No
     16657962             120      MJUM                              No
     16657964             120      MJUM                              No
     16657965               0      MJUM                              No
     16657969               0      MJUM                              No
     16657972             120      MJUM                              No
     16657976               0      MJUM                              No
     16657978               0      MJUM                              No
     16657982               0      MJUM                              No
     16657983               0      MJUM                              No
     16657984               0      MJUM                              No
     16657985               0      MJUM                              No
     16657986               0      MJUM                              No
     16657988               0      MJUM                              No
     16657989               0      MJUM                              No
     16657991               0      MJUM                              No
     16657994               0      MJUM                              No
     16657996               0      MJUM                              No
     16657998               0      MJUM                              No
     16658001               0      MJUM                              No
     16658003             180      MJUM                              No
     16658004               0      MJUM                              No
     16658008             180      MJUM                              No
     16658010               0      MJUM                              No
     16658011             120      MJUM                              No
     16658012               0      MJUM                              No
     16658013               0      MJUM                              No
     16658014             120      MJUM                              No
     16658017               0      MJUM                              No
     16658018               0      MJUM                              No
     16658020             120      MJUM                              No
     16658025               0      MJUM                              No
     16658033             120      MJUM                              No
     16658039               0      MJUM                              No
     16658046               0      MJUM                              No
     16658053               0      MJUM                              No
     16658060               0      MJUM                              No
     16658063              60      MJUM                              No
     16658073              60      MJUM                              No
     16658078              60      MJUM                              No
     16658080             120      MJUM                              No
     16658086              60      MJUM                              No
     16658088               0      MJUM                              No
     16658089               0      MJUM                              No
     16658091               0      MJUM                              No
     14425830               0      JUMB                              No
     15628322              60      JUMB                              Yes
     16243109               0      EFLO                              No
     15757419               0      REPR                              No
     16341408               0      JUMB                              No
     16341423               0      MJUM                              No
     16319910             120      JUMB                              No
     16319915             120      JUMB                              No
     16375684               0      MJUM                              No
     16375685               0      MJUM                              No
     16375701               0      MJUM                              No
     16375711               0      MJUM                              No
     16375714               0      MJUM                              No
     16396190             120      JUMB                              No
     16396195             120      MJUM                              No
     16396198             120      MJUM                              No
     16396208             120      MJUM                              No
     16396209             120      MJUM                              No
     16396210             120      JUMB                              No
     16396232             120      MJUM                              No
     16396241             120      MJUM                              No
     15338945             120      REPR                              Yes
     15498288               0      REPR                              No
     15628273              60      JUMB                              Yes
     15628284             120      JUMB                              Yes
     15628300              60      JUMB                              Yes
     15628380              60      JUMB                              Yes
     15765233               0      REPR                              No
     16206035             120      EFLO                              No
     16341407               0      JUMB                              No
     16341410               0      JUMB                              No
     16341412               0      MJUM                              No
     16341413             120      JUMB                              No
     16341414             120      JUMB                              No
     16341415               0      JUMB                              No
     16341416               0      JUMB                              No
     16341417             120      MJUM                              No
     16341418               0      JUMB                              No
     16341419               0      JUMB                              No
     16341420             120      JUMB                              No
     16341421             120      JUMB                              No
     16341422             120      MJUM                              No
     16341424               0      MJUM                              No
     16319907             120      JUMB                              No
     16319908             120      JUMB                              No
     16319909             120      JUMB                              No
     16319912             120      JUMB                              No
     16319913             120      JUMB                              No
     16319916             120      JUMB                              No
     16319917             120      JUMB                              No
     16319922             120      JUMB                              No
     16319925             120      JUMB                              No
     16319926             120      JUMB                              No
     16319929             120      JUMB                              No
     16319930             120      JUMB                              No
     16319931             120      JUMB                              No
     16319932             120      JUMB                              No
     16319935             120      JUMB                              No
     16319936             120      JUMB                              No
     16319937             120      JUMB                              No
     16319938             120      JUMB                              No
     16375678               0      JUMB                              No
     16375679               0      MJUM                              No
     16375680               0      MJUM                              No
     16375681               0      MJUM                              No
     16375682               0      MJUM                              No
     16375683               0      JUMB                              No
     16375686               0      MJUM                              No
     16375687             120      MJUM                              No
     16375688               0      MJUM                              No
     16375690               0      MJUM                              No
     16375692               0      MJUM                              No
     16375693             120      MJUM                              No
     16375694               0      MJUM                              No
     16375695             120      MJUM                              No
     16375696               0      MJUM                              No
     16375697               0      MJUM                              No
     16375699             120      MJUM                              No
     16375700             120      MJUM                              No
     16375702               0      MJUM                              No
     16375703             120      MJUM                              No
     16375704               0      MJUM                              No
     16375705               0      MJUM                              No
     16375706               0      MJUM                              No
     16375707               0      MJUM                              No
     16375708               0      MJUM                              No
     16375709               0      MJUM                              No
     16375710               0      MJUM                              No
     16396193             120      JUMB                              No
     16396194               0      MJUM                              No
     16396196             120      JUMB                              No
     16396197             120      JUMB                              No
     16396200             120      MJUM                              No
     16396201             120      MJUM                              No
     16396202             120      MJUM                              No
     16396205             120      MJUM                              No
     16396206             120      MJUM                              No
     16396207             120      MJUM                              No
     16396211             120      JUMB                              No
     16396214             120      JUMB                              No
     16396215             120      JUMB                              No
     16396217             120      MJUM                              No
     16396218               0      MJUM                              No
     16396219             120      MJUM                              No
     16396221             120      MJUM                              No
     16396222             120      MJUM                              No
     16396223             120      MJUM                              No
     16396226             120      MJUM                              No
     16396227             120      MJUM                              No
     16396230             120      JUMB                              No
     16396231             120      JUMB                              No
     16396234             120      MJUM                              No
     16396235             120      MJUM                              No
     16396237             120      MJUM                              No
     16396239             120      JUMB                              No
     16396240             120      MJUM                              No
     16396242             120      MJUM                              No
     16396243             120      MJUM                              No
     16396246             120      JUMB                              No
     16396247             120      MJUM                              No
     16396248             120      MJUM                              No
     15498289               0      REPR                              No
     15590615               0      REPR                              No
     15628389              60      JUMB                              No
     15628411              60      JUMB                              Yes
     15765225               0      REPR                              No
     16341409               0      JUMB                              No
     16341411               0      JUMB                              No
     16319906             120      JUMB                              No
     16319934             120      JUMB                              No
     16375689               0      MJUM                              No
     16375698             120      MJUM                              No
     16375712               0      MJUM                              No
     16396199             120      JUMB                              No
     16396204             120      JUMB                              No
     16396213             120      MJUM                              No
     16396216             120      MJUM                              No
     16396220             120      JUMB                              No
     16396225             120      MJUM                              No
     16396233               0      JUMB                              No
     16396236             120      JUMB                              No
     15765213               0      REPR                              No
     16396238             120      JUMB                              No
     15498275               0      REPR                              No
     16396191             120      JUMB                              No
     16396224             120      MJUM                              No
     16319911             120      JUMB                              No
     16396229             120      JUMB                              No
     16657043               0      MJUM                              No
     16657053               0      JUMB                              No
     16657063               0      JUMB                              No
     16657102               0      JUMB                              No
     16657138               0      JUMB                              No
     16657222               0      MJUM                              No
     16657236               0      MJUM                              No
     16657255               0      MJUM                              No
     16657284               0      MJUM                              No
     16657317               0      MJUM                              No
     16657334               0      MJUM                              No
     16657373               0      MJUM                              No
     16657375               0      MJUM                              No
     16657446               0      JUMB                              No
     16657469               0      JUMB                              No
     16657579             120      MJUM                              No
     16657639             120      MJUM                              No
     16657642               0      MJUM                              No
     16657649             120      MJUM                              No
     16657652               0      MJUM                              No
     16657676               0      MJUM                              No
     16657702             120      MJUM                              No
     16657787               0      MJUM                              No
     16657843               0      MJUM                              No
     16657872               0      MJUM                              No
     16657940               0      MJUM                              No
     16657950               0      MJUM                              No
     16657971               0      MJUM                              No
     16658071               0      MJUM                              No
     16657399             120      JUMB                              No
     16657655               0      JUMB                              No
     16657768             180      MJUM                              No

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    EXHIBIT
      C

    

    [Reserved]

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    EXHIBIT
      D

     

    REQUEST
      FOR RELEASE OF DOCUMENTS

     

    To:       
       Wells
      Fargo Bank, N.A.

    1015
      10th
      Avenue

    Minneapolis,
      Minnesota 55414

    

    
      	
              RE:

            	
              Custodial
                Agreement dated as of

            

    

    November
      30, 2006, among SAMI II,

    EMC
      Mortgage Corporation, as

    Master
      Servicer, U.S. Bank National

    Association
      as Trustee and Wells Fargo

    Bank,
      National Association as Custodian

    

    In
      connection with the administration of the Mortgage Loans held by you pursuant
      to
      the above-captioned Custodial Agreement, we request the release, and hereby
      acknowledge receipt, of the Mortgage File for the Mortgage Loan described below,
      for the reason indicated.

     

    Mortgage
      Loan Number:

     

    Mortgagor
      Name, Address & Zip Code:

     

    Reason
      for Requesting Documents (check one):

     

    
      	
              _____

            	
              1.

            	
              Mortgage
                Paid in Full and proceeds have been deposited into the Custodial
                Account

            

    

     

    
      	
              _____

            	
              2.

            	
              Foreclosure

            

    

     

    
      	
              _____

            	
              3.

            	
              Substitution

            

    

     

    
      	
              _____

            	
              4.

            	
              Other
                Liquidation

            

    

     

    _____ 5.Nonliquidation
      Reason: _________________________

     

    
      	
              _____

            	
              6.

            	
              California
                Mortgage Loan paid in full

            

    

     

    By:
      ________________________________

    (authorized
      signer)

     

    Issuer:
      ______________________________

    Address:
      ____________________________

    Date:
      _______________________________

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    EXHIBIT
      E

     

    FORM
      OF
      AFFIDAVIT

     

    Affidavit
      pursuant to Section 860E(e)(4) 

    of
      the
      Internal Revenue Code of 1986, as 

    amended,
      and for other purposes

     

    
      	
              STATE
                OF_____________

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    [NAME
      OF
      OFFICER], being first duly sworn, deposes and says:

     

    1. That
      he
      is [Title of Officer] of [Name of Investor] (the “Investor”), a [savings
      institution] [corporation] duly organized and existing under the laws of [the
      State of _______________] [the United States], on behalf of which he makes
      this
      affidavit.

     

    2. That
      (i)
      the Investor is not a “disqualified organization” as defined in Section
      860E(e)(5) of the Internal Revenue Code of 1986, as amended (the “Code”), and
      will not be a disqualified organization as of [Closing Date] [date of purchase];
      (ii) it is not acquiring the Structured Asset Mortgage Investments II Inc.,
      Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2 [Class
      R
      Certificates] (the “Residual Certificates”) for the account of a disqualified
      organization; (iii) it consents to any amendment of the Pooling and Servicing
      Agreement that shall be deemed necessary by Structured Asset Mortgage
      Investments II Inc. (upon advice of counsel) to constitute a reasonable
      arrangement to ensure that the Residual Certificates will not be owned directly
      or indirectly by a disqualified organization; and (iv) it will not transfer
      such
      Residual Certificates unless (a) it has received from the transferee an
      affidavit in substantially the same form as this affidavit containing these
      same
      four representations and (b) as of the time of the transfer, it does not have
      actual knowledge that such affidavit is false.

     

    3. That
      the
      Investor is one of the following: (i) a citizen or resident of the United
      States, (ii) a corporation or partnership (including an entity treated as a
      corporation or partnership for federal income tax purposes) created or organized
      in, or under the laws of, the United States or any state thereof or the District
      of Columbia (except, in the case of a partnership, to the extent provided in
      regulations), provided that no partnership or other entity treated as a
      partnership for United States federal income tax purposes shall be treated
      as a
      United States Person unless all persons that own an interest in such partnership
      either directly or through any entity that is not a corporation for United
      States federal income tax purposes are United States Persons, (iii) an estate
      whose income is subject to United States federal income tax regardless of its
      source, or (iv) a trust other than a “foreign trust,” as defined in Section 7701
      (a)(31) of the Code.

     

    4.That
      the
      Investor’s taxpayer identification number is ________________.

    

    5. That
      no
      purpose of the acquisition of the Residual Certificates is to avoid or impede
      the assessment or collection of tax.

     

    6. That
      the
      Investor understands that, as the holder of the Residual Certificates, the
      Investor may incur tax liabilities in excess of any cash flows generated by
      such
      Residual Certificates.

     

    7. That
      the
      Investor intends to pay taxes associated with holding the Residual Certificates
      as they become due.

     

    IN
      WITNESS WHEREOF, the Investor has caused this instrument to be executed on
      its
      behalf, pursuant to authority of its Board of Directors, by its [Title of
      Officer] this ____ day of _________, 20__.

     

    [NAME
      OF
      INVESTOR]

     

    By:
      ______________________________________

    [Name
      of
      Officer]

    [Title
      of
      Officer]

    [Address
      of Investor for receipt of distributions]

     

    Address
      of Investor for receipt of tax information:

    

    

    Personally
      appeared before me the above-named [Name of Officer], known or proved to me
      to
      be the same person who executed the foregoing instrument and to be the [Title
      of
      Officer] of the Investor, and acknowledged to me that he executed the same
      as
      his free act and deed and the free act and deed of the Investor.

     

    Subscribed
      and sworn before me this ___ day of _________, 20___.

     

    NOTARY
      PUBLIC

     

    COUNTY
      OF

     

    STATE
      OF

     

    My
      commission expires the ___ day of ___________________, 20___.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

     

    EXHIBIT
      F-1

     

    FORM
      OF
      INVESTMENT LETTER

     

    [Date]

    [SELLER]

     

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    

    Structured
      Asset Mortgage Investments II Inc.

     

    383
      Madison Avenue

     

    New
      York,
      New York 10179

     

    
      	 	
              Re:

            	
              Structured
                Asset Mortgage Investments II Inc., Prime Mortgage
                Trust,

            

    

    Series
      2006-2 Mortgage Pass-Through Certificates (the “Certificates”),

    including
      the Class B-4, Class B-5 and Class B-6 Certificates (the “Privately

    Offered
      Certificates”)                                                                                           

     

    Dear
      Ladies and Gentlemen:

     

    In
      connection with our purchase of the [Privately Offered Certificates], we confirm
      that:

     

    
      	 	
              (i)

            	
              we
                understand that the Privately Offered Certificates are not being
                registered under the Securities Act of 1933, as amended (the “Act”) or any
                applicable state securities or “Blue Sky” laws, and are being sold to us
                in a transaction that is exempt from the registration requirements
                of such
                laws;

            

    

     

    
      	 	
              (ii)

            	
              any
                information we desired concerning the Certificates, including the
                Privately Offered Certificates, the trust in which the Certificates
                represent the entire beneficial ownership interest (the “Trust”) or any
                other matter we deemed relevant to our decision to purchase Privately
                Offered Certificates has been made available to
                us;

            

    

     

    
      	 	
              (iii)

            	
              we
                are able to bear the economic risk of investment in Privately Offered
                Certificates; we are an institutional “accredited investor” as defined in
                Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated under
                the Act
                and a sophisticated institutional
                investor;

            

    

     

    
      	 	
              (iv)

            	
              we
                are acquiring Privately Offered Certificates for our own account,
                not as
                nominee for any other person, and not with a present view to any
                distribution or other disposition of the Privately Offered
                Certificates;

            

    

     

    
      	 	
              (v)

            	
              we
                agree the Privately Offered Certificates must be held indefinitely
                by us
                (and may not be sold, pledged, hypothecated or in any way disposed
                of)
                unless subsequently registered under the Act and any applicable state
                securities or “Blue Sky” laws or an exemption from the registration
                requirements of the Act and any applicable state securities or “Blue Sky”
                laws is available;

            

    

     

    
      	 	
              (vi)

            	
              we
                agree that in the event that at some future time we wish to dispose
                of or
                exchange any of the Privately Offered Certificates (such disposition
                or
                exchange not being currently foreseen or contemplated), we will not
                transfer or exchange any of the Privately Offered Certificates
                unless:

            

    

     

    (A)
      (1)
      the sale is to an Eligible Purchaser (as defined below), (2) if required by
      the
      Pooling and Servicing Agreement (as defined below) a letter to substantially
      the
      same effect as either this letter or, if the Eligible Purchaser is a Qualified
      Institutional Buyer as defined under Rule 144A of the Act, the Rule 144A and
      Related Matters Certificate in the form attached to the Pooling and Servicing
      Agreement (as defined below) (or such other documentation as may be acceptable
      to the Trustee) is executed promptly by the purchaser and delivered to the
      addressees hereof and (3) all offers or solicitations in connection with the
      sale, whether directly or through any agent acting on our behalf, are limited
      only to Eligible Purchasers and are not made by means of any form of general
      solicitation or general advertising whatsoever; and

     

    (B) if
      the
      Privately Offered Certificates is not registered under the Act (as to which
      we
      acknowledge you have no obligation), the Privately Offered Certificates is
      sold
      in a transaction that does not require registration under the Act and any
      applicable state securities or “blue sky” laws and, if U.S. Bank National
      Association (the “Trustee”) so requests, a satisfactory Opinion of Counsel is
      furnished to such effect, which Opinion of Counsel shall be an expense of the
      transferor or the transferee;

     

    
      	 	
              (vii)

            	
              we
                agree to be bound by all of the terms (including those relating to
                restrictions on transfer) of the Pooling and Servicing, pursuant
                to which
                the Trust was formed; we have reviewed carefully and understand the
                terms
                of the Pooling and Servicing
                Agreement;

            

    

     

    
      	 	
              (viii)

            	
              we
                either: (i) are not acquiring the Privately Offered Certificates
                directly
                or indirectly by, or on behalf of, an employee benefit plan or other
                retirement arrangement which is subject to Title I of the Employee
                Retirement Income Security Act of 1974, as amended, or section 4975
                of the
                Internal Revenue Code of 1986, as amended, or (ii) are providing
                a
                representation to the effect that the proposed transfer and holding
                of a
                Privately Offered Certificates and the servicing, management and
                operation
                of the Trust and its assets: (I) will not result in any prohibited
                transaction which is not covered under an individual or class prohibited
                transaction exemption, including, but not limited to, Prohibited
                Transaction Class Exemption (“PTCE”) 84-14, PTCE 91-38, PTCE 90-1, PTCE
                95-60, or PTCE 96-23 and (II) will not give rise to any additional
                obligations on the part of the Depositor, the Master Servicer or
                the
                Trustee or (iii) have attached hereto the opinion specified in Section
                5.07 of the Agreement.

            

    

     

    
      	 	
              (ix)

            	
              We
                understand that each of the Privately Offered Certificates bears,
                and will
                continue to bear, a legend to substantiate the following effect:
“THIS
                CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
                ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE
                SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE,
                AGREES
                THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
                TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER
                APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES
                ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A
                QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A
“QIB”),
                PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT
                OF A
                QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER,
                RESALE,
                PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
                (2)
                PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER
                THE
                SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
                “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE
                501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY
                IN
                WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING
                NOT
                FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A)
                THE
                RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED
                IN
                THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE
                ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER
                IS
                IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR
                IN EACH
                CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED
                STATES AND ANY OTHER APPLICABLE JURISDICTION. THIS CERTIFICATE MAY
                NOT BE
                ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF, AN EMPLOYEE
                BENEFIT
                PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE I
                OF THE
                EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION
                4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE
                PROPOSED
                TRANSFER AND HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
                AND
                OPERATION OF THE TRUST AND ITS ASSETS: (1) WILL NOT RESULT IN ANY
                PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR
                CLASS
                PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO,
                PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14, PTCE 91-38, PTCE
                90-1, PTCE 95-60 OR PTCE 96-23 AND (II) WILL NOT GIVE RISE TO ANY
                ADDITIONAL OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE MASTER SERVICER
                OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER OF A
                BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE OR UNLESS THE OPINION
                PROVIDED IN SECTION 5.07 OF THE AGREEMENT IS
                PROVIDED.”

            

    

     

    “Eligible
      Purchaser”
      means a
      corporation, partnership or other entity which we have reasonable grounds to
      believe and do believe (i) can make representations with respect to itself
      to
      substantially the same effect as the representations set forth herein, and
      (ii)
      is either a Qualified Institutional Buyer as defined under Rule 144A of the
      Act
      or an institutional “Accredited Investor” as defined under Rule 501 of the
      Act.

     

    Terms
      not
      otherwise defined herein shall have the meanings assigned to them in the Pooling
      and Servicing Agreement, dated as of November 1, 2006, among Structured Asset
      Mortgage Investments II Inc., EMC Mortgage Corporation, as seller and master
      servicer and U.S. Bank National Association as Trustee (the “Pooling and
      Servicing Agreement’).

     

    If
      the
      Purchaser proposes that its Certificates be registered in the name of a nominee
      on its behalf, the Purchaser has identified such nominee below, and has caused
      such nominee to complete the Nominee Acknowledgment at the end of this
      letter.

     

    Name
      of
      Nominee (if any): __________________________

    

    

    

    

    IN
      WITNESS WHEREOF, this document has been executed by the undersigned who is
      duly
      authorized to do so on behalf of the undersigned Eligible Purchaser on the
      ___
      day of ________, 20___.

     

    Very
      truly yours,

     

    [PURCHASER]

     

    By:
      _________________________________

    (Authorized
      Officer)

     

    [By:
      ________________________________

    Attorney-in-fact]

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

     

    Nominee
      Acknowledgment

     

    The
      undersigned hereby acknowledges and agrees that as to the Certificates being
      registered in its name, the sole beneficial owner thereof is and shall be the
      Purchaser identified above, for whom the undersigned is acting as
      nominee.

     

    [NAME
      OF
      NOMINEE]

     

    By:
      _________________________________

    (Authorized
      Officer)

     

    [By:
      ________________________________

    Attorney-in-fact]

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      F-2

     

    FORM
      OF
      RULE 144A AND RELATED MATTERS CERTIFICATE

     

    [SELLER][Date]

     

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    

    Structured
      Asset Mortgage Investments II Inc.

     

    383
      Madison Avenue

     

    New
      York,
      New York 10179

     

    
      	 	
              Re:

            	
              Structured
                Asset Mortgage Investments II Inc., Prime Mortgage
                Trust,

            

    

    Series
      2006-2 Mortgage Pass-Through Certificates (the “Certificates”),

    including
      the Class B-4, Class B-5 and Class B-6 Certificates (the “Privately

    Offered
      Certificates”)                                                                                           

     

    Dear
      Ladies and Gentlemen:

     

    In
      connection with our purchase of Privately Offered Certificates, the undersigned
      certifies to each of the parties to whom this letter is addressed that it is
      a
      qualified institutional buyer (as defined in Rule 144A under the Securities
      Act
      of 1933, as amended (the “Act”)) as follows:

     

    
      	
              1.

            	
              It
                owned and/or invested on a discretionary basis eligible securities
                (excluding affiliate’s securities, bank deposit notes and CD’s, loan
                participations, repurchase agreements, securities owned but subject
                to a
                repurchase agreement and swaps), as described
                below:

            

    

     

    Date:
      ______________, 20__ (must be on or after the close of its most recent fiscal
      year)

     

    Amount:
      $
      _____________________; and

     

    2. The
      dollar amount set forth above is:

     

    a.                        
       greater
      than $100 million and the undersigned is one of the following
      entities:

     

    (x)       
       an
      insurance company as defined in Section 2(13) of the Act1 ;
      or

     

    
      	 	
              (y)

            	
              an
                investment company registered under the Investment Company Act or
                any
                business development company as defined in Section 2(a)(48) of the
                Investment Company Act of 1940; or

            

    

     

    
      	 	
              (z)

            	
              a
                Small Business Investment Company licensed by the U.S. Small Business
                Administration under Section 301(c) or (d) of the Small Business
                Investment Act of 1958; or

            

    

     

    
      	 	
              (aa)

            	
              a
                plan (i) established and maintained by a state, its political
                subdivisions, or any agency or instrumentality of a state or its
                political
                subdivisions, the laws of which permit the purchase of securities
                of this
                type, for the benefit of its employees and (ii) the governing investment
                guidelines of which permit the purchase of securities of this type;
                or

            

    

     

    
      	 	
              (bb)

            	
              a
                business development company as defined in Section 202(a)(22) of
                the
                Investment Advisers Act of 1940; or

            

    

     

    
      	 	
              (cc)

            	
              a
                corporation (other than a U.S. bank, savings and loan association
                or
                equivalent foreign institution), partnership, Massachusetts or similar
                business trust, or an organization described in Section 501(c)(3)
                of the
                Internal Revenue Code; or

            

    

     

    
      	 	
              (dd)

            	
              a
                U.S. bank, savings and loan association or equivalent foreign institution,
                which has an audited net worth of at least $25 million as demonstrated
                in
                its latest annual financial statements;
                or

            

    

     

    
      	 	
              (ee)

            	
              an
                investment adviser registered under the Investment Advisers Act;
                or

            

    

     

    
      	 	
              b.

            	
              greater
                than $10 million, and the undersigned is a broker-dealer registered
                with
                the SEC; or

            

    

     

    
      	 	
              c.

            	
              less
                than $10 million, and the undersigned is a broker-dealer registered
                with
                the SEC and will only purchase Rule 144A securities in transactions
                in
                which it acts as a riskless principal (as defined in Rule 144A);
                or

            

    

     

    
      	 	
              d.

            	
              less
                than $100 million, and the undersigned is an investment company registered
                under the Investment Company Act of 1940, which, together with one
                or more
                registered investment companies having the same or an affiliated
                investment adviser, owns at least $100 million of eligible securities;
                or

            

    

     

    
      	 	
              e.

            	
              less
                than $100 million, and the undersigned is an entity, all the equity
                owners
                of which are qualified institutional
                buyers.

            

    

     

    The
      undersigned further certifies that it is purchasing a Privately Offered
      Certificates for its own account or for the account of others that independently
      qualify as “Qualified Institutional Buyers” as defined in Rule 144A. It is aware
      that the sale of the Privately Offered Certificates is being made in reliance
      on
      its continued compliance with Rule 144A. It is aware that the transferor may
      rely on the exemption from the provisions of Section 5 of the Act provided
      by
      Rule 144A. The undersigned understands that the Privately Offered Certificates
      may be resold, pledged or transferred only to (i) a person reasonably believed
      to be a Qualified Institutional Buyer that purchases for its own account or
      for
      the account of a Qualified Institutional Buyer to whom notice is given that
      the
      resale, pledge or transfer is being made in reliance in Rule 144A, or (ii)
      an
      institutional “accredited investor,” as such term is defined under Rule 501 of
      the Act in a transaction that otherwise does not constitute a public
      offering.

     

    The
      undersigned agrees that if at some future time it wishes to dispose of or
      exchange any of the Privately Offered Certificates, it will not transfer or
      exchange any of the Privately Offered Certificates to a Qualified Institutional
      Buyer without first obtaining a Rule 144A and Related Matters Certificate in
      the
      form hereof from the transferee and delivering such certificate to the
      addressees hereof. Prior to making any transfer of Privately Offered
      Certificates, if the proposed Transferee is an institutional “accredited
      investor,” the transferor shall obtain from the transferee and deliver to the
      addressees hereof an Investment Letter in the form attached to the Pooling
      and
      Servicing Agreement, dated as of November 1, 2006, among Structured Asset
      Mortgage Investments II Inc., EMC Mortgage Corporation and U.S. Bank National
      Association, as Trustee, pursuant to Certificates were issued.

     

    The
      undersigned certifies that it either: (i) is not acquiring the Privately Offered
      Certificates directly or indirectly by, or on behalf of, an employee benefit
      plan or other retirement arrangement which is subject to Title I of the Employee
      Retirement Income Security Act of 1974, as amended, or section 4975 of the
      Internal Revenue Code of 1986, as amended, or (ii) is providing a representation
      or an opinion of counsel to the effect that the proposed transfer and holding
      of
      a Privately Offered Certificates and the servicing, management and operation
      of
      the Trust and its assets: (I) will not result in any prohibited transaction
      which is not covered under a prohibited transaction exemption, including, but
      not limited to, Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE
      91-38, PTCE 90-1, PTCE 95-60, PTCE 96-23 and (II) will not give rise to any
      additional obligations on the part of the Depositor, the Master Servicer or
      the
      Trustee or (iii) has attached hereto the opinion specified in Section 5.07
      of
      the Agreement.

     

    If
      the
      Purchaser proposes that its Certificates be registered in the name of a nominee
      on its behalf, the Purchaser has identified such nominee below, and has caused
      such nominee to complete the Nominee Acknowledgment at the end of this
      letter.

     

    

     

    

      

      
        1 A
          purchase by an insurance company for one or more of its separate accounts,
          as
          defined by Section 2(a)(37) of the Investment Company Act of 1940, which
          are
          neither registered nor required to be registered thereunder, shall be deemed
          to
          be a purchase for the account of such insurance company.

      

    

    

    Name
      of
      Nominee (if any):

     

    IN
      WITNESS WHEREOF, this document has been executed by the undersigned who is
      duly
      authorized to do so on behalf of the undersigned Eligible Purchaser on the
      ____
      day of ___________, 20___.

     

    Very
      truly yours,

     

    [PURCHASER]

     

    By:
      ______________________________________

    (Authorized
      Officer)

     

    [By:
      _____________________________________

    Attorney-in-fact]

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    NOMINEE
      ACKNOWLEDGMENT

     

    The
      undersigned hereby acknowledges and agrees that as to the Certificates being
      registered in its name, the sole beneficial owner thereof is and shall be the
      Purchaser identified above, for whom the undersigned is acting as
      nominee.

     

    [NAME
      OF
      NOMINEE]

     

    By:
      ______________________________________

    (Authorized
      Officer)

     

    [By:
      _____________________________________

    Attorney-in-fact]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    EXHIBIT
      F-3

    

    

    FORM
      OF
      TRANSFER CERTIFICATE FOR EXCHANGE OR

    TRANSFER
      FROM RULE 144A GLOBAL CERTIFICATE TO

    REGULATION
      S GLOBAL CERTIFICATE

    

    

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    

    

    Reference
      is hereby made to the Pooling and Servicing Agreement (“Pooling and Servicing
      Agreement”), dated as of November 1, 2006, among Structured Asset Mortgage
      Investments II Inc., as Depositor, EMC Mortgage Corporation, as Seller and
      Master Servicer and U.S. Bank National Association as Trustee. Capitalized
      terms
      used but not defined herein are used as defined in the Pooling and Servicing
      Agreement:

    

    The
      undersigned (the “Transferor”)
      owns
      and proposes to transfer the interests in the Rule 144A Global Certificates
      specified in Annex A hereto (the “Certificates”)
      to
      __________ (the “Transferee”), in the principal amounts in such Rule 144A Global
      Certificates (the “Transfer”)
      as
      further specified in Annex A hereto. In connection with the Transfer, the
      Transferor hereby certifies that:

    

    
      	 	
              (a)

            	
              the
                Transfer is being effected in accordance with transfer restrictions
                set
                forth in the Pooling and Servicing Agreement and the
                Certificates;

            

    

    

    
      	 	
              (b)

            	
              the
                Transfer is being effected pursuant to and in accordance with Rule
                903 or
                Rule 904 under the Securities Act of 1933, as amended (the “Securities
                Act”)
                and, accordingly, the Transferor hereby further certifies
                that:

            

    

    

    
      	 	
              (i)

            	
              the
                Transfer is not being made to a person in the United States and (x)
                at the
                time the buy order was originated, the Transferee was outside the
                United
                States or the Transferor and each Person acting on its behalf reasonably
                believed and believes that the Transferee was outside the United
                States or
                (y) the transaction was executed in, on or through the facilities
                of a
                “designated offshore securities market” (as defined Rule 902 of Regulation
                S under the Securities Act) and neither the Transferor nor any Person
                acting on its behalf knows that the transaction was prearranged with
                a
                buyer in the United States,

            

    

    

    

    
      	 	
              (ii)

            	
              no
                directed selling efforts have been made in contravention of the
                requirements of Rule 903 or Rule 904 of Regulation S under the Securities
                Act, and

            

    

    

    
      	 	
              (iii)

            	
              the
                transaction is not part of a plan or scheme to evade the registration
                requirements of the Securities Act.

            

    

    

    Upon
      consummation of the proposed transfer in accordance with the terms of the
      Pooling and Servicing Agreement, the transferred beneficial interest will be
      subject to the restrictions on transfer enumerated in the legends printed on
      the
      Regulation S Global Certificates by which the Transferee shall hold its interest
      and in the Pooling and Servicing Agreement and the Securities Act.

    

    Dated:  Very
      truly yours,

    [Name
      of
      Transferor]

    

    By:______________________________

    Name:

    Title:

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    ANNEX
      A

    

    The
      Transferor owns and proposes to transfer a beneficial interest in the
      following:

    

    
      	 	
              (i)

            	
              G

            	
              Class
                [___] Rule 144A Global Certificate, principal amount of $_____________,
                

            

    

    

    
      	 	
              (ii)

            	
              G

            	
              Class
                [___] Rule 144A Global Certificate, principal amount of $_____________,
                or

            

    

    

    
      	 	
              (iii)

            	
              G

            	
              Class
                [___] Rule 144A Global Certificate, principal amount of
                $_____________.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    

    EXHIBIT
      F-4

    

    FORM
      OF
      TRANSFER CERTIFICATE FOR EXCHANGE OR

    TRANSFER
      FROM REGULATION S GLOBAL CERTIFICATE TO

    RULE
      144A
      GLOBAL CERTIFICATE

    

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    

    

    Reference
      is hereby made to the Pooling and Servicing Agreement (“Pooling and Servicing
      Agreement”), dated as of November 1, 2006, among Structured Asset Mortgage
      Investments II Inc., as Depositor, EMC Mortgage Corporation, as Seller and
      Master Servicer and U.S. Bank National Association as Trustee. Capitalized
      terms
      used but not defined herein are used as defined in the Pooling and Servicing
      Agreement:

    

    The
      undersigned (the “Transferor”)
      owns
      and proposes to transfer the interests in the Regulation S Global Certificates
      specified in Annex A hereto (the “Certificates”),
      in
      the principal amounts in such Regulation S Global Certificates (the
“Transfer”),
      as
      further specified in Annex A hereto. In connection with the Transfer, the
      Transferor hereby certifies that:

    

    
      	 	
              (a)

            	
              the
                Transfer is being effected in accordance with transfer restrictions
                set
                forth in the Pooling and Servicing Agreement and the
                Certificates;

            

    

    

    
      	 	
              (b)

            	
              the
                Transfer is being effected pursuant to and in accordance with Rule
                144A
                under the Securities Act of 1933, as amended (the “Securities
                Act”),
                and, accordingly, the Transferor hereby further certifies
                that:

            

    

    

    
      	 	
              (i)

            	
              the
                Transferee is purchasing the beneficial interest for its own account,
                or
                for one or more accounts with respect to which the Transferee exercises
                sole investment discretion,

            

    

    

    
      	 	
              (ii)

            	
              the
                Transferor reasonably believes that the Transferee and each such
                account
                is a “qualified institutional buyer” within the meaning of Rule 144A,
                and

            

    

    

    
      	 	
              (iii)

            	
              the
                Transfer is in compliance with any applicable blue sky securities
                laws of
                any state of the United States.

            

    

    

    

    

    

    Upon
      consummation of the proposed Transfer in accordance with the terms of the
      Pooling and Servicing Agreement, the transferred beneficial interest will be
      subject to the restrictions on transfer enumerated in the legends printed on
      the
      Rule 144A Global Certificates by which the Transferee shall hold its interest
      and in the Pooling and Servicing Agreement and the Securities Act.

    

    

    Dated: Very
      truly yours,

    [Name
      of
      Transferor]

    

    By:______________________________

    Name:

    Title:

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    ANNEX
      A

    

    The
      Transferor owns and proposes to transfer a beneficial interest in the
      following:

    

    
      	 	
              (i)     
                

            	
               
                G

            	
               
                Class [___] Regulation S Global Certificate, principal amount of
                $_____________, 

            

    

    

    
      	 	
              (ii)    
                

            	
               
                G

            	
               Class
                [___] Regulation S Global Certificate, principal amount of $_____________,
                or

            

    

    

    
      	 	
              (iii)   
                

            	
               
                G

            	
              Class
                [___] Regulation S Global Certificate, principal amount of
                $_____________.

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    EXHIBIT
      G

     

    FORM
      OF CUSTODIAL AGREEMENT

     

    THIS
      CUSTODIAL AGREEMENT (as amended and supplemented from time to time, the
“Agreement”), dated as of November 30, 2006, by and among U.S. BANK NATIONAL
      ASSOCIATION, not individually but solely as trustee under the Pooling and
      Servicing Agreement defined below (including its successors under the Pooling
      and Servicing Agreement defined below, the “Trustee”), STRUCTURED ASSET MORTGAGE
      INVESTMENTS II INC., as depositor (together with any successor in interest,
      the
“Depositor”), EMC MORTGAGE CORPORATION, as
      master
      servicer (together
      with any successor in interest or successor under the Pooling and Servicing
      Agreement referred to below, the “Master Servicer”) and WELLS FARGO BANK,
      NATIONAL ASSOCIATION, as custodian (together with any successor in interest
      or
      any successor appointed hereunder, the “Custodian”).

     

    WITNESSETH
      THAT:

     

    WHEREAS,
      the Depositor, EMC Mortgage Corporation, as seller (in such capacity, “EMC” or
      the “Seller”), the Master Servicer and the Trustee have entered into a Pooling
      and Servicing Agreement, dated as of November 1, 2006, relating to the issuance
      of Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2
      (as
      in effect on the date of this agreement, and as amended and supplemented from
      time to time, the “Pooling and Servicing Agreement”).

     

    WHEREAS,
      the Custodian has agreed to act as agent for the Trustee on behalf of the
      Certificateholders for the purposes of receiving and holding certain documents
      and other instruments delivered by the Depositor, the Seller or the Master
      Servicer under the Pooling and Servicing Agreement and the Servicers under
      their
      respective Servicing Agreements, all upon the terms, conditions and obligations
      and subject to the limitations hereinafter set forth. In the event any custodian
      terms, conditions and obligations are defined in the Pooling and Servicing
      Agreement, this custodial agreement shall supersede.

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants and
      agreements hereinafter set forth, the Trustee, the Depositor, the Master
      Servicer and the Custodian hereby agree as follows:

     

     

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Capitalized
      terms used in this Agreement and not defined herein shall have the meanings
      assigned in the Pooling and Servicing Agreement, unless otherwise required
      by
      the context herein.

     

     

     

    ARTICLE
      II

     

    CUSTODY
      OF MORTGAGE DOCUMENTS

     

    Section
      2.1.  Custodian
      to Act as Agent: Acceptance of Mortgage Files.
      The
      Custodian, as the duly appointed custodial agent of the Trustee for these
      purposes, acknowledges (subject to any exceptions noted in the Initial
      Certification referred to in Section 2.3(a)) receipt of the Mortgage Files
      relating to the Mortgage Loans identified on the schedule attached hereto (the
      “Mortgage Files”) and declares that it holds and will hold such Mortgage Files
      as agent for the Trustee, in trust, for the use and benefit of all present
      and
      future Certificateholders.

     

    Section
      2.2.  Recordation
      of Assignments.
      If any
      Mortgage File includes one or more assignments of Mortgage that have not been
      recorded pursuant to the provisions of Section 2.01 of the Pooling and Servicing
      Agreement and the related Mortgage Loan is not a MOM Loan or the related
      Mortgaged Properties are located in jurisdictions specifically excluded by
      the
      Opinion of Counsel delivered to the Trustee pursuant to Section 2.01 of the
      Pooling and Servicing Agreement, each such assignment shall be delivered by
      the
      Custodian to the Depositor for the purpose of recording it in the appropriate
      public office for real property records, and the Depositor, at no expense to
      the
      Custodian, shall promptly cause to be recorded in the appropriate public office
      for real property records each such assignment of Mortgage and, upon receipt
      thereof from such public office, shall return each such assignment of Mortgage
      to the Custodian.

     

    Section
      2.3.  Review
      of Mortgage Files.

     

    (a)  On
      or
      prior to the Closing Date, in accordance with Section 2.02 of the Pooling and
      Servicing Agreement, the Custodian shall deliver to EMC, the Depositor, the
      Master Servicer and the Trustee an Initial Certification in the form annexed
      hereto as Exhibit One evidencing receipt (subject to any exceptions noted
      therein) of a Mortgage File for each of the Mortgage Loans listed on Schedule
      A
      attached hereto (the “Mortgage Loan Schedule”).

     

    (b)  Within
      90
      days of the Closing Date, the Custodian agrees, for the benefit of
      Certificateholders, to review, in accordance with the provisions of Section
      2.02
      of the Pooling and Servicing Agreement, each such document, and shall deliver
      to
      EMC, the Depositor, the Master Servicer and the Trustee an Interim Certification
      in the form annexed hereto as Exhibit Two to the effect that all such documents
      have been executed and received and that such documents relate to the Mortgage
      Loans identified on the Mortgage Loan Schedule, except for any exceptions listed
      on Schedule A attached to such Interim Certification. The Custodian shall be
      under no duty or obligation to inspect, review or examine said documents,
      instruments, certificates or other papers to determine that the same are
      genuine, enforceable, or appropriate for the represented purpose or that they
      have actually been recorded or that they are other than what they purport to
      be
      on their face.

     

    (c)  Not
      later
      than 180 days after the Closing Date, the Custodian shall review, for the
      benefit of Certificateholders, the Mortgage Files as provided in Section 2.02
      of
      the Pooling and Servicing Agreement and deliver to EMC, the Depositor, the
      Master Servicer and the Trustee a Final Certification in the form annexed hereto
      as Exhibit Three evidencing the completeness of the Mortgage Files.

     

    (d)  In
      reviewing the Mortgage Files as provided herein and in the Pooling and Servicing
      Agreement, the Custodian shall make no representation as to and shall not be
      responsible to verify (i) the validity, legality, enforceability, due
      authorization, recordability, sufficiency or genuineness of any of the documents
      included in any Mortgage File or (ii) the collectability, insurability,
      effectiveness or suitability of any of the documents in any Mortgage
      File.

     

    Upon
      receipt of written request from EMC, the Master Servicer or the Trustee, the
      Custodian shall as soon as practicable supply such Person with a list of all
      of
      the documents relating to the Mortgage Loans missing from the Mortgage
      Files.

     

    Section
      2.4.  Notification
      of Breaches of Representations and Warranties.
      Upon
      discovery by the Custodian of a breach of any representation or warranty made
      by
      the Depositor as set forth in the Pooling and Servicing Agreement with respect
      to a Mortgage Loan relating to a Mortgage File, the Custodian shall give prompt
      written notice to the Depositor, the Master Servicer and the
      Trustee.

     

    Section
      2.5.  Custodian
      to Cooperate: Release of Mortgage Files.
      Upon
      receipt of written notice from the Depositor that EMC has repurchased one or
      more Mortgage Loans pursuant to Article II of the Pooling and Servicing
      Agreement, and a request for release (a “Request for Release”) confirming that
      the purchase price therefor has been deposited in the Master Servicer Collection
      Account or the Distribution Account, then the Custodian agrees to promptly
      release to the Seller the related Mortgage Files.

     

    Upon
      the
      Custodian’s receipt of a Request for Release substantially in the form of
      Exhibit D to the Pooling and Servicing Agreement signed by a Servicing Officer
      of the related Servicer, stating that it has received payment in full of a
      Mortgage Loan or that payment in full will be escrowed in a manner customary
      for
      such purposes, the Custodian agrees promptly to release to the related Servicer,
      the related Mortgage File. The Depositor shall deliver to the Custodian and
      the
      Custodian agrees to review in accordance with the provisions of this Agreement
      the Mortgage Note and other documents constituting the Mortgage File with
      respect to any Substitute Mortgage Loan.

     

    From
      time
      to time as is appropriate for the servicing or foreclosure of any Mortgage
      Loan,
      including, for this purpose collection under any Primary Insurance Policy,
      the
      related Servicer (or if the Servicer does not, the Master Servicer) shall
      deliver to the Custodian a Request for Release signed by a Servicing Officer
      requesting that possession of all of the Mortgage File be released to the
related
      Servicer
      and
      certifying as to the reason for such release and that such release will not
      invalidate any insurance coverage provided in respect of the Mortgage Loan
      under
      any of the Insurance Policies. Upon receipt of the foregoing, the Custodian
      shall deliver the Mortgage File to the related Servicer. All Mortgage Files
      so
      released to the related Servicer shall be held by it in trust for the Trustee
      for the use and benefit of all present and future Certificateholders. The
      related Servicer shall cause each Mortgage File or any document therein so
      released to be returned to the Custodian when the need therefor by the related
      Servicer no longer exists, unless (i) the Mortgage Loan has been liquidated
      and
      the Liquidation Proceeds relating to the Mortgage Loan have been deposited
      in
      the Master Servicer Collection Account or the Distribution Account or (ii)
      the
      Mortgage File or such document has been delivered to an attorney, or to a public
      trustee or other public official as required by law, for purposes of initiating
      or pursuing legal action or other proceedings for the foreclosure of the
      Mortgaged Property either judicially or non-judicially, and the related Servicer
      has delivered to the Custodian a certificate of a Servicing Officer certifying
      as to the name and address of the Person to which such Mortgage File or such
      document was delivered and the purpose or purposes of such
      delivery.

     

    At
      any
      time that the related Servicer is required to deliver to the Custodian a Request
      for Release, the related Servicer shall deliver two copies of the Request for
      Release if delivered in hard copy or the related Servicer may furnish such
      Request for Release electronically to the Custodian, in which event the
      Servicing Officer transmitting the same shall be deemed to have signed the
      Request for Release. In connection with any Request for Release of a Mortgage
      File because of a repurchase of a Mortgage Loan, such Request for Release shall
      be followed by an assignment of mortgage, without recourse, representation
      or
      warranty from the Trustee to the Seller (unless such Mortgage Loan is a MOM
      Loan) and the related Mortgage Note shall be endorsed without recourse,
      representation or warranty by the Trustee and be returned to the Seller;
      provided, however, that in the case of a Mortgage Loan that is registered on
      the
      MERS System, no assignment of mortgage or endorsement of the Mortgage Note
      by
      the Trustee shall be required. In connection with any Request for Release of
      a
      Mortgage File because of the payment in full of a Mortgage Loan, such Request
      for Release shall be accompanied by a certificate of satisfaction or other
      similar instrument to be executed by or on behalf of the Trustee and returned
      to
      the related Servicer.

     

    Section
      2.6.  Assumption
      Agreements.
      In the
      event that any assumption agreement, substitution of liability agreement or
      sale
      of servicing agreement is entered into with respect to any Mortgage Loan subject
      to this Agreement in accordance with the terms and provisions of the Pooling
      and
      Servicing Agreement, the Master Servicer shall enforce any obligation of the
      related Servicer under the related Servicing Agreement to notify the Custodian
      that such assumption or substitution agreement has been completed by forwarding
      to the Custodian the original of such assumption or substitution agreement,
      which shall be added to the related Mortgage File and, for all purposes, shall
      be considered a part of such Mortgage File to the same extent as all other
      documents and instruments constituting parts thereof.

     

     

     

    ARTICLE
      III

     

    CONCERNING
      THE CUSTODIAN

     

    Section
      3.1.  Custodian
      as Bailee and Agent of the Trustee.
      With
      respect to each Mortgage Note, Mortgage and other documents constituting each
      Mortgage File which are delivered to the Custodian, the Custodian is exclusively
      the bailee and custodial agent of the Trustee and has no instructions to hold
      any Mortgage Note or Mortgage for the benefit of any person other than the
      Trustee and the Certificateholders and undertakes to perform such duties and
      only such duties as are specifically set forth in this Agreement and in the
      Pooling and Servicing Agreement. Except upon compliance with the provisions
      of
      Section 2.5 of this Agreement, no Mortgage Note, Mortgage or Mortgage File
      shall
      be delivered by the Custodian to the Depositor, the Servicers or the Master
      Servicer or otherwise released from the possession of the
      Custodian.

     

    Section
      3.2.  Custodian
      May Own Certificates.
      The
      Custodian in its individual or any other capacity may become the owner or
      pledgee of Mortgage Pass-Through Certificates with the same rights it would
      have
      if it were not Custodian.

     

    Section
      3.3.  Trustee
      to Pay Custodian’s Fees.
      The
      Trustee covenants and agrees to pay to the Custodian from time to time, and
      the
      Custodian shall be entitled to, reasonable compensation for all services
      rendered by it in the exercise and performance of any of the powers and duties
      hereunder of the Custodian.

     

    Section
      3.4.  Custodian
      May Resign; Trustee May Remove Custodian.
      The
      Custodian may resign from the obligations and duties hereby imposed upon it
      as
      such obligations and duties relate to its acting as Custodian of the Mortgage
      Loans. Upon receiving such written notice of resignation, the Trustee shall
      either take custody of the Mortgage Files itself and give prompt written notice
      thereof to the Depositor, the Master Servicer and the Custodian, or promptly
      appoint a successor Custodian by written instrument, in duplicate, one copy
      of
      which instrument shall be delivered to the resigning Custodian and one copy
      to
      the successor Custodian. If the Trustee shall not have taken custody of the
      Mortgage Files and no successor Custodian shall have been so appointed and
      have
      accepted appointment within 30 days after the giving of such written notice
      of
      resignation, the resigning Custodian may petition any court of competent
      jurisdiction for the appointment of a successor Custodian.

     

    The
      Trustee may remove the Custodian at any time with the consent of the Master
      Servicer. In such event, the Trustee shall appoint, or petition a court of
      competent jurisdiction to appoint, a successor Custodian hereunder. Any
      successor Custodian shall be a depository institution subject to supervision
      or
      examination by federal or state authority, shall be able to satisfy the other
      requirements contained in Section 3.6 and shall be unaffiliated with the
      Servicer, or the Depositor.

     

    Any
      resignation or removal of the Custodian and appointment of a successor Custodian
      pursuant to any of the provisions of this Section 3.4 shall become effective
      upon acceptance of appointment by the successor Custodian. The Trustee shall
      give prompt notice to the Depositor and the Master Servicer of the appointment
      of any successor Custodian. No successor Custodian shall be appointed by the
      Trustee without the prior approval of the Depositor and the Master
      Servicer.

     

    Section
      3.5.  Merger
      or Consolidation of Custodian.
      Any
      Person into which the Custodian may be merged or converted or with which it
      may
      be consolidated, or any Person resulting from any merger, conversion or
      consolidation to which the Custodian shall be a party, or any Person succeeding
      to the business of the Custodian, shall be the successor of the Custodian
      hereunder, without the execution or filing of any paper or any further act
      on
      the part of any of the parties hereto, anything herein to the contrary
      notwithstanding; provided that such successor is a depository institution
      subject to supervision or examination by federal or state authority and is
      able
      to satisfy the other requirements contained in Section 3.6 and is unaffiliated
      with the Master Servicer or the Depositor.

     

    Section
      3.6.  Representations
      of the Custodian.
      The
      Custodian hereby represents that it is a depository institution subject to
      supervision or examination by a federal or state authority, has a combined
      capital and surplus of at least $15,000,000 and is qualified to do business
      in
      the jurisdictions in which it will hold any Mortgage File.

     

     

     

    ARTICLE
      IV

     

    COMPLIANCE
      WITH REGULATION AB

     

    Section
      4.1.  Intent
      of the Parties; Reasonableness.
      The
      parties hereto acknowledge and agree that the purpose of this Article IV is
      to
      facilitate compliance by the Depositor with the provisions of Regulation AB
      and
      related rules and regulations of the Commission. The Depositor shall not
      exercise its right to request delivery of information or other performance
      under
      these provisions other than in good faith, or for purposes other than compliance
      with the Securities Act, the Exchange Act and the rules and regulations of
      the
      Commission under the Securities Act and the Exchange Act. Each of the parties
      hereto acknowledges that interpretations of the requirements of Regulation
      AB
      may change over time, whether due to interpretive guidance provided by the
      Commission or its staff, consensus among participants in the mortgage-backed
      securities markets, advice of counsel, or otherwise, and agrees to comply with
      requests made by the Depositor in good faith for delivery of information under
      these provisions on the basis of evolving interpretations of Regulation AB.
      The
      Custodian shall cooperate reasonably with the Depositor to deliver to the
      Depositor (including any of its assignees or designees), any and all disclosure,
      statements, reports, certifications, records and any other information necessary
      in the reasonable, good faith determination of the Depositor to permit the
      Depositor to comply with the provisions of Regulation AB.

     

    Section
      4.2.  Additional
      Representations and Warranties of the Custodian.

     

    (a)  The
      Custodian hereby represents and warrants that the information set forth in
      the
      Prospectus Supplement under the caption “Description of the Certificates - The
      Custodians” (the “Custodian Disclosure”) does not contain any untrue statement
      of a material fact or omit to state a material fact required to be stated
      therein or necessary in order to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading.

     

    (b)  The
      Custodian shall be deemed to represent to the Depositor as of the date hereof
      and on each date on which information is provided to the Depositor under Section
      4.3 that, except as disclosed in writing to the Depositor prior to such date:
      (i) there are no aspects of its financial condition that could have a material
      adverse effect on the performance by it of its Custodian obligations under
      this
      Agreement or any other Securitization Transaction as to which it is the
      custodian; (ii) there are no material legal or governmental proceedings pending
      (or known to be contemplated) against it; and (iii) there are no affiliations,
      relationships or transactions relating to the Custodian with respect to the
      Depositor or any sponsor, issuing entity, servicer, trustee, originator,
      significant obligor, enhancement or support provider or other material
      transaction party (as such terms are used in Regulation AB) relating to the
      Securitization Transaction contemplated by the Agreement, as identified by
      the
      Depositor to the Custodian in writing as of the Closing Date (each, a
“Transaction Party”).

     

    (c)  If
      so
      requested by the Depositor on any date following the Closing Date, the Custodian
      shall, within five Business Days following such request, confirm in writing
      the
      accuracy of the representations and warranties set forth in paragraph (a) of
      this Section or, if any such representation and warranty is not accurate as
      of
      the date of such confirmation, provide reasonably adequate disclosure of the
      pertinent facts, in writing, to the requesting party. Any such request from
      the
      Depositor shall not be given more than once each calendar quarter, unless the
      Depositor shall have a reasonable basis for a determination that any of the
      representations and warranties may not be accurate.

     

    Section
      4.3.  Additional
      Information to Be Provided by the Custodian.
      For so
      long as the Certificates are outstanding, for the purpose of satisfying the
      Depositor's reporting obligation under the Exchange Act with respect to any
      class of Certificates, the Custodian shall (a) notify the Depositor in writing
      of any material litigation or governmental proceedings pending against the
      Custodian that would be material to Certificateholders, and (b) provide to
      the
      Depositor a written description of such proceedings. Any notices and
      descriptions required under this Section 4.3 shall be given no later than five
      Business Days prior to the Determination Date following the month in which
      the
      Custodian has knowledge of the occurrence of the relevant event. As of the
      date
      the Depositor, the Trustee or Master Servicer files each Report on Form 10-D
      or
      Form 10-K with respect to the Certificates, the Custodian will be deemed to
      represent that any information previously provided under this Section 4.3,
      if
      any, is materially correct and does not have any material omissions unless
      the
      Custodian has provided an update to such information.

     

    Section
      4.4.  Report
      on Assessment of Compliance and Attestation.
      On or
      before March 15 of each calendar year, the Custodian shall:

     

    deliver
      to the Master Servicer, the Trustee and the Depositor a report regarding the
      Custodian’s assessment of compliance (an “Assessment of Compliance”) with the
      Servicing Criteria (as identified and marked in Exhibit Four attached hereto)
      during the preceding calendar year, as required under Rules 13a-18 and 15d-18
      of
      the Exchange Act and Item 1122 of Regulation AB. The Assessment of Compliance,
      as set forth in Regulation AB, must contain (i) a statement by such officer
      of
      its responsibility for assessing compliance with the Servicing Criteria
      applicable to the Custodian, (ii) a statement by such officer that the Custodian
      used the Servicing Criteria attached as Exhibit Four hereto, and which will
      also
      be attached to the Assessment of Compliance, to assess compliance with the
      Servicing Criteria applicable to the Custodian, (iii) an assessment by such
      officer of the Custodian’s compliance with the applicable Servicing Criteria for
      the period consisting of the preceding calendar year, including disclosure
      of
      any material instance of noncompliance with respect thereto during such period,
      which assessment shall be based on the activities the Custodian performs with
      respect to asset-backed securities transactions taken as a whole involving
      the
      Custodian, that are backed by the same asset type as the Mortgage Loans, (iv)
      a
      statement that a registered public accounting firm has issued an attestation
      report on the Custodian’s Assessment of Compliance for the period consisting of
      the preceding calendar year, and (v) a statement as to which of the Servicing
      Criteria, if any, are not applicable to the Custodian, which statement shall
      be
      based on the activities the Custodian performs with respect to asset-backed
      securities transactions taken as a whole involving the Custodian, that are
      backed by the same asset type as the Mortgage Loans. Such report at a minimum
      shall address each of the Servicing Criteria identified and marked on Exhibit
      Four attached hereto as being applicable to the Custodian; and

     

    deliver
      to the Master Servicer, the Trustee and the Depositor an Attestation Report
      (an
“Attestation Report”) by a registered public accounting firm that attests to,
      and reports on, the Assessment of Compliance made by the Custodian, as required
      by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of Regulation
      AB, which Attestation Report must be made in accordance with standards for
      attestation reports issued or adopted by the Public Company Accounting Oversight
      Board.

     

    Notwithstanding
      the foregoing, an Assessment of Compliance is not required to be delivered
      by
      the Custodian unless it is required as part of a Form 10-K with respect to
      the
      Trust Fund.

     

    In
      the
      event the Custodian is terminated under, or resigns pursuant to, the terms
      of
      this Agreement, the Custodian shall provide an Assessment of Compliance and
      cause to be provided an Attestation Report pursuant to this Section 4.4
      notwithstanding any such termination or resignation.

     

    Section
      4.5.  Indemnification;
      Remedies.

     

    The
      Custodian shall indemnify the Depositor, each affiliate of the Depositor, the
      Trustee, the Master Servicer and each broker dealer acting as underwriter,
      placement agent or initial purchaser of the Certificates or each Person who
      controls any of such parties (within the meaning of Section 15 of the Securities
      Act and Section 20 of the Exchange Act); and the respective present and former
      directors, officers, employees and agents of each of the foregoing, and shall
      hold each of them harmless from and against any losses, damages, penalties,
      fines, forfeitures, legal fees and expenses and related costs, judgments, and
      any other costs, fees and expenses that any of them may sustain arising out
      of
      or based upon:

     

    (A)
      any
      untrue statement of a material fact contained or alleged to be contained in
      the
      Custodian Disclosure and any information, report, certification, accountants’
attestation or other material provided under this Article IV by or on behalf
      of
      the Custodian (collectively, the “Custodian Information”), or (B) the omission
      or alleged omission to state in the Custodian Information a material fact
      required to be stated in the Custodian Information or necessary in order to
      make
      the statements therein, in the light of the circumstances under which they
      were
      made, not misleading; or

     

    any
      failure by the Custodian to deliver any information, report, certification,
      accountants’ attestation or other material when and as required under this
      Article IV.

     

    In
      the
      case of any failure of performance described in clause (ii) of Section 4.5(a),
      the Custodian shall promptly reimburse the Depositor for all costs reasonably
      incurred by the Depositor in order to obtain the information, report,
      certification, accountants’ letter or other material not delivered as required
      by the Custodian.

     

     

    

    ARTICLE
      V

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      5.1.  Notices.
      All
      notices, requests, consents and demands and other communications required under
      this Agreement or pursuant to any other instrument or document delivered
      hereunder shall be in writing and, unless otherwise specifically provided,
      may
      be delivered personally, by telegram or telex, or by registered or certified
      mail, postage prepaid, return receipt requested, at the addresses specified
      on
      the signature page hereof (unless changed by the particular party whose address
      is stated herein by similar notice in writing).

     

    Section
      5.2.  Amendments.
      No
      modification or amendment of or supplement to this Agreement shall be valid
      or
      effective unless the same is in writing and signed by all parties hereto, and
      neither the Depositor, the Master Servicer nor the Trustee shall enter into
      any
      amendment hereof except as permitted by the Pooling and Servicing Agreement.
      The
      Trustee shall give prompt notice to the Custodian of any amendment or supplement
      to the Pooling and Servicing Agreement and furnish the Custodian with written
      copies thereof..

     

    Section
      5.3.  GOVERNING
      LAW.
      THIS
      AGREEMENT SHALL BE DEEMED A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW
      YORK WITHOUT REGARD TO CONFLICT OF LAWS PRIIPLES THEREOF OTHER THAN SECTION
      5-1401 AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED
      BY
      THE LAWS OF THE STATE OF NEW YORK.

     

    Section
      5.4.  Recordation
      of Agreement.
      To the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all the counties
      or
      other comparable jurisdictions in which any or all of the properties subject
      to
      the Mortgages are situated, and in any other appropriate public recording office
      or elsewhere, such recordation to be effected by the Depositor and at the
      Trust’s expense, but only upon direction accompanied by an Opinion of Counsel
      reasonably satisfactory to the Depositor to the effect that the failure to
      effect such recordation is likely to materially and adversely affect the
      interests of the Certificateholders.

     

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall constitute but one and the same
      instrument.

     

    Section
      5.5.  Severability
      of Provisions.
      If any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the holders thereof.

     

    [Signature
      Page Follows]

     

    

    

    

    IN
      WITNESS WHEREOF, this Agreement is executed as of the date first above
      written.

     

    
      	
              Address:

              One
                Federal Street, 3rd Floor

              Boston,
                MA 02110 

              Attention:
                Corporate Trust Services, PRIME 2006-2

              Telecopier
                No.: (617) 603-6638

            	
              U.S.
                BANK NATIONAL ASSOCIATION, not individually but solely as
                Trustee

               

              By:
                _________________________________

              Name:
                

              Title:
                

            
	 	 
	
              Address:

              383
                Madison Avenue

              New
                York, New York 10179

            	
              STRUCTURED
                ASSET MORTGAGE INVESTMENTS II INC.

               

              By:
                _________________________________

              Name: 

              Title: 

            
	 	 
	
              Address:

              2780
                Lake Vista Drive

              Lewisville,
                Texas 75067

              (Facsimile:
                (469) 759-4714)

              Attention:
                President or General Counsel

            	
              EMC
                MORTGAGE CORPORATION,

              as
                Master Servicer

               

              By:
                _________________________________

              Name: 

              Title:

            
	 	 
	
              Address:

              1015
                10th Avenue Southeast, MS 0031

              Minneapolis,
                MN 55414

              Attention:
                PRIME 2006-2

            	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION 

              as
                Custodian

               

              By:
                _________________________________

              Name:

              Title:

            

    

    

     

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      	
              STATE
                OF MASSACHUSETTS

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      the
      30th
      day of
      November 2006 before me, a notary public in and for said State, personally
      appeared _________________ known to me to be a(n) __________________of U.S.
      Bank
      National Association, one of the parties that executed the within agreement,
      and
      also known to me to be the person who executed the within agreement on behalf
      of
      said national banking association and acknowledged to me that such national
      banking association executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    _______________________________

    Notary
      Public

     

    [SEAL]

     

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

    

     

    On
      the
      30th
      day of
      November 2006 before me, a notary public in and for said State, personally
      appeared ____________________,
      known to
      me to be a(n) ____________________ of Structured Asset Mortgage Investments
      II
      Inc., one of the corporations that executed the within instrument, and also
      known to me to be the person who executed it on behalf of said corporation,
      and
      acknowledged to me that such corporation executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    _______________________________

    Notary
      Public

     

    [SEAL]

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      	
              STATE
                OF TEXAS

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF DALLAS

            	
              )

            	 

    

    

     

    On
      the
      30th
      day of
      November 2006 before me, a notary public in and for said State, personally
      appeared _______________________, known to me to be a(n) __________________
      of
      EMC Mortgage Corporation, one of the parties that executed the within
      instrument, and also known to me to be the person who executed the within
      instrument on behalf of said party, and acknowledged to me that such party
      executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    _______________________________

    Notary
      Public

     

    [SEAL]

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      	
              STATE
                OF MINNESOTA

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF HENNEPIN

            	
              )

            	 

    

    

     

    On
      the
      30th
      day of
      November 2006 before me, a notary public in and for said State, personally
      appeared _________________ known to me to be a(n) __________________of Wells
      Fargo Bank, N.A., one of the parties that executed the within agreement, and
      also known to me to be the person who executed the within agreement on behalf
      of
      said national banking association and acknowledged to me that such national
      banking association executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    _______________________________

    Notary
      Public

     

    [SEAL]

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    

    SCHEDULE
      A

     

    MORTGAGE
      LOAN SCHEDULE

     

    (Provided
      upon request)

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

     

    EXHIBIT
      ONE

    

     

    FORM
      OF
      CUSTODIAN INITIAL CERTIFICATION

     

    November
      30, 2006

     

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      MA 02110 

    Attention:
      Corporate Trust Services, PRIME 2006-2

    Telecopier
      No.: (617) 603-6638

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067

    (Facsimile:
      (469) 759-4714)

    Attention:
      President or General Counsel

    

    Structured
      Asset Mortgage Investments II Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

    Facsimile
      No.: (212) 272-2000

    

    Attention:
      PRIME 2006-2

     

    Re:       
       Custodial
      Agreement, dated as of November 30, 2006, by and among Structured Asset

    Mortgage
      Investments II Inc., EMC Mortgage Corporation, U.S. Bank National Association
      and 

    Wells
      Fargo Bank, National Association as Custodian relating to Prime Mortgage Trust
      2006-2,

    Mortgage
      Pass-Through Certificates, Series
      2006-2                                                                         
 

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.3(a) of the above-captioned Custodial Agreement,
      and
      subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
      undersigned, as Custodian, hereby certifies that it has received a Mortgage
      File
      (which contains an original Mortgage Note or lost note affidavit) to the extent
      required in Section 2.01 of the Pooling and Servicing Agreement with respect
      to
      each Mortgage Loan listed in the Mortgage Loan Schedule, with any exceptions
      listed on Schedule A attached hereto.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Custodial Agreement.

     

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION

     

     

    By:
      _______________________________ 

    Name:
      

    Title:

     

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      A

    

    (PLEASE
      SEE TAB #40)

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    EXHIBIT
      TWO

    

     

    FORM
      OF
      CUSTODIAN INTERIM CERTIFICATION

     

    [DATE]

     

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      MA 02110 

    Attention:
      Corporate Trust Services, PRIME 2006-2

    Telecopier
      No.: (617) 603-6638

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067

    (Facsimile:
      (469) 759-4714)

    Attention:
      President or General Counsel

     

    Structured
      Asset Mortgage Investments II Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

    Facsimile
      No.: (212) 272-2000

    

    Attention:
      PRIME 2006-2

     

    Re:       
       Custodial
      Agreement, dated as of November 30, 2006, by and among Structured Asset

    Mortgage
      Investments II Inc., EMC Mortgage Corporation, U.S. Bank National 

    Association
      and Wells Fargo Bank, National Association as Custodian relating to Prime

    Mortgage
      Trust 2006-2,
      Mortgage Pass-Through Certificates, Series
      2006-2                  
 

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.3(b) of the above-captioned Custodial Agreement and
      subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
      undersigned, as Custodian, hereby certifies that it has received a Mortgage
      File
      to the extent required pursuant to Section 2.01 of the Pooling and Servicing
      Agreement with respect to each Mortgage Loan listed in the Mortgage Loan
      Schedule, and it has reviewed the Mortgage File and the Mortgage Loan Schedule
      and has determined that: all required documents have been executed and received
      and that such documents relate to the Mortgage Loans identified on the Mortgage
      Loan Schedule, with any exceptions listed on Schedule A attached
      hereto.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Custodial Agreement.

     

    

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION

     

     

    By:
      _________________________________ 

    Name:
      

    Title:

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      A

     

    (PROVIDED
      UPON REQUEST)

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    EXHIBIT
      THREE

    

     

    FORM
      OF
      CUSTODIAN FINAL CERTIFICATION

     

    [DATE]

     

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      MA 02110 

    Attention:
      Corporate Trust Services, PRIME 2006-2

    Telecopier
      No.: (617) 603-6638

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067

    (Facsimile:
      (469) 759-4714)

    Attention:
      President or General Counsel

     

    Structured
      Asset Mortgage Investments II Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

    Facsimile
      No.: (212) 272-2000

    

    Attention:
      PRIME 2006-2

     

    Re:        Custodial
      Agreement, dated as of November 30, 2006, by and among Structured 

    Asset
      Mortgage Investments II Inc., EMC Mortgage Corporation, U.S. Bank National
      

    Association
      and Wells Fargo Bank, National Association, as Custodian relating to Prime
      

    Mortgage
      Trust 2006-2,
      Mortgage Pass-Through Certificates, Series
      2006-2                   
 

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.3(c) of the above-captioned Custodial Agreement
and,
      subject to Section 2.02(b) of the Pooling and Servicing Agreement, the
      undersigned, as Custodian, hereby certifies that it has received a Mortgage
      File
      to the extent required pursuant to Section 2.01 of the Pooling and Servicing
      Agreement with respect to each Mortgage Loan listed in the Mortgage Loan
      Schedule, and it has reviewed the Mortgage File and the Mortgage Loan Schedule
      and has determined that: all required documents have been executed and received
      and that such documents relate to the Mortgage Loans identified on the Mortgage
      Loan Schedule, with any exceptions listed on Schedule A attached
      hereto.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Custodial Agreement or in the Pooling and Servicing
      Agreement, as applicable.

     

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION

     

     

    By:
      ________________________________

    Name:
      

    Title:

     

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      A

     

    (PROVIDED
      UPON REQUEST)

     

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      FOUR

     

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     

    The
      assessment of compliance to be delivered by the Custodian shall address, at
      a
      minimum, the criteria identified below as “Applicable Servicing
      Criteria”:

     

    
      	
               

              Servicing
                Criteria

            	
              Applicable

              Servicing
                Criteria

            
	
              Reference

            	
              Criteria

            	 
	 	
              General
                Servicing Considerations

            	 
	
               

              1122(d)(1)(i)

            	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements

            	 
	
               

              1122(d)(1)(ii)

            	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities

            	 
	
               

              1122(d)(1)(iii)

            	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the pool assets are maintained.

            	 
	
               

               

              1122(d)(1)(iv)

            	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements.

            	 
	 	
               

              Cash
                Collection and Administration

            	 
	
               

               

              1122(d)(2)(i)

            	
              Payments
                on pool assets are deposited into the appropriate custodial bank
                accounts
                and related bank clearing accounts no more than two business days
                following receipt, or such other number of days specified in the
                transaction agreements.

            	 
	
               

              1122(d)(2)(ii)

            	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel.

            	 
	
               

              1122(d)(2)(iii)

            	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances are made,
                reviewed and approved as specified in the transaction
                agreements.

            	 
	
               

               

              1122(d)(2)(iv)

            	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of overcollateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	 
	
               

               

               

              1122(d)(2)(v)

            	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institutions” with respect
                to a foreign financial institution means a foreign financial institution
                that meets the requirements of Rule 13k-1(b)(1) of the Securities
                Exchange
                Act. 

            	 
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	 
	
               

               

               

               

               

              1122(d)(2)(vii)

            	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within 45 calendar days after the bank statement cutoff
                date, or
                such other number of days specified in the transaction agreements;
                (C)
                reviewed and approved by someone other than the person who prepared
                the
                reconciliations; and (D) contain explanations for reconciling items,
                These
                reconciling items are resolved within 90 calendar days of their original
                identification, or such other number of days specified in the transaction
                agreements.

            	 
	 	
               

              Investor
                Remittances and Reporting

            	 
	
               

               

               

               

              1122(d)(3)(i)

            	
              Reports
                to investors, including those to be filed with the Commission, are
                maintained in accordance with the transaction agreements and applicable
                Commission requirements. Specifically, such reports (A) are prepared
                in
                accordance with timeframes and other terms set forth in the transaction
                agreements, (B) provide information calculated in accordance with
                the
                terms specified in the transaction agreements; (C) are filed with
                the
                Commission as required by its rules and regulations; and (D) agree
                with
                investors; or the trustee’s records as to the total unpaid principal
                balance and number of pool assets serviced by the
                servicer.

            	 
	
               

              1122(d)(3)(ii)

            	
              Amounts
                due to investors are allocated and remitted in accordance with timeframes,
                distribution priority and other terms set forth in the transaction
                agreements.

            	 
	
               

              1122(d)(3)(iii)

            	
              Disbursements
                made to an investor are posted within two business days to the servicer’s
                investor records, or such other number of days specified in the
                transaction agreements.

            	 
	
               

              1122(d)(3)(iv)

            	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank
                statements.

            	 
	 	
               

              Pool
                Asset Administration

            	 
	
               

              1122(d)(4)(i)

            	
              Collateral
                or security on pool assets is maintained as required by the transaction
                agreements or related asset pool documents.

            	
              √

            
	
               

              1122(d)(4)(ii)

            	
              Pool
                assets and related documents are safeguarded as required by the
                transaction agreements.

            	
              √

            
	
               

              1122(d)(4)(iii)

            	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements

            	 
	
               

               

              1122(d)(4)(iv)

            	
              Payments
                on pool assets, including any payoffs, made in accordance with the
                related
                pool asset documents are posted to the servicer’s obligor records
                maintained no more than two business days after receipt, or such
                other
                number of days specified in the transaction agreements, and allocated
                to
                principal, interest or other items (e.g., escrow) in accordance with
                the
                related pool asset documents.

            	 
	
               

              1122(d)(4)(v)

            	
              The
                servicer’s records regarding the pool assets agree with the servicer’s
                records with respect to an obligor’s unpaid principal
                balance.

            	 
	
               

               

              1122(d)(4)(vi)

            	
              Changes
                with respect to the terms or status of an obligor’s pool asset (e.g., loan
                modifications or re-agings) are made, reviewed and approved by authorized
                personnel in accordance with the transaction agreements and related
                pool
                asset documents.

            	 
	
               

               

              1122(d)(4)(vii)

            	
              Loss
                mitigation of recovery actions (e.g., forbearance plans, modifications
                and
                deed in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                documents.

            	 
	
               

               

               

              1122(d)(4)(viii)

            	
              Records
                documenting collection efforts are maintained during the period a
                pool
                asset is delinquent in accordance with the transaction agreements.,
                Such
                records are maintained in at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent pool assets including, for example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or
                unemployment).

            	 
	
               

              1122(d)(4)(ix)

            	
              Adjustments
                to interest rates or rates of return for pool assets with variable
                rates
                are computed based on the related pool asset documents.

            	 
	
               

               

               

               

              1122(d)(4)(x)

            	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts);
                (A) such
                funds are analyzed, in accordance with the obligor’s pool asset documents,
                on at least an annual basis, or such other period specified in the
                transaction agreements; (B) interest on such funds is paid, or credited,
                to obligors in accordance with applicable pool asset documents and
                state
                laws; and (C) such funds are returned to the obligor within 3- calendar
                days of full repayment of the related pool asset, or such other number
                of
                days specified in the transaction agreements.

            	 
	
               

               

              1122(d)(4)(xi)

            	
              Payments
                made on behalf of an obligor (such as tax ore insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the service at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements.

            	 
	
               

              1122(d)(4)(xii)

            	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission.

            	 
	
              1122(d)(4)(xiii)

            	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements.

            	 
	
              1122(d)(4)(xiv)

            	
              Delinquencies,
                charge-offs and uncollectible funds are recognized and recorded in
                accordance with the transaction agreements.

            	 
	
              1122(d)(4)(xv)

            	
              Any
                external enhancement or other support, identified in item 1114(a)(1)
                through (3) or item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements.

            	 

    

    

     

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      H

    

    FORM
      OF
      MORTGAGE LOAN PURCHASE AGREEMENT

     

    MORTGAGE
      LOAN PURCHASE AGREEMENT, dated as of November 30, 2006, as amended and
      supplemented by any and all amendments hereto (collectively, the “Agreement”),
      by
      and between EMC MORTGAGE CORPORATION, a Delaware corporation (the “Seller”)
      and
      STRUCTURED ASSET MORTGAGE INVESTMENTS II INC., a Delaware corporation (the
      “Purchaser”).

     

    Upon
      the
      terms and subject to the conditions of this Agreement, the Seller agrees to
      sell, and the Purchaser agrees to purchase, certain conventional, first lien
      mortgage loans secured primarily by one- to four-family residential properties
      and individual condominium units (collectively, the “Mortgage
      Loans”)
      as
      described herein. The Purchaser intends to deposit the Mortgage Loans into
      a
      trust fund (the “Trust
      Fund”)
      and
      create Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2
      (the “Certificates”),
      under
      a pooling and servicing agreement, to be dated as of November 1, 2006 (the
      “Pooling
      and Servicing Agreement”),
      among
      the Purchaser, as depositor, U.S. Bank National Association, as trustee (the
      “Trustee”)
      and
      EMC Mortgage Corporation, as seller and master servicer.

     

    The
      Purchaser has filed with the Securities and Exchange Commission (the
“Commission”)
      a
      registration statement on Form S-3 (Number 333-132232) relating to its
Mortgage
      Pass-Through Certificates
      and the
      offering of certain series thereof (including certain classes of the
      Certificates) from time to time in accordance with Rule 415 under the Securities
      Act of 1933, as amended, and the rules and regulations of the Commission
      promulgated thereunder (the “Securities
      Act”).
      Such
      registration statement, when it became effective under the Securities Act,
      and
      the prospectus relating to the public offering of certain classes of the
      Certificates by the Purchaser (the “Public
      Offering”),
      as
      each may be amended or supplemented from time to time pursuant to the Securities
      Act or otherwise, are referred to herein as the “Registration
      Statement”
and
      the
“Prospectus,”
      respectively. The “Term
      Sheet Supplement”
shall
      mean the free writing prospectus, dated November 6, 2006. The
      “Prospectus
      Supplement”
shall
      mean the final supplement, dated November
      30,
      2006,
      to the Prospectus, dated October
      23, 2006,
      relating to certain classes of the Certificates. With
      respect to the Public Offering of certain classes of the Certificates, the
      Purchaser and Bear, Stearns & Co. Inc. (“Bear
      Stearns”)
      have
      entered into a terms agreement dated as of November 6, 2006 to an underwriting
      agreement dated May 12, 2006, between the Purchaser and Bear Stearns (together,
      the “Underwriting
      Agreement”).

     

    Now,
      therefore, in consideration of the premises and the mutual agreements set forth
      herein, the parties hereto agree as follows:

     

    SECTION
      1.  Definitions.
      Certain
      terms are defined herein. Capitalized terms used herein but not defined herein
      shall have the meanings specified in the Pooling and Servicing Agreement. The
      following other terms are defined as follows:

     

    Acquisition
      Price:
      Cash in
      an amount equal to $______ (plus $______ in accrued interest)2 .

     

    Bear
      Stearns:
      Bear,
      Stearns & Co. Inc.

     

    Closing
      Date:
      November 30, 2006.

     

    Cut-off
      Date:
      November 1, 2006.

     

    Cut-off
      Date Balance:
      Shall
      mean $281,849,595.74.

     

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

     

    Due
      Date:
      With
      respect to each Mortgage Loan, the date in each month on which its scheduled
      payment is due if such due date is the first day of a month and otherwise is
      deemed to be the first day of the following month or such other date specified
      in the related Servicing Agreement.

     

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

     

    Master
      Servicer:
      EMC
      Mortgage Corporation.

     

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

     

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

     

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

     

    Mortgage:
      The
      mortgage or deed of trust creating a first lien on an interest in real property
      securing a Mortgage Note.

     

    Mortgage
      File:
      The
      items referred to in Exhibit
      1
      pertaining to a particular Mortgage Loan and any additional documents required
      to be added to such documents pursuant to this Agreement.

     

    Mortgage
      Interest Rate:
      The
      annual rate of interest borne by a Mortgage Note as stated therein.

     

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

     

    Net
      Rate:
      For
      each Mortgage Loan, the Mortgage Interest Rate for such Mortgage Loan less
      the
      Servicing Fee Rate and the Lender-Paid PMI Rate (if applicable).

     

    Opinion
      of Counsel:
      A
      written opinion of counsel, who may be counsel for the Seller or the Purchaser,
      reasonably acceptable to the Trustee.

     

    Person:
      Any
      legal person, including any individual, corporation, partnership, joint venture,
      association, joint stock company, trust, unincorporated organization or
      government or any agency or political subdivision thereof.

     

    Purchase
      Price:
      With
      respect to any Mortgage Loan (or any property acquired with respect thereto)
      required to be repurchased by the Seller pursuant to this Agreement or Article
      II of the Pooling and Servicing Agreement, an amount equal to the sum of (i)(a)
      100% of the Outstanding Principal Balance of such Mortgage Loan as of the date
      of repurchase (or if the related Mortgaged Property was acquired with respect
      thereto, 100% of the Outstanding Principal Balance at the date of the
      acquisition), plus (b) accrued but unpaid interest on the Outstanding Principal
      Balance at the related Mortgage Interest Rate, through and including the last
      day of the month of repurchase, plus (c) any unreimbursed Monthly Advances
      and
      servicing advances payable to the Servicer of the Mortgage Loan and (ii) any
      costs and damages (if any) incurred by the Trust in connection with any
      violation of such Mortgage Loan of any anti-predatory lending laws.

     

    Rating
      Agencies:
      Moody’s
      and S&P, each a “Rating
      Agency.”

     

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

     

    Security
      Instrument:
      A
      written instrument creating a valid first lien on a Mortgaged Property securing
      a Mortgage Note, which may be any applicable form of mortgage, deed of trust,
      deed to secure debt or security deed, including any riders or addenda
      thereto.

     

    Servicing
      Agreements:
      Shall
      have the meaning assigned to such term in the Pooling and Servicing
      Agreement.

     

    Standard
      & Poor’s or S&P:
      Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. or its
      successors in interest.

     

    Substitute
      Mortgage Loan:
      A
      mortgage loan substituted for a Deleted Mortgage Loan which must meet on the
      date of such substitution the requirements stated herein and in the Pooling
      and
      Servicing Agreement; upon such substitution, such mortgage loan shall be a
      “Mortgage Loan” hereunder.

     

    Value:
      The
      value of the Mortgaged Property at the time of origination of the related
      Mortgage Loan, such value being the lesser of (i) the value of such property
      set
      forth in an appraisal accepted by the applicable originator of the Mortgage
      Loan
      or (ii) the sales price of such property at the time of
      origination.

     

    SECTION
      2.  Purchase
      and Sale of the Mortgage Loans and Related Rights.
      (a)
      Upon
      satisfaction of the conditions set forth in Section 10 hereof, the Seller agrees
      to sell, and the Purchaser agrees to purchase Mortgage Loans having an aggregate
      outstanding principal balance as of the Cut-off Date equal to the Cut-off Date
      Balance.

     

    (b)  The
      closing for the purchase and sale of the Mortgage Loans and the closing for
      the
      issuance of the Certificates will take place on the Closing Date at the office
      of the Purchaser’s counsel in New York, New York or such other place as the
      parties shall agree.

     

    (c)  Upon
      the
      satisfaction of the conditions set forth in Section 10 hereof, on the Closing
      Date, the Purchaser shall pay to the Seller the Acquisition Price for the
      Mortgage Loans in immediately available funds by wire transfer to such account
      or accounts as shall be designated by the Seller.

     

    (d)  In
      addition to the foregoing, on the Closing Date the Seller assigns to the
      Purchaser all of its right, title and interest in the Servicing Agreements
      (other than its right to enforce the representations and warranties set forth
      therein).

     

    SECTION
      3.  Mortgage
      Loan Schedule.
      The
      Seller agrees to provide to the Purchaser as of the Cut-off Date a listing
      of
      the Mortgage Loans (the “Mortgage
      Loan Schedule”)
      setting forth the information listed on Exhibit
      2
      to this
      Agreement with respect to each of the Mortgage Loans being sold by the Seller.
      The Mortgage Loan Schedule shall be delivered to the Purchaser on the Closing
      Date and shall be in form and substance mutually agreed to by the Seller and
      the
      Purchaser.

     

    SECTION
      4.  Mortgage
      Loan Transfer.

     

    (a)  The
      Purchaser will be entitled to all scheduled payments of principal and interest
      on the Mortgage Loans due after the Cut-off Date (regardless of when actually
      collected) and all payments thereon, other than scheduled principal and interest
      due on or before the Cut-off Date but received after the Cut-off Date. The
      Seller will be entitled to all scheduled payments of principal and interest
      on
      the Mortgage Loans due on or before the Cut-off Date (including payments
      collected after the Cut-off Date) and all payments thereon, other than scheduled
      principal and interest due after the Cut-off Date but received on or before
      the
      Cut-off Date. Such principal amounts and any interest thereon belonging to
      the
      Seller as described above will not be included in the aggregate outstanding
      principal balance of the Mortgage Loans as of the Cut-off Date as set forth
      on
      the Mortgage Loan Schedule.

     

    (b)  Pursuant
      to various conveyancing documents to be executed on the Closing Date and
      pursuant to the Pooling and Servicing Agreement, the Purchaser will assign
      on
      the Closing Date all of its right, title and interest in and to the Mortgage
      Loans to the Trustee for the benefit of the Certificateholders. In connection
      with the transfer and assignment of the Mortgage Loans, the Seller has delivered
      or will deliver or cause to be delivered to the Trustee by the Closing Date
      or
      such later date as is agreed to by the Purchaser and the Seller (each of the
      Closing Date and such later date is referred to as a “Mortgage
      File Delivery Date”),
      the
      items of each Mortgage File, provided,
      however,
      that in
      lieu of the foregoing, the Seller may deliver the following documents, under
      the
      circumstances set forth below: (w) in lieu of the original Security Instrument
      (other than the Mortgages related to the EMC Flow Loans), assignments to the
      Trustee or intervening assignments thereof which have been delivered, are being
      delivered or will, upon receipt of recording information relating to the
      Security Instrument required to be included thereon, be delivered to recording
      offices for recording and have not been returned to the Seller in time to permit
      their delivery as specified above, the Seller may deliver a true copy thereof
      with a certification by the Seller, on the face of such copy, substantially
      as
      follows: “Certified to be a true and correct copy of the original, which has
      been transmitted for recording”; (x) in lieu of the Security Instrument (other
      than the Mortgages related to the EMC Flow Loans), assignments to the Trustee
      or
      intervening assignments thereof, if the applicable jurisdiction retains the
      originals of such documents (as evidenced by a certification from the Seller
      to
      such effect) the Seller may deliver photocopies of such documents containing
      an
      original certification by the judicial or other governmental authority of the
      jurisdiction where such documents were recorded; (y) in lieu of the Mortgage
      Notes relating to the Mortgage Loans, each identified in the list delivered
      by
      the Purchaser to the Trustee on the Closing Date and attached hereto as Exhibit
      5, the Seller may deliver lost note affidavits and indemnities of the Seller;
      and (z) the Seller shall not be required to deliver intervening assignments
      or
      Mortgage Note endorsements between the related Underlying Seller and the Seller,
      between the Seller and the Depositor, and between the Depositor and the Trustee;
      and provided further, however, that in the case of Mortgage Loans which have
      been prepaid in full after the Cut-off Date and prior to the Closing Date,
      the
      Seller, in lieu of delivering the above documents, may deliver to the Trustee
      a
      certification by the Seller or the Master Servicer to such effect and shall
      deposit all amounts paid in respect of such Mortgage Loans in the Master
      Servicer Collection Account on the Closing Date. The Seller shall deliver such
      original documents (including any original documents as to which certified
      copies had previously been delivered) or such certified copies to the Trustee
      promptly after they are received. The Seller shall cause the Mortgage and
      intervening assignments, if any, and the assignment of the Security Instrument
      to be recorded not later than 180 days after the Closing Date, unless such
      assignment is not required to be recorded under the terms set forth in Section
      6(a) hereof.

     

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

     

    (d)  The
      Seller and the Purchaser acknowledge hereunder that all of the Mortgage Loans
      and the related servicing will ultimately be assigned to U.S. Bank National
      Association, as Trustee for the Holders of the Mortgage, on the date
      hereof.

     

    SECTION
      5.  Examination
      of Mortgage Files.

     

    (a)  On
      or
      before the Mortgage File Delivery Date, the Seller will have made the Mortgage
      Files available to the Purchaser or its agent for examination which may be
      at
      the offices of the Trustee or the Seller and/or the Seller’s custodian. The fact
      that the Purchaser or its agent has conducted or has failed to conduct any
      partial or complete examination of the Mortgage Files shall not affect the
      Purchaser’s rights to demand cure, repurchase, substitution or other relief as
      provided in this Agreement. In furtherance of the foregoing, the Seller shall
      make the Mortgage Files available to the Purchaser or its agent from time to
      time so as to permit the Purchaser to confirm the Seller’s compliance with the
      delivery and recordation requirements of this Agreement and the Pooling and
      Servicing Agreement. In addition, upon request of the Purchaser, the Seller
      agrees to provide to the Purchaser, Bear Stearns and to any investors or
      prospective investors in the Certificates information regarding the Mortgage
      Loans and their servicing, to make the Mortgage Files available to the
      Purchaser, Bear Stearns and to such investors or prospective investors (which
      may be at the offices of the Seller and/or the Seller’s custodian) and to make
      available personnel knowledgeable about the Mortgage Loans for discussions
      with
      the Purchaser, Bear Stearns and such investors or prospective investors, upon
      reasonable request during regular business hours, sufficient to permit the
      Purchaser, Bear Stearns and such investors or potential investors to conduct
      such due diligence as any such party reasonably believes is
      appropriate.

     

    (b)  Pursuant
      to the Pooling and Servicing Agreement, on the Closing Date the Custodian,
      on
      behalf of the Trustee, for the benefit of the Certificateholders, will
      acknowledge receipt of each Mortgage Loan by delivery to the Seller, the
      Purchaser and the Trustee of an initial certification in the form attached
      as
      Exhibit One to the Custodial Agreement.

     

    (c)  Pursuant
      to the Pooling and Servicing Agreement, within 90 days of the Closing Date
      (or,
      with respect to any Substitute Mortgage Loan, within five Business Days after
      the receipt by the Trustee or Custodian thereof), the Trustee will review or
      shall cause the Custodian to review items of the Mortgage Files as set forth
      on
Exhibit
      1
      and will
      deliver to the Seller, the Purchaser and the Trustee an interim certification
      substantially in the form of Exhibit Two to the Custodial Agreement. If the
      Trustee or Custodian, as its agent, finds any document listed on Exhibit
      1
      not to
      have been executed or received, or to be unrelated, determined on the basis
      of
      the Mortgagor name, original principal balance and loan number, to the Mortgage
      Loans identified in the Final Mortgage Loan Schedule or to appear defective
      on
      its face (a “Material
      Defect”),
      the
      Trustee or the Custodian, as its agent, shall promptly notify the Seller of
      such
      Material Defect. The Seller shall correct or cure any such Material Defect
      within 90 days from the date of notice from the Trustee or the Custodian, as
      its
      agent, of the Material Defect and if the Seller fails to correct or cure such
      Material Defect within such period and such defect materially and adversely
      affects the interests of the Certificateholders in the related Mortgage Loan,
      the Seller will, in accordance with the terms of the Pooling and Servicing
      Agreement, within 90 days of the date of notice, provide the Trustee with a
      Substitute Mortgage Loan (if within two years of the Closing Date) or purchase
      the related Mortgage Loan at the applicable Purchase Price; provided
      that,
      if such
      defect would cause the Mortgage Loan to be other than a “qualified mortgage” as
      defined in Section 860G(a)(3) of the Code, any such cure, repurchase or
      substitution must occur within 90 days from the date such breach was discovered;
      provided, however,
      that if
      such defect relates solely to the inability of the Seller to deliver the
      original Security Instrument or intervening assignments thereof, or a certified
      copy because the originals of such documents, or a certified copy, have not
      been
      returned by the applicable jurisdiction, the Seller shall not be required to
      purchase such Mortgage Loan if the Seller delivers such original documents
      or
      certified copy promptly upon receipt, but in no event later than 360 days after
      the Closing Date. The foregoing repurchase obligation shall not apply in the
      event that the Seller cannot deliver such original or copy of any document
      submitted for recording to the appropriate recording office in the applicable
      jurisdiction because such document has not been returned by such office;
      provided that the Seller shall instead deliver a recording receipt of such
      recording office or, if such receipt is not available, a certificate confirming
      that such documents have been accepted for recording, and delivery to the
      Trustee or the Custodian, as its agent, shall be effected by the Seller within
      thirty days of its receipt of the original recorded document.

     

    (d)  Pursuant
      to the Pooling and Servicing Agreement, within 180 days of the Closing Date
      (or,
      with respect to any Substitute Mortgage Loan, within five Business Days after
      the receipt by the Trustee or Custodian thereof) the Trustee will review or
      cause the Custodian to review items of the Mortgage Files as set forth on
Exhibit
      1
      and will
      deliver to the Seller, the Purchaser and the Trustee a final certification
      substantially in the form of Exhibit Three to the Custodial Agreement. If the
      Trustee or Custodian, as its agent, finds a Material Defect, the Trustee or
      the
      Custodian, as its agent, shall promptly notify the Seller of such Material
      Defect. The Seller shall correct or cure any such Material Defect within 90
      days
      from the date of notice from the Trustee or the Custodian, as its agent, of
      the
      Material Defect and if the Seller fails to correct or cure such Material Defect
      within such period and such defect materially and adversely affects the
      interests of the Certificateholders in the related Mortgage Loan, the Seller
      will, in accordance with the terms of the Pooling and Servicing Agreement,
      within 90 days of the date of notice, provide the Trustee with a Substitute
      Mortgage Loan (if within two years of the Closing Date) or purchase the related
      Mortgage Loan at the applicable Purchase Price; provided
      that,
      if such
      defect would cause the Mortgage Loan to be other than a “qualified mortgage” as
      defined in Section 860G(a)(3) of the Code, any such cure, repurchase or
      substitution must occur within 90 days from the date such breach was discovered;
      provided, however,
      that if
      such defect relates solely to the inability of the Seller to deliver the
      original Security Instrument or intervening assignments thereof, or a certified
      copy because the originals of such documents, or a certified copy, have not
      been
      returned by the applicable jurisdiction, the Seller shall not be required to
      purchase such Mortgage Loan if the Seller delivers such original documents
      or
      certified copy promptly upon receipt, but in no event later than 360 days after
      the Closing Date. The foregoing repurchase obligation shall not apply in the
      event that the Seller cannot deliver such original or copy of any document
      submitted for recording to the appropriate recording office in the applicable
      jurisdiction because such document has not been returned by such office;
      provided that the Seller shall instead deliver a recording receipt of such
      recording office or, if such receipt is not available, a certificate confirming
      that such documents have been accepted for recording, and delivery to the
      Trustee or the Custodian, as its agent, shall be effected by the Seller within
      thirty days of its receipt of the original recorded document.

     

    (e)  At
      the
      time of any substitution, the Seller shall deliver or cause to be delivered
      the
      Substitute Mortgage Loan, the related Mortgage File and any other documents
      and
      payments required to be delivered in connection with a substitution pursuant
      to
      the Pooling and Servicing Agreement. At the time of any purchase or
      substitution, the Trustee in accordance with the terms of the Pooling and
      Servicing Agreement shall (i) assign to the Seller and cause the Custodian
      to
      release the documents (including, but not limited to, the Mortgage, Mortgage
      Note and other contents of the Mortgage File) in the possession of the Custodian
      relating to the Deleted Mortgage Loan and (ii) execute and deliver such
      instruments of transfer or assignment, in each case without recourse, as shall
      be necessary to vest in the Seller title to such Deleted Mortgage
      Loan.

     

    SECTION
      6.  Recordation
      of Assignments of Mortgage.

     

    (a)  The
      Seller shall cause each assignment of the Security Instrument from the Seller
      to
      the Trustee to be recorded not later than 180 days after the Closing Date,
      unless (a) such recordation is not required by the Rating Agencies or an Opinion
      of Counsel has been provided to the Trustee (with a copy to the Custodian)
      which
      states that the recordation of such assignments is not necessary to protect
      the
      interests of the Certificateholders in the related Mortgage Loans or (b) MERS
      is
      identified on the Mortgage or a properly recorded assignment of the Mortgage,
      as
      the Mortgagee of record solely as nominee for the Seller and its successors
      and
      assigns; provided,
      however,
      notwithstanding the foregoing, each assignment shall be submitted for recording
      by the Seller in the manner described above, at no expense to the Trust or
      Trustee, upon the earliest to occur of (i) reasonable direction by the Holders
      of Certificates evidencing Fractional Undivided Interests aggregating not less
      than 25% of the portion of the Trust related to such Classes, (ii) the
      occurrence of an Event of Default, (iii) the occurrence of a bankruptcy,
      insolvency or foreclosure relating to the Seller and (iv) the occurrence of
      a
      servicing transfer as described in Section 8.02 of the Pooling and Servicing
      Agreement.

     

    While
      each such Mortgage or assignment is being recorded, if necessary, the Seller
      shall leave or cause to be left with the Trustee a certified copy of such
      Mortgage or assignment. All customary recording fees and reasonable expenses
      relating to the recordation of the assignments of mortgage to the Trustee or
      the
      Opinion of Counsel, as the case may be, shall be borne by the
      Seller.

     

    (b)  It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Loans
      by the Seller to the Purchaser, as contemplated by this Agreement be, and be
      treated as, a sale. It is, further, not the intention of the parties that such
      conveyance be deemed a pledge of the Mortgage Loans by the Seller to the
      Purchaser to secure a debt or other obligation of the Seller. However, in the
      event that, notwithstanding the intent of the parties, the Mortgage Loans are
      held by a court to continue to be property of the Seller, then (a) this
      Agreement shall also be deemed to be a security agreement within the meaning
      of
      Articles 8 and 9 of the applicable Uniform Commercial Code; (b) the transfer
      of
      the Mortgage Loans provided for herein shall be deemed to be a grant by the
      Seller to the Purchaser of a security interest in all of the Seller’s right,
      title and interest in and to the Mortgage Loans and all amounts payable to
      the
      holders of the Mortgage Loans in accordance with the terms thereof and all
      proceeds of the conversion, voluntary or involuntary, of the foregoing into
      cash, instruments, securities or other property, to the extent the Purchaser
      would otherwise be entitled to own such Mortgage Loans and proceeds pursuant
      to
      Section 4 hereof, including all amounts, other than investment earnings, from
      time to time held or invested in any accounts created pursuant to the Pooling
      and Servicing Agreement, whether in the form of cash, instruments, securities
      or
      other property; (c) the possession by the Purchaser or the Trustee of Mortgage
      Notes and such other items of property as constitute instruments, money,
      negotiable documents or chattel paper shall be deemed to be “possession by the
      secured party” for purposes of perfecting the security interest pursuant to
      Section 9-313 (or comparable provision) of the applicable Uniform Commercial
      Code; and (d) notifications to persons holding such property, and
      acknowledgments, receipts or confirmations from persons holding such property,
      shall be deemed notifications to, or acknowledgments, receipts or confirmations
      from, financial intermediaries, bailees or agents (as applicable) of the
      Purchaser for the purpose of perfecting such security interest under applicable
      law. Any assignment of the interest of the Purchaser pursuant to any provision
      hereof or pursuant to the Pooling and Servicing Agreement shall also be deemed
      to be an assignment of any security interest created hereby. The Seller and
      the
      Purchaser shall, to the extent consistent with this Agreement, take such actions
      as may be reasonably necessary to ensure that, if this Agreement were deemed
      to
      create a security interest in the Mortgage Loans, such security interest would
      be deemed to be a perfected security interest of first priority under applicable
      law and will be maintained as such throughout the term of the Pooling and
      Servicing Agreement.

     

    SECTION
      7.  Representations
      and Warranties of Seller Concerning the Mortgage Loans.
      The
      Seller hereby represents and warrants to the Purchaser as of the Closing Date,
      or such other date as may be specified below with respect to each Mortgage
      Loan
      being sold by it, that:

     

    (i)  the
      information set forth in the Mortgage Loan Schedule attached hereto is true
      and
      correct in all material;

     

    (ii)  immediately
      prior to the transfer to the Purchaser, the Seller was the sole owner of
      beneficial title and holder of each Mortgage and Mortgage Note relating to
      the
      Mortgage Loans and is conveying the same free and clear of any and all liens,
      claims, encumbrances, participation interests, equities, pledges, charges or
      security interests of any nature and the Seller has full right and authority
      to
      sell or assign the same pursuant to this Agreement;

     

    (iii)  Each
      Mortgage Loan at the time it was made complied in all material respects with
      all
      applicable laws and regulations, including, without limitation, usury, equal
      credit opportunity, disclosure and recording laws and all applicable
      anti-predatory lending laws; and each Mortgage Loan has been serviced in all
      material respects in accordance with all applicable laws and regulations,
      including, without limitation, usury, equal credit opportunity, disclosure
      and
      recording laws and all applicable anti-predatory lending laws and the terms
      of
      the related Mortgage Note, the Mortgage and other loan documents;

     

    (iv)  there
      is
      no monetary default existing under any Mortgage or the related Mortgage Note
      and
      there is no material event which, with the passage of time or with notice and
      the expiration of any grace or cure period, would constitute a default, breach
      or event of acceleration; and neither the Seller, any of its affiliates nor
      any
      servicer of any related Mortgage Loan has taken any action to waive any default,
      breach or event of acceleration; and no foreclosure action is threatened or
      has
      been commenced with respect to the Mortgage Loan;

     

    (v)  the
      terms
      of the Mortgage Note and the Mortgage have not been impaired, waived, altered
      or
      modified in any respect, except by written instruments, (i) if required by
      law
      in the jurisdiction where the Mortgaged Property is located, or (ii) to protect
      the interests of the Trustee on behalf of the Certificateholders;

     

    (vi)  no
      selection procedure reasonably believed by the Seller to be adverse to the
      interests of the Certificateholders was utilized in selecting the Mortgage
      Loans;

     

    (vii)  each
      Mortgage is a valid and enforceable first lien on the property securing the
      related Mortgage Note and each Mortgaged Property is owned by the Mortgagor
      in
      fee simple (except with respect to common areas in the case of condominiums,
      PUDs and de minimis
      PUDs) or
      by leasehold for a term longer than the term of the related Mortgage, subject
      only to (i) the lien of current real property taxes and assessments, (ii)
      covenants, conditions and restrictions, rights of way, easements and other
      matters of public record as of the date of recording of such Mortgage, such
      exceptions being acceptable to mortgage lending institutions generally or
      specifically reflected in the appraisal obtained in connection with the
      origination of the related Mortgage Loan or referred to in the lender’s title
      insurance policy delivered to the originator of the related Mortgage Loan and
      (iii) other matters to which like properties are commonly subject which do
      not
      materially interfere with the benefits of the security intended to be provided
      by such Mortgage;

     

    (viii)  there
      is
      no mechanics’ lien or claim for work, labor or material affecting the premises
      subject to any Mortgage which is or may be a lien prior to, or equal with,
      the
      lien of such Mortgage except those which are insured against by the title
      insurance policy referred to in (xiii) below;

     

    (ix)  there
      was
      no delinquent tax or assessment lien against the property subject to any
      Mortgage, except where such lien was being contested in good faith and a stay
      had been granted against levying on the property;

     

    (x)  there
      is
      no valid offset, defense or counterclaim to any Mortgage Note or Mortgage,
      including the obligation of the Mortgagor to pay the unpaid principal and
      interest on such Mortgage Note;

     

    (xi)  the
      physical property subject to any Mortgage is free of material damage and is
      in
      good repair and there is no proceeding pending or threatened for the total
      or
      partial condemnation of any Mortgaged Property;

     

    (xii)  the
      Mortgaged Property and all improvements thereon comply with all requirements
      of
      any applicable zoning and subdivision laws and ordinances;

     

    (xiii)  a
      lender’s title insurance policy (on an ALTA or CLTA form) or binder, or other
      assurance of title customary in the relevant jurisdiction therefor in a form
      acceptable to Fannie Mae or Freddie Mac, was issued on the date that each
      Mortgage Loan was created by a title insurance company which, to the best of
      the
      Seller’s knowledge, was qualified to do business in the jurisdiction where the
      related Mortgaged Property is located, insuring the Seller and its successors
      and assigns that the Mortgage is a first priority lien on the related Mortgaged
      Property in the original principal amount of the Mortgage Loan. The Seller
      is
      the sole insured under such lender’s title insurance policy, and such policy,
      binder or assurance is valid and remains in full force and effect, and each
      such
      policy, binder or assurance shall contain all applicable endorsements including
      a negative amortization endorsement, if applicable;

     

    (xiv)  At
      the
      time of origination, each Mortgaged Property was the subject of an appraisal
      which conformed to the underwriting requirements of the originator of the
      Mortgage Loan and, the appraisal is in a form acceptable to Fannie Mae or
      FHLMC.

     

    (xv)  the
      improvements on each Mortgaged Property securing a Mortgage Loan is insured
      (by
      an insurer which is acceptable to the Seller) against loss by fire and such
      hazards as are covered under a standard extended coverage endorsement in the
      locale in which the Mortgaged Property is located, in an amount which is not
      less than the lesser of the maximum insurable value of the improvements securing
      such Mortgage Loan or the outstanding principal balance of the Mortgage Loan,
      but in no event in an amount less than an amount that is required to prevent
      the
      Mortgagor from being deemed to be a co-insurer thereunder; if the improvement
      on
      the Mortgaged Property is a condominium unit, it is included under the coverage
      afforded by a blanket policy for the condominium project; if upon origination
      of
      the related Mortgage Loan, the improvements on the Mortgaged Property were
      in an
      area identified as a federally designated flood area, a flood insurance policy
      is in effect in an amount representing coverage not less than the least of
      (i)
      the outstanding principal balance of the Mortgage Loan, (ii) the restorable
      cost
      of improvements located on such Mortgaged Property or (iii) the maximum coverage
      available under federal law; and each Mortgage obligates the Mortgagor
      thereunder to maintain the insurance referred to above at the Mortgagor’s cost
      and expense;

     

    (xvi)  each
      Mortgage Loan constitutes a “qualified mortgage” under Section 860G(a)(3)(A) of
      the Code and Treasury Regulation Section 1.860G-2(a)(1), (2), (4), (5), (6),
      (7)
      and (9) without reliance on the provisions of Treasury Regulation Section
      1.860G-2(a)(3) or Treasury Regulation Section 1.860G-2(f)(2) or any other
      provision that would allow a Mortgage Loan to be treated as a “qualified
      mortgage” notwithstanding its failure to meet the requirements of Section
      860G(a)(3)(A) of the Code and Treasury Regulation Section 1.860G-2(a)(1), (2),
      (4), (5), (6), (7) and (9);

     

    (xvii)  none
      of
      the Mortgage Loans are (a) loans subject to 12 CFR Part 226.31, 12 CFR Part
      226.32 or 12 CFR Part 226.34 of Regulation Z, the regulation implementing TILA,
      which implements the Home Ownership and Equity Protection Act of 1994, as
      amended or (b) “high cost home,” “covered” (excluding home loans defined as
“covered home loans” in the New Jersey Home Ownership Security Act of 2002 that
      were originated between November 26, 2003 and July 7, 2004), “high risk home” or
“predatory” loans under any applicable state, federal or local law (or a
      similarly classified loan using different terminology under a law imposing
      heightened regulatory scrutiny or additional legal liability for residential
      mortgage loans having high interest rates, points and/or fees);

     

    (xviii)  the
      information set forth in Schedule A of the Prospectus Supplement with respect
      to
      the Mortgage Loans is true and correct in all material respects; 

     

    (xix)  no
      Mortgage Loan (a) is a “high cost loan” or “covered loan” as applicable (as such
      terms are defined in the then current Standard & Poor’s LEVELS® Glossary,
      which is now Version 5.7, Appendix E, attached hereto as Exhibit 6 or (b) was
      originated on or after October 1, 2002 and before March 7, 2003, which is
      governed by the Georgia Fair Lending Act;

     

    (xx)  each
      Mortgage Loan was originated in accordance with the underwriting guidelines
      of
      the related originator;

     

    (xxi)  each
      original Mortgage has been recorded or is in the process of being recorded
      in
      accordance with the requirements of Section 2.01 of the Pooling and Servicing
      Agreement in the appropriate jurisdictions wherein such recordation is required
      to perfect the lien thereof for the benefit of the Trust Fund;

     

    (xxii)  the
      related Mortgage File contains each of the documents and instruments listed
      in
      Section 2.01 of the Pooling and Servicing Agreement, subject to any exceptions,
      substitutions and qualifications as are set forth in such Section;

     

    (xxiii)  the
      Mortgage Loans are currently being serviced in accordance with accepted
      servicing practices; and

     

    (xxiv)  with
      respect to each Mortgage Loan that has a prepayment penalty feature, each such
      prepayment penalty is enforceable and will be enforced by the Mortgage Loan
      Seller and each prepayment penalty is permitted pursuant to federal, state
      and
      local law. In addition, with respect to each Mortgage Loan (i) no Mortgage
      Loan
      will impose a prepayment penalty for a term in excess of five years from the
      date such Mortgage Loan was originated and (ii) such prepayment penalty is
      at
      least equal to the lesser of (A) the maximum amount permitted under applicable
      law and (B) six months interest at the related Mortgage Interest Rate on the
      amount prepaid in excess of 20% of the original principal balance of such
      Mortgage Loan.

     

    (xxv)  If
      any of
      the Mortgage Loans are secured by a leasehold interest, with respect to each
      leasehold interest: the use of leasehold estates for residential properties
      is
      an accepted practice in the area where the related Mortgaged Property is
      located; residential property in such area consisting of leasehold estates
      is
      readily marketable; the lease is recorded and no party is in any way in breach
      of any provision of such lease; the leasehold is in full force and effect and
      is
      not subject to any prior lien or encumbrance by which the leasehold could be
      terminated or subject to any charge or penalty; and the remaining term of the
      lease does not terminate less than ten years after the maturity date of such
      Mortgage Loan;

     

    (xxvi)  each
      Mortgage Loan was originated (a) by a savings and loan association, savings
      bank, commercial bank, credit union, insurance company or similar institution
      that is supervised and examined by a federal or state authority, (b) by a
      mortgagee approved by the Secretary of Housing and Urban Development pursuant
      to
      Sections 203 and 211 of the National Housing Act, as amended, or (c) by a
      mortgage broker or correspondent lender in a manner such that the related
      Mortgage Loan would be regarded for purposes of Section 3(a)(41) of the
      Securities Exchange Act of 1934, as amended, as having been originated by an
      entity described in clauses (a) or (b) above.

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 7 will inure to the benefit of the Purchaser, its successors and
      assigns, notwithstanding any restrictive or qualified endorsement on any
      Mortgage Note or assignment of Mortgage or the examination of any Mortgage
      File.
      Upon any substitution for a Mortgage Loan, the representations and warranties
      set forth above shall be deemed to be made by the Seller as to any Substitute
      Mortgage Loan as of the date of substitution.

     

    Upon
      discovery or receipt of notice by the Seller, the Purchaser or the Trustee
      of a
      breach of any representation or warranty of the Seller set forth in this Section
      7 which materially and adversely affects the value of the interests of the
      Purchaser, the Certificateholders or the Trustee in any of the Mortgage Loans
      delivered to the Purchaser pursuant to this Agreement, the party discovering
      or
      receiving notice of such breach shall give prompt written notice to the others.
      In the case of any such breach of a representation or warranty set forth in
      this
      Section 7, within 90 days from the date of discovery by the Seller, or the
      date
      the Seller is notified by the party discovering or receiving notice of such
      breach (whichever occurs earlier), the Seller will (i) cure such breach in
      all
      material respects, (ii) purchase the affected Mortgage Loan at the applicable
      Purchase Price or (iii) if within two years of the Closing Date, substitute
      a
      qualifying Substitute Mortgage Loan in exchange for such Mortgage Loan; provided
      that, (A) in the case of a breach of the representation and warranty concerning
      the Mortgage Loan Schedule contained in clause (i) of this Section 7, if such
      breach is material and relates to any field on the Mortgage Loan Schedule which
      identifies any Prepayment Charge or (B) in the case of a breach of the
      representation contained in clause (x) of this Section 7, then, in each case,
      in
      lieu of purchasing such Mortgage Loan from the Trust Fund at the Purchase Price,
      the Seller shall pay the amount of the Prepayment Charge (net of any amount
      previously collected by or paid to the Trust Fund in respect of such Prepayment
      Charge) from its own funds and without reimbursement therefor, and the Seller
      shall have no obligation to repurchase or substitute for such Mortgage Loan.
      The
      obligations of the Seller to cure, purchase or substitute a qualifying
      Substitute Mortgage Loan shall constitute the Purchaser’s, the Trustee’s and the
      Certificateholder’s sole and exclusive remedy under this Agreement or otherwise
      respecting a breach of representations or warranties hereunder with respect
      to
      the Mortgage Loans, except for the obligation of the Seller to indemnify the
      Purchaser for such breach as set forth in and limited by Section 13
      hereof.

     

    Any
      cause
      of action against the Seller or relating to or arising out of a breach by the
      Seller of any representations and warranties made in this Section 7 shall accrue
      as to any Mortgage Loan upon (i) discovery of such breach by the Seller or
      notice thereof by the party discovering such breach and (ii) failure by the
      Seller to cure such breach, purchase such Mortgage Loan or substitute a
      qualifying Substitute Mortgage Loan pursuant to the terms hereof.

     

    SECTION
      8.  Representations
      and Warranties Concerning the Seller.
      As of
      the date hereof and as of the Closing Date, the Seller represents and warrants
      to the Purchaser as to itself in the capacity indicated as follows:

     

    (a)  the
      Seller (i) is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Delaware and (ii) is qualified and
      in
      good standing to do business in each jurisdiction where such qualification
      is
      necessary, except where the failure so to qualify would not reasonably be
      expected to have a material adverse effect on the Seller’s business as presently
      conducted or on the Seller’s ability to enter into this Agreement and to
      consummate the transactions contemplated hereby;

     

    (b)  the
      Seller has full power to own its property, to carry on its business as presently
      conducted and to enter into and perform its obligations under this
      Agreement;

     

    (c)  the
      execution and delivery by the Seller of this Agreement have been duly authorized
      by all necessary action on the part of the Seller; and neither the execution
      and
      delivery of this Agreement, nor the consummation of the transactions herein
      contemplated, nor compliance with the provisions hereof, will conflict with
      or
      result in a breach of, or constitute a default under, any of the provisions
      of
      any law, governmental rule, regulation, judgment, decree or order binding on
      the
      Seller or its properties or the charter or by-laws of the Seller, except those
      conflicts, breaches or defaults which would not reasonably be expected to have
      a
      material adverse effect on the Seller’s ability to enter into this Agreement and
      to consummate the transactions contemplated hereby;

     

    (d)  the
      execution, delivery and performance by the Seller of this Agreement and the
      consummation of the transactions contemplated hereby do not require the consent
      or approval of, the giving of notice to, the registration with, or the taking
      of
      any other action in respect of, any state, federal or other governmental
      authority or agency, except those consents, approvals, notices, registrations
      or
      other actions as have already been obtained, given or made and, in connection
      with the recordation of the Mortgages, powers of attorney or assignments of
      Mortgages not yet completed;

     

    (e)  this
      Agreement has been duly executed and delivered by the Seller and, assuming
      due
      authorization, execution and delivery by the Purchaser, constitutes a valid
      and
      binding obligation of the Seller enforceable against it in accordance with
      its
      terms (subject to applicable bankruptcy and insolvency laws and other similar
      laws affecting the enforcement of the rights of creditors
      generally);

     

    (f)  there
      are
      no actions, suits or proceedings pending or, to the knowledge of the Seller,
      threatened against the Seller, before or by any court, administrative agency,
      arbitrator or governmental body (i) with respect to any of the transactions
      contemplated by this Agreement or (ii) with respect to any other matter which
      in
      the judgment of the Seller will be determined adversely to the Seller and will
      if determined adversely to the Seller materially and adversely affect the
      Seller’s ability to perform its obligations under this Agreement; and the Seller
      is not in default with respect to any order of any court, administrative agency,
      arbitrator or governmental body so as to materially and adversely affect the
      transactions contemplated by this Agreement; and

     

    (g)  the
      Seller’s Information (as defined in Section 13(a) hereof) does not include any
      untrue statement of a material fact or omit to state a material fact necessary
      in order to make the statements made, in light of the circumstances under which
      they were made, not misleading.

     

    SECTION
      9.  Representations
      and Warranties Concerning the Purchaser.
      As of
      the date hereof and as of the Closing Date, the Purchaser represents and
      warrants to the Seller as follows:

     

    (a)  the
      Purchaser (i) is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Delaware and (ii) is qualified and
      in
      good standing as a foreign corporation to do business in each jurisdiction
      where
      such qualification is necessary, except where the failure so to qualify would
      not reasonably be expected to have a material adverse effect on the Purchaser’s
      business as presently conducted or on the Purchaser’s ability to enter into this
      Agreement and to consummate the transactions contemplated hereby;

     

    (b)  the
      Purchaser has full corporate power to own its property, to carry on its business
      as presently conducted and to enter into and perform its obligations under
      this
      Agreement;

     

    (c)  the
      execution and delivery by the Purchaser of this Agreement have been duly
      authorized by all necessary corporate action on the part of the Purchaser;
      and
      neither the execution and delivery of this Agreement, nor the consummation
      of
      the transactions herein contemplated, nor compliance with the provisions hereof,
      will conflict with or result in a breach of, or constitute a default under,
      any
      of the provisions of any law, governmental rule, regulation, judgment, decree
      or
      order binding on the Purchaser or its properties or the articles of
      incorporation or by-laws of the Purchaser, except those conflicts, breaches
      or
      defaults which would not reasonably be expected to have a material adverse
      effect on the Purchaser’s ability to enter into this Agreement and to consummate
      the transactions contemplated hereby;

     

    (d)  the
      execution, delivery and performance by the Purchaser of this Agreement and
      the
      consummation of the transactions contemplated hereby do not require the consent
      or approval of, the giving of notice to, the registration with, or the taking
      of
      any other action in respect of, any state, federal or other governmental
      authority or agency, except those consents, approvals, notices, registrations
      or
      other actions as have already been obtained, given or made;

     

    (e)  this
      Agreement has been duly executed and delivered by the Purchaser and, assuming
      due authorization, execution and delivery by the Seller, constitutes a valid
      and
      binding obligation of the Purchaser enforceable against it in accordance with
      its terms (subject to applicable bankruptcy and insolvency laws and other
      similar laws affecting the enforcement of the rights of creditors
      generally);

     

    (f)  there
      are
      no actions, suits or proceedings pending or, to the knowledge of the Purchaser,
      threatened against the Purchaser, before or by any court, administrative agency,
      arbitrator or governmental body (i) with respect to any of the transactions
      contemplated by this Agreement or (ii) with respect to any other matter which
      in
      the judgment of the Purchaser will be determined adversely to the Purchaser
      and
      will if determined adversely to the Purchaser materially and adversely affect
      the Purchaser’s ability to perform its obligations under this Agreement; and the
      Purchaser is not in default with respect to any order of any court,
      administrative agency, arbitrator or governmental body so as to materially
      and
      adversely affect the transactions contemplated by this Agreement;
      and

     

    (g)  the
      Purchaser’s Information (as defined in Section 13(b) hereof) does not include
      any untrue statement of a material fact or omit to state a material fact
      necessary in order to make the statements made, in light of the circumstances
      under which they were made, not misleading.

     

    SECTION
      10.  Conditions
      to Closing.

     

    (a)  The
      obligations of the Purchaser under this Agreement will be subject to the
      satisfaction, on or prior to the Closing Date, of the following
      conditions:

     

    (i)  Each
      of
      the obligations of the Seller required to be performed at or prior to the
      Closing Date pursuant to the terms of this Agreement shall have been duly
      performed and complied with in all material respects; all of the representations
      and warranties of the Seller under this Agreement shall be true and correct
      as
      of the date or dates specified in all material respects; and no event shall
      have
      occurred which, with notice or the passage of time, would constitute a default
      under this Agreement, or the Pooling and Servicing Agreement; and the Purchaser
      shall have received certificates to that effect signed by authorized officers
      of
      the Seller.

     

    (ii)  The
      Purchaser shall have received all of the following closing documents, in such
      forms as are agreed upon and reasonably acceptable to the Purchaser, duly
      executed by all signatories (other than the Purchaser) as required pursuant
      to
      the respective terms thereof:

     

    (1)  The
      Pooling and Servicing Agreement, in form and substance reasonably satisfactory
      to the Trustee and the Purchaser, and all documents required thereby duly
      executed by all signatories;

     

    (2)  A
      certificate of an officer of the Seller dated as of the Closing Date, in a
      form
      reasonably acceptable to the Purchaser, and attached thereto the resolutions
      of
      the Seller authorizing the transactions contemplated by this Agreement, together
      with copies of the charter and by-laws of the Seller;

     

    (3)  One
      or
      more opinions of counsel from the Seller’s counsel otherwise in form and
      substance reasonably satisfactory to the Purchaser, the Trustee and each Rating
      Agency;

     

    (4)  A
      letter
      from each of the Rating Agencies giving each Class of Certificates set forth
      on
      Schedule A the rating set forth on Schedule A; and

     

    (5)  Such
      other documents, certificates (including additional representations and
      warranties) and opinions as may be reasonably necessary to secure the intended
      ratings from each Rating Agency for the Certificates.

     

    (iii)  The
      Certificates to be sold to Bear Stearns pursuant to the Underwriting Agreement
      and the Purchase Agreement shall have been issued and sold to Bear
      Stearns.

     

    (iv)  The
      Seller shall have furnished to the Purchaser such other certificates of its
      officers or others and such other documents and opinions of counsel to evidence
      fulfillment of the conditions set forth in this Agreement and the transactions
      contemplated hereby as the Purchaser and its counsel may reasonably
      request.

     

    (b)  The
      obligations of the Seller under this Agreement shall be subject to the
      satisfaction, on or prior to the Closing Date, of the following
      conditions:

     

    (i)  The
      obligations of the Purchaser required to be performed by it on or prior to
      the
      Closing Date pursuant to the terms of this Agreement shall have been duly
      performed and complied with in all material respects, and all of the
      representations and warranties of the Purchaser under this Agreement shall
      be
      true and correct in all material respects as of the date hereof and as of the
      Closing Date, and no event shall have occurred which would constitute a breach
      by it of the terms of this Agreement, and the Seller shall have received a
      certificate to that effect signed by an authorized officer of the
      Purchaser.

     

    (ii)  The
      Seller shall have received copies of all of the following closing documents,
      in
      such forms as are agreed upon and reasonably acceptable to the Seller, duly
      executed by all signatories other than the Seller as required pursuant to the
      respective terms thereof:

     

    (1)  The
      Pooling and Servicing Agreement, in form and substance reasonably satisfactory
      to the Seller, and all documents required thereby duly executed by all
      signatories;

     

    (2)  A
      certificate of an officer of the Purchaser dated as of the Closing Date, in
      a
      form reasonably acceptable to the Seller, and attached thereto the resolutions
      of the Purchaser authorizing the transactions contemplated by this Agreement
      and
      the Pooling and Servicing Agreement, together with copies of the Purchaser’s
      articles of incorporation, and evidence as to the good standing of the Purchaser
      dated as of a recent date;

     

    (3)  One
      or
      more opinions of counsel from the Purchaser’s counsel in form and substance
      reasonably satisfactory to the Seller;

     

    (4)  Such
      other documents, certificates (including additional representations and
      warranties) and opinions as may be reasonably necessary to secure the intended
      rating from each Rating Agency for the Certificates;

     

    SECTION
      11.  Fees
      and Expenses.
      Subject
      to Section 16 hereof, the Seller shall pay on the Closing Date or such later
      date as may be agreed to by the Purchaser (i) the fees and expenses of the
      Seller’s attorneys and the reasonable fees and expenses of the Purchaser’s
      attorneys, (ii) the fees and expenses of Deloitte & Touche LLP, (iii) the
      fee for the use of Purchaser’s Registration Statement based on the aggregate
      original principal amount of the Certificates and the filing fee of the
      Commission as in effect on the date on which the Registration Statement was
      declared effective, (iv) the fees and expenses including counsel’s fees and
      expenses in connection with any “blue sky” and legal investment matters, (v) the
      fees and expenses of the Trustee which shall include without limitation the
      fees
      and expenses of the Trustee (and the fees and disbursements of its counsel)
      with
      respect to (A) legal and document review of this Agreement, the Pooling and
      Servicing Agreement, the Certificates and related agreements, (B) attendance
      at
      the Closing and (C) review of the Mortgage Loans to be performed by the
      Custodian, (vi) the expenses for printing or otherwise reproducing the
      Certificates, the Prospectus and the Prospectus Supplement, (vii) the fees
      and
      expenses of each Rating Agency (both initial and ongoing), (viii) the fees
      and
      expenses relating to the preparation and recordation of mortgage assignments
      (including intervening assignments, if any and if available, to evidence a
      complete chain of title from the originator to the Trustee) from the Seller
      to
      the Trustee or the expenses relating to the Opinion of Counsel referred to
      in
      Section 6(a) hereof, as the case may be, and (ix) Mortgage File due diligence
      expenses and other out-of-pocket expenses incurred by the Purchaser in
      connection with the purchase of the Mortgage Loans and by Bear Stearns in
      connection with the sale of the Certificates. The Seller additionally agrees
      to
      pay directly to any third party on a timely basis the fees provided for above
      which are charged by such third party and which are billed
      periodically.

     

    SECTION
      12.  Accountants’
      Letters.

     

    (a)  Deloitte
      & Touche LLP will review the characteristics of a sample of the Mortgage
      Loans described in the Mortgage Loan Schedule and will compare those
      characteristics to the description of the Mortgage Loans contained in the
      Prospectus Supplement under the captions “Summary of Prospectus Supplement—The
      Mortgage Loans”, “The Mortgage Pool” and “Certain Characteristics of the
      Mortgage Loans” in Schedule A thereto. The Seller will cooperate with the
      Purchaser in making available all information and taking all steps reasonably
      necessary to permit such accountants to complete the review and to deliver
      the
      letters required of them under the Underwriting Agreement. Deloitte & Touche
      LLP will also confirm certain calculations as set forth under the caption “Yield
      On The Certificates” in the Prospectus Supplement.

     

    (b)  To
      the
      extent statistical information with respect to the Master Servicer or any
      Servicer’s servicing portfolio is included in the Prospectus Supplement under
      the caption “The Master Servicer and the Servicers,” a letter from the certified
      public accountant for such Master Servicer, Servicer or Servicers, as
      applicable, will be delivered to the Purchaser dated the date of the Prospectus
      Supplement, in the form previously agreed to by the Seller and the Purchaser,
      with respect to such statistical information.

     

    SECTION
      13.  Indemnification.

     

    (a)  The
      Seller shall indemnify and hold harmless the Purchaser and its directors,
      officers and controlling persons (as defined in Section 15 of the Securities
      Act) from and against any loss, claim, damage or liability or action in respect
      thereof, to which they or any of them may become subject, under the Securities
      Act or otherwise, insofar as such loss, claim, damage, liability or action
      arises out of, or is based upon (i) any untrue statement of a material fact
      contained in the Seller’s
      Information
      as
      identified in Exhibit
      3,
      the
      omission to state in the Prospectus Supplement or Prospectus (or any amendment
      thereof or supplement thereto approved by the Seller and in which additional
      Seller’s Information is identified), in reliance upon and in conformity with
      Seller’s Information a material fact required to be stated therein or necessary
      to make the statements therein in light of the circumstances in which they
      were
      made, not misleading, (ii) any representation or warranty assigned or made
      by
      the Seller in Section 7 or Section 8 hereof being, or alleged to be, untrue
      or
      incorrect, or (iii) any failure by the Seller to perform its obligations under
      this Agreement; and the Seller shall reimburse the Purchaser and each other
      indemnified party for any legal and other expenses reasonably incurred by them
      in connection with investigating or defending or preparing to defend against
      any
      such loss, claim, damage, liability or action.

     

    The
      foregoing indemnity agreement is in addition to any liability which the Seller
      otherwise may have to the Purchaser or any other such indemnified
      party.

     

    (b)  The
      Purchaser shall indemnify and hold harmless the Seller and its respective
      directors, officers and controlling persons (as defined in Section 15 of the
      Securities Act) from and against any loss, claim, damage or liability or action
      in respect thereof, to which they or any of them may become subject, under
      the
      Securities Act or otherwise, insofar as such loss, claim, damage, liability
      or
      action arises out of, or is based upon (i) any untrue statement of a material
      fact contained in the Purchaser’s
      Information
      as
      identified in Exhibit
      4,
      the
      omission to state in the Prospectus Supplement or Prospectus (or any amendment
      thereof or supplement thereto approved by the Purchaser and in which additional
      Purchaser’s Information is identified), in reliance upon and in conformity with
      the Purchaser’s Information, a material fact required to be stated therein or
      necessary to make the statements therein in light of the circumstances in which
      they were made, not misleading, (ii) any representation or warranty made by
      the
      Purchaser in Section 9 hereof being, or alleged to be, untrue or incorrect,
      or
      (iii) any failure by the Purchaser to perform its obligations under this
      Agreement; and the Purchaser shall reimburse the Seller, and each other
      indemnified party for any legal and other expenses reasonably incurred by them
      in connection with investigating or defending or preparing to defend any such
      loss, claim, damage, liability or action. The foregoing indemnity agreement
      is
      in addition to any liability which the Purchaser otherwise may have to the
      Seller, or any other such indemnified party,

     

    (c)  Promptly
      after receipt by an indemnified party under subsection (a) or (b) above of
      notice of the commencement of any action, such indemnified party shall, if
      a
      claim in respect thereof is to be made against the indemnifying party under
      such
      subsection, notify each party against whom indemnification is to be sought
      in
      writing of the commencement thereof (but the failure so to notify an
      indemnifying party shall not relieve it from any liability which it may have
      under this Section 13 except to the extent that it has been prejudiced in any
      material respect by such failure or from any liability which it may have
      otherwise). In case any such action is brought against any indemnified party,
      and it notifies an indemnifying party of the commencement thereof, the
      indemnifying party will be entitled to participate therein and, to the extent
      it
      may elect by written notice delivered to the indemnified party promptly (but,
      in
      any event, within 30 days) after receiving the aforesaid notice from such
      indemnified party, to assume the defense thereof with counsel reasonably
      satisfactory to such indemnified party. Notwithstanding the foregoing, the
      indemnified party or parties shall have the right to employ its or their own
      counsel in any such case, but the fees and expenses of such counsel shall be
      at
      the expense of such indemnified party or parties unless (i) the employment
      of
      such counsel shall have been authorized in writing by one of the indemnifying
      parties in connection with the defense of such action, (ii) the indemnifying
      parties shall not have employed counsel to have charge of the defense of such
      action within a reasonable time after notice of commencement of the action,
      or
      (iii) such indemnified party or parties shall have reasonably concluded that
      there is a conflict of interest between itself or themselves and the
      indemnifying party in the conduct of the defense of any claim or that the
      interests of the indemnified party or parties are not substantially co-extensive
      with those of the indemnifying party (in which case the indemnifying parties
      shall not have the right to direct the defense of such action on behalf of
      the
      indemnified party or parties), in any of which events such fees and expenses
      shall be borne by the indemnifying parties; provided,
      however,
      that
      the indemnifying party shall be liable only for the fees and expenses of one
      counsel in addition to one local counsel in the jurisdiction involved. Anything
      in this subsection to the contrary notwithstanding, an indemnifying party shall
      not be liable for any settlement or any claim or action effected without its
      written consent; provided,
      however,
      that
      such consent was not unreasonably withheld.

     

    (d)  If
      the
      indemnification provided for in paragraphs (a) and (b) of this Section 13 shall
      for any reason be unavailable to an indemnified party in respect of any loss,
      claim, damage or liability, or any action in respect thereof, referred to in
      Section 13, then the indemnifying party shall in lieu of indemnifying the
      indemnified party contribute to the amount paid or payable by such indemnified
      party as a result of such loss, claim, damage or liability, or action in respect
      thereof, in such proportion as shall be appropriate to reflect the relative
      benefits received by the Seller on the one hand and the Purchaser on the other
      from the purchase and sale of the Mortgage Loans, the offering of the
      Certificates and the other transactions contemplated hereunder. No person found
      liable for a fraudulent misrepresentation (within the meaning of Section 11(f)
      of the Securities Act) shall be entitled to contribution from any person who
      is
      not also found liable for such fraudulent misrepresentation.

     

    (e)  The
      parties hereto agree that reliance by an indemnified party on any publicly
      available information or any information or directions furnished by an
      indemnifying party shall not constitute negligence, bad faith or willful
      misconduct by such indemnified party.

     

    SECTION
      14.  Notices.
      All
      demands, notices and communications hereunder shall be in writing but may be
      delivered by facsimile transmission subsequently confirmed in writing. Notices
      to the Seller shall be directed to EMC Mortgage Corporation, 2780 Lake Vista
      Drive, Lewisville, TX 75067 Facsimile: (469) 759-4714, Attention, President
      or
      General Counsel and notices to the Purchaser shall be directed to Structured
      Asset Mortgage Investments II Inc., 383 Madison Avenue, New York, New York
      10179
      (Telecopy: (212-272-7206)), Attention: Baron Silverstein; or to any other
      address as may hereafter be furnished by one party to the other party by like
      notice. Any such demand, notice or communication hereunder shall be deemed
      to
      have been received on the date received at the premises of the addressee (as
      evidenced, in the case of registered or certified mail, by the date noted on
      the
      return receipt) provided that it is received on a business day during normal
      business hours and, if received after normal business hours, then it shall
      be
      deemed to be received on the next business day.

     

    SECTION
      15.  Transfer
      of Mortgage Loans.
      The
      Purchaser retains the right to assign the Mortgage Loans and any or all of
      its
      interest under this Agreement to the Trustee without the consent of the Seller,
      and, upon such assignment, the Trustee shall succeed to the applicable rights
      and obligations of the Purchaser hereunder; provided,
      however,
      the
      Purchaser shall remain entitled to the benefits set forth in Sections 11, 13
      and
      17 hereto and as provided in Section 2(a). Notwithstanding the foregoing, the
      sole and exclusive right and remedy of the Trustee with respect to a breach
      of
      representation or warranty of the Seller shall be the purchase or substitution
      obligations of the Seller contained in Sections 5 and 7 hereof.

     

    SECTION
      16.  Termination.
      This
      Agreement may be terminated (a) by the mutual consent of the parties hereto
      prior to the Closing Date, (b) by the Purchaser, if the conditions to the
      Purchaser’s obligation to close set forth under Section 10(a) hereof are not
      fulfilled as and when required to be fulfilled or (c) by the Seller, if the
      conditions to the Seller’s obligation to close set forth under Section 10(b)
      hereof are not fulfilled as and when required to be fulfilled. In the event
      of
      termination pursuant to clause (b), the Seller shall pay, and in the event
      of
      termination pursuant to clause (c), the Purchaser shall pay, all reasonable
      out-of-pocket expenses incurred by the other in connection with the transactions
      contemplated by this Agreement. In the event of a termination pursuant to clause
      (a), each party shall be responsible for its own expenses.

     

    SECTION
      17.  Representations,
      Warranties and Agreements to Survive Delivery.
      All
      representations, warranties and agreements contained in this Agreement, or
      contained in certificates of officers of the Seller submitted pursuant hereto,
      shall remain operative and in full force and effect and shall survive delivery
      of the Mortgage Loans to the Purchaser (and by the Purchaser to the Trustee).
      Subsequent to the delivery of the Mortgage Loans to the Purchaser, the Seller’s
      representations and warranties contained herein with respect to the Mortgage
      Loans shall be deemed to relate to the Mortgage Loans actually delivered to
      the
      Purchaser and included in the Mortgage Loan Schedule and any Substitute Mortgage
      Loan. 

     

    SECTION
      18.  Severability.
      If any
      provision of this Agreement shall be prohibited or invalid under applicable
      law,
      the Agreement shall be ineffective only to such extent, without invalidating
      the
      remainder of this Agreement.

     

    SECTION
      19.  Counterparts.
      This
      Agreement may be executed in counterparts, each of which will be an original,
      but which together shall constitute one and the same agreement.

     

    SECTION
      20.  Amendment.
      This
      Agreement cannot be amended or modified in any manner without the prior written
      consent of each party.

     

    SECTION
      21.  GOVERNING
      LAW.
      THIS
      AGREEMENT shall be governed by, and construed in accordance with, the laws
      of
      the State of New York, without regard to conflict of laws principles thereof
      other than Section 5-1401 of the New York General Obligations Law.

     

    SECTION
      22.  Further
      Assurances.
      Each of
      the parties agrees to execute and deliver such instruments and take such actions
      as another party may, from time to time, reasonably request in order to
      effectuate the purpose and to carry out the terms of this Agreement including
      any amendments hereto which may be required by either Rating
      Agency.

     

    SECTION
      23.  Successors
      and Assigns.

     

    This
      Agreement shall bind and inure to the benefit of and be enforceable by the
      Seller and the Purchaser and their permitted successors and assigns and, to
      the
      extent specified in Section 13 hereof, Bear Stearns, and their directors,
      officers and controlling persons (within the meaning of federal securities
      laws). The Seller acknowledges and agrees that the Purchaser may assign its
      rights under this Agreement (including, without limitation, with respect to
      the
      Seller’s representations and warranties respecting the Mortgage Loans) to the
      Trustee. Any person into which the Seller may be merged or consolidated (or
      any
      person resulting from any merger or consolidation involving the Seller), any
      person resulting from a change in form of the Seller or any person succeeding
      to
      the business of the Seller, shall be considered the “successor” of the Seller
      hereunder and shall be considered a party hereto without the execution or filing
      of any paper or any further act or consent on the part of any party hereto.
      Except as provided in the two preceding sentences, this Agreement cannot be
      assigned, pledged or hypothecated by either party hereto without the written
      consent of the other parties to this Agreement and any such assignment or
      purported assignment shall be deemed null and void.

     

    SECTION
      24.  The
      Seller.
      The
      Seller will keep in full force and effect its existence, all rights and
      franchises as a corporation under the laws of the State of its incorporation
      and
      will obtain and preserve its qualification to do business as a foreign
      corporation in each jurisdiction in which such qualification is necessary to
      perform its obligations under this Agreement.

     

    SECTION
      25.  Entire
      Agreement.
      This
      Agreement contains the entire agreement and understanding between the parties
      with respect to the subject matter hereof, and supersedes all prior and
      contemporaneous agreements, understandings, inducements and conditions, express
      or implied, oral or written, of any nature whatsoever with respect to the
      subject matter hereof.

     

    SECTION
      26.  No
      Partnership.
      Nothing herein contained shall be deemed or construed to create a partnership or
      joint venture between the parties hereto.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    

     

    

      

      
        2 Please
          contact Bear, Stearns & Co. Inc. for Purchase
          Price.

      

    

    

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

     

    EMC
      MORTGAGE CORPORATION

     

    By:
      ____________________________________

    Name: 

    Title:
       

     

    STRUCTURED
      ASSET MORTGAGE INVESTMENTS II INC.

     

    By:
      ____________________________________

    Name: 

    Title:
       

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

    EXHIBIT
      1

     

    CONTENTS
      OF MORTGAGE FILE

     

    With
      respect to each Mortgage Loan, the Mortgage File shall include each of the
      following items, which shall be available for inspection by the Purchaser or
      its
      designee, and which shall be delivered to the Purchaser or its designee pursuant
      to the terms of the Agreement.

     

    (i) The
      original Mortgage Note, endorsed without recourse (a) to the order of the
      Trustee or (b) in the case of a Mortgage Loan registered on the MERS system,
      endorsed in blank, in either case showing an unbroken chain of endorsements
      from
      the originator thereof to the Person endorsing it to the Trustee, or lost note
      affidavit together with a copy of the related Mortgage Note;

     

    (ii) The
      original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting the
      presence of the MIN and language indicating that such Mortgage Loan is a MOM
      Loan, which shall have been recorded (or, for Mortgage Loans other than the
      EMC
      Flow Loans, if the original is not available, a copy), with evidence of such
      recording indicated thereon (or if the original is not available, a copy),
      with
      evidence of such recording indicated thereon (or if the original Security
      Instrument, assignments to the Trustee or intervening assignments thereof which
      have been delivered, are being delivered or will, upon receipt of recording
      information relating to the Security Instrument required to be included thereon,
      be delivered to recording offices for recording and have not been returned
      to
      the Seller in time to permit their recording as specified in Section 2.01(b)
      of
      the Pooling and Servicing Agreement, shall be in recordable form);

     

    (iii) unless
      the Mortgage Loan is a MOM Loan or has been assigned in the name of MERS, a
      certified copy of the assignment (which may be in the form of a blanket
      assignment if permitted in the jurisdiction in which the Mortgaged Property
      is
      located) to “U.S. Bank National Association, as Trustee”, with evidence of
      recording with respect to each Mortgage Loan in the name of the Trustee thereon
      (or if (A) the original Security Instrument, assignments to the Trustee or
      intervening assignments thereof which have been delivered, are being delivered
      or will, upon receipt of recording information relating to the Security
      Instrument required to be included thereon, be delivered to recording offices
      for recording and have not been returned to the Seller in time to permit their
      delivery as specified in Section 2.01(b) of the Pooling and Servicing Agreement,
      the Seller may deliver a true copy thereof with a certification by the Seller,
      on the face of such copy, substantially as follows: “Certified to be a true and
      correct copy of the original, which has been transmitted for recording” or (B)
      the related Mortgaged Property is located in a state other than Maryland or
      an
      Opinion of Counsel has been provided as set forth in Section 2.01(b) of the
      Pooling and Servicing Agreement, shall be in recordable form);

     

    (iv)
       all
      intervening assignments of the Security Instrument, if applicable and only
      to
      the extent available to the Seller with evidence of recording
      thereon;

     

    (v) the
      original or a copy of the policy or certificate of primary mortgage guaranty
      insurance, to the extent available, if any;

     

    (vi) the
      original policy of title insurance or mortgagee’s certificate of title insurance
      or commitment or binder for title insurance or, in the event such original
      title
      policy has not been received from the title insurer, such original title policy
      will be delivered within one year of the Closing Date or, in the event such
      original title policy is unavailable, a photocopy of such title policy or,
      in
      lieu thereof, a current lien search on the related Mortgaged Property;
      and

     

    (vii) originals
      of all modification agreements, if applicable and available.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
      2

     

    MORTGAGE
      LOAN SCHEDULE INFORMATION

     

    The
      Mortgage Loan Schedule shall set forth the following information with respect
      to
      each Mortgage Loan:

     

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

     

    (b) the
      property type;

     

    (c) the
      Mortgage Rate;

     

    (d) the
      Servicing Fee Rate;

     

    (e) the
      Master Servicer’s Fee Rate, if applicable;

     

    (f) the
      LPMI
      Fee, if applicable;

     

    (g) the
      Trustee Fee Rate, if applicable;

     

    (h) the
      Net
      Rate;

     

    (i) the
      maturity date;

     

    (j) the
      stated original term to maturity;

     

    (k) the
      stated remaining term to maturity;

     

    (l) the
      original principal balance;

     

    (m) the
      first
      payment date;

     

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

     

    (o) the
      unpaid principal balance as of the Cut-off Date;

     

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

     

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

     

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

     

    (s) the
      Gross
      Margin, if applicable;

     

    (t) the
      next
      Adjustment Date, if applicable;

     

    (u) the
      Maximum Lifetime Mortgage Rate, if applicable;

     

    (v) the
      Minimum Lifetime Mortgage Rate, if applicable;

     

    (w) the
      Periodic Rate Cap, if applicable; 

     

    (x) the
      Loan
      Group, if applicable;

     

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

     

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

     

    (aa) the
      Prepayment Charge, if any;

     

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

     

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

     

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

     

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

     

    (ff) the
      Mortgage Loan Seller; and

     

    (gg) the
      original amortization term.

     

    

     

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

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
      3

     

    SELLER’S
      INFORMATION

     

    All
      information in the Prospectus Supplement described under the following Sections:
      “SUMMARY OF PROSPECTUS SUPPLEMENT—The Mortgage Loans,” “THE MORTGAGE POOL”, “THE
      SPONSOR" and “SCHEDULE A—CERTAIN CHARACTERISTICS OF THE MORTGAGE
      LOANS.”

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
      4

     

    PURCHASER’S
      INFORMATION

     

    All
      information in the Prospectus Supplement and the Prospectus, except the Seller’s
      Information.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
      5

    

    SCHEDULE
      OF LOST NOTES

     

    Available
      Upon Request

    

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

     

    EXHIBIT
      6

     

    REVISED
      October 20, 2006

    

    APPENDIX
      E - STANDARD & POOR’S PREDATORY LENDING CATEGORIES

     

    

    Standard
      & Poor’s has categorized loans governed by anti-predatory lending laws in
      the Jurisdictions listed below into three categories based upon a combination
      of
      factors that include (a) the risk exposure associated with the assignee
      liability and (b) the tests and thresholds set
      forth in
      those laws. Note that certain loans classified by the relevant statute as
      Covered are included in Standard & Poor’s High Cost Loan Category because
      they included thresholds and tests that are typical of what is generally
      considered High Cost by the industry.

     

    

    
      	
              Standard
                & Poor’s High Cost Loan Categorization

            
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending

              Law/Effective
                Date

            	
              Category
                under

              Applicable
                Anti-Predatory Lending Law

            
	
              Arkansas

            	
              Arkansas
                Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et seq.

              Effective
                July 16, 2003

            	
              High
                Cost Home Loan

            
	
              Cleveland
                Heights, OH

            	
              Ordinance
                No. 72-2003 (PSH), Mun. Code §§ 757.01 et seq.

              Effective
                June 2, 2003

            	
              Covered
                Loan

            
	
              Colorado

            	
              Consumer
                Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et seq.

              Effective
                for covered loans offered or entered into on or after January 1,
                2003.
                Other provisions of the Act took effect on June 7, 2002

            	
              Covered
                Loan

            
	
              Connecticut

            	
              Connecticut
                Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746
                et seq.

              Effective
                October 1, 2001 

            	
              High
                Cost Home Loan

            
	
              District
                of Columbia

            	
              Home
                Loan Protection Act, D.C. Code §§ 26-1151.01 et seq.

              Effective
                for loans closed on or after January 28, 2003

            	
              Covered
                Loan

            
	
              Florida

            	
              Fair
                Lending Act, Fla. Stat. Ann. §§ 494.0078 et seq.

              Effective
                October 2, 2002

            	
              High
                Cost Home Loan

            
	
              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

            
	
              Indiana

            	
              Indiana
                Home Loan Practices Act, Ind. Code Ann. §§ 24-9-1-1 et seq.

              Effective
                January 1, 2005; amended by 2005 HB 1179, effective July 1, 2005.
                

            	
              High
                Cost Home Loans 

            
	
              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

            
	
              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

            
	
              Rhode
                Island

            	
              Rhode
                Island Home Loan Protection Act, R.I. Gen. Laws §§ 34-25.2-1 et seq.

              Effective
                December 31, 2006. 

            	
              High
                Cost 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

            	
              High
                Cost Home Loan

            
	
              Tennessee

            	
              Tennessee
                Home Loan Protection Act, Tenn. Code Ann. §§ 45-20-101 et seq.

              Effective
                January 1, 2007.

            	
              High
                Cost Home Loan

            
	
              West
                Virginia

            	
              West
                Virginia Residential Mortgage Lender, Broker and Servicer Act, W.
                Va. Code
                Ann. §§ 31-17-1 et seq.

              Effective
                June 5, 2002

            	
              West
                Virginia Mortgage Loan Act Loan

            

    

     

    

     

    
      	
              Standard
                & Poor’s Covered Loan Categorization

            
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending

              Law/Effective
                Date

            	
              Category
                under

              Applicable
                Anti-Predatory Lending Law

            
	
              Georgia
                (Oct. 1, 2002 - Mar. 6, 2003)

            	
              Georgia
                Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

              Effective
                October 1, 2002 - March 6, 2003

            	
              Covered
                Loan

            
	
              New
                Jersey

            	
              New
                Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                et seq.

              Effective
                November 27, 2003 - July 5, 2004

            	
              Covered
                Home Loan

            

    

     

    
      	
              Standard
                & Poor’s Home Loan Categorization

            
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending

              Law/Effective
                Date

            	
              Category
                under

              Applicable
                Anti-Predatory Lending Law

            
	
              Georgia
                (Oct. 1, 2002 - Mar. 6, 2003)

            	
              Georgia
                Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

              Effective
                October 1, 2002 - March 6, 2003

            	
              Home
                Loan

            
	
              New
                Jersey

            	
              New
                Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                et seq.

              Effective
                for loans closed on or after November 27, 2003

            	
              Home
                Loan

            
	
              New
                Mexico

            	
              Home
                Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

              Effective
                as of January 1, 2004; Revised as of February 26, 2004 

            	
              Home
                Loan

            
	
              North
                Carolina

            	
              Restrictions
                and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                et seq.

              Effective
                July 1, 2000; amended October 1, 2003 (adding open-end lines of
                credit)

            	
              Consumer
                Home Loan

            
	
              South
                Carolina

            	
              South
                Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann. §§ 37-23-10
                et seq.

              Effective
                for loans taken on or after January 1, 2004

            	
              Consumer
                Home Loan

            

    

    Revised
      10/20/06

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      A

     

    REQUIRED
      RATINGS FOR EACH CLASS OF CERTIFICATES

     

    Public
      Certificates

    

    
      	
              Class

            	
              S&P

            	
              Moody’s

            
	
              Class
                I-A1-1

            	
              AAA

            	
              Aaa

            
	
              Class
                I-A1-2

            	
              AAA

            	
              Aaa

            
	
              Class
                I-A1-3

            	
              AAA

            	
              Aaa

            
	
              Class
                I-A1-4

            	
              AAA

            	
              Aaa

            
	
              Class
                I-A1-5

            	
              AAA

            	
              Aaa

            
	
              Class
                I-A2-1

            	
              AAA

            	
              Aaa

            
	
              Class
                I-A2-2

            	
              AAA

            	
              Aaa

            
	
              Class
                II-A1-1

            	
              AAA

            	
              Aaa

            
	
              Class
                II-A2-1

            	
              AAA

            	
              Aaa

            
	
              Class
                B-1

            	
              AA

            	
              Aa2

            
	
              Class
                B-2

            	
              A

            	
              A2

            
	
              Class
                B-3

            	
              BBB

            	
              Baa2

            
	
              Class
                BX

            	
              AA

            	
              Aa2

            
	
              Class
                X

            	
              AAA

            	
              Aaa

            
	
              Class
                PO

            	
              AAA

            	
              Aaa

            

    

     

    None
      of
      the above ratings have been lowered since the respective dates of such
      letters.

     

     

     

    Private
      Certificates

    

    
      	
              Class

            	
              S&P

            	
              Moody’s

            
	
              Class
                B-4

            	
              BB

            	
              --

            
	
              Class
                B-5

            	
              B

            	
              --

            
	
              Class
                B-6

            	
              --

            	
              --

            

    

     

    None
      of
      the above ratings have been lowered since the respective dates of such
      letters.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

    SCHEDULE
      B

     

    MORTGAGE
      LOAN SCHEDULE

     

    [Provided
      upon request]

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    EXHIBIT
      I-1

    

    CHEVY
      CHASE SERVICING AGREEMENT

    
       

      

      EMC
        MORTGAGE CORPORATION

      Purchaser,

      

      CHEVY
        CHASE BANK, F.S.B.

      Company,

      

      PURCHASE,
        WARRANTIES AND SERVICING AGREEMENT

      Dated
        as
        of July 1, 2001

      

      

      

      (Adjustable
        Rate Mortgage Loans)

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      TABLE
        OF CONTENTS

      

        
          	
                  ARTICLE
                    I

                
	 	 
	 	 
	
                  Section
                    1.01

                	
                  Defined
                    Terms

                
	 	 
	
                  ARTICLE
                    II

                
	 	 
	
                  Section
                    2.01

                	
                  Agreement
                    to Purchase

                
	
                  Section
                    2.02

                	
                  Purchase
                    Price

                
	
                  Section
                    2.03

                	
                  Servicing
                    of Mortgage Loans

                
	
                  Section
                    2.04

                	
                  Record
                    Title and Possession of Mortgage Files;

                
	 	
                  Maintenance
                    of Servicing Files

                
	
                  Section
                    2.05

                	
                  Books
                    and Records

                
	
                  Section
                    2.06

                	
                  Transfer
                    of Mortgage Loans

                
	
                  Section
                    2.07

                	
                  Delivery
                    of Mortgage Loan Documents

                
	
                  Section
                    2.08

                	
                  Quality
                    Control Procedures

                
	 	 
	
                  ARTICLE
                    III

                
	 	 
	
                  Section
                    3.01

                	
                  Representations
                    and Warranties of the Company

                
	
                  Section
                    3.02

                	
                  Representations
                    and Warranties as to Individual Mortgage Loans

                
	
                  Section
                    3.03

                	
                  Repurchase;
                    Substitution

                
	
                  Section
                    3.04

                	
                  Representations
                    and Warranties of the Purchaser

                
	 	 
	
                  ARTICLE
                    IV

                
	 	 
	
                  Section
                    4.01

                	
                  Company
                    to Act as Servicer

                
	
                  Section
                    4.02

                	
                  Collection
                    of Mortgage Loan Payments

                
	
                  Section
                    4.03

                	
                  Realization
                    Upon Defaulted Mortgage Loans

                
	
                  Section
                    4.04

                	
                  Establishment
                    of Custodial Accounts;

                
	 	
                  Deposits
                    in Custodial Accounts

                
	
                  Section
                    4.05

                	
                  Permitted
                    Withdrawals from the

                
	 	
                  Custodial
                    Account

                
	
                  Section
                    4.06

                	
                  Establishment
                    of Escrow Accounts;

                
	 	
                  Deposits
                    in Escrow Accounts

                
	
                  Section
                    4.07

                	
                  Permitted
                    Withdrawals From Escrow Account

                
	
                  Section
                    4.08

                	
                  Payment
                    of Taxes, Insurance and Other

                
	 	
                  Charges;
                    Maintenance of Primary Mortgage

                
	 	
                  Insurance
                    Policies; Collections Thereunder

                
	 	 
	
                  Section
                    4.09

                	
                  Transfer
                    of Accounts

                
	
                  Section
                    4.10

                	
                  Maintenance
                    of Hazard Insurance

                
	
                  Section
                    4.11

                	
                  Maintenance
                    of Mortgage Impairment

                
	 	
                  Insurance
                    Policy

                
	
                  Section
                    4.12

                	
                  Fidelity
                    Bond, Errors and Omissions

                
	 	
                  Insurance

                
	
                  Section
                    4.13

                	
                  Title,
                    Management and Disposition of REO Property

                
	
                  Section
                    4.14

                	
                  Notification
                    of Maturity Date

                
	 	 
	
                  ARTICLE
                    V

                
	 	 
	
                  Section
                    5.01

                	
                  Distributions

                
	
                  Section
                    5.02

                	
                  Statements
                    to the Purchaser

                
	
                  Section
                    5.03

                	
                  Monthly
                    Advances by the Company

                
	
                  Section
                    5.04

                	
                  Liquidation
                    Reports

                
	 	 
	
                  ARTICLE
                    VI

                
	 	 
	
                  Section
                    6.01

                	
                  Assumption
                    Agreements

                
	
                  Section
                    6.02

                	
                  Satisfaction
                    of Mortgages and Release

                
	 	
                  of
                    Mortgage Files

                
	
                  Section
                    6.03

                	
                  Servicing
                    Compensation

                
	
                  Section
                    6.04

                	
                  Annual
                    Statement as to Compliance

                
	
                  Section
                    6.05

                	
                  Annual
                    Independent Certified Public

                
	 	
                  Accountants’
                    Servicing Report

                
	
                  Section
                    6.06

                	
                  Purchaser’s
                    Right to Examine Company Records

                
	 	 
	
                  ARTICLE
                    VII

                
	 	 
	
                  Section
                    7.01

                	
                  Company
                    Shall Provide Information as Reasonably

                
	 	
                  Required

                
	 	 
	
                  ARTICLE
                    VIII

                
	 	 
	
                  Section
                    8.01

                	
                  Indemnification;
                    Third Party Claims

                
	
                  Section
                    8.02

                	
                  Merger
                    or Consolidation of the Company

                
	
                  Section
                    8.03

                	
                  Limitation
                    on Liability of the Company and Others

                
	
                  Section
                    8.04

                	
                  Company
                    Not to Assign or Resign

                
	
                  Section
                    8.05

                	
                  No
                    Transfer of Servicing

                
	 	 
	 	 
	
                  ARTICLE
                    IX

                
	 	 
	
                  Section
                    9.01

                	
                  Events
                    of Default

                
	
                  Section
                    9.02

                	
                  Waiver
                    of Defaults

                
	 	 
	
                  ARTICLE
                    X

                
	 	 
	
                  Section
                    10.01

                	
                  Termination

                
	
                  Section
                    10.02

                	
                  Termination
                    Without Cause

                
	 	 
	
                  ARTICLE
                    XI

                
	 	 
	
                  Section
                    11.01

                	
                  Successor
                    to the Company

                
	
                  Section
                    11.02

                	
                  Amendment

                
	
                  Section
                    11.03

                	
                  Recordation
                    of Agreement

                
	
                  Section
                    11.04

                	
                  Governing
                    Law

                
	
                  Section
                    11.05

                	
                  Notices

                
	
                  Section
                    11.06

                	
                  Severability
                    of Provisions

                
	
                  Section
                    11.07

                	
                  Exhibits

                
	
                  Section
                    11.08

                	
                  General
                    Interpretive Principles

                
	
                  Section
                    11.09

                	
                  Reproduction
                    of Documents

                
	
                  Section
                    11.10

                	
                  Confidentiality
                    of Information

                
	
                  Section
                    11.11

                	
                  Recordation
                    of Assignment of Mortgage

                
	
                  Section
                    11.12

                	
                  Assignment
                    by Purchaser

                
	
                  Section
                    11.13

                	
                  No
                    Partnership

                
	
                  Section
                    11.14

                	
                  Execution:
                    Successors and Assigns

                
	
                  Section
                    11.15

                	
                  Entire
                    Agreement

                
	
                  Section
                    11.16

                	
                  No
                    Solicitation

                
	
                  Section
                    11.17

                	
                  Closing

                
	
                  Section
                    11.18

                	
                  Cooperation
                    of Company with
                    Reconstitution

                

        

      

       

      EXHIBITS

      

        
          	
                  A
                    

                	
                  Contents
                    of Mortgage File

                
	
                  B

                	
                  Custodial
                    Account Letter Agreement

                
	
                  C

                	
                  Escrow
                    Account Letter Agreement

                
	
                  D

                	
                  Form
                    of Assignment and Assumption Agreement

                
	
                  E
                    

                	
                  [reserved]

                
	
                  F
                    

                	
                  [reserved]

                
	
                  G

                	
                  Request
                    for Release of Documents and Receipt

                
	
                  H
                    

                	
                  Company’s
                    Underwriting Guidelines

                
	
                  I

                	
                  Form
                    of Term Sheet

                

        

      

       

      This
        is a
        Purchase, Warranties and Servicing Agreement, dated as of July 1, 2001 and
        is
        executed between EMC Mortgage Corporation, as Purchaser (the "Purchaser")
        and
        Chevy Chase Bank, F.S.B., as the Company (the “Company”).

      

      W I T N E
60;S S E T H
        :

      

      WHEREAS,
        the Purchaser has heretofore agreed to purchase from the Company and the
        Company
        has heretofore agreed to sell to the Purchaser, from time to time, certain
        Mortgage Loans on a servicing retained basis, pursuant to the terms of a
        letter
        agreement dated as of June 29, 2001 by and between the Company and the Purchaser
        (the "Confirmation").

      

      WHEREAS,
        each of the Mortgage Loans is secured by a mortgage, deed of trust or other
        security instrument creating a first lien on a residential dwelling located
        in
        the jurisdiction indicated on the Mortgage Loan Schedule, which is annexed
        to
        the related Term Sheet; and

      

      WHEREAS,
        the Purchaser and the Company wish to prescribe the representations and
        warranties of the Company with respect to itself and the Mortgage Loans and
        the
        management, servicing and control of the Mortgage Loans;

      

      NOW,
        THEREFORE, in consideration of the mutual agreements hereinafter set forth,
        and
        for other good and valuable consideration, the receipt and adequacy of which
        is
        hereby acknowledged, the Purchaser and the Company agree as
        follows:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        I

      

      DEFINITIONS

      

      Section
        1.01 Defined
        Terms.

      

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

      

      Accepted
        Servicing Practices:
        With
        respect to any Mortgage Loan, those mortgage servicing practices (including
        collection procedures) of prudent mortgage banking institutions which service
        mortgage loans of the same type as such Mortgage Loan in the jurisdiction
        where
        the related Mortgaged Property is located, and which are in accordance with
        FNMA
        or Freddie Mac servicing practices and procedures, for MBS pool mortgages,
        as
        defined in the FNMA or Freddie Mac Guides including future updates.

      

      Adjustment
        Date:
        As to
        each Mortgage Loan, the date on which the Mortgage Interest Rate is adjusted
        in
        accordance with the terms of the related Mortgage Note.

      

      Agency
        Guide: The
        FNMA
        Guides or the Freddie Mac Guides. 

      

      Agreement:
        This
        Purchase, Warranties and Servicing Agreement including all exhibits hereto,
        amendments hereof and supplements hereto.

      

      Appraised
        Value:
        The
        value set forth in an appraisal made in connection with the origination of
        the
        related Mortgage Loan as of the Origination Date as the value of the Mortgaged
        Property.

      

      Assignment:
        An
        assignment of the Mortgage, notice of transfer or equivalent instrument,
        in
        recordable form, sufficient under the laws of the jurisdiction wherein the
        related Mortgaged Property is located to reflect of record the sale or transfer
        of the Mortgage Loan, or
        a
        notice of transfer or equivalent instrument delivered in accordance with
        the
        MERS requirements.

       

      BIF:
        The
        Bank Insurance Fund, or any successor thereto.

      

      Business
        Day:
        Any day
        other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the State
        of
        New York or Maryland, or (iii) a day on which banks in the State of New York
        or
        Maryland are authorized or obligated by law or executive order to be
        closed.

      

      Closing
        Date:
        With
        respect to any Mortgage Loan or pool of Mortgage Loans, the date stated on
        the
        related Term Sheet.

      

      

      Code:
        The
        Internal Revenue Code, as amended (the “Code”).

      

      

      Company:
        Chevy
        Chase Bank, F.S.B., its successor in interest and assigns, as permitted by
        this
        Agreement.

      

      Company's
        Officer's Certificate:
        A
        certificate signed by the Chairman of the Board, President, any Assistant
        Vice
        President, Vice President or Treasurer of Company stating the date by which
        Company expects to receive any missing documents sent for recording from
        the
        applicable recording office.

      

      Condemnation
        Proceeds:
        All
        awards or settlements in respect of a Mortgaged Property, whether permanent
        or
        temporary, partial or entire, by exercise of the power of eminent domain
        or
        condemnation, to the extent not required to be released to a Mortgagor in
        accordance with the terms of the related Mortgage Loan Documents.

      

      Confirmation:
        As
        defined in the Recitals to this Agreement.

      

      Conversion
        Feature: A
        provision whereby the Mortgagor may elect to convert to a fixed Mortgage
        Interest Rate pursuant to the terms set forth in the Mortgage Note.

      

      Custodial
        Account:
        Each
        separate demand account or accounts created and maintained pursuant to Section
        4.04 which shall be entitled "Chevy Chase Bank, F.S.B., in trust for EMC
        Mortgage Corporation" and shall be established in an Eligible Account, in
        the
        name of the Person that is the "Purchaser" with respect to the related Mortgage
        Loans.

      

      Cut-off
        Date:
        With
        respect to any Mortgage Loan, the date stated on the related Term
        Sheet.

      

      Determination
        Date:
        The
        15th day (or if such 15th day is not a Business Day, the Business Day
        immediately preceding such 15th day) of the month of the related Remittance
        Date.

      

      Due
        Date:
        The day
        of the month on which the Monthly Payment is due on a Mortgage Loan, exclusive
        of any days of grace.

      

      Due
        Period:
        With
        respect to any Remittance Date, the period commencing on the second day of
        the
        month preceding the month of such Remittance Date and ending on the first
        day of
        the month of the Remittance Date.

      

      Eligible
        Account:
        An
        account established and maintained: (a) within FDIC insured accounts (or
        other
        accounts with comparable insurance coverage acceptable to the Rating Agencies)
        created, maintained and monitored by the Company so that all funds deposited
        therein are fully insured, (b) with the corporate trust department of a
        financial institution assigned a long-term debt rating of not less than Baa3,
        and a short term debt rating of P3, from Moody's Investors Services and,
        if
        ownership of the Mortgage Loans is evidenced by mortgaged backed securities,
        the
        equivalent required ratings of the Rating Agencies, and held such that the
        rights of the Purchaser and the owner of the Mortgage Loans shall be fully
        protected against the claims of any creditors of the Company and of any
        creditors or depositors of the institution in which such account is maintained
        or (c) in a separate non-trust account without FDIC or other insurance in
        an
        Eligible Institution. In the event that a Custodial Account is established
        pursuant to clause (b) or (c) of the preceding sentence, the Company shall
        provide the Purchaser with written notice on the Business Day following the
        date
        on which the applicable institution fails to meet the applicable ratings
        requirements.

      

      Eligible
        Institution:
        Chevy
        Chase Bank, F.S.B., or an institution having (i) the highest short-term debt
        rating, and one of the two highest long-term debt ratings of the Rating
        Agencies; or (ii) with respect to any Custodial Account, an unsecured long-term
        debt rating of at least one of the two highest unsecured long-term debt ratings
        of the Rating Agencies.

      

      Equity
        Take-Out Refinanced Mortgage Loan:
        A
        Refinanced Mortgage Loan the proceeds of which were in excess of the outstanding
        principal balance of the existing mortgage loan.

      

      Escrow
        Account:
        Each
        separate trust account or accounts created and maintained pursuant to Section
        4.06 which shall be entitled "Chevy Chase Bank, F.S.B., in trust for EMC
        Mortgage Corporation, and various Mortgagors" and shall be established in
        an
        Eligible Account, in the name of the Person that is the "Purchaser" with
        respect
        to the related Mortgage Loans.

      

      Escrow
        Payments:
        With
        respect to any Mortgage Loan, the amounts constituting ground rents, taxes,
        assessments, water rates, sewer rents, municipal charges, mortgage insurance
        premiums, fire and hazard insurance premiums, condominium charges, and any
        other
        payments required to be escrowed by the Mortgagor with the mortgagee pursuant
        to
        the Mortgage or any other document.

      

      Event
        of Default:
        Any one
        of the conditions or circumstances enumerated in Section 9.01.

      

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

      

      FHLMC:
        The
        Federal Home Loan Mortgage Corporation, or any successor thereto.

      

      Fidelity
        Bond:
        A
        fidelity bond to be maintained by the Company pursuant to Section
        4.12.

      

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

      

      FNMA:
        The
        Federal National Mortgage Association, or any successor thereto.

      

      FNMA
        Guides:
        The
        FNMA Seller's Guide and the FNMA Servicer's Guide and all amendments or
        additions thereto.

      

      Freddie
        Mac Guides: The
        Freddie Mac Seller’s Guide and the Freddie Mac Servicer’s Guide and all
        amendments or additions thereto.

      

      GAAP:
        Generally accepted accounting principles,

      consistently
        applied.

      

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

      

      Index:
        On each
        Adjustment Date, the applicable index shall be the
        six
        month London Interbank Offered Rate (LIBOR) as

      published
        in the Wall Street Journal. For purposes of determining the Index, for each
        Adjustment Date LIBOR shall
        be
        the most
        recent figure available as of the first business day of the month immediately
        preceding the Adjust-ment
        Date. 

      

      Insurance
        Proceeds:
        With
        respect to each Mortgage Loan, proceeds of insurance policies insuring the
        Mortgage Loan or the related Mortgaged Property.

      

      Lender
        Paid Mortgage Insurance Rate:
        The
        Lender Paid Mortgage Insurance Rate shall be a rate per annum equal to the
        percentage shown on the Mortgage Loan Schedule.

      

      Lifetime
        Rate Cap:
        As to
        each Mortgage Loan, the maximum Mortgage Interest Rate over the term of such
        Mortgage Loan which is 600 basis points (6%) above the initial Mortgage Interest
        Rate. 

      

      Liquidation
        Proceeds:
        Cash
        received in connection with the liquidation of a defaulted Mortgage Loan,
        whether through the sale or assignment of such Mortgage Loan, trustee's sale,
        foreclosure sale or otherwise.

      

      Loan-to-Value
        Ratio or LTV:
        With
        respect to any Mortgage Loan, the ratio of the original outstanding principal
        amount of the Mortgage Loan, to (i) the Appraised Value of the Mortgaged
        Property as of the Origination Date with respect to a Refinanced Mortgage
        Loan,
        and (ii) the lesser of the Appraised Value of the Mortgaged Property as of
        the
        Origination Date or the purchase price of the Mortgaged Property with respect
        to
        all other Mortgage Loans.

      

      Margin:
        With
        respect to each Mortgage Loan, the fixed percentage amount set forth in each
        related Mortgage Note which is added to the Index in order to determine the
        related Mortgage Interest Rate, as set forth in the Mortgage Loan
        Schedule.

      

      MERS: Mortgage
        Electronic Registration Systems, Inc.

      

      Monthly
        Advance:
        The
        aggregate of the advances made by the Company on any Remittance Date pursuant
        to
        Section 5.03.

      

      Monthly
        Payment:
        The
        scheduled monthly payment of principal and interest on a Mortgage Loan which
        is
        payable by a Mortgagor under the related Mortgage Note.

      

      Mortgage:
        The
        mortgage, deed of trust or other instrument securing a Mortgage Note which
        creates a first lien on an unsubordinated estate in fee simple in real property
        securing the Mortgage Note. 

      

      Mortgage
        File:
        The
        mortgage documents pertaining to a particular Mortgage Loan which are specified
        in Exhibit A hereto and any additional documents required to be added to
        the
        Mortgage File pursuant to this Agreement.

      

      Mortgage
        Impairment Insurance Policy:
        A
        mortgage impairment or blanket hazard insurance policy as required by Section
        4.11.

      

      Mortgage
        Interest Rate:
        The
        annual rate at which interest accrues on any Mortgage Loan, which may be
        adjusted from time to time, in accordance with the provisions of the related
        Mortgage Note.

      

      Mortgage
        Loan:
        An
        individual Mortgage Loan which is the subject of this Agreement, each Mortgage
        Loan originally sold and subject to this Agreement being identified on the
        Mortgage Loan Schedule attached to the related Term Sheet, which Mortgage
        Loan
        includes without limitation the Mortgage File, the Monthly Payments, Principal
        Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
        REO Disposition Proceeds, and all other rights, benefits, proceeds and
        obligations arising from or in connection with such Mortgage Loan, excluding
        replaced or repurchased mortgage loans.

      

      Mortgage
        Loan Documents:
        The
        documents listed in
        Exhibit A.

      

      Mortgage
        Loan Remittance Rate:
        With
        respect to each Mortgage Loan, the annual rate of interest remitted to the
        Purchaser, which shall be equal to the Mortgage Interest Rate minus the
        Servicing Fee Rate minus the Lender Paid Mortgage Insurance
        Premium.

      

      Mortgage
        Loan Schedule:
        The
        schedule of Mortgage Loans annexed to the related Term Sheet, such schedule
        setting forth the following information with respect to each Mortgage Loan
        in
        the related Mortgage Loan Package:

      

      (1) the
        Company's Mortgage Loan identifying number;

      

      (2) the
        Mortgagor's name;

      

      (3)
         the
        street address of the Mortgaged Property including the city, state and zip
        code;

      

      (4) a
        code
        indicating whether the Mortgaged Property is owner-occupied;

      

      (5) the
        type
        of residential property constituting the Mortgaged Property;

      

      (6) the
        original months to maturity or the remaining months to maturity from the
        related
        Cut-off Date, in any case based on the original amortization schedule and,
        if
        different, the maturity expressed in the same manner but based on the actual
        amortization schedule;

      

      (7) the
        Sales
        Price, if applicable, appraised value and Loan-to-Value Ratio, at
        origination;

      

      (8) the
        Mortgage Interest Rate as of origination and as of the related Cut-off Date;
        the
        initial Adjustment Date, the next Adjustment Date immediately following the
        related Cut-off Date, the Index, the Margin, the Periodic Rate Cap and the
        Lifetime Rate Cap;

      

      (9) the
        Origination Date of the Mortgage Loan; the stated maturity date; and the
        amount
        of the Monthly Payment at origination;

      

      (10) the
        amount of the Monthly Payment as of the related Cut-off Date;

      

      (11) the
        original principal amount of the Mortgage Loan; 

      

      (12) the
        principal balance of the Mortgage Loan as of the close of business on the
        Cut-off Date, after deduction of payments of principal due on or before the
        related Cut-off Date whether or not collected;

      

      (13)
        a
        code indicating the purpose of the Mortgage Loan (i.e., purchase, rate and
        term
        refinance, equity take-out refinance); 

      

      (14)
        a
        code indicating the documentation style (i.e. full, alternative or reduced);
        

      

      (15) the
        number of times during the twelve (12) month period preceding the related
        Closing Date that any Monthly Payment has been received thirty (30) or more
        days
        after its Due Date;

      

      (16) the
        date
        on which the first payment is or was due; 

      

      (17) a
        code
        indicating whether or not the Mortgage Loan is the subject of Primary Mortgage
        Insurance;

      

      (18)
        a
        code indicating whether or not the Mortgage Loan is currently convertible
        and
        the conversion spread;

      

      (19)
        actual next due date as of the Cutoff Date;

      

      (20)
        product type; and

      

      (21)
        Lender Paid Mortgage Insurance Rate.

      

      With
        respect to the Mortgage Loans in the aggregate, the Mortgage Loan Schedule
        attached to the related Term Sheet shall set forth the following information,
        as
        of the related Cut-off Date:

      

      (1) the
        number of Mortgage Loans;

      

      (2) the
        current aggregate outstanding principal balance of the Mortgage
        Loans;

      

      (3) the
        weighted average Mortgage Interest Rate of the Mortgage Loans; 

      

      (4) the
        weighted average maturity of the Mortgage Loans; and

      

      (5)
        the
        weighted average months to next Adjustment Date.

      

      Mortgage
        Note:
        The
        note or other evidence of the indebtedness of a Mortgagor secured by a
        Mortgage.

      

      Mortgaged
        Property:
        The
        underlying real property securing repayment of a Mortgage Note, consisting
        of a
        single parcel of real estate considered to be real estate under the laws
        of the
        state in which such real property is located, which may include condominium
        units and planned unit developments, improved by a residential dwelling;
        except
        that with respect to real property located in jurisdictions in which the
        use of
        leasehold estates for residential properties is a widely-accepted practice,
        a
        leasehold estate of the Mortgage, the term of which is equal to or longer
        than
        the term of the Mortgage. 

      

      Mortgagor:
        The
        obligor on a Mortgage Note. 

      

      OCC:
        Office
        of the Comptroller of the Currency, its successors and assigns.

      

      Officers'
        Certificate:
        A
        certificate signed by the Chairman of the Board, the Vice Chairman of the
        Board,
        the President, a Senior Vice President, Assistant Vice President or a Vice
        President and by the Treasurer or the Secretary or one of the Assistant
        Treasurers or Assistant Secretaries of the Company, and delivered to the
        Purchaser as required by this Agreement.

      

      Opinion
        of Counsel:
        A
        written opinion of counsel, who may be an employee of the party on behalf
        of
        whom the opinion is being given, reasonably acceptable to the
        Purchaser.

      

      Origination
        Date:
        The
        date on which a Mortgage Loan closed and funded, which date shall not, in
        connection with a Refinanced Mortgage Loan, be the date of the closing and
        funding of the debt being refinanced, but rather the closing and funding
        of the
        debt currently outstanding under the terms of the Mortgage Loan Documents.
        

      

      OTS:
        Office
        of Thrift Supervision, its successors and assigns.

      

      Periodic
        Rate Cap:
        As to
        each Mortgage Loan, the maximum increase or decrease in the Mortgage Interest
        Rate on any Adjustment Date, starting with the second Adjustment Date, which
        is
        200 basis points (2%) above or below, respectively, the Mortgage Interest
        Rate
        in effect during the immediately preceding 12 month period. As to the first
        Adjustment Date, the maximum increase or decrease in the Mortgage Interest
        Rate
        is 300 basis points (3%) above or below, respectively, the Mortgage Interest
        Rate in effect during the immediately preceding fixed-rate period.

      

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

      

      Primary
        Mortgage Insurance Policy:
        Each
        primary policy of mortgage insurance represented to be in effect pursuant
        to
        Section 3.02(hh), or any replacement policy therefor obtained by the Company
        pursuant to Section 4.08.

      

      Prime
        Rate:
        The
        prime rate announced to be in effect from time to time as published as the
        average rate in the Wall Street Journal (Northeast Edition).

      

      Principal
        Prepayment:
        Any
        payment or other recovery of principal on a Mortgage Loan full or partial
        which
        is received in advance of its scheduled Due Date, including any prepayment
        penalty or premium thereon and which is not accompanied by an amount of interest
        representing scheduled interest due on any date or dates in any month or
        months
        subsequent to the month of prepayment.

      

      Purchase
        Price:
        As
        defined in Section 2.02.

      

      Purchaser:
        EMC
        Mortgage Corporation, its successors in interest and assigns.

      

      Qualified
        Appraiser:
        An
        appraiser, duly appointed by the Company, who had no interest, direct or
        indirect in the Mortgaged Property or in any loan made on the security thereof,
        and whose compensation is not affected by the approval or disapproval of
        the
        Mortgage Loan, and such appraiser and the appraisal made by such appraiser
        both
        satisfy the requirements of Title XI of FIRREA and the regulations promulgated
        thereunder, all as in effect on the date the Mortgage Loan was
        originated.

      

      Qualified
        Insurer:
        An
        insurance company duly qualified as such under the laws of the states in
        which
        the Mortgaged Properties are located, duly authorized and licensed in such
        states to transact the applicable insurance business and to write the insurance
        provided, approved as an insurer by FNMA or FHLMC. 

      

      Rating
        Agencies:
        Standard & Poor's Ratings Services, Moody's Investor Service or, in the
        event that some or all of ownership of the Mortgage Loans is evidenced by
        mortgage-backed securities, the nationally recognized rating agencies issuing
        ratings with respect to such securities, if any.

       

      Refinanced
        Mortgage Loan:
        A
        Mortgage Loan which was made to a Mortgagor who owned the Mortgaged Property
        prior to the origination of such Mortgage Loan and the proceeds of which
        were
        used in whole or part to satisfy an existing mortgage.

      

      Remittance
        Date:
        The
        18th day of any month, beginning with the First Remittance Date, or if such
        18th
        day is not a Business Day, the first Business Day immediately preceding such
        18th day.

      

      REO
        Disposition:
        The
        final sale by the Company of any REO Property.

      

      REO
        Disposition Proceeds:
        Amounts
        received by the Company in connection with a related REO
        Disposition.

      

      REO
        Property:
        A
        Mortgaged Property acquired by the Company on behalf of the Purchaser as
        described in Section 4.13.

      

      Repurchase
        Price:
        With
        respect to any Mortgage Loan, a price equal to (i) the outstanding principal
        balance of the Mortgage Loan, plus (ii) interest on such outstanding principal
        balance at the Mortgage Loan Remittance Rate from the last date through which
        interest has been paid and distributed to the Purchaser to the date of
        repurchase, plus, (iii) third party expenses incurred in connection with
        the
        transfer of the Mortgage Loan being repurchased; less amounts received or
        advanced in respect of such repurchased Mortgage Loan which are being held
        in
        the Custodial Account for distribution in the month of repurchase.

      

      SAIF:
        The
        Savings Association Insurance Fund, or any successor thereto.

      

      Servicing
        Advances:
        All
        customary, reasonable and necessary "out of pocket" costs and expenses
        (including reasonable attorneys' fees and disbursements) incurred in the
        performance by the Company of its servicing obligations, including, but not
        limited to, the cost of (a) the preservation, restoration and protection
        of the
        Mortgaged Property, (b) any enforcement, administrative or judicial proceedings,
        or any legal work or advice specifically related to servicing the Mortgage
        Loans, including but not limited to, foreclosures, bankruptcies, condemnations,
        drug seizures, elections, foreclosures by subordinate or superior lienholders,
        and other legal actions incidental to the servicing of the Mortgage Loans
        (provided that such expenses are reasonable and that the Company specifies
        the
        Mortgage Loan(s) to which such expenses relate, and provided further that
        any
        such enforcement, administrative or judicial proceeding does not arise out
        of a
        breach of any representation, warranty or covenant of the Company hereunder),
        (c) the management and liquidation of the Mortgaged Property if the Mortgaged
        Property is acquired in full or partial satisfaction of the Mortgage, (d)
        taxes,
        assessments, water rates, sewer rates and other charges which are or may
        become
        a lien upon the Mortgaged Property, and Primary Mortgage Insurance Policy
        premiums and fire and hazard insurance coverage, (e) any expenses reasonably
        sustained by the Company, as Company, with respect to the liquidation of
        the
        Mortgaged Property in accordance with the terms of this Agreement and (f)
        compliance with the obligations under Section 4.08.

      

      Servicing
        Fee:
        With
        respect to each Mortgage Loan, the amount of the annual fee the Purchaser
        shall
        pay to the Company, which shall, for a period of one full month, be equal
        to
        one-twelfth of the product of (a) the Servicing Fee Rate and (b) the outstanding
        principal balance of such Mortgage Loan. Such fee shall be payable monthly,
        computed on the basis of the same principal amount and period respecting
        which
        any related interest payment on a Mortgage Loan is computed. The obligation
        of
        the Purchaser to pay the Servicing Fee is limited to, and the Servicing Fee
        is
        payable solely from, the interest portion (including recoveries with respect
        to
        interest from Liquidation Proceeds, to the extent permitted by Section 4.05)
        of
        such Monthly Payment collected by the Company, or as otherwise provided under
        Section 4.05.

      

      Servicing
        Fee Rate:
        The
        Servicing Fee Rate shall be a rate per annum equal to 37.5 basis
        points.

      

      Servicing
        File:
        With
        respect to each Mortgage Loan, the file retained by the Company consisting
        of
        originals or microfilmed copies of all documents in the Mortgage File which
        are
        not delivered to the Purchaser and copies of the Mortgage Loan Documents
        listed
        in Exhibit A, the originals of which are delivered to the Purchaser or its
        designee pursuant to Section 2.04.

      

      Servicing
        Officer:
        Any
        officer of the Company involved in, or responsible for, the administration
        and
        servicing of the Mortgage Loans whose name appears on a list of servicing
        officers furnished by the Company to the Purchaser upon request, as such
        list
        may from time to time be amended.

      

      Stated
        Principal Balance:
        As to
        each Mortgage Loan as of any date of determination, (i) the principal balance
        of
        such Mortgage Loan at the Cut-off Date after giving effect to payments of
        principal due on or before such date, whether or not received, minus (ii)
        all
        amounts previously distributed to the Purchaser with respect to the Mortgage
        Loan representing payments or recoveries of principal or advances in lieu
        thereof.

      

      Subservicer:
        Any
        subservicer which is subservicing the Mortgage Loans pursuant to a Subservicing
        Agreement. Any subservicer shall meet the qualifications set forth in Section
        4.01.

      

      Subservicing
        Agreement:
        An
        agreement between the Company and a Subservicer, if any, for the servicing
        of
        the Mortgage Loans. 

      

      Term
        Sheet:
        A
        supplemental agreement in the form attached hereto as Exhibit I which shall
        be
        executed and delivered by the Company and the Purchaser to provide for the
        sale
        and servicing pursuant to the terms of this Agreement of the Mortgage Loans
        listed on Schedule I attached thereto, which supplemental agreement shall
        contain certain specific information relating to such sale of such Mortgage
        Loans and may contain additional covenants relating to such sale of such
        Mortgage Loans.

      

      ARTICLE
        II

      

      SERVICING
        OF MORTGAGE LOANS;

      RECORD
        TITLE AND POSSESSION OF MORTGAGE FILES;

      BOOKS
        AND RECORDS; CUSTODIAL AGREEMENT;

      DELIVERY
        OF MORTGAGE LOAN DOCUMENTS

      

      Section
        2.01 Agreement
        to Purchase.

      

      The
        Company agrees to sell and the Purchaser agrees to purchase the Mortgage
        Loans
        having an aggregate principal balance on the related Cut-off Date set forth
        in
        the related Term Sheet in an amount as set forth in the Confirmation, or
        in such
        other amount as agreed by the Purchaser and the Company as evidenced by the
        actual Stated Principal Balance of the Mortgage Loans accepted by the Purchaser
        on the Closing Date, with servicing retained by Company. The Company shall
        deliver the related Mortgage Loan Schedule attached to the related Term Sheet
        for the Mortgage Loans to be purchased on the related Closing Date to the
        Purchaser at least one (1) Business Day prior to the related Closing Date.
        The
        Mortgage Loans shall be sold pursuant to this Agreement, and the related
        Term
        Sheet shall be executed and delivered on the related Closing
        Date.

      

      Section
        2.02 Purchase
        Price.

      

      The
        Purchase Price for each Mortgage Loan shall be the percentage of par as stated
        in the Confirmation (subject to adjustment as provided therein), multiplied
        by
        the aggregate principal balance, as of the related Cut-off Date, of the Mortgage
        Loans listed on the related Mortgage Loan Schedule attached to the related
        Term
        Sheet, after application of scheduled payments of principal due on or before
        the
        related Cut-off Date whether or not collected. The initial principal amount
        of
        the Mortgage Loans shall be the aggregate principal balance of the Mortgage
        Loans, so computed as of the related Cut-off Date.

      

      In
        addition to the Purchase Price as described above, the Purchaser shall pay
        to
        the Company, at closing, accrued interest on the current principal amount
        of
        each Mortgage Loan as of the related Cut-off Date at the Mortgage Loan
        Remittance Rate of each Mortgage Loan from the related Cut-off Date through
        the
        day prior to the related Closing Date, inclusive.

      

      The
        Purchase Price plus accrued interest as set forth in the preceding paragraph
        shall be paid on the related Closing Date by wire transfer of immediately
        available funds.

      

      Purchaser
        shall be entitled to (1) all scheduled principal due after the related Cut-off
        Date, (2) all other recoveries of principal collected on or after the related
        Cut-off Date (provided, however, that all scheduled payments of principal
        due on
        or before the related Cut-off Date and collected by the Company or any successor
        servicer to the Company after the related Cut-off Date shall belong to the
        Company), and (3) all payments of interest on the Mortgage Loans net of
        applicable Servicing Fees (minus that portion of any such payment which is
        allocable to the period prior to the related Cut-off Date). The outstanding
        principal balance of each Mortgage Loan as of the related Cut-off Date is
        determined after application of payments of principal due on or before the
        related Cut-off Date whether or not collected, together with any unscheduled
        principal prepayments collected prior to the related Cut-off Date; provided,
        however, that payments of scheduled principal and interest prepaid for a
        Due
        Date beyond the related Cut-off Date shall not be applied to the principal
        balance as of the related Cut-off Date. Such prepaid amounts shall be the
        property of the Purchaser. The Company shall deposit any such prepaid amounts
        into the Custodial Account, which account is established for the benefit
        of the
        Purchaser for subsequent remittance by the Company to the
        Purchaser.

      

      Section
        2.03 Servicing
        of Mortgage Loans.

      

      Simultaneously
        with the execution and delivery of each Term Sheet, the Company does hereby
        agree to directly service the Mortgage Loans listed on the related Mortgage
        Loan
        Schedule attached to the related Term Sheet subject to the terms of this
        Agreement and the related Term Sheet. The rights of the Purchaser to receive
        payments with respect to the related Mortgage Loans shall be as set forth
        in
        this Agreement.

      

      Section
        2.04 Record
        Title and Possession of Mortgage Files;
        Maintenance of Servicing Files.

      

      As
        of the
        related Closing Date, the Company sold, transferred, assigned, set over and
        conveyed to the Purchaser, without recourse, and the Company hereby acknowledges
        that the Purchaser has, but subject to the terms of this Agreement and the
        related Term Sheet, all the right, title and interest of the Company in and
        to
        the Mortgage Loans. Company will deliver the Mortgage Files to the custodian
        designated by Purchaser, on or before the related Closing Date, at the expense
        of the Company. The Company shall maintain a Servicing File consisting of
        a copy
        of the contents of each Mortgage File and the originals or microfilmed copies
        of
        the documents in each Mortgage File not delivered to the Purchaser. The
        Servicing File shall contain all documents necessary to service the Mortgage
        Loans. The possession of each Servicing File by the Company is at the will
        of
        the Purchaser, for the sole purpose of servicing the related Mortgage Loan,
        and
        such retention and possession by the Company is in a custodial capacity only.
        From the related Closing Date, the ownership of each Mortgage Loan, including
        the Mortgage Note, the Mortgage, the contents of the related Mortgage File
        and
        all rights, benefits, proceeds and obligations arising therefrom or in
        connection therewith, has been vested in the Purchaser. All rights arising
        out
        of the Mortgage Loans including, but not limited to, all funds received on
        or in
        connection with the Mortgage Loans and all records or documents with respect
        to
        the Mortgage Loans prepared by or which come into the possession of the Company
        shall be received and held by the Company in trust for the benefit of the
        Purchaser as the owner of the Mortgage Loans. Any portion of the Mortgage
        Files
        retained by the Company shall be appropriately identified in the Company's
        computer system to clearly reflect the ownership of the Mortgage Loans by
        the
        Purchaser. The Company shall release its custody of the contents of the Mortgage
        Files only in accordance with written instructions of the Purchaser, except
        when
        such release is required as incidental to the Company's servicing of the
        Mortgage Loans or is in connection with a repurchase of any Mortgage Loan
        or
        Loans with respect thereto pursuant to this Agreement and the related Term
        Sheet, such written instructions shall not be required.

      

      Section
        2.05  Books
        and Records.

      

      The
        sale
        of each Mortgage Loan has been reflected on the Company's balance sheet and
        other financial statements as a sale of assets by the Company. The Company
        shall
        be responsible for maintaining, and shall maintain, a complete set of books
        and
        records for the Mortgage Loans which shall be appropriately identified in
        the
        Company's computer system to clearly reflect the ownership of the Mortgage
        Loan
        by the Purchaser. In particular, the Company shall maintain in its possession,
        available for inspection by the Purchaser, or its designee and shall deliver
        to
        the Purchaser upon demand, evidence of compliance with all federal, state
        and
        local laws, rules and regulations, and requirements of FNMA or FHLMC, as
        applicable, including but not limited to documentation as to the method used
        in
        determining the applicability of the provisions of the Flood Disaster Protection
        Act of 1973, as amended, to the Mortgaged Property, documentation evidencing
        insurance coverage of any condominium project as required by FNMA or FHLMC,
        and
        periodic inspection reports as required by Section 4.13. To the extent that
        original documents are not required for purposes of realization of Liquidation
        Proceeds or Insurance Proceeds, documents maintained by the Company may be
        in
        the form of microfilm or microfiche.

      

      The
        Company shall maintain with respect to each Mortgage Loan and shall make
        available for inspection by any Purchaser or its designee the related Servicing
        File during the time the Purchaser retains ownership of a Mortgage Loan and
        thereafter in accordance with applicable laws and regulations.

      

      In
        addition to the foregoing, Company shall provide to any supervisory agents
        or
        examiners that regulate Purchaser, including but not limited to, the OTS,
        the
        FDIC and other similar entities, access, during normal business hours, upon
        reasonable advance notice to Company and without charge to Company or such
        supervisory agents or examiners, to any documentation regarding the Mortgage
        Loans that may be required by any applicable regulator.

      

      Section
        2.06. Transfer
        of Mortgage Loans.

      

      The
        Company shall keep at its servicing office books and records in which, subject
        to such reasonable regulations as it may prescribe, the Company shall note
        transfers of Mortgage Loans. No transfer of a Mortgage Loan may be made unless
        such transfer is in compliance with the terms hereof. For the purposes of
        this
        Agreement, the Company shall be under no obligation to deal with any person
        with
        respect to this Agreement or any Mortgage Loan unless a notice of the transfer
        of such Mortgage Loan has been delivered to the Company in accordance with
        this
        Section 2.06 and the books and records of the Company show such person as
        the
        owner of the Mortgage Loan. The Purchaser may, subject to the terms of this
        Agreement, sell and transfer one or more of the Mortgage Loans, provided,
        however, that (i) the transferee will not be deemed to be a Purchaser hereunder
        binding upon the Company unless such transferee shall agree in writing to
        be
        bound by the terms of this Agreement and an original counterpart of the
        instrument of transfer in an Assignment and Assumption of this Agreement
        substantially in the form of Exhibit D hereto executed by the transferee
        shall
        have been delivered to the Company and the Company, and (ii) in no event
        shall
        there be more than three (3) Persons at any given time having the status
        of
        "Purchaser" hereunder. The Purchaser also shall advise the Company of the
        transfer. Upon receipt of notice of the transfer, the Company shall mark
        its
        books and records to reflect the ownership of the Mortgage Loans of such
        assignee, and the previous Purchaser shall be released from its obligations
        hereunder with respect to the Mortgage Loans sold or transferred.

      

      Section
        2.07 Delivery
        of Mortgage Loan Documents.

      

      The
        Company shall deliver and release to the Purchaser or its designee the Mortgage
        Loan Documents in accordance with the terms of this Agreement and the related
        Term Sheet. The documents enumerated as items (1), (2), (3), (4), (5), (6),
        (7)
        and (8) in Exhibit A hereto shall be delivered by the Company to the Purchaser
        or its designee no later than one (1) Business Days prior to the related
        Closing
        Date pursuant to a bailee letter agreement. All other documents in Exhibit
        A
        hereto, together with all other documents executed in connection with the
        Mortgage Loan that Company may have in its possession, shall be retained
        by the
        Company in trust for the Purchaser. If the Company cannot deliver the original
        recorded Mortgage Loan Documents or the original policy of title insurance,
        including riders and endorsements thereto, on the Closing Date, the Company
        shall, promptly upon receipt thereof and in any case not later than 120 days
        from the related Closing Date, deliver such original documents, including
        original recorded documents, to the Purchaser or its designee (unless the
        Company is delayed in making such delivery by reason of the fact that such
        documents shall not have been returned by the appropriate recording office).
        If
        delivery is not completed within 120 days solely due to delays in making
        such
        delivery by reason of the fact that such documents shall not have been returned
        by the appropriate recording office, the Company shall deliver such document
        to
        Purchaser, or its designee, within such time period as specified in a Company's
        Officer's Certificate. In the event that documents have not been received
        by the
        date specified in the Company's Officer's Certificate, a subsequent Company's
        Officer's Certificate shall be delivered by such date specified in the prior
        Company's Officer's Certificate, stating a revised date for receipt of
        documentation. The procedure shall be repeated until the documents have been
        received and delivered. The Company shall continue to use its best efforts
        to
        effect delivery within 210 days of the related Closing Date.

      

      The
        Company shall pay all initial recording fees, for the assignments of mortgage
        and any other fees in connection with the transfer of all original documents
        to
        the Purchaser or its designee, including
        any fees, costs or expenses related to the registration of the Mortgage Loans
        with MERS, if applicable.
        The
        Company shall prepare, in recordable form, all assignments of mortgage necessary
        to assign the Mortgage Loans to Purchaser, or its designee.

      

      Company
        shall provide an original or duplicate original of the title insurance policy
        to
        Purchaser or its designee within ninety (90) days of the receipt of the recorded
        documents (required for issuance of such policy) from the applicable recording
        office.

      

      Any
        review by the Purchaser, or its designee, of the Mortgage Files shall in
        no way
        alter or reduce the Company's obligations hereunder.

      

      If
        the
        Purchaser or its designee discovers any defect with respect to a Mortgage
        File,
        the Purchaser shall, or shall cause its designee to, give written specification
        of such defect to the Company which may be given in the exception report
        or the
        certification delivered pursuant to this Section 2.07, or otherwise in writing
        and the Company shall cure or repurchase such Mortgage Loan in accordance
        with
        Section 3.03.

      

      The
        Company shall forward to the Purchaser, or its designee, original documents
        evidencing an assumption, modification, consolidation or extension of any
        Mortgage Loan entered into in accordance with Section 4.01 or 6.01 within
        one
        week of their execution; provided, however, that the Company shall provide
        the
        Purchaser, or its designee, with a certified true copy of any such document
        submitted for recordation within two weeks of its execution, and shall provide
        the original of any document submitted for recordation or a copy of such
        document certified by the appropriate public recording office to be a true
        and
        complete copy of the original within 120 days of its submission for
        recordation.

      

      From
        time
        to time the Company may have a need for Mortgage Loan Documents to be released
        from Purchaser, or its designee. Purchaser shall, or shall cause its designee,
        upon the written request of the Company, in the form of Exhibit G attached
        hereto, within ten (10) Business Days, deliver to the Company, any requested
        documentation previously delivered to Purchaser as part of the Mortgage File,
        provided that such documentation is promptly returned to Purchaser, or its
        designee, when the Company no longer requires possession of the document,
        and
        provided that during the time that any such documentation is held by the
        Company, such possession is in trust for the benefit of Purchaser. Company
        shall
        indemnify Purchaser, and its designee, from and against any and all losses,
        claims, damages, penalties, fines, forfeitures, costs and expenses (including
        court costs and reasonable attorney's fees) resulting from or related to
        the
        loss, damage, or misplacement of any documentation delivered to Company pursuant
        to this paragraph.

      

      Section
        2.08 Quality
        Control Procedures.

      

      The
        Company must have an internal quality control program that verifies, on a
        regular basis, the existence and accuracy of the legal documents, credit
        documents, property appraisals, and underwriting decisions. The program must
        be
        capable of evaluating and monitoring the overall quality of its loan production
        and servicing activities. The program is to ensure that the Mortgage Loans
        are
        originated and serviced in accordance with prudent mortgage banking practices
        and accounting principles; guard against dishonest, fraudulent, or negligent
        acts; and guard against errors and omissions by officers, employees, or other
        authorized persons.

      

      Section
        2.09 No
        Commission.

      

      The
        Company and the Purchaser agree that no broker, Investment Banker, agent
        or
        other person (including but not limited to Purchaser) is entitled to any
        commission or compensation in connection with the sale of the Mortgage
        Loans.

      

      ARTICLE
        III

      

      REPRESENTATIONS
        AND WARRANTIES OF

      THE
        COMPANY AND THE COMPANY; REPURCHASE; REVIEW OF MORTGAGE LOANS

      

      Section
        3.01 Representations
        and Warranties of the Company.

      

      The
        Company represents, warrants and covenants to the Purchaser that, as of the
        related Closing Date or as of such date specifically provided
        herein:

      

      (a) Chevy
        Chase Bank, F.S.B. is a federally chartered savings bank duly organized,
        validly
        existing and in good standing and has all licenses and qualifications necessary
        to carry out its business as now being conducted, and in any event the Company
        is in compliance with the applicable laws of any state to the extent necessary
        to ensure the enforceability of each Mortgage Loan in accordance with the
        terms
        of this Agreement; the Company is licensed and qualified to transact business
        in
        and is in good standing under the laws of each state in which any Mortgaged
        Property is located or is otherwise exempt under applicable law from such
        licensing or qualification or is otherwise not required under applicable
        law to
        effect such licensing or qualification and no unresolved demand for such
        licensing or qualification has been made upon such Company by any such state,
        and in any event such Company is in compliance with the laws of any such
        state
        to the extent necessary to ensure the enforceability of each Mortgage Loan
        and
        the servicing of the Mortgage Loans in accordance with the terms of this
        Agreement;

       

      (b)
        The
        Company has the full power and authority and legal right to hold, transfer
        and
        convey each Mortgage Loan, to sell each Mortgage Loan and to execute, deliver
        and perform, and to enter into and consummate all transactions contemplated
        by
        this Agreement and the related Term Sheet and to conduct its business as
        presently conducted, has duly authorized the execution, delivery and performance
        of this Agreement and the related Term Sheet and any agreements contemplated
        hereby, has duly executed and delivered this Agreement and the related Term
        Sheet, and any agreements contemplated hereby, and this Agreement and the
        related Term Sheet and each Assignment of Mortgage to the Purchaser and any
        agreements contemplated hereby, constitutes a legal, valid and binding
        obligation of the Company, enforceable against it in accordance with its
        terms,
        and all requisite corporate action has been taken by the Company to make
        this
        Agreement and the related Term Sheet and all agreements contemplated hereby
        valid and binding upon the Company in accordance with their terms; the Company
        has the full power and authority and legal right to execute, deliver and
        perform, and to enter into and consummate all transactions contemplated by
        this
        Agreement and the related Term Sheet and to conduct its business as presently
        conducted, has duly authorized the execution, delivery and performance of
        this
        Agreement and the related Term Sheet and any agreements contemplated hereby,
        has
        duly executed and delivered this Agreement and the related Term Sheet, and
        any
        agreements contemplated hereby, and this Agreement and any agreements
        contemplated hereby, constitutes a legal, valid and binding obligation of
        the
        Company, enforceable against it in accordance with its terms, and all requisite
        corporate action has been taken by the Company to make this Agreement and
        the
        related Term Sheet and all agreements contemplated hereby valid and binding
        upon
        the Company in accordance with their terms;

      

      (c)
        Neither the execution and delivery of this Agreement nor the related Term
        Sheet,
        nor the origination of the Mortgage Loans by the Company, the sale of the
        Mortgage Loans to the Purchaser, the consummation of the transactions
        contemplated hereby, or the fulfillment of or compliance with the terms and
        conditions of this Agreement and the related Term Sheet will conflict with
        any
        of the terms, conditions or provisions of the Company's or the Company's
        charter
        or by-laws or materially conflict with or result in a material breach of
        any of
        the terms, conditions or provisions of any legal restriction or any agreement
        or
        instrument to which the Company is now a party or by which they are bound,
        or
        constitute a default or result in an acceleration under any of the foregoing,
        or
        result in the material violation of any law, rule, regulation, order, judgment
        or decree to which the Company or its properties are subject, or impair the
        ability of the Purchaser to realize on the Mortgage Loans.

      

      (d)
        There
        is no litigation, suit, proceeding or investigation pending or to the Company’s
        knowledge, threatened, or any order or decree outstanding, with respect to
        the
        Company which, either in any one instance or in the aggregate, is reasonably
        likely to have a material adverse effect on the sale of the Mortgage Loans,
        the
        execution, delivery, performance or enforceability of this Agreement or the
        related Term Sheet, or which is reasonably likely to have a material adverse
        effect on the financial condition of the Company.

      

      (e)
        No
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Company
        of
        or compliance by the Company with this Agreement or the related Term Sheet,
        or
        the sale of the Mortgage Loans and delivery of the Mortgage Files to the
        Purchaser or the consummation of the transactions contemplated by this Agreement
        and the related Term Sheet, except for consents, approvals, authorizations
        and
        orders which have been obtained;

      

      (f)
        The
        consummation of the transactions contemplated by this Agreement and the related
        Term Sheet is in the ordinary course of business of the Company, and the
        transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
        by
        the Company pursuant to this Agreement and the related Term Sheet are not
        subject to bulk transfer or any similar statutory provisions in effect in
        any
        applicable jurisdiction;

      

      (g)
        The
        origination and servicing practices used by the Company, and any prior
        originator or Company with respect to each Mortgage Note and Mortgage have
        been
        legal and in accordance with applicable laws and regulations and the Mortgage
        Loan Documents, and in all material respects proper and prudent in the mortgage
        origination and servicing business. With respect to escrow deposits and payments
        that the Company, on behalf of the investor, is entitled to collect, all
        such
        payments are in the possession of, or under the control of, the Company,
        and
        there exist no deficiencies in connection therewith for which customary
        arrangements for repayment thereof have not been made. All escrow payments
        have
        been collected in full compliance with state and federal law and the provisions
        of the related Mortgage Note and Mortgage. As to any Mortgage Loan that is
        the
        subject of an escrow, escrow of funds is not prohibited by applicable law
        and
        has been established in an amount sufficient to pay for every escrowed item
        that
        remains unpaid and has been assessed but is not yet due and payable. No escrow
        deposits or other charges or payments due under the Mortgage Note have been
        capitalized under any Mortgage or the related Mortgage Note;

      

      (h)
        The
        Company used no selection procedures that identified the Mortgage Loans as
        being
        less desirable or valuable than other comparable mortgage loans in the Company's
        portfolio at the related Cut-off Date; 

      

      (i) The
        Company will treat the sale of the Mortgage Loans to the Purchaser as a sale
        for
        reporting and accounting purposes and, to the extent appropriate, for federal
        income tax purposes; 

      

      (j) The
        Company is an approved Seller/Servicer of residential mortgage loans for
        FNMA,
        FHLMC and HUD, with such facilities, procedures and personnel necessary for
        the
        sound servicing of such mortgage loans. The Company is duly qualified, licensed,
        registered and otherwise authorized under all applicable federal, state and
        local laws, and regulations, if applicable, meets the minimum capital
        requirements set forth by the OCC, and is in good standing to sell mortgage
        loans to and service mortgage loans for FNMA and FHLMC and no event has occurred
        which would make Company unable to comply with eligibility requirements or
        which
        would require notification to either FNMA or FHLMC; 

      

      (k) The
        Company does not believe, nor does it have any cause or reason to believe,
        that
        it cannot perform each and every covenant contained in this Agreement and
        the
        related Term Sheet. The Company is solvent and the sale of the Mortgage Loans
        will not cause the Company to become insolvent. The sale of the Mortgage
        Loans
        is not undertaken with the intent to hinder, delay or defraud any of the
        Company's creditors;

      

      (l) No
        statement, tape, diskette, form, report or other document prepared by, or
        on
        behalf of, Company or Company pursuant to this Agreement and the related
        Term
        Sheet or in connection with the transactions contemplated hereby, contains
        or
        will contain any statement that is or will be inaccurate or misleading in
        any
        material respect;

      

      (m)
         The
        Company acknowledges and agrees that the Servicing Fee represents reasonable
        compensation for performing such services and that the entire Servicing Fee
        shall be treated by the Company, for accounting and tax purposes, as
        compensation for the servicing and administration of the Mortgage Loans pursuant
        to this Agreement and the related Term Sheet. In the opinion of Company,
        the
        consideration received by Company upon the sale of the Mortgage Loans to
        Purchaser under this Agreement and the related Term Sheet constitutes fair
        consideration for the Mortgage Loans under current market conditions.

      

      (n)
         If
        requested by the Purchaser, the Company shall have delivered to the Purchaser
        financial statements of its parent, for its last two complete fiscal years.
        If
        so, all such financial information fairly presents the pertinent results
        of
        operations and financial position for the period identified and has been
        prepared in accordance with generally accepted accounting principles
        consistently applied throughout the periods involved, except as set forth
        in the
        notes thereto. There has been no change in the business, operations, financial
        condition, properties or assets of the Company since the date of the Company’s
        financial information that would have a material adverse effect on its ability
        to perform its obligations under this Agreement and the related Term Sheet;
        and

      

      (o)
         Neither
        the Company nor the Purchaser have dealt with any broker, investment banker,
        agent or other person that may be entitled to any commission or compensation
        in
        connection with the sale of the Mortgage Loans.

      

      Section
        3.02    Representations
        and Warranties as to Individual
        Mortgage Loans.

      

      References
        in this Section to percentages of Mortgage Loans refer in each case to the
        percentage of the aggregate principal balance of the Mortgage Loans as of
        the
        related Cut-off Date, based on the outstanding balances of the Mortgage Loans
        as
        of the Cut-off Date, and giving effect to scheduled Monthly Payments due
        on or
        prior to the related Cut-off Date, whether or not received. References to
        percentages of Mortgaged Properties refer, in each case, to the percentages
        of
        expected aggregate principal balances of the related Mortgage Loans (determined
        as described in the preceding sentence). The Company hereby represents and
        warrant to the Purchaser, as to each Mortgage Loan, as of the related Closing
        Date as follows:

      

      (a) The
        information set forth in the Mortgage Loan Schedule
        attached
        to the related Term Sheet is true, complete and correct in all material respects
        as of the related Cut-Off Date;

      

      (b) The
        Mortgage creates a valid, subsisting and enforceable first lien or a first
        priority ownership interest in an estate in fee simple in real property securing
        the related Mortgage Note subject to principles of equity, bankruptcy,
        insolvency and other laws of general application affecting the rights of
        creditors. 

      

      (c)
        All
        payments due prior to the related Cut-off Date for such Mortgage Loan have
        been
        made as of the related Closing Date, the Mortgage Loan has not been dishonored;
        there are no material defaults under the terms of the Mortgage Loan; the
        Company
        has not advanced its own funds, or induced, solicited or knowingly received
        any
        advance of funds from a party other than the owner of the Mortgaged Property
        subject to the Mortgage, directly or indirectly, for the payment of any amount
        required by the Mortgage Loan; and, as of the related Closing Date, there
        has
        been no more than one delinquency during the related preceding twelve-month
        period, and such delinquency did not last more than 30 days;

      

      (d)
        There
        are no defaults by the Company in complying with the terms of the Mortgage,
        and
        all taxes, governmental assessments, insurance premiums, water, sewer and
        municipal charges, leasehold payments or ground rents which previously became
        due and owing have been paid, or escrow funds have been established in an
        amount
        sufficient to pay for every such escrowed item which remains unpaid and which
        has been assessed but is not yet due and payable;

      

      (e)
        The
        terms of the Mortgage Note and the Mortgage have not been impaired, waived,
        altered or modified in any respect, except by written instruments which have
        been recorded to the extent any such recordation is required by law, or,
        necessary to protect the interest of the Purchaser. No instrument of waiver,
        alteration or modification has been executed, and no Mortgagor has been
        released, in whole or in part, from the terms thereof except in connection
        with
        an assumption agreement and which assumption agreement is part of the Mortgage
        File and the terms of which are reflected in the Mortgage Loan Schedule;
        the
        substance of any such waiver, alteration or modification has been approved
        by
        the issuer of any related Primary Mortgage Insurance Policy and title insurance
        policy, to the extent required by the related policies;

      

      (f)
        The
        Mortgage Note and the Mortgage are not subject to any right of rescission,
        set-off, counterclaim or defense, including, without limitation, the defense
        of
        usury, nor will the operation of any of the terms of the Mortgage Note or
        the
        Mortgage, or the exercise of any right thereunder, render the Mortgage Note
        or
        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; and as of the Closing Date the Mortgagor was
        not
        a debtor in any state or federal bankruptcy or insolvency
        proceeding;

      

      (g)
        All
        buildings or other customarily insured improvements upon the Mortgaged Property
        are insured by an insurer acceptable under the FNMA or FHLMC Guides, against
        loss by fire, hazards of extended coverage and such other hazards as are
        provided for in the FNMA or FHLMC Guide, as well as all additional requirements
        set forth in Section 4.10 of this Agreement. All such standard hazard policies
        are in full force and effect and on the date of origination contained a standard
        mortgagee clause naming the Company and its successors in interest and assigns
        as loss payee and such clause is still in effect and all premiums due thereon
        have been paid. If required by the Flood Disaster Protection Act of 1973,
        as
        amended, the Mortgage Loan is covered by a flood insurance policy meeting
        the
        requirements of the current guidelines of the Federal Insurance Administration
        which policy conforms to FNMA or FHLMC requirements, as well as all additional
        requirements set forth in Section 4.10 of this Agreement. Such policy was
        issued
        by an insurer acceptable under FNMA or FHLMC guidelines. The Mortgage obligates
        the Mortgagor thereunder to maintain all such insurance at the Mortgagor's
        cost
        and expense, and on the Mortgagor's failure to do so, authorizes the holder
        of
        the Mortgage to maintain such insurance at the Mortgagor's cost and expense
        and
        to seek reimbursement therefor from the Mortgagor;

      

      (h)
        Any
        and all requirements of any federal, state or local law including, without
        limitation, usury, truth-in-lending, real estate settlement procedures, consumer
        credit protection, equal credit opportunity or disclosure laws applicable
        to the
        Mortgage Loan have been complied with in all material respects; the Company
        maintains, and shall maintain, evidence of such compliance as required by
        applicable law or regulation and shall make such evidence available for
        inspection at the Company's office during normal business hours upon reasonable
        advance notice;

      

      (i)
        The
        Mortgage has not been satisfied, canceled or subordinated, in whole or in
        part,
        or rescinded, and the Mortgaged Property has not been released from the lien
        of
        the Mortgage, in whole or in part nor has any instrument been executed that
        would effect any such release, cancellation, subordination or rescission.
        The
        Company has not waived the performance by the Mortgagor of any action, if
        the
        Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
        in default, nor has the Company waived any default resulting from any action
        or
        inaction by the Mortgagor;

      

      (j) The
        Mortgage is a valid, subsisting, enforceable and perfected first lien on
        the
        Mortgaged Property, including all buildings on the Mortgaged Property and
        all
        installations and mechanical, electrical, plumbing, heating and air conditioning
        systems affixed to such buildings, and all additions, alterations and
        replacements made at any time with respect to the foregoing securing the
        Mortgage Note's original principal balance subject to principles of equity,
        bankruptcy, insolvency and other laws of general application affecting the
        rights of creditors. The Mortgage and the Mortgage Note do not contain any
        evidence of any security interest or other interest or right thereto. Such
        lien
        is free and clear of all adverse claims, liens and encumbrances having priority
        over the first lien of the Mortgage subject only to (1) the lien of
        non-delinquent current real property taxes and assessments not yet due and
        payable, (2) covenants, conditions and restrictions, rights of way, easements
        and other matters of the public record as of the date of recording which
        are
        acceptable to mortgage lending institutions generally and either (A) which
        are
        referred to in the lender’s title insurance policy delivered to the originator
        or otherwise considered in the appraisal made for the originator of the Mortgage
        Loan, or (B) which do not adversely affect the residential use or Appraised
        Value of the Mortgaged Property as set forth in such appraisal, and (3) other
        matters to which like properties are commonly subject which do not individually
        or in the aggregate materially interfere with the benefits of the security
        intended to be provided by the Mortgage or the use, enjoyment, value or
        marketability of the related Mortgaged Property. Any security agreement,
        chattel
        mortgage or equivalent document related to and delivered in connection with
        the
        Mortgage Loan establishes and creates a valid, subsisting, enforceable and
        perfected first lien and first priority security interest on the property
        described therein, and the Company has the full right to sell and assign
        the
        same to the Purchaser;

      

      (k)
        The
        Mortgage Note and the related Mortgage are original and genuine and each
        is the
        legal, valid and binding obligation of the maker thereof, enforceable in
        all
        respects in accordance with its terms subject to principles of equity,
        bankruptcy, insolvency and other laws of general application affecting the
        rights of creditors, and the Company has taken all action necessary to transfer
        such rights of enforceability to the Purchaser. All parties to the Mortgage
        Note
        and the Mortgage had the legal capacity to enter into the Mortgage Loan and
        to
        execute and deliver the Mortgage Note and the Mortgage. The Mortgage Note
        and
        the Mortgage have been duly and properly executed by such parties. No fraud,
        error, omission, misrepresentation, negligence or similar occurrence with
        respect to a Mortgage Loan has taken place on the part of Company, the
        Mortgagor, or, to the best of Company's knowledge, on the part of any other
        party involved in the origination of the Mortgage Loan. Either the borrower
        or a
        guarantor is a natural person. The proceeds of the Mortgage Loan have been
        fully
        disbursed and there is no requirement for future advances thereunder, and
        any
        and all requirements as to completion of any on-site or off-site improvements
        and as to disbursements of any escrow funds therefor have been complied with.
        All costs, fees and expenses incurred in making or closing the Mortgage Loan
        and
        the recording of the Mortgage (including
        any fees, costs or expenses related to the registration of the Mortgage Loans
        with MERS, if applicable)
        were
        paid or are in the process of being paid, and the Mortgagor is not entitled
        to
        any refund of any amounts paid or due under the Mortgage Note or
        Mortgage;

      

      (l)
        The
        Company is the sole owner and holder of the Mortgage Loan and the indebtedness
        evidenced by the Mortgage Note. Upon the sale of the Mortgage Loan to the
        Purchaser, the Company will retain the Mortgage File or any part thereof
        with
        respect thereto not delivered to the Purchaser or the Purchaser’s designee in
        trust only for the purpose of servicing and supervising the servicing of
        the
        Mortgage Loan. Immediately prior to the transfer and assignment to the
        Purchaser, the Mortgage Loan, including the Mortgage Note and the Mortgage,
        were
        not subject to an assignment, sale or pledge to any person other than Purchaser,
        and the Company had good and marketable title to and was the sole owner thereof
        and had full right to transfer and sell the Mortgage Loan to the Purchaser
        free
        and clear of any encumbrance, equity, lien, pledge, charge, claim or security
        interest and has the full right and authority subject to no interest or
        participation of, or agreement with, any other party, to sell and assign
        the
        Mortgage Loan pursuant to this Agreement and following the sale of the Mortgage
        Loan, the Purchaser will own such Mortgage Loan free and clear of any
        encumbrance, equity, participation interest, lien, pledge, charge, claim
        or
        security interest. The Company intends to relinquish all rights to possess,
        control and monitor the Mortgage Loan, except for the purposes of servicing
        the
        Mortgage Loan as set forth in this Agreement. After the Closing Date, the
        Company will not have any right to modify or alter the terms of the sale
        of the
        Mortgage Loan and the Company will not have any obligation or right to
        repurchase the Mortgage Loan or substitute another Mortgage Loan, except
        as
        provided in this Agreement, or as otherwise agreed to by the Company and
        the
        Purchaser;

      

      (m)
        Each
        Mortgage Loan is covered by an ALTA lender's title insurance policy or other
        generally acceptable form of policy or insurance acceptable to FNMA or FHLMC
        (including adjustable rate endorsements), issued by a title insurer acceptable
        to FNMA or FHLMC and qualified to do business in the jurisdiction where the
        Mortgaged Property is located, insuring (subject to the exceptions contained
        in
        (j)(1), (2) and (3) above) the Company, its successors and assigns, as to
        the
        first priority lien of the Mortgage in the original principal amount of the
        Mortgage Loan and against any loss by reason of the invalidity or
        unenforceability of the lien resulting from the provisions of the Mortgage
        providing for adjustment in the Mortgage Interest Rate and Monthly Payment.
        Where required by state law or regulation, the Mortgagor has been given the
        opportunity to choose the carrier of the required mortgage title insurance.
        The
        Company, its successors and assigns, are the sole insureds of such lender's
        title insurance policy, such title insurance policy has been duly and validly
        endorsed to the Purchaser or the assignment to the Purchaser of the Company's
        interest therein does not require the consent of or notification to the insurer
        and such lender's title insurance policy is in full force and effect and
        will be
        in full force and effect upon the consummation of the transactions contemplated
        by this Agreement. No claims have been made under such lender's title insurance
        policy, and no prior holder of the related Mortgage, including the Company,
        has
        done, by act or omission, anything which would impair the coverage of such
        lender's title insurance policy;

      

      (n)
        There
        is no default, breach, violation or event of acceleration existing under
        the
        Mortgage or the related Mortgage Note and no event which, with the passage
        of
        time or with notice and the expiration of any grace or cure period, would
        constitute a default, breach, violation or event permitting acceleration;
        and
        neither the Company, nor any prior mortgagee has waived any default, breach,
        violation or event permitting acceleration;

      

      (o)
        There
        are no mechanics' or similar liens or claims which have been filed for work,
        labor or material (and no rights are outstanding that under law could give
        rise
        to such liens) affecting the related Mortgaged Property which are or may
        be
        liens prior to or equal to the lien of the related Mortgage;

      

      (p)
        All
        improvements subject to the Mortgage which were considered in determining
        the
        appraised value of the Mortgaged Property lie wholly within the boundaries
        and
        building restriction lines of the Mortgaged Property (and wholly within the
        project with respect to a condominium unit) and no improvements on adjoining
        properties encroach upon the Mortgaged Property except those which are insured
        against by the title insurance policy referred to in clause (m) above and
        all
        improvements on the property comply with all applicable zoning and subdivision
        laws and ordinances;

      

      (q)
        Each
        Mortgage Loan was originated by or for the Company pursuant to, and conforms
        with, the Company’s underwriting guidelines attached as Exhibit H hereto. The
        Mortgage Notes and Mortgages are on forms generally acceptable in the industry.
        The Mortgage Loan bears interest at an adjustable rate as set forth in the
        Mortgage Loan Schedule, and Monthly Payments under the Mortgage Note are
        due and
        payable on the first day of each month. The Mortgage contains the usual and
        enforceable provisions of the Company at the time of origination for the
        acceleration of the payment of the unpaid principal amount of the Mortgage
        Loan
        if the related Mortgaged Property is sold without the prior consent of the
        mortgagee thereunder;

      

      (r)
        No
        Mortgaged Property has been materially damaged by waste, fire, earthquake,
        earth
        movement, windstorm, tornado, flood or other casualty. At origination of
        the
        Mortgage Loan there was not, since origination of the Mortgage Loan there
        has
        been and there currently is, no proceeding pending for the total or partial
        condemnation of the Mortgaged Property. The Company has not received
        notification that any such proceedings are scheduled to commence at a future
        date;

      

      (s)
        The
        related Mortgage contains customary and enforceable provisions such as to
        render
        the rights and remedies of the holder thereof adequate for the realization
        against the Mortgaged Property of the benefits of the security provided thereby,
        including, (1) in the case of a Mortgage designated as a deed of trust, by
        trustee's sale, and (2) 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;

      

      (t)
        If
        the Mortgage constitutes a deed of trust, a trustee, authorized and duly
        qualified if required under applicable law to act as such, has been properly
        designated and currently so serves and is named in the Mortgage, and no fees
        or
        expenses, except as may be required by local law, are or will become payable
        by
        the Purchaser to the trustee under the deed of trust, except in connection
        with
        a trustee's sale or attempted sale after default by the Mortgagor;

      

      (u)
        The
        Mortgage File contains an appraisal of the related Mortgaged Property signed
        prior to the final approval of the mortgage loan application by a Qualified
        Appraiser, approved by the Company, who had no interest, direct or indirect,
        in
        the Mortgaged Property or in any loan made on the security thereof, and whose
        compensation is not affected by the approval or disapproval of the Mortgage
        Loan, and the appraisal and appraiser both satisfy the requirements of FNMA
        or
        FHLMC and Title XI of the Federal Institutions Reform, Recovery, and Enforcement
        Act of 1989 and the regulations promulgated thereunder, all as in effect
        on the
        date the Mortgage Loan was originated. The appraisal is in a form acceptable
        to
        FNMA or FHLMC and was made by a Qualified Appraiser;

      

      (v)
        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) (A) in compliance with any and all
        applicable licensing requirements of the laws of the state wherein the Mortgaged
        Property is located, and (B) (1) organized under the laws of such state,
        or (2)
        qualified to do business in such state, or (3) federal savings and loan
        associations or national banks or a Federal Home Loan Bank or savings bank
        having principal offices in such state, or (4) not doing business in such
        state;

      

      (w)
        The
        related Mortgage Note is not and has not been secured by any collateral except
        the lien of the corresponding Mortgage and the security interest of any
        applicable security agreement or chattel mortgage referred to above and such
        collateral does not serve as security for any other obligation;

      

      (x)
        The
        Mortgagor has received and has executed, where applicable, all disclosure
        materials required by applicable law with respect to the making of such mortgage
        loans;

      

      (y)
        The
        Mortgage Loan does not contain “balloon” or "graduated payment" features; No
        Mortgage Loan is subject to a buydown agreement or contains any buydown
        provision;

      

      (z)
        The
        Mortgagor is not in bankruptcy and, to the best of the Company's knowledge,
        the
        Mortgagor is not insolvent and the Company has no knowledge of any circumstances
        or condition with respect to the Mortgage, the Mortgaged Property, the Mortgagor
        or the Mortgagor's credit standing that could reasonably be expected to cause
        investors to regard the Mortgage Loan as an unacceptable investment, cause
        the
        Mortgage Loan to become delinquent, or materially adversely affect the value
        or
        marketability of the Mortgage Loan;

      

      (aa)
        [reserved] 

      

      (bb)
        [reserved]

      

      (cc)
        [reserved] 

      

      (dd)
        [reserved] 

      

      (ee)
        None
        of the Mortgage Loans have a Loan-to-Value Ratio greater than 95%; 

      

      (ff) For
        all
        of the Mortgage Loans, based on representations made by the Mortgagor at
        the
        time of origination, all of the Mortgaged Properties are occupied as the
        Mortgagor's primary residence. To the best of the Company's knowledge, the
        Mortgaged Property is lawfully occupied under applicable law;

      

      (gg) In
        the
        event the Mortgage Loan has an LTV greater than 80.00%, the excess of the
        principal balance of the Mortgage Loan over 75.0% of the Appraised Value
        of the
        Mortgaged Property with respect to a Refinanced Mortgage Loan, or the lesser
        of
        the Appraised Value or the purchase price of the Mortgaged Property with
        respect
        to a purchase money Mortgage Loan is and will be insured as to payment defaults
        by a Primary Mortgage Insurance Policy issued by a Qualified Insurer. No
        Mortgage Loan has an LTV over 95%. All provisions of such Primary Mortgage
        Insurance Policy have been and are being complied with, such policy is in
        full
        force and effect, and all premiums due thereunder have been paid. No Mortgage
        Loan requires payment of such premiums, in whole or in part, by the Purchaser.
        No action, inaction, or event has occurred and no state of facts exists that
        has, or will result in the exclusion from, denial of, or defense to coverage.
        The Mortgage Loan Remittance Rate for the Mortgage Loan as set forth on the
        related Mortgage Loan Schedule is net of any such insurance
        premium;

      

      (hh) The
        assignment of Mortgage (unless
        the Mortgage is registered with MERS in accordance with Subsection 2.07)
        is
        in
        recordable form and is acceptable for recording under the laws of the
        jurisdiction in which the Mortgaged Property is located. Any
        Assignments of Mortgage registered with MERS in accordance with Subsection
        2.07
        have been assigned a valid mortgage identification number by MERS. Company
        is an
        approved MERS participant. Any and all costs, fees and expenses associated
        with
        the registration of the Mortgages with MERS and the transfer of the Mortgage
        Loans on the MERS system to Purchaser have been paid by Company and Purchaser
        shall not be responsible for any such costs, fees and expenses;

      

      (ii) The
        Mortgaged Property is located in the state identified in the related Mortgage
        Loan Schedule and consists of a single parcel of real property with a detached
        single family residence erected thereon, or a townhouse, or a two-to four-family
        dwelling, or an individual condominium unit in a condominium project, or
        an
        individual unit in a planned unit development or a de minimis planned unit
        development, provided, however, that no residence or dwelling is a single
        parcel
        of real property with a manufactured home not affixed to a permanent foundation,
        or a mobile home. As of the date of origination, no portion of any Mortgaged
        Property is used for commercial purposes, and since the Origination Date,
        to the
        best of the Company's knowledge, no portion of any Mortgaged Property is
        used
        for commercial purposes;

      

      (jj) Except
        for the Mortgage Loans indicated on the Mortgage Loan Schedule which require
        interest-only payments until the first Adjustment Date and both interest
        and
        principal payments after such Adjustment Date (the “Interest Only Mortgage
        Loans”), principal payments on the Mortgage Loan commenced no more than sixty
        (60) days after the funds were disbursed in connection with the Mortgage
        Loan.
        The Mortgage Note is payable on the first day of each month in monthly
        installments of principal (other than with respect to the Interest Only Mortgage
        Loans) and interest, which installments are subject to change due to the
        adjustments to the Mortgage Interest Rate on each Adjustment Date, with interest
        calculated and payable in arrears, sufficient to amortize the Mortgage Loan
        fully by the stated maturity date, over an original term of not more than
        thirty
        years from commencement of amortization;

      

      (kk) As
        of the
        date of origination and to the best of Company’s knowledge, as of the related
        Closing Date of the Mortgage Loan, the Mortgage Property was lawfully occupied
        under applicable law, and all inspections, licenses and certificates required
        to
        be made or issued with respect to all occupied portions of the Mortgaged
        Property and, with respect to the use and occupancy of the same, including
        but
        not limited to certificates of occupancy and fire underwriting certificates,
        have been made or obtained from the appropriate authorities;

      

      (ll) If
        the
        Mortgaged Property is a condominium unit or a planned unit development (other
        than a de minimis planned unit development), such condominium or planned
        unit
        development project meets Company's eligibility requirements as set forth
        in
        Exhibit H;

      

      (mm) To
        the
        best of Company’s knowledge, there is no pending action or proceeding directly
        involving the Mortgaged Property in which compliance with any environmental
        law,
        rule or regulation is an issue; to the best of Company's knowledge, there
        is no
        violation of any environmental law, rule or regulation with respect to the
        Mortgaged Property; and the Company has not received any notice of any
        environmental hazard on the Mortgaged Property and nothing further remains
        to be
        done to satisfy in full all requirements of each such law, rule or regulation
        constituting a prerequisite to use and enjoyment of said property;

      

      (nn) The
        Mortgagor has not notified the Company, and the Company does not have any
        knowledge of any relief requested or allowed to the Mortgagor under the
        Soldiers' and Sailors' Civil Relief Act of 1940;

      

      (oo)
        No
        Mortgage Loan is currently a construction or rehabilitation Mortgage Loan
        or
        facilitates the trade-in or exchange of a Mortgaged Property;

      

      (pp) No
        action
        has been taken or failed to be taken by Company, on or prior to the Closing
        Date
        which has resulted or will result in an exclusion from, denial of, or defense
        to
        coverage under any Primary Mortgage Insurance Policy (including, without
        limitation, any exclusions, denials or defenses which would limit or reduce
        the
        availability of the timely payment of the full amount of the loss otherwise
        due
        thereunder to the insured) whether arising out of actions, representations,
        errors, omissions, negligence, or fraud of the Company or for any other reason
        under such coverage;

      

      (qq) Each
        Mortgage Loan has been serviced in all material respects in compliance with
        Accepted Servicing Practices; 

       

      (rr)
        The
        Mortgage Loan was originated by a mortgagee approved by the Secretary of
        Housing
        and Urban Development pursuant to sections 203 and 211 of the National Housing
        Act, a savings and loan association, a savings bank, a commercial bank, credit
        union, insurance company or similar institution which is supervised and examined
        by a federal or state authority. No Mortgaged Property is a timeshare;
        and

       

      (ss)
        Each
        Mortgage Note, each Mortgage, each Assignment of Mortgage and any other
        documents required pursuant to this Agreement to be delivered to the Purchaser
        or its designee, or its assignee for each Mortgage Loan, have been, on or
        before
        the Closing Date, delivered to the Purchaser or its designee, or its
        assignee.

       

      Section
        3.03 Repurchase;
        Substitution.

      

      It
        is
        understood and agreed that the representations and warranties set forth in
        Sections 3.01 and 3.02 shall survive the sale of the Mortgage Loans and delivery
        of the Mortgage Loan Documents to the Purchaser, or its designee, and shall
        inure to the benefit of the Purchaser, notwithstanding any restrictive or
        qualified endorsement on any Mortgage Note or Assignment or the examination,
        or
        lack of examination, of any Mortgage File. Upon discovery by either the Company
        or the Purchaser of a breach of any of the foregoing representations and
        warranties which materially and adversely affects the value of the Mortgage
        Loans or the interest of the Purchaser in any Mortgage Loan, the party
        discovering such breach shall give prompt written notice to the other. The
        Company shall have a period of sixty days from the earlier of its discovery
        or
        its receipt of notice of any such breach within which to correct or cure
        such
        breach. The Company hereby covenants and agrees that if any such breach is
        not
        corrected or cured within such sixty day period, the Company shall, at the
        Purchaser's option and not later than ninety days of its discovery or its
        receipt of notice of such breach, repurchase such Mortgage Loan at the
        Repurchase Price or, with the Purchaser's prior consent and, at Purchaser’s sole
        option, substitute a Mortgage Loan as provided below. In the event that any
        such
        breach shall involve any representation or warranty set forth in Section
        3.01,
        and such breach is not cured within sixty days of the earlier of either
        discovery by or notice to the Company of such breach, all affected Mortgage
        Loans shall, at the option of the Purchaser, be repurchased by the Company
        at
        the Repurchase Price. Any such repurchase shall be accomplished by wire transfer
        of immediately available funds to Purchaser in the amount of the Repurchase
        Price.

      

      If
        the
        Company is required to repurchase any Mortgage Loan pursuant to this Section
        3.03, the Company may, with the Purchaser's prior consent and, at Purchaser’s
        sole option, within one hundred twenty (120) days from the related Closing
        Date,
        remove such defective Mortgage Loan from the terms of this Agreement and
        substitute another mortgage loan for such defective Mortgage Loan, in lieu
        of
        repurchasing such defective Mortgage Loan; provided however, that in the
        event
        that any Mortgage Loan was part of a securitization, notwithstanding any
        contrary provision of this Agreement, no substitution shall be made. Any
        substitute Mortgage Loan shall be acceptable to Purchaser. Any substituted
        Loans
        will comply with the representations and warranties set forth in this Agreement
        as of the substituted date

      

      The
        Company shall amend the related Mortgage Loan Schedule to reflect the withdrawal
        of the removed Mortgage Loan from this Agreement and the substitution of
        such
        substitute Mortgage Loan therefor. Upon such amendment, the Purchaser shall
        review the Mortgage File delivered to it relating to the substitute Mortgage
        Loan. In the event of such a substitution, accrued interest on the substitute
        Mortgage Loan for the month in which the substitution occurs and any Principal
        Prepayments made thereon during such month shall be the property of the
        Purchaser and accrued interest for such month on the Mortgage Loan for which
        the
        substitution is made and any Principal Prepayments made thereon during such
        month shall be the property of the Company. The principal payment on a
        substitute Mortgage Loan due on the Due Date in the month of substitution
        shall
        be the property of the Company and the principal payment on the Mortgage
        Loan
        for which the substitution is made due on such date shall be the property
        of the
        Purchaser.

      

      It
        is
        understood and agreed that the obligation of the Company set forth in this
        Section 3.03 to cure, repurchase or substitute for a defective Mortgage Loan,
        and to indemnify Purchaser pursuant to Section 8.01, constitute the sole
        remedies of the Purchaser respecting a breach of the foregoing representations
        and warranties. If the Company fails to repurchase or substitute for a defective
        Mortgage Loan in accordance with this Section 3.03, or fails to cure a defective
        Mortgage Loan to Purchaser's reasonable satisfaction in accordance with this
        Section 3.03, or to indemnify Purchaser pursuant to Section 8.01, that failure
        shall be an Event of Default and the Purchaser shall be entitled to pursue
        all
        remedies available in this Agreement as a result thereof. No provision of
        this
        paragraph shall affect the rights of the Purchaser to terminate this Agreement
        for cause, as set forth in Sections 10.01 and 11.01.

      

      Any
        cause
        of action against the Company relating to or arising out of the breach of
        any
        representations and warranties made in Sections 3.01 and 3.02 shall accrue
        as to
        any Mortgage Loan upon (i) the earlier of discovery of such breach by the
        Company or notice thereof by the Purchaser to the Company, (ii) failure by
        the
        Company to cure such breach or repurchase such Mortgage Loan as specified
        above,
        and (iii) demand upon the Company by the Purchaser for compliance with this
        Agreement.

      

      Section
        3.04 Representations
        and Warranties of the Purchaser.

      

      Purchaser
        represents, warrants and covenants to Company that, as of the related Closing
        Date or as of such date specifically provided herein:

       

      
        	(a)  	
                Purchaser
                  is duly organized, validly existing and in good standing under
                  the laws of
                  the State of Delaware and is qualified to transact business in
                  and is in
                  good standing under the laws of each state in which the business
                  transacted by it or the character of the properties owned or leased
                  by it
                  requires such qualification.

              

      

      

      
        	(b)  	
                Purchaser
                  has the full power an authority to perform, and to enter into and
                  consummate, all transactions contemplated by this Agreement and
                  the
                  related Term Sheet. Purchaser has the full power and authority
                  to purchase
                  and hold each Mortgage Loan.

              

      

      

      
        	(c)  	
                Neither
                  the acquisition of the Mortgage Loans by Purchaser pursuant to
                  this
                  Agreement and the related Term Sheet, the consummation of the transactions
                  contemplated hereby, nor the fulfillment of or the compliance with
                  the
                  terms and conditions of this Agreement and the related Term Sheet,
                  will
                  conflict with or result in a breach of any of the terms, conditions
                  or
                  provisions of the Purchaser’s charter or by-laws or result in a material
                  breach of any legal restriction or any material agreement or instrument
                  to
                  which the Purchaser is now a party or by which it is bound, or
                  constitute
                  a material default or result in an acceleration under any of the
                  foregoing, or result in the violation of any material law, rule,
                  regulation, order, judgment or decree to which Purchaser or its
                  property
                  is subject;

              

      

      

      
        	(d)  	
                There
                  is no action, suit, proceeding, investigation or litigation pending
                  or, to
                  the Purchaser’s knowledge, threatened, which either in any one instance or
                  in the aggregate, if determined adversely to Purchaser would adversely
                  affect the purchase of the Mortgage Loans by Purchaser hereunder,
                  or
                  Purchaser’s ability to perform its obligations under this Agreement and
                  the related Term Sheet; and

              

      

      

      
        	(e)  	
                No
                  consent, approval, authorization or order of any court or governmental
                  agency or body is required for the execution, delivery and performance
                  by
                  Purchaser of or compliance by Purchaser with this Agreement and
                  the
                  related Term Sheet or the consummation of the transactions contemplated
                  by
                  this Agreement and the related Term Sheet (including, but not limited
                  to,
                  any approval from HUD), or if required, such consent, approval,
                  authorization or order has been obtained prior to the related Closing
                  Date.

              

      

       

      

      ARTICLE
        IV

      

      ADMINISTRATION
        AND SERVICING OF MORTGAGE LOANS

      

      Section
        4.01 Company
        to Act as Servicer.

      

      The
        Company, as an independent contractor, shall service and administer the Mortgage
        Loans in accordance with this Agreement and the related Term Sheet and with
        Accepted Servicing Practices, and shall have full power and authority, acting
        alone, to do or cause to be done any and all things in connection with such
        servicing and administration which the Company may deem necessary or desirable
        and consistent with the terms of this Agreement and the related Term Sheet
        and
        with Accepted Servicing Practices and exercise the same care that it customarily
        employs for its own account. Except as set forth in this Agreement and the
        related Term Sheet, the Company shall service the Mortgage Loans in strict
        compliance with the servicing provisions of the FNMA Guides (special servicing
        option), which include, but are not limited to, provisions regarding the
        liquidation of Mortgage Loans, the collection of Mortgage Loan payments,
        the
        payment of taxes, insurance and other charges, the maintenance of hazard
        insurance with a Qualified Insurer, the maintenance of mortgage impairment
        insurance, the maintenance of fidelity bond and errors and omissions insurance,
        inspections, the restoration of Mortgaged Property, the maintenance of Primary
        Mortgage Insurance Policies, insurance claims, the title, management of REO
        Property, permitted withdrawals with respect to REO Property, liquidation
        reports, and reports of foreclosures and abandonments of Mortgaged Property,
        the
        transfer of Mortgaged Property, the release of Mortgage Files, annual
        statements, and examination of records and facilities. In the event of any
        conflict, inconsistency or discrepancy between any of the servicing provisions
        of this Agreement and any of the servicing provisions of the Agency Guides,
        the
        provisions of this Agreement and the related Term Sheet shall control and
        be
        binding upon the Purchaser and the Company. 

      

      Consistent
        with the terms of this Agreement and the related Term Sheet, the Company
        may
        waive, modify or vary any term of any Mortgage Loan or consent to the
        postponement of any such term or in any manner grant indulgence to any Mortgagor
        if in the Company's reasonable and prudent determination such waiver,
        modification, postponement or indulgence is not materially adverse to the
        Purchaser, provided, however, that unless the Company has obtained the prior
        written consent of the Purchaser, the Company shall not permit any modification
        with respect to any Mortgage Loan that would change the Mortgage Interest
        Rate,
        forgive the payment of principal or interest, reduce or increase the outstanding
        principal balance (except for actual payments of principal) or change the
        final
        maturity date on such Mortgage Loan. In the event of any such modification
        which
        has been agreed to in writing by the Purchaser and which permits the deferral
        of
        interest or principal payments on any Mortgage Loan, the Company shall, on
        the
        Business Day immediately preceding the Remittance Date in any month in which
        any
        such principal or interest payment has been deferred, deposit in the Custodial
        Account from its own funds, in accordance with Section 4.04, the difference
        between (a) such month's principal and one month's interest at the Mortgage
        Loan
        Remittance Rate on the unpaid principal balance of such Mortgage Loan and
        (b)
        the amount paid by the Mortgagor. The Company shall be entitled to reimbursement
        for such advances to the same extent as for all other advances pursuant to
        Section 4.05. Without limiting the generality of the foregoing, the Company
        shall continue, and is hereby authorized and empowered, to prepare, execute
        and
        deliver, all instruments of satisfaction or cancellation, or of partial or
        full
        release, discharge and all other comparable instruments, with respect to
        the
        Mortgage Loans and with respect to the Mortgaged Properties. Notwithstanding
        anything herein to the contrary, the Company may not enter into a forbearance
        agreement or similar arrangement with respect to any Mortgage Loan which
        runs
        more than 180 days after the first delinquent Due Date. Any such agreement
        shall
        be approved by Purchaser and, if required, by the Primary Mortgage Insurance
        Policy issuer, if required. In no event shall Company be obligated to repurchase
        a Mortgage Loan due to the exercise of any Conversion Feature.

      

      In
        servicing and administering the Mortgage Loans, the Company shall employ
        Accepted Servicing Practices, giving due consideration to the Purchaser's
        reliance on the Company. Unless a different time period is stated in this
        Agreement, Purchaser shall be deemed to have given consent in connection
        with
        respect to a particular matter if Purchaser does not affirmatively grant
        or deny
        consent within 5 Business Days from the date Purchaser receives a written
        request for consent for such matter from Company as Company. 

       

      Section
        4.02 Collection
        of Mortgage Loan Payments.

      

      Continuously
        from the date hereof until the date each Mortgage Loan ceases to be subject
        to
        this Agreement, the Company will proceed diligently to collect all payments
        due
        under each Mortgage Loan when the same shall become due and payable and shall,
        to the extent such procedures shall be consistent with this Agreement, Accepted
        Servicing Practices, and the terms and provisions of any related Primary
        Mortgage Insurance Policy, follow such collection procedures as it follows
        with
        respect to mortgage loans comparable to the Mortgage Loans and held for its
        own
        account. 

      

      Section
        4.03 Realization
        Upon Defaulted Mortgage

      

      The
        Company shall use its best efforts, consistent with the procedures that the
        Company would use in servicing loans for its own account, consistent with
        Accepted Servicing Practices, any Primary Mortgage Insurance Policies and
        the
        best interest of Purchaser, to foreclose upon or otherwise comparably convert
        the ownership of properties securing such of the Mortgage Loans as come into
        and
        continue in default and as to which no satisfactory arrangements can be made
        for
        collection of delinquent payments pursuant to Section 4.01. Foreclosure or
        comparable proceedings shall be initiated within ninety (90) days of default
        for
        Mortgaged Properties for which no satisfactory arrangements can be made for
        collection of delinquent payments. The Company shall use its best efforts
        to
        realize upon defaulted Mortgage Loans in such manner as will maximize the
        receipt of principal and interest by the Purchaser, taking into account,
        among
        other things, the timing of foreclosure proceedings. The foregoing is subject
        to
        the provisions that, in any case in which a Mortgaged Property shall have
        suffered damage, the Company shall not be required to expend its own funds
        toward the restoration of such property unless it shall determine in its
        discretion (i) that such restoration will increase the proceeds of liquidation
        of the related Mortgage Loan to the Purchaser after reimbursement to itself
        for
        such expenses, and (ii) that such expenses will be recoverable by the Company
        through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged
        Property, as contemplated in Section 4.05. Company shall obtain prior approval
        of Purchaser as to restoration expenses in excess of five thousand dollars
        ($5,000). The Company shall notify the Purchaser in writing of the commencement
        of foreclosure proceedings and prior to the rejection of any offer of
        reinstatement. The Company shall be responsible for all costs and expenses
        incurred by it in any such proceedings or functions; provided, however, that
        it
        shall be entitled to reimbursement thereof from the related property, as
        contemplated in Section 4.05. 

      

      Notwithstanding
        anything to the contrary contained herein, the Purchaser may, at the Purchaser's
        sole option, terminate the Company as servicer of any Mortgage Loan which
        becomes ninety (90 days or greater delinquent in payment of a scheduled Monthly
        Payment, without payment of any termination fee with respect thereto, provided
        that the Company shall on the date said termination takes effect be reimbursed
        for any unreimbursed advances of the Company's funds made pursuant to Section
        5.03 and any unreimbursed Servicing Advances and Servicing Fees in each case
        relating to the Mortgage Loan underlying such delinquent Mortgage Loan
        notwithstanding anything to the contrary set forth in Section 4.05. In the
        event
        of any such termination, the provisions of Section 11.01 hereof shall apply
        to
        said termination and the transfer of servicing responsibilities with respect
        to
        such delinquent Mortgage Loan to the Purchaser or its designee.

      

      Notwithstanding
        anything to the contrary contained herein, in connection with a foreclosure
        or
        acceptance of a deed in lieu of foreclosure, in the event the Company has
        reasonable cause to believe that a Mortgaged Property is contaminated by
        hazardous or toxic substances or wastes, or if the Purchaser otherwise requests
        an environmental inspection or review of such Mortgaged Property, such an
        inspection or review is to be conducted by a qualified inspector at the
        Purchaser's expense. Upon completion of the inspection, the Company shall
        promptly provide the Purchaser with a written report of the environmental
        inspection. After reviewing the environmental inspection report, the Purchaser
        shall determine how the Company shall proceed with respect to the Mortgaged
        Property. 

      

      In
        the
        event that a Mortgage Loan becomes REO Property, such property shall be disposed
        of by Company, with the consent of Purchaser as required pursuant to this
        Agreement, within two years after becoming an REO Property. Company shall
        manage, conserve, protect and operate each such REO Property for the
        certificateholders solely for the purpose of its prompt disposition and sale,
        and if such REO Property has been securitized, the Company shall consult
        with
        any applicable master servicer with respect to such securitization so that
        the
        foregoing will be in compliance with the applicable securitization’s structure.
        Moreover, pursuant to its efforts to sell such property, the Company shall
        either itself or through an agent selected by Company, protect and conserve
        such
        property in the same manner and to such an extent as is customary in the
        locality where such property is located. Additionally, if such REO Property
        has
        been securitized, the Company shall perform the tax withholding and reporting
        related to Sections 1445 and 6050J of the Code after consultation with the
        applicable master servicer for the related securitization.

      

      Section
        4.04 Establishment
        of Custodial Accounts; Deposits in
        Custodial Accounts.

      

      The
        Company shall segregate and hold all funds collected and received pursuant
        to
        each Mortgage Loan separate and apart from any of its own funds and general
        assets and shall establish and maintain one or more Custodial Accounts. The
        Custodial Account shall be an Eligible Account. Funds deposited in the Custodial
        Account may be drawn on by the Company in accordance with Section 4.05. The
        creation of any Custodial Account shall be evidenced by a letter agreement
        in
        the form shown in Exhibit B hereto. The original of such letter agreement
        shall
        be furnished to the Purchaser on the Closing Date, and upon the request of
        any
        subsequent Purchaser.

      

      The
        Company shall deposit in the Custodial Account on a daily basis, and retain
        therein the following payments and collections received or made by it subsequent
        to the Cut-off Date, or received by it prior to the Cut-off Date but allocable
        to a period subsequent thereto, other than in respect of principal and interest
        on the Mortgage Loans due on or before the Cut-off Date:

      

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

      

      (ii)
        all
        payments on account of interest on the Mortgage Loans adjusted to the Mortgage
        Loan Remittance Rate;

      

      (iii)
        all
        Liquidation Proceeds;

      

      (iv)
        any
        amounts required to be deposited by the Company in connection with any REO
        Property pursuant to Section 4.13;

      

      (v)
        all
        Insurance Proceeds including amounts required to be deposited pursuant to
        Sections 4.08, 4.10 and 4.11, other than proceeds to be held in the Escrow
        Account and applied to the restoration or repair of the Mortgaged Property
        or
        released to the Mortgagor in accordance with Accepted Servicing Practices,
        the
        Mortgage Loan Documents or applicable law;

      

      (vi)
        all
        Condemnation Proceeds affecting any Mortgaged Property which are not released
        to
        the Mortgagor in accordance with the Company's normal servicing procedures,
        the
        loan documents or applicable law;

      

      (vii)
        any
        Monthly Advances;

      

      (viii)
        Intentionally Omitted;

      

      (ix)
        any
        amounts required to be deposited by the Company pursuant to Section 4.10
        in
        connection with the deductible clause in any blanket hazard insurance policy,
        such deposit shall be made from the Company's own funds, without reimbursement
        therefor;

      

      (x)
        any
        amounts required to be deposited in the Custodial Account pursuant to Section
        4.01, 4.13 or 6.02.

      

      The
        foregoing requirements for deposit in the Custodial Account shall be exclusive,
        it being understood and agreed that, without limiting the generality of the
        foregoing, payments in the nature of: amortization
        schedule fees, fees for copies of canceled escrow checks, escrow analysis
        and
        loan documents, credit verification fees, fees for property inspections for
        defaults and lost drafts, fees for fax copies, partial release fees, nsf
        fees,
        speed pay fees, subordination fees and wire

      Fees,
        as
        well as late
        payment charges and assumption fees, to the extent permitted by Section 6.01,
        need not be deposited by the Company in the Custodial Account. Any interest
        paid
        on funds deposited in the Custodial Account by the depository institution
        shall
        accrue to the benefit of the Company and the Company shall be entitled to
        retain
        and withdraw such interest from the Custodial Account pursuant to Section
        4.05
        (iv).

      

      Section
        4.05 Permitted
        Withdrawals From the Custodial Account.

      

      The
        Company may, from time to time, withdraw from the Custodial Account for the
        following purposes:

      

      (i) to
        make
        payments to the Purchaser in the amounts and in the manner provided for in
        Section 5.01;

      

      (ii)
        to
        reimburse itself for Monthly Advances, the Company's right to reimburse itself
        pursuant to this subclause (ii) being limited to amounts received on the
        related
        Mortgage Loan which represent late collections (net of the related Servicing
        Fees) of principal and/or interest respecting which any such advance was
        made,
        it being understood that, in the case of such reimbursement, the Company's
        right
        thereto shall be prior to the rights of the Purchaser, except that, where
        the
        Company is required to repurchase a Mortgage Loan, pursuant to Section 3.03
        or
        Section 3.04, the Company's right to such reimbursement shall be subsequent
        to
        the payment to the Purchaser of the Repurchase Price pursuant to such Section
        and all other amounts required to be paid to the Purchaser with respect to
        such
        Mortgage Loan;

      

      (iii)
        to
        reimburse itself for unreimbursed Servicing Advances and any unpaid Servicing
        Fees, the Company's right to reimburse itself pursuant to this subclause
        (iii)
        with respect to any Mortgage Loan being limited to related proceeds from
        Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds in accordance
        with the relevant provisions of the FNMA Guides or as otherwise set forth
        in
        this Agreement or the related Term Sheet, it being understood that for those
        Mortgage Loans in foreclosure, Company shall recover for Servicing Advances
        and
        Servicing Fees through the completion of foreclosure and disposition of the
        REO
        Property; such recovery shall be made upon liquidation of the REO Property;
        

      

      (iv) to
        pay to
        itself as part of its servicing compensation (a) any interest earned on funds
        in
        the Custodial Account (all such interest to be withdrawn monthly not later
        than
        each Remittance Date), and (b) the Servicing Fee from that portion of any
        payment or recovery as to interest with respect to a particular Mortgage
        Loan;

      

      (v) to
        pay to
        itself with respect to each Mortgage Loan that has been repurchased pursuant
        to
        Section 3.03 or Section 3.04 all amounts received thereon and not distributed
        as
        of the date on which the related repurchase price is determined,

      

      (vi) to
        transfer funds to another Eligible Account in accordance with Section 4.09
        hereof;

      

      (vii)to
        remove funds inadvertently placed in the Custodial Account by the Company;
        and

      

      (vi) to
        clear
        and terminate the Custodial Account upon the termination of this
        Agreement.

      

      Section
        4.06 Establishment
        of Escrow Accounts; Deposits
        in Escrow Accounts.

      

      The
        Company shall segregate and hold all funds collected and received pursuant
        to
        each Mortgage Loan which constitute Escrow Payments separate and apart from
        any
        of its own funds and general assets and shall establish and maintain one
        or more
        Escrow Accounts. The Escrow Account shall be an Eligible Account. Funds
        deposited in the Escrow Account may be drawn on by the Company in accordance
        with Section 4.07. The creation of any Escrow Account shall be evidenced
        by a
        letter agreement in the form shown in Exhibit C. The original of such letter
        agreement shall be furnished to the Purchaser on the Closing Date, and upon
        request to any subsequent purchaser.

      

      The
        Company shall deposit in the Escrow Account or Accounts on a daily basis,
        and
        retain therein:

      

      (i) all
        Escrow Payments collected on account of the Mortgage Loans, for the purpose
        of
        effecting timely payment of any such items as required under the terms of
        this
        Agreement;

      

      (ii) all
        Insurance Proceeds which are to be applied to the restoration or repair of
        any
        Mortgaged Property; and

      

      (iii)all
        Servicing Advances for Mortgagors whose Escrow Payments are insufficient
        to
        cover escrow disbursements.

      

      The
        Company shall make withdrawals from the Escrow Account only to effect such
        payments as are required under this Agreement, and for such other purposes
        as
        shall be as set forth or in accordance with Section 4.07. The Company shall
        be
        entitled to retain any interest paid on funds deposited in the Escrow Account
        by
        the depository institution other than interest on escrowed funds required
        by law
        to be paid to the Mortgagor and, to the extent required by law, the Company
        shall pay interest on escrowed funds to the Mortgagor notwithstanding that
        the
        Escrow Account is non-interest bearing or that interest paid thereon is
        insufficient for such purposes.

      

      Section
        4.07 Permitted
        Withdrawals From Escrow Account.

      

      Withdrawals
        from the Escrow Account may be made by Company only:

      

      (i) to
        effect
        timely payments of ground rents, taxes, assessments, water rates, Primary
        Mortgage Insurance Policy premiums, if applicable, fire and hazard insurance
        premiums, condominium assessments and comparable items;

      

      (ii) to
        reimburse Company for any Servicing Advance made by Company with respect
        to a
        related Mortgage Loan but only from amounts received on the related Mortgage
        Loan which represent late payments or collections of Escrow Payments
        thereunder;

      

      (iii)to
        refund to the Mortgagor any funds as may be determined to be
        overages;

      

      (iv) for
        transfer to the Custodial Account in accordance with the terms of this
        Agreement;

      

      (v) for
        application to restoration or repair of the Mortgaged Property;

      

      (vi) to
        pay to
        the Company, or to the Mortgagor to the extent required by law, any interest
        paid on the funds deposited in the Escrow Account;

      

      (vii)
        to
        clear and terminate the Escrow Account on the termination of this Agreement.
        As
        part of its servicing duties, the Company shall pay to the Mortgagors interest
        on funds in Escrow Account, to the extent required by law, and to the extent
        that interest earned on funds in the Escrow Account is insufficient, shall
        pay
        such interest from its own funds, without any reimbursement therefor;
        and

      

      (viii)
        to
        pay to the Mortgagors or other parties Insurance Proceeds deposited in
        accordance with Section 4.06.

      

      Section
        4.08 Payment
        of Taxes, Insurance and Other Charges;
        Maintenance of Primary Mortgage Insurance
        Policies; Collections Thereunder.

       

      With
        respect to each Mortgage Loan, the Company shall maintain accurate records
        reflecting the status of ground rents, taxes, assessments, water rates and
        other
        charges which are or may become a lien upon the Mortgaged Property and the
        status of primary mortgage insurance premiums and fire and hazard insurance
        coverage and shall obtain, from time to time, all bills for the payment of
        such
        charges, including renewal premiums and shall effect payment thereof prior
        to
        the applicable penalty or termination date and at a time appropriate for
        securing maximum discounts allowable, employing for such purpose deposits
        of the
        Mortgagor in the Escrow Account which shall have been estimated and accumulated
        by the Company in amounts sufficient for such purposes, as allowed under
        the
        terms of the Mortgage or applicable law. To the extent that the Mortgage
        does
        not provide for Escrow Payments, the Company shall determine that any such
        payments are made by the Mortgagor at the time they first become due. The
        Company assumes full responsibility for the timely payment of all such bills
        and
        shall effect timely payments of all such bills irrespective of the Mortgagor's
        faithful performance in the payment of same or the making of the Escrow Payments
        and shall make advances from its own funds to effect such payments.

      

      The
        Company will maintain in full force and effect Primary Mortgage Insurance
        Policies issued by a Qualified Insurer with respect to each Mortgage Loan
        for
        which such coverage is herein required. Such coverage will be terminated
        only
        with the approval of Purchaser, or as required by applicable law or regulation;
        provided, however that any such lender paid mortgage insurance coverage may
        also
        be terminated without approval by Purchaser in the event that such coverage
        is
        terminated in accordance with the Mortgagor’s Mortgage Note, Mortgage, or any
        riders or addenda thereto. The Company will not cancel or refuse to renew
        any
        Primary Mortgage Insurance Policy in effect on the Closing Date that is required
        to be kept in force under this Agreement unless a replacement Primary Mortgage
        Insurance Policy for such canceled or nonrenewed policy is obtained from
        and
        maintained with a Qualified Insurer. The Company shall not take any action
        which
        would result in non-coverage under any applicable Primary Mortgage Insurance
        Policy of any loss which, but for the actions of the Company would have been
        covered thereunder. In connection with any assumption or substitution agreement
        entered into or to be entered into pursuant to Section 6.01, the Company
        shall
        promptly notify the insurer under the related Primary Mortgage Insurance
        Policy,
        if any, of such assumption or substitution of liability in accordance with
        the
        terms of such policy and shall take all actions which may be required by
        such
        insurer as a condition to the continuation of coverage under the Primary
        Mortgage Insurance Policy. If such Primary Mortgage Insurance Policy is
        terminated as a result of such assumption or substitution of liability, the
        Company shall obtain a replacement Primary Mortgage Insurance Policy as provided
        above.

      

      In
        connection with its activities as Company, the Company agrees to prepare
        and
        present, on behalf of itself and the Purchaser, claims to the insurer under
        any
        Private Mortgage Insurance Policy in a timely fashion in accordance with
        the
        terms of such Primary Mortgage Insurance Policy and, in this regard, to take
        such action as shall be necessary to permit recovery under any Primary Mortgage
        Insurance Policy respecting a defaulted Mortgage Loan. Pursuant to Section
        4.04,
        any amounts collected by the Company under any Primary Mortgage Insurance
        Policy
        shall be deposited in the Custodial Account, subject to withdrawal pursuant
        to
        Section 4.05.

      

      Section
        4.09 Transfer
        of Accounts.

      

      The
        Company may transfer the Custodial Account or the Escrow Account to a different
        Eligible Account from time to time. Such transfer shall be made only upon
        obtaining the prior written consent of the Purchaser, which consent will
        not be
        unreasonably withheld.

      

      Section
        4.10 Maintenance
        of Hazard Insurance.

      

      The
        Company shall cause to be maintained for each Mortgage Loan fire and hazard
        insurance with extended coverage as is acceptable to FNMA or FHLMC and customary
        in the area where the Mortgaged Property is located in an amount which is
        equal
        to the lesser of (i) the maximum insurable value of the improvements securing
        such Mortgage Loan or (ii) the greater of (a) the outstanding principal balance
        of the Mortgage Loan, and (b) an amount such that the proceeds thereof shall
        be
        sufficient to prevent the Mortgagor and/or the mortgagee from becoming a
        co-insurer. If required by the Flood Disaster Protection Act of 1973, as
        amended, each Mortgage Loan shall be covered by a flood insurance policy
        meeting
        the requirements of the current guidelines of the Federal Insurance
        Administration in effect with an insurance carrier acceptable to FNMA or
        FHLMC,
        in an amount representing coverage not less than the least of (i) the
        outstanding principal balance of the Mortgage Loan, (ii) the maximum insurable
        value of the improvements securing such Mortgage Loan or (iii) the maximum
        amount of insurance which is available under the Flood Disaster Protection
        Act
        of 1973, as amended. If at any time during the term of the Mortgage Loan,
        the
        Company determines in accordance with applicable law and pursuant to the
        FNMA
        Guides that a Mortgaged Property is located in a special flood hazard area
        and
        is not covered by flood insurance or is covered in an amount less than the
        amount required by the Flood Disaster Protection Act of 1973, as amended,
        the
        Company shall notify the related Mortgagor that the Mortgagor must obtain
        such
        flood insurance coverage, and if said Mortgagor fails to obtain the required
        flood insurance coverage within forty-five (45) days after such notification,
        the Company shall immediately force place the required flood insurance on
        the
        Mortgagor’s behalf. The Company shall also maintain on each REO Property, fire
        and hazard insurance with extended coverage in an amount which is at least
        equal
        to the maximum insurable value of the improvements which are a part of such
        property, and, to the extent required and available under the Flood Disaster
        Protection Act of 1973, as amended, flood insurance in an amount as provided
        above. Any amounts collected by the Company under any such policies other
        than
        amounts to be deposited in the Escrow Account and applied to the restoration
        or
        repair of the Mortgaged Property or REO Property, or released to the Mortgagor
        in accordance with Accepted Servicing Practices, shall be deposited in the
        Custodial Account, subject to withdrawal pursuant to Section 4.05. It is
        understood and agreed that no other additional insurance need be required
        by the
        Company of the Mortgagor or maintained on property acquired in respect of
        the
        Mortgage Loan, other than pursuant to this Agreement, the FNMA Guides or
        such
        applicable state or federal laws and regulations as shall at any time be
        in
        force and as shall require such additional insurance. All such policies shall
        be
        endorsed with standard mortgagee clauses with loss payable to the Company
        and
        its successors and/or assigns and shall provide for at least thirty days
        prior
        written notice of any cancellation, reduction in the amount or material change
        in coverage to the Company. The Company shall not interfere with the Mortgagor's
        freedom of choice in selecting either his insurance carrier or agent, provided,
        however, that the Company shall not accept any such insurance policies from
        insurance companies unless such companies are Qualified Insurers.

      

      Section
        4.11 Maintenance
        of Mortgage Impairment Insurance
        Policy.

      

      In
        the
        event that the Company shall obtain and maintain a blanket policy issued
        by an
        insurer acceptable to FNMA or FHLMC insuring against hazard losses on all
        of the
        Mortgage Loans, then, to the extent such policy provides coverage in an amount
        equal to the amount required pursuant to Section 4.10 and otherwise complies
        with all other requirements of Section 4.10, it shall conclusively be deemed
        to
        have satisfied its obligations as set forth in Section 4.10, it being understood
        and agreed that such policy may contain a deductible clause, in which case
        the
        Company shall, in the event that there shall not have been maintained on
        the
        related Mortgaged Property or REO Property a policy complying with Section
        4.10,
        and there shall have been a loss which would have been covered by such policy,
        deposit in the Custodial Account the amount not otherwise payable under the
        blanket policy because of such deductible clause. In connection with its
        activities as servicer of the Mortgage Loans, the Company agrees to prepare
        and
        present, on behalf of the Purchaser, claims under any such blanket policy
        in a
        timely fashion in accordance with the terms of such policy. Upon request
        of the
        Purchaser, the Company shall cause to be delivered to the Purchaser a certified
        true copy of such policy and shall use its best efforts to obtain a statement
        from the insurer thereunder that such policy shall in no event be terminated
        or
        materially modified without thirty days' prior written notice to the
        Purchaser.

      

      Section
        4.12 Fidelity
        Bond, Errors and Omissions Insurance.

      

      The
        Company shall maintain, at its own expense, a blanket fidelity bond and an
        errors and omissions insurance policy, with broad coverage with responsible
        companies on all officers, employees or other persons acting in any capacity
        with regard to the Mortgage Loan to handle funds, money, documents and papers
        relating to the Mortgage Loan. The Fidelity Bond shall be in the form of
        the
        Mortgage Banker's Blanket Bond and shall protect and insure the Company against
        losses, including forgery, theft, embezzlement and fraud of such persons.
        The
        errors and omissions insurance shall protect and insure the Company against
        losses arising out of errors and omissions and negligent acts of such persons.
        Such errors and omissions insurance shall also protect and insure the Company
        against losses in connection with the failure to maintain any insurance policies
        required pursuant to this Agreement and the release or satisfaction of a
        Mortgage Loan without having obtained payment in full of the indebtedness
        secured thereby. No provision of this Section 4.12 requiring the Fidelity
        Bond
        or errors and omissions insurance shall diminish or relieve the Company from
        its
        duties and obligations as set forth in this Agreement. The minimum coverage
        under any such bond and insurance policy shall be at least equal to the
        corresponding amounts required by FNMA in the FNMA Guide. The Company shall
        deliver to the Purchaser a certificate from the surety and the insurer as
        to the
        existence of the Fidelity Bond and errors and omissions insurance policy
        and
        shall obtain a statement from the surety and the insurer that such Fidelity
        Bond
        or insurance policy shall in no event be terminated or materially modified
        without thirty days' prior written notice to the Purchaser. The Company shall
        notify the Purchaser within thirty business days of receipt of notice that
        such
        Fidelity Bond or insurance policy will be, or has been, materially modified
        or
        terminated. The Purchaser (or any party having the status of Purchaser
        hereunder) and any subsidiary thereof and their successors or assigns as
        their
        interests may appear must be named as loss payees on the Fidelity Bond and
        as
        additional insured on the errors and omissions policy. Upon request by
        Purchaser, Company shall provide Purchaser with an insurance certificate
        certifying coverage under this Section 4.12, and will provide an update to
        such
        certificate upon request, or upon renewal or material modification of
        coverage.

      

      Section
        4.13 Title,
        Management and Disposition of REO Property.

      

      In
        the
        event that title to the Mortgaged Property is acquired in foreclosure or
        by deed
        in lieu of foreclosure, the deed or certificate of sale shall be taken in
        the
        name of the Purchaser or its designee, or in the event the Purchaser or its
        designee is not authorized or permitted to hold title to real property in
        the
        state where the REO Property is located, or would be adversely affected under
        the "doing business" or tax laws of such state by so holding title, the deed
        or
        certificate of sale shall be taken in the name of such Person or Persons
        as
        shall be consistent with an opinion of counsel obtained by the Company from
        an
        attorney duly licensed to practice law in the state where the REO Property
        is
        located. Any Person or Persons holding such title other than the Purchaser
        shall
        acknowledge in writing that such title is being held as nominee for the benefit
        of the Purchaser.

      

      The
        Company shall notify the Purchaser in accordance with the FNMA Guides of
        each
        acquisition of REO Property upon such acquisition, together with a copy of
        the
        drive by appraisal or brokers price opinion of the Mortgaged Property obtained
        in connection with such acquisition, and thereafter assume the responsibility
        for marketing such REO property in accordance with Accepted Servicing Practices.
        Thereafter, the Company shall continue to provide certain administrative
        services to the Purchaser relating to such REO Property as set forth in this
        Section 4.13. The fee for such administrative services (the “Administrative
        Fee”) shall be $1,500 to be paid upon liquidation of the REO Property. No
        Servicing Fee shall be assessed on any REO Property from and after the date
        on
        which it becomes an REO Property. 

      

      The
        Company shall, either itself or through an agent selected by the Company,
        and in
        accordance with the FNMA Guides manage, conserve, protect and operate each
        REO
        Property in the same manner that it manages, conserves, protects and operates
        other foreclosed property for its own account, and in the same manner that
        similar property in the same locality as the REO Property is managed. The
        Company shall cause each REO Property to be inspected promptly upon the
        acquisition of title thereto and shall cause each REO Property to be inspected
        at least monthly thereafter or more frequently as required by the circumstances.
        The Company shall make or cause to be made a written report of each such
        inspection. Such reports shall be retained in the Mortgage File and copies
        thereof shall be forwarded by the Company to the Purchaser at Purchaser’s
        request.

      

      The
        Company shall use its best efforts to dispose of the REO Property as soon
        as
        possible and shall sell such REO Property in any event within one year after
        title has been taken to such REO Property, unless the Company determines,
        and
        gives an appropriate notice to the Purchaser to such effect, that a longer
        period is necessary for the orderly liquidation of such REO Property. If
        a
        longer period than one (1) year is permitted under the foregoing sentence
        and is
        necessary to sell any REO Property, the Company shall report monthly to the
        Purchaser as to the progress being made in selling such REO Property. No
        REO
        Property shall be marketed for less than the Appraised Value, without the
        prior
        consent of Purchaser. No REO Property shall be sold for less than ninety
        five
        percent (95%) of its Appraised Value, without the prior consent of Purchaser.
        All requests for reimbursement of Servicing Advances shall be in accordance
        with
        the FNMA Guides. The disposition of REO Property shall be carried out by
        the
        Company at such price, and upon such terms and conditions, as the Company
        deems
        to be in the best interests of the Purchaser (subject to the above conditions).
        Company shall provide monthly reports to Purchaser in reference to the status
        of
        the marketing of the REO Properties.

      

      Notwithstanding
        anything to the contrary contained herein, the Purchaser may, at the Purchaser's
        sole option, terminate the Company as servicer of any such REO Property without
        payment of any termination fee with respect thereto, provided that the Company
        shall on the date said termination takes effect be reimbursed for any
        unreimbursed advances of the Company's funds made pursuant to Section 5.03
        and
        any unreimbursed Servicing Advances and Servicing Fees, in each case relating
        to
        the Mortgage Loan underlying such REO Property notwithstanding anything to
        the
        contrary set forth in Section 4.05, and, only to the extent the related REO
        Property was not liquidated prior to Company’s termination, any Administrative
        Fee prorated based on the following ratio: (1) the total number of months
        the
        Company serviced it as REO Property to (2) the total number of months from
        completion of foreclosure to completion of liquidation of the REO Property.
        In
        the event of any such termination, the provisions of Section 11.01 hereof
        shall
        apply to said termination and the transfer of servicing responsibilities
        with
        respect to such REO Property to the Purchaser or its designee.

      

      Section
        4.14 Notification
        of Maturity Date.

      

      With
        respect to each Mortgage Loan, the Company shall execute and deliver to the
        Mortgagor any and all necessary notices required under applicable law and
        the
        terms of the related Mortgage Note and Mortgage regarding the maturity date
        if
        required under applicable law.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        V

      

      PAYMENTS
        TO THE PURCHASER

      

      Section
        5.01 Distributions.

      

      On
        each
        Remittance Date, the Company shall distribute by wire transfer of immediately
        available funds to the Purchaser (i) all amounts credited to the Custodial
        Account as of the close of business on the preceding Determination Date,
        net of
        charges against or withdrawals from the Custodial Account pursuant to Section
        4.05, plus (ii) all Monthly Advances, if any, which the Company is obligated
        to
        distribute pursuant to Section 5.03, plus, (iii) interest at the Mortgage
        Loan
        Remittance Rate on any Principal Prepayment from the date of such Principal
        Prepayment through the end of the month for which disbursement is made provided
        that the Company’s obligation as to payment of such interest shall be limited to
        the Servicing Fee earned during the month of the distribution, minus (iv)
        any
        amounts attributable to Monthly Payments collected but due on a Due Date
        or
        Dates subsequent to the preceding Determination Date, which amounts shall
        be
        remitted on the Remittance Date next succeeding the Due Period for such amounts.
        It is understood that, by operation of Section 4.04, the remittance on the
        first
        Remittance Date with respect to Mortgage Loans purchased pursuant to the
        related
        Term Sheet is to include principal collected after the related Cut-off Date
        through the preceding Determination Date plus interest, adjusted to the Mortgage
        Loan Remittance Rate collected through such Determination Date exclusive
        of any
        portion thereof allocable to the period prior to the related Cut-off Date,
        with
        the adjustments specified in clauses (ii), (iii) and (iv) above.

      

      With
        respect to any remittance received by the Purchaser after the Remittance
        Date,
        the Company shall pay to the Purchaser interest on any such late payment
        at an
        annual rate equal to the Prime Rate, adjusted as of the date of each change,
        plus three percentage points, but in no event greater than the maximum amount
        permitted by applicable law. Such interest shall cover the period commencing
        with the day following the Business Day such payment was due and ending with
        the
        Business Day on which such payment is made to the Purchaser, both inclusive.
        The
        payment by the Company of any such interest shall not be deemed an extension
        of
        time for payment or a waiver of any Event of Default by the
        Company.

      

      Section
        5.02 Statements
        to the Purchaser.

      

      The
        Company shall furnish to Purchaser an individual loan accounting report,
        as of
        the last Business Day of each month, in the Company's assigned loan number
        order
        to document Mortgage Loan payment activity on an individual Mortgage Loan
        basis.
        With respect to each month, the corresponding individual loan accounting
        report
        shall be received by the Purchaser no later than the fifth Business Day of
        the
        following month on a disk or tape or other computer-readable format in such
        format as may be mutually agreed upon by both Purchaser and Company, and
        no
        later than the fifth Business Day of the following month in hard copy, which
        report, in hard copy, shall contain the following:

      

      (i)
        With
        respect to each Monthly Payment, the amount of such remittance allocable
        to
        principal (including a separate breakdown of any Principal Prepayment, including
        the date of such prepayment, and any prepayment penalties or premiums, along
        with a detailed report of interest on principal prepayment amounts remitted
        in
        accordance with Section 4.04);

      

      (ii)
        with
        respect to each Monthly Payment, the amount of such remittance allocable
        to
        interest;

      

      (iii)
        the
        amount of servicing compensation received by the Company during the prior
        distribution period;

      

      (iv)
        the
        aggregate Stated Principal Balance of the Mortgage Loans;

      

      (v)
        the
        aggregate of any expenses reimbursed to the Company during the prior
        distribution period pursuant to Section 4.05; 

      

      (vi)
        The
        number and aggregate outstanding principal balances of Mortgage Loans (a)
        delinquent (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 days or more; (b)
        as to
        which foreclosure has commenced; and (c) as to which REO Property has been
        acquired; and

      

      The
        Company shall also provide a trial balance, sorted in Purchaser's assigned
        loan
        number order with each such Report.

      

      The
        Company shall prepare and file any and all information statements or other
        filings required to be delivered to any governmental taxing authority pursuant
        to any applicable law with respect to the Mortgage Loans and the transactions
        contemplated hereby. In addition, the Company
        shall provide Purchaser with such information concerning the Mortgage Loans
        as
        is necessary for Purchaser to prepare its federal income tax return as Purchaser
        may reasonably request from time to time.

      

      Section
        5.03 Monthly
        Advances by the Company.

      

      Not
        later
        than the close of business on the Business Day preceding each Remittance
        Date,
        the Company shall deposit in the Custodial Account an amount equal to all
        payments not previously advanced by the Company, whether or not deferred
        pursuant to Section 4.01, of principal (due after the Cut-off Date) and interest
        not allocable to the period prior to the Cut-off Date, adjusted to the Mortgage
        Loan Remittance Rate, which were due on a Mortgage Loan and delinquent at
        the
        close of business on the related Determination Date.

      

      The
        Company's obligation to make such Monthly Advances as to any Mortgage Loan
        will
        continue through the last Monthly Payment due prior to the payment in full
        of
        the Mortgage Loan, or through the Remittance Date prior to the date on which
        the
        Mortgaged Property liquidates (including Insurance Proceeds, proceeds from
        the
        sale of REO Property or Condemnation Proceeds) with respect to the Mortgage
        Loan
        unless the Company deems such advance to be nonrecoverable. In such event,
        the
        Company shall deliver to the Purchaser an Officer's Certificate of the Company
        to the effect that an officer of the Company has reviewed the related Mortgage
        File and has made the reasonable determination that any additional advances
        are
        nonrecoverable. 

      

      Section
        5.04 Liquidation
        Reports.

      

      Upon
        the
        foreclosure sale of any Mortgaged Property or the acquisition thereof by
        the
        Purchaser pursuant to a deed-in-lieu of foreclosure, the Company shall submit
        to
        the Purchaser a liquidation report with respect to such Mortgaged Property
        in a
        form mutually acceptable to Company and Purchaser. The Company shall also
        provide reports on the status of REO Property containing such information
        as
        Purchaser may reasonably require.

       

      ARTICLE
        VI

      

      GENERAL
        SERVICING PROCEDURES

      

      Section
        6.01 Assumption
        Agreements.

      

      The
        Company will, to the extent it has knowledge of any conveyance or prospective
        conveyance by any Mortgagor of the Mortgaged Property (whether by absolute
        conveyance or by contract of sale, and whether or not the Mortgagor remains
        or
        is to remain liable under the Mortgage Note and/or the Mortgage), exercise
        its
        rights to accelerate the maturity of such Mortgage Loan under any "due-on-sale"
        clause to the extent permitted by law; provided, however, that the Company
        shall
        not exercise any such rights if prohibited by law or the terms of the Mortgage
        Note from doing so or if the exercise of such rights would impair or threaten
        to
        impair any recovery under the related Primary Mortgage Insurance Policy,
        if any.
        If the Company reasonably believes it is unable under applicable law to enforce
        such "due-on-sale" clause, the Company, with the approval of the Purchaser
        (such
        approval not to be unreasonably withheld), will enter into an assumption
        agreement with the person to whom the Mortgaged Property has been conveyed
        or is
        proposed to be conveyed, pursuant to which such person becomes liable under
        the
        Mortgage Note and, to the extent permitted by applicable state law, the
        Mortgagor remains liable thereon. Where an assumption is allowed pursuant
        to
        this Section 6.01, the Company, with the prior consent of the Purchaser and
        the
        primary mortgage insurer, if any, is authorized to enter into a substitution
        of
        liability agreement with the person to whom the Mortgaged Property has been
        conveyed or is proposed to be conveyed pursuant to which the original mortgagor
        is released from liability and such Person is substituted as mortgagor and
        becomes liable under the related Mortgage Note. Any such substitution of
        liability agreement shall be in lieu of an assumption agreement. Purchaser
        shall
        be deemed to have consented to any assumption for which Purchaser was given
        notification and requested to consent, but for which neither a consent nor
        an
        objection was given by Purchaser within five Business Days of such notification.
        

      

      In
        connection with any such assumption or substitution of liability, the Company
        shall follow the underwriting practices and procedures of the FNMA Guides.
        With
        respect to an assumption or substitution of liability, the Mortgage Interest
        Rate borne by the related Mortgage Note, the amount of the Monthly Payment
        and
        the maturity date may not be changed (except pursuant to the terms of the
        Mortgage Note). If the credit of the proposed transferee does not meet such
        underwriting criteria, the Company diligently shall, to the extent permitted
        by
        the Mortgage or the Mortgage Note and by applicable law, accelerate the maturity
        of the Mortgage Loan. The Company shall notify the Purchaser that any such
        substitution of liability or assumption agreement has been completed by
        forwarding to the Purchaser the original of any such substitution of liability
        or assumption agreement, which document shall be added to the related Mortgage
        File and shall, for all purposes, be considered a part of such Mortgage File
        to
        the same extent as all other documents and instruments constituting a part
        thereof. All fees collected by the Company for entering into an assumption
        or
        substitution of liability agreement shall belong to the Company.

      

      Notwithstanding
        the foregoing paragraphs of this Section or any other provision of this
        Agreement, the Company shall not be deemed to be in default, breach or any
        other
        violation of its obligations hereunder by reason of any assumption of a Mortgage
        Loan by operation of law or any assumption which the Company may be restricted
        by law from preventing, for any reason whatsoever. For purposes of this Section
        6.01, the term "assumption" is deemed to also include a sale of the Mortgaged
        Property subject to the Mortgage that is not accompanied by an assumption
        or
        substitution of liability agreement.

       

      Section
        6.02 Satisfaction
        of Mortgages and Release of Mortgage
        Files.

      

      Upon
        the
        payment in full of any Mortgage Loan, or the receipt by the Company of a
        notification that payment in full will be escrowed in a manner customary
        for
        such purposes, the Company will immediately notify the Purchaser by a
        certification, which certification shall include a statement to the effect
        that
        all amounts received or to be received in connection with such payment which
        are
        required to be deposited in the Custodial Account pursuant to Section 4.04
        have
        been or will be so deposited, of a Servicing Officer and shall request delivery
        to it of the portion of the Mortgage File held by the Purchaser. The Purchaser
        shall no later than five Business Days after receipt of such certification
        and
        request, release or cause to be released to the Company, the related Mortgage
        Loan Documents and, upon its receipt of such documents, the Company shall
        promptly prepare and deliver to the Purchaser the requisite satisfaction
        or
        release. No later than three Business Days following its receipt of such
        satisfaction or release, the Purchaser shall deliver, or cause to be delivered,
        to the Company the release or satisfaction properly executed by the owner
        of
        record of the applicable mortgage or its duly appointed attorney in fact.
        No
        expense incurred in connection with any instrument of satisfaction or deed
        of
        reconveyance shall be chargeable to the Custodial Account.

      

      In
        the
        event the Company satisfies or releases a Mortgage without having obtained
        payment in full of the indebtedness secured by the Mortgage or should it
        otherwise prejudice any right the Purchaser may have under the mortgage
        instruments, the Company, upon written demand, shall remit within two Business
        Days to the Purchaser the then outstanding principal balance of the related
        Mortgage Loan by deposit thereof in the Custodial Account. The Company shall
        maintain the Fidelity Bond and errors and omissions insurance insuring the
        Company against any loss it may sustain with respect to any Mortgage Loan
        not
        satisfied in accordance with the procedures set forth herein.

      

      From
        time
        to time and as appropriate for the servicing or foreclosure of the Mortgage
        Loan, including for the purpose of collection under any Primary Mortgage
        Insurance Policy, the Purchaser shall, upon request of the Company and delivery
        to the Purchaser of a servicing receipt signed by a Servicing Officer, release
        the portion of the Mortgage File held by the Purchaser to the Company. Such
        servicing receipt shall obligate the Company to return the related Mortgage
        documents to the Purchaser when the need therefor by the Company no longer
        exists, unless the Mortgage Loan has been liquidated and the Liquidation
        Proceeds relating to the Mortgage Loan have been deposited in the Custodial
        Account or the Mortgage File or such document has been delivered to an attorney,
        or to a public trustee or other public official as required by law, for purposes
        of initiating or pursuing legal action or other proceedings for the foreclosure
        of the Mortgaged Property either judicially or non-judicially, and the Company
        has delivered to the Purchaser a certificate of a Servicing Officer certifying
        as to the name and address of the Person to which such Mortgage File or such
        document was delivered and the purpose or purposes of such delivery. Upon
        receipt of a certificate of a Servicing Officer stating that such Mortgage
        Loan
        was liquidated, the servicing receipt shall be released by the Purchaser
        to the
        Company.

      

      Section
        6.03 Servicing
        Compensation.

      

      As
        compensation for its services hereunder, the Company shall be entitled to
        withdraw from the Custodial Account (to the extent of interest payments
        collected on the Mortgage Loans) or to retain from interest payments collected
        on the Mortgage Loans, the amounts provided for as the Company's Servicing
        Fee,
        subject to payment of compensating interest on Principal Prepayments as capped
        by the Servicing Fee pursuant to Section 5.01 (iii). Additional servicing
        compensation in the form of assumption fees, as provided in Section 6.01,
        and
        late payment charges and other ancillary fees shall be retained by the Company
        to the extent not required to be deposited in the Custodial Account. No
        Servicing Fee shall be payable in connection with partial Monthly Payments.
        The
        Company shall be required to pay all expenses incurred by it in connection
        with
        its servicing activities hereunder and shall not be entitled to reimbursement
        therefor except as specifically provided for.

      

      Section
        6.04 Annual
        Statement as to Compliance.

      

      The
        Company will deliver to the Purchaser as of September 30th of each year,
        beginning with 2001, an Officers' Certificate stating, as to each signatory
        thereof, that (i) a review of the activities of the Company during the preceding
        fiscal year and of performance under this Agreement has been made under such
        officers' supervision, and (ii) to the best of such officers' knowledge,
        based
        on such review, the Company has fulfilled all of its obligations under this
        Agreement throughout such year, or, if there has been a default in the
        fulfillment of any such obligation, specifying each such default known to
        such
        officers and the nature and status of cure provisions thereof. Copies of
        such
        statement shall be provided by the Company to the Purchaser upon
        request.

      

      Section
        6.05 Annual
        Independent Certified Public Accountants'
        Servicing Report.

      

      Within
        one hundred twenty (120) days of Company's fiscal year end the Company at
        its
        expense shall cause a firm of independent public accountants which is a member
        of the American Institute of Certified Public Accountants to furnish a statement
        to the Purchaser to the effect that such firm has examined certain documents
        and
        records relating to the Company's servicing of mortgage loans of the same
        type
        as the Mortgage Loans pursuant to servicing agreements substantially similar
        to
        this Agreement, which agreements may include this Agreement, and that, on
        the
        basis of such an examination, conducted substantially in the uniform single
        audit program for mortgage bankers, such firm is of the opinion that the
        Company's servicing has been conducted in compliance with the agreements
        examined pursuant to this Section 6.05, except for (i) such exceptions as
        such
        firm shall believe to be immaterial, and (ii) such other exceptions as shall
        be
        set forth in such statement. Copies of such statement shall be provided by
        the
        Company to the Purchaser. In addition, on an annual basis, Company shall
        provided Purchaser with copies of its audited financial statements upon
        execution by Purchaser of an agreement to keep confidential the contents
        of such
        financial statements.

      

      Section
        6.06 Purchaser's
        Right to Examine Company Records.

      

      The
        Purchaser shall have the right to examine and audit upon reasonable notice
        to
        the Company, during business hours or at such other times as might be reasonable
        under applicable circumstances, any and all of the books, records, documentation
        or other information of the Company, or held by another for the Company or
        on
        its behalf or otherwise, which relates to the performance or observance by
        the
        Company of the terms, covenants or conditions of this Agreement.

      

      The
        Company shall provide to the Purchaser and any supervisory agents or examiners
        representing a state or federal governmental agency having jurisdiction over
        the
        Purchaser, including but not limited to OTS, FDIC and other similar entities,
        access to any documentation regarding the Mortgage Loans in the possession
        of
        the Company which may be required by any applicable regulations. Such access
        shall be afforded without charge, upon reasonable request, during normal
        business hours and at the offices of the Company, and in accordance with
        the
        federal government, FDIC, OTS, or any other similar regulations.

      

      ARTICLE
        VII

      

      REPORTS
        TO BE PREPARED BY COMPANY

      

      Section
        7.01 Company
        Shall Provide Information as Reasonably
        Required.

      

      The
        Company shall furnish to the Purchaser during the term of this Agreement,
        such
        periodic, special or other reports, information or documentation, whether
        or not
        provided for herein, as shall be necessary, reasonable or appropriate in
        respect
        to the Purchaser, or otherwise in respect to the Mortgage Loans and the
        performance of the Company under this Agreement, including any reports,
        information or documentation reasonably required to comply with any regulations
        regarding any supervisory agents or examiners of the Purchaser all such reports
        or information to be as provided by and in accordance with such applicable
        instructions and directions as the Purchaser may reasonably request in relation
        to this Agreement or the performance of the Company under this Agreement.
        The
        Company agrees to execute and deliver all such instruments and take all such
        action as the Purchaser, from time to time, may reasonably request in order
        to
        effectuate the purpose and to carry out the terms of this
        Agreement.

      

      In
        connection with marketing the Mortgage Loans, the Purchaser may make available
        to a prospective purchaser audited financial statements of the Company for
        the
        most recently completed two (2) fiscal years for which such statements are
        available, as well as a Consolidated Statement of Condition at the end of
        the
        last two (2) fiscal years covered by any Consolidated Statement of Operations.
        If it has not already done so, the Company shall furnish promptly to the
        Purchaser or a prospective purchaser copies of the statements specified above;
        provided, however, that prior to furnishing such statements or information
        to
        any prospective purchaser, the Company may require such prospective purchaser
        to
        execute a confidentiality agreement in a form satisfactory to the
        Company.

      

      The
        Company shall make reasonably available to the Purchaser or any prospective
        Purchaser a knowledgeable financial or accounting officer for the purpose
        of
        answering questions and to permit any prospective purchaser to inspect the
        Company’s servicing facilities for the purpose of satisfying such prospective
        purchaser that the Company has the ability to service the Mortgage Loans
        as
        provided in this Agreement.

       

      ARTICLE
        VIII

      

      THE
        COMPANY

      

      Section
        8.01 Indemnification;
        Third Party Claims.

      

      The
        Company agrees to indemnify the Purchaser and hold it harmless against any
        and
        all claims, losses, damages, penalties, fines, forfeitures, legal fees and
        related costs, judgments, and any other costs, fees and expenses that the
        Purchaser may sustain in any way related to the failure of the Company to
        observe and perform its duties, obligations, covenants, and agreements to
        service the Mortgage Loans in strict compliance with the terms of this
        Agreement. The Company agrees to indemnify the Purchaser and hold it harmless
        against any and all claims, losses, damages, penalties, fines, forfeitures,
        legal fees and related costs, judgments, and any other costs, fees and expenses
        that the Purchaser may sustain in any way related to the breach of a
        representation or warranty set forth in Sections 3.01 or 3.02 of this Agreement.
        The Company shall immediately notify the Purchaser if a claim is made by
        a third
        party against Company with respect to this Agreement or the Mortgage Loans,
        assume (with the consent of the Purchaser) the defense of any such claim
        and pay
        all expenses in connection therewith, including counsel fees, whether or
        not
        such claim is settled prior to judgment, and promptly pay, discharge and
        satisfy
        any judgment or decree which may be entered against it or the Purchaser in
        respect of such claim. The Company shall follow any reasonable written
        instructions received from the Purchaser in connection with such claim. The
        Purchaser shall promptly reimburse the Company for all amounts advanced by
        it
        pursuant to the two preceding sentences except when the claim relates to
        the
        failure of the Company to service and administer the Mortgages in strict
        compliance with the terms of this Agreement, the breach of representation
        or
        warranty set forth in Sections 3.01 or 3.02, or the gross negligence, bad
        faith
        or willful misconduct of Company. The provisions of this Section 8.01 shall
        survive termination of this Agreement.

      

      Section
        8.02 Merger
        or Consolidation of the Company.

      

      Unless
        the Purchaser is notified in writing that the Company intends to change its
        status as a federal savings bank (such notice shall be given by the Company
        to
        Purchaser one month prior to such change), the Company will keep in full
        effect
        its existence, rights and franchises as a federal savings bank under federal
        law
        except as permitted herein, and will obtain and preserve its qualification
        to do
        business as a foreign corporation in each jurisdiction in which such
        qualification is or shall be necessary to protect the validity and
        enforceability of this Agreement, or any of the Mortgage Loans and to perform
        its duties under this Agreement.

      

      Any
        Person into which the Company may be merged or consolidated, or any corporation
        resulting from any merger, conversion or consolidation to which the Company
        shall be a party, or any Person succeeding to the business of the Company
        whether or not related to loan servicing, shall be the successor of the Company
        hereunder, without the execution or filing of any paper or any further act
        on
        the part of any of the parties hereto, anything herein to the contrary
        notwithstanding; provided, however, that the successor or surviving Person
        shall
        be an institution (i) having a GAAP net worth of not less than $25,000,000,
        (ii)
        the deposits of which are insured by the FDIC, SAIF and/or BIF, or which
        is a
        HUD-approved mortgagee whose primary business is in origination and servicing
        of
        first lien mortgage loans, and (iii) who is a FNMA or FHLMC approved
        Seller/Servicer in good standing.

      

      Section
        8.03 Limitation
        on Liability of the Company and Others.

      

      Neither
        the Company nor any of the officers, employees or agents of the Company shall
        be
        under any liability to the Purchaser for any action taken or for refraining
        from
        the taking of any action in good faith pursuant to this Agreement, or for
        errors
        in judgment made in good faith; provided, however, that this provision shall
        not
        protect the Company against any breach of warranties or representations made
        herein, or failure to perform its obligations in strict compliance with any
        standard of care set forth in this Agreement, or any liability which would
        otherwise be imposed by reason of negligence, bad faith or willful misconduct,
        or any breach of the terms and conditions of this Agreement. The Company
        and any
        officer, employee or agent of the Company may rely in good faith on any document
        of any kind prima facie properly executed and submitted by the Purchaser
        respecting any matters arising hereunder. The Company shall not be under
        any
        obligation to appear in, prosecute or defend any legal action which is not
        incidental to its duties to service the Mortgage Loans in accordance with
        this
        Agreement and which in its reasonable opinion may involve it in any expenses
        or
        liability; provided, however, that the Company may, with the consent of the
        Purchaser, undertake any such action which it may deem necessary or desirable
        in
        respect to this Agreement and the rights and duties of the parties hereto.
        In
        such event, the reasonable legal expenses and costs of such action and any
        liability resulting therefrom shall be expenses, costs and liabilities for
        which
        the Purchaser will be liable, and the Company shall be entitled to be reimbursed
        therefor from the Purchaser upon written demand.

      

      Section
        8.04 Company
        Not to Assign or Resign.

      

      The
        Company shall not assign this Agreement or resign from the obligations and
        duties hereby imposed on it except by mutual consent of the Company and the
        Purchaser or upon the determination that its duties hereunder are no longer
        permissible under applicable law and such incapacity cannot be cured by the
        Company. Any such determination permitting the resignation of the Company
        shall
        be evidenced by an Opinion of Counsel to such effect delivered to the Purchaser
        which Opinion of Counsel shall be in form and substance acceptable to the
        Purchaser. No such resignation shall become effective until a successor shall
        have assumed the Company's responsibilities and obligations hereunder in
        the
        manner provided in Section 11.01.

      

      Section
        8.05 No
        Transfer of Servicing.

      

      With
        respect to the retention of the Company to service the Mortgage Loans hereunder,
        the Company acknowledges that the Purchaser has acted in reliance upon the
        Company's independent status, the adequacy of its servicing facilities, plan,
        personnel, records and procedures, its integrity, reputation and financial
        standing and the continuance thereof. Without in any way limiting the generality
        of this Section, the Company shall not either assign this Agreement or the
        servicing hereunder or delegate its rights or duties hereunder or any portion
        thereof, or sell or otherwise dispose of all or substantially all of its
        property or assets, without the prior written approval of the Purchaser,
        which
        consent shall be granted or withheld in the Purchaser's sole
        discretion.

      

      Without
        in any way limiting the generality of this Section 8.05, in the event that
        the
        Company either shall assign this Agreement or the servicing responsibilities
        hereunder or delegate its duties hereunder or any portion thereof without
        (i)
        satisfying the requirements set forth herein or (ii) the prior written consent
        of the Purchaser, then the Purchaser shall have the right to terminate this
        Agreement as set forth in Section 10.02, without any payment of any penalty
        or
        damages and without any liability whatsoever to the Company (other than with
        respect to accrued but unpaid Servicing Fees and Servicing Advances remaining
        unpaid) or any third party. 

      

      ARTICLE
        IX

      

      DEFAULT

      

      Section
        9.01 Events
        of Default.

      

      In
        case
        one or more of the following Events of Default by the Company shall occur
        and be
        continuing, that is to say:

      

      (i)
        any
        failure by the Company to remit to the Purchaser any payment required to
        be made
        under the terms of this Agreement which continues unremedied for a period
        of two
        Business Days after the earlier of the date upon which written notice of
        such
        failure, requiring the same to be remedied, shall have been given to the
        Company
        by the Purchaser or the date upon which such non-payment is discovered by
        Company; or

      

      (ii)
        failure on the part of the Company duly to observe or perform in any material
        respect any other of the covenants or agreements on the part of the Company
        set
        forth in this Agreement which continues unremedied for a period of thirty
        days
        (except that such number of days shall be fifteen in the case of a failure
        to
        pay any premium for any insurance policy required to be maintained under
        this
        Agreement) after the date on which written notice of such failure, requiring
        the
        same to be remedied, shall have been given to the Company by the Purchaser;
        or

      

      (iii)
        a
        decree or order of a court or agency or supervisory authority having
        jurisdiction for the appointment of a conservator or receiver or liquidator
        in
        any insolvency, bankruptcy, readjustment of debt, marshalling of assets and
        liabilities or similar proceedings, or for the winding-up or liquidation
        of its
        affairs, shall have been entered against the Company and such decree or order
        shall have remained in force undischarged or unstayed for a period of sixty
        days; or

      

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

      

      (v)
        the
        Company shall admit in writing its inability to pay its debts generally as
        they
        become due, file a petition to take advantage of any applicable insolvency
        or
        reorganization statute, make an assignment for the benefit of its creditors,
        or
        voluntarily suspend payment of its obligations; or

      

      (vi)
        Company ceases to be approved by both FNMA and FHLMC as a mortgage loan Company
        and Company for more than thirty days; or

      

      (vii)
        the
        Company attempts to assign its right to servicing compensation hereunder
        or the
        Company attempts, without the consent of the Purchaser, to sell or otherwise
        dispose of all or substantially all of its property or assets or to assign
        this
        Agreement or the servicing responsibilities hereunder or to delegate its
        duties
        hereunder or any portion thereof; or

      

      (viii)
        the Company ceases to be (a) licensed to service first lien residential mortgage
        loans in any jurisdiction in which a Mortgaged Property is located and such
        licensing is required, and (b) qualified to transact business in any
        jurisdiction where it is currently so qualified, but only to the extent such
        non-qualification materially and adversely affects the Company's ability
        to
        perform its obligations hereunder; or

      

      (ix)
        the
        Company fails to meet the eligibility criteria set forth in the last sentence
        of
        Section 8.02.

      

      Then,
        and
        in each and every such case, so long as an Event of Default shall not have
        been
        remedied, the Purchaser, by notice in writing to the Company may, in addition
        to
        whatever rights the Purchaser may have under Sections 3.03 and 8.01 and at
        law
        or equity or to damages, including injunctive relief and specific performance,
        terminate all the rights and obligations of the Company under this Agreement
        and
        in and to the Mortgage Loans and the proceeds thereof without compensating
        the
        Company for the same. On or after the receipt by the Company of such written
        notice, all authority and power of the Company under this Agreement, whether
        with respect to the Mortgage Loans or otherwise, shall pass to and be vested
        in
        the successor appointed pursuant to Section 11.01. Upon written request from
        the
        Purchaser, the Company shall prepare, execute and deliver, any and all documents
        and other instruments, place in such successor's possession all Mortgage
        Files,
        and do or accomplish all other acts or things necessary or appropriate to
        effect
        the purposes of such notice of termination, whether to complete the transfer
        and
        endorsement or assignment of the Mortgage Loans and related documents, or
        otherwise, at the Company's sole expense. The Company agrees to cooperate
        with
        the Purchaser and such successor in effecting the termination of the Company's
        responsibilities and rights hereunder, including, without limitation, the
        transfer to such successor for administration by it of all cash amounts which
        shall at the time be credited by the Company to the Custodial Account or
        Escrow
        Account or thereafter received with respect to the Mortgage Loans or any
        REO
        Property.

      

      Section
        9.02 Waiver
        of Defaults.

      

      The
        Purchaser may waive only by written notice any default by the Company in
        the
        performance of its obligations hereunder and its consequences. Upon any such
        waiver of a past default, such default shall cease to exist, and any Event
        of
        Default arising therefrom shall be deemed to have been remedied for every
        purpose of this Agreement. No such waiver shall extend to any subsequent
        or
        other default or impair any right consequent thereon except to the extent
        expressly so waived in writing.

      

      ARTICLE
        X

      

      TERMINATION

      

      Section
        10.01 Termination.

       

      The
        respective obligations and responsibilities of the Company shall terminate
        upon:
        (i) the later of the final payment or other liquidation (or any advance with
        respect thereto) of the last Mortgage Loan or the disposition of all REO
        Property and the remittance of all funds due hereunder; or (ii) by mutual
        consent of the Company and the Purchaser in writing; or (iii) termination
        with
        or without cause under the terms of this Agreement.

      

      Section
        10.02 Termination
        Without Cause.

      

      The
        Purchaser may, at its sole option, terminate any rights the Company may have
        hereunder, without cause, upon no less than 90 days written notice. Any such
        notice of termination shall be in writing and delivered to the Company as
        provided in Section 11.05 of this Agreement. In the event of such termination,
        the Purchaser agrees to pay, as liquidated damages, a sum equal to three
        percent
        (3.0%) of the aggregate unpaid principal balance of the Mortgage
        Loans.

      

      ARTICLE
        XI

      

      MISCELLANEOUS
        PROVISIONS

      

      Section
        11.01 Successor
        to the Company.

      

      Prior
        to
        termination of Company's responsibilities and duties under this Agreement
        pursuant to Sections 4.13, 8.04, 9.01, 10.01 (ii) or (iii) or 10.02, the
        Purchaser shall (i) succeed to and assume all of the Company's responsibilities,
        rights, duties and obligations under this Agreement, or (ii) appoint a successor
        having the characteristics set forth in Section 8.02 hereof and which shall
        succeed to all rights and assume all of the responsibilities, duties and
        liabilities of the Company under this Agreement prior to the termination
        of
        Company's responsibilities, duties and liabilities under this Agreement.
        In
        connection with such appointment and assumption, the Purchaser may make such
        arrangements for the compensation of such successor out of payments on Mortgage
        Loans as the Purchaser and such successor shall agree. In the event that
        the
        Company's duties, responsibilities and liabilities under this Agreement should
        be terminated pursuant to the aforementioned Sections, the Company shall
        discharge such duties and responsibilities during the period from the date
        it
        acquires knowledge of such termination until the effective date thereof with
        the
        same degree of diligence and prudence which it is obligated to exercise under
        this Agreement, and shall take no action whatsoever that might impair or
        prejudice the rights or financial condition of its successor. The Company
        shall
        be compensated in accordance with this Agreement up until the effective date
        of
        its termination or resignation. The resignation or removal of Company pursuant
        to the aforementioned Sections shall not become effective until a successor
        shall be appointed pursuant to this Section and shall in no event relieve
        the
        Company of the representations and warranties made pursuant to Sections 3.01,
        3.02 and 3.03 and the remedies available to the Purchaser thereunder and
        under
        Section 8.01, it being understood and agreed that the provisions of such
        Sections 3.01, 3.02, 3.03 and 8.01 shall be applicable to the Company
        notwithstanding any such resignation or termination of the Company, or the
        termination of this Agreement.

      

      Any
        successor appointed as provided herein shall execute, acknowledge and deliver
        to
        the Company and to the Purchaser an instrument accepting such appointment,
        whereupon such successor shall become fully vested with all the rights, powers,
        duties, responsibilities, obligations and liabilities of the Company, with
        like
        effect as if originally named as a party to this Agreement. Any termination
        or
        resignation of the Company or this Agreement pursuant to Section 4.13, 8.04,
        9.01, 10.01, or 10.02 shall not affect any claims that the Purchaser may
        have
        against the Company arising prior to any such termination or
        resignation.

      

      The
        Company shall promptly deliver to the successor the funds in the Custodial
        Account and the Escrow Account and the Mortgage Files and related documents
        and
        statements held by it hereunder and the Company shall account for all funds.
        The
        Company shall execute and deliver such instruments and do such other things
        all
        as may reasonably be required to more fully and definitely vest and confirm
        in
        the successor all such rights, powers, duties, responsibilities, obligations
        and
        liabilities of the Company. The successor shall make arrangements as it may
        deem
        appropriate to reimburse the Company for unrecovered Servicing Advances which
        the successor retains hereunder and which would otherwise have been recovered
        by
        the Company pursuant to this Agreement but for the appointment of the successor
        Company.

      

      Upon
        a
        successor's acceptance of appointment as such, the Company shall notify by
        mail
        the Purchaser of such appointment.

      

      Section
        11.02 Amendment.

      

      This
        Agreement and the related Term Sheet may be amended from time to time by
        the
        Company and the Purchaser only by written agreement signed by the Company
        and
        the Purchaser.

      

      Section
        11.03 Recordation
        of Agreement.

      

      To
        the
        extent permitted by applicable law, this Agreement is subject to recordation
        in
        all appropriate public offices for real property records in all the counties
        or
        other comparable jurisdictions in which any of the properties subject to
        the
        Mortgages are situated, and in any other appropriate public recording office
        or
        elsewhere, such recordation to be effected by the Company at the Company's
        expense on direction of the Purchaser accompanied by an opinion of counsel
        to
        the effect that such recordation materially and beneficially affects the
        interest of the Purchaser or is necessary for the administration or servicing
        of
        the Mortgage Loans.

      

      Section
        11.04 Governing
        Law.

      

      This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of New York except to the extent preempted by Federal law. The
        obligations, rights and remedies of the parties hereunder shall be determined
        in
        accordance with such laws.

      

      Section
        11.05 Notices.

      

      Any
        demands, notices or other communications permitted or required hereunder
        shall
        be in writing and shall be deemed conclusively to have been given if personally
        delivered at or mailed by registered mail, postage prepaid, and return receipt
        requested or certified mail, return receipt requested, or transmitted by
        telex,
        telegraph or telecopier and confirmed by a similar mailed writing, as
        follows:

      

      (i)           
         if
        to the
        Company:

      Chevy
        Chase Bank, F.S.B.

      7501
        Wisconsin Avenue, West Tower, 6th
        Floor

      Bethesda,
        MD 20814

      Attention:
        Michael Drayne

       

      With
        copy
        to: 

      Keith
        McLendon, Esq.

      Deputy
        General Counsel

      7501
        Wisconsin Avenue, West Tower, 13th
        Floor

      Bethesda,
        MD 20814 

      

      and:

      

      Vicki
        Parry

      Loan
        Servicing Manager

      6151
        Chevy Chase Drive

      Laurel,
        MD 20707

      

      

      (ii)        
          if
        to the
        Purchaser:

      EMC
        Mortgage Corporation

      Mac
        Arthur Ridge II

      909
        Hidden Ridge Drive, Suite 200

      Irvine,
        Texas 75038

      Attention:
        Edward Raice

       

      with
        copy
        to: EMC Mortgage Corporation, General Counsel

      

      or
        such
        other address as may hereafter be furnished to the other party by like notice.
        Any such demand, notice or communication hereunder shall be deemed to have
        been
        received on the date delivered to or received at the premises of the addressee
        (as evidenced, in the case of registered or certified mail, by the date noted
        on
        the return receipt).

      

      Section
        11.06 Severability
        of Provisions.

      

      Any
        part,
        provision, representation or warranty of this Agreement and the related Term
        Sheet which is prohibited or which is held to be void or unenforceable shall
        be
        ineffective to the extent of such prohibition or unenforceability without
        invalidating the remaining provisions hereof. 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
        be ineffective, as to such jurisdiction, to the extent of such prohibition
        or
        unenforceability without invalidating the remaining provisions hereof, and
        any
        such prohibition or unenforceability in any jurisdiction as to any Mortgage
        Loan
        shall not invalidate or render unenforceable such provision in any other
        jurisdiction. 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. If the invalidity of any part, provision, representation
        or
        warranty of this Agreement shall deprive any party of the economic benefit
        intended to be conferred by this Agreement, the parties shall negotiate,
        in good
        faith, to develop a structure the economic effect of which is nearly as possible
        the same as the economic effect of this Agreement without regard to such
        invalidity.

      

      Section
        11.07 Exhibits.

      

      The
        exhibits to this Agreement are hereby incorporated and made a part hereof
        and
        are an integral part of this Agreement.

      

      Section
        11.08 General
        Interpretive Principles.

      

      For
        purposes of this Agreement, except as otherwise expressly provided or unless
        the
        context otherwise requires:

      

      (i)   
        the
        terms
        defined in this Agreement have the meanings assigned to them in this Agreement
        and include the plural as well as the singular, and the use of any gender
        herein
        shall be deemed to include the other gender;

      

      (ii)
         accounting
        terms not otherwise defined herein have the meanings assigned to them in
        accordance with generally accepted accounting principles;

       

      (iii)
         references
        herein to "Articles", "Sections", Subsections", "Paragraphs", and other
        subdivisions without reference to a document are to designated Articles,
        Sections, Subsections, Paragraphs and other subdivisions of this
        Agreement;

      

      (iv)
         a
        reference to a Subsection without further reference to a Section is a reference
        to such Subsection as contained in the same Section in which the reference
        appears, and this rule shall also apply to Paragraphs and other
        subdivisions;

      

      (v)  
        the
        words
        "herein", "hereof ", "hereunder" and other words of similar import refer
        to this
        Agreement as a whole and not to any particular provision; 

      

      (vi)
         the
        term
        "include" or "including" shall mean without limitation by reason of enumeration;
        and

      

      (viii)
         headings
        of the Articles and Sections in this Agreement are for reference purposes
        only
        and shall not be deemed to have any substantive effect.

      

      Section
        11.09 Reproduction
        of Documents.

      

      This
        Agreement and all documents relating thereto, including, without limitation,
        (i)
        consents, waivers and modifications which may hereafter be executed, (ii)
        documents received by any party at the closing, and (iii) financial statements,
        certificates and other information previously or hereafter furnished, may
        be
        reproduced by any photographic, photostatic, microfilm, micro-card, miniature
        photographic or other similar process. The parties agree that any such
        reproduction shall be admissible in evidence as the original itself in any
        judicial or administrative proceeding, whether or not the original is in
        existence and whether or not such reproduction was made by a party in the
        regular course of business, and that any enlargement, facsimile or further
        reproduction of such reproduction shall likewise be admissible in
        evidence.

      

      Section
        11.10 Confidentiality
        of Information.

      

      Each
        party recognizes that, in connection with this Agreement, it may become privy
        to
        non-public information regarding the financial condition, operations and
        prospects of the other party, in addition to consumer information some of
        which
        information may be deemed confidential pursuant to the Gramm-Leach-Bliley
        Act (Pub. L. 106-102).
        Each
        party agrees to keep all such non-public information strictly confidential
        (and
        shall require any third party which receives any such confidential information
        to keep such information confidential), and to use all such information solely
        in order to effectuate the purpose of the Agreement, provided that each party
        may provide confidential information to its employees, agents and affiliates
        who
        have a need to know such information in order to effectuate the transaction,
        provided further that such information is identified as confidential non-public
        information. In addition, confidential information may be provided to a
        regulatory authority with supervisory power over Purchaser, provided such
        information is identified as confidential non-public information.

      

      Section
        11.11 Recordation
        of Assignments of Mortgage.

      

      To
        the
        extent permitted by applicable law, each of the Assignments of Mortgage is
        subject to recordation in all appropriate public offices for real property
        records in all the counties or other comparable jurisdictions in which any
        or
        all of the Mortgaged Properties are situated, and in any other appropriate
        public recording office or elsewhere, such recordation to be effected at
        the
        Company’s expense in the event recordation is either necessary under applicable
        law or requested by the Purchaser at its sole option.

      

      Section
        11.12 Assignment
        by Purchaser.

      

      The
        Purchaser shall have the right, without the consent of the Company, to assign,
        in whole or in part, its interest under this Agreement with respect to some
        or
        all of the Mortgage Loans, and designate any person to exercise any rights
        of
        the Purchaser hereunder, by executing an Assignment and Assumption Agreement
        substantially in the form of Exhibit D hereto and the assignee or designee
        shall
        accede to the rights and obligations hereunder of the Purchaser with respect
        to
        such Mortgage Loans. All references to the Purchaser in this Agreement shall
        be
        deemed to include its assignee or designee. However, in no event shall there
        be
        more than three (3) Persons at any given time having the status of "Purchaser"
        hereunder.

      

      Section
        11.13 No
        Partnership.

      

      Nothing
        herein contained shall be deemed or construed to create a co-partnership
        or
        joint venture between the parties hereto and the services of the Company
        shall
        be rendered as an independent contractor and not as agent for
        Purchaser.

      

      Section
        11.14 Execution:
        Successors and Assigns.

      

      This
        Agreement may be executed in one or more counterparts and by the different
        parties hereto on separate counterparts, each of which, when so executed,
        shall
        be deemed to be an original; such counterparts, together, shall constitute
        one
        and the same agreement. Subject to Section 8.04, this Agreement shall inure
        to
        the benefit of and be binding upon the Company and the Purchaser and their
        respective successors and assigns.

      

      Section
        11.15 Entire
        Agreement.

      

      The
        Company acknowledges that no representations, agreements or promises were
        made
        to the Company by the Purchaser or any of its employees other than those
        representations, agreements or promises specifically contained herein or
        in the
        Confirmation. This Agreement and the related Term Sheet sets forth the entire
        understanding between the parties hereto and shall be binding upon all
        successors of both parties. In the event of any inconsistency between the
        Confirmation and this Agreement and the related Term Sheet, this Agreement
        and
        the related Term Sheet shall control.

      

      Section
        11.16. No
        Solicitation.

      

      From
        and
        after the Closing Date, the Company agrees that it will not take any action
        or
        permit or cause any action to be taken by any of its agents or affiliates,
        or by
        any independent contractors on the Company's behalf, to personally, by telephone
        or mail, solicit the borrower or obligor under any Mortgage Loan to refinance
        the Mortgage Loan, in whole or in part, without the prior written consent
        of the
        Purchaser. Notwithstanding the foregoing, it is understood and agreed that
        promotions undertaken by the Company or any affiliate of the Company which
        are
        directed to the general public at large, or segments thereof, provided that
        no
        segment shall consist primarily of the Mortgage Loans, including, without
        limitation, mass mailing based on commercially acquired mailing lists,
        newspaper, radio and television advertisements shall not constitute solicitation
        under this Section 11.16. This Section 11.16 shall not be deemed to preclude
        the
        Company or any of its affiliates from soliciting any Mortgagor for any other
        financial products or services. 

      

      Section
        11.17. Closing.

      

      The
        closing for the purchase and sale of the Mortgage Loans shall take place
        on the
        related Closing Date. The closing shall be either: by telephone, confirmed
        by
        letter or wire as the parties shall agree, or conducted in person, at such
        place
        as the parties shall agree.

      

      The
        closing for the Mortgage Loans to be purchased on the related Closing Date
        shall
        be subject to each of the following conditions:

      

      (a) at
        least
        one (1) Business Day prior to the related Closing Date, the Company shall
        deliver to the Purchaser a magnetic diskette, or transmit by modem, a listing
        on
        a loan-level basis of the information contained in the related Mortgage Loan
        Schedule attached to the related Term Sheet;

      

      (b) all
        of
        the representations and warranties of the Company and Company under this
        Agreement and the related Term Sheet shall be materially true and correct
        as of
        the related Closing Date and no event shall have occurred which, with notice
        or
        the passage of time, would constitute a material default under this Agreement
        or
        the related Term Sheet;

      

      (c) the
        Purchaser shall have received, or the Purchaser's attorneys shall have received
        in escrow, all documents required pursuant to this Agreement and the related
        Term Sheet, an opinion of counsel and an officer's certificate, all 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 terms of
        this
        Agreement and the related Term Sheet;

      

      (d) the
        Company shall have delivered and released to the Purchaser (or its designee)
        on
        or prior to the related Closing Date all documents required pursuant to the
        terms of this Agreement and the related Term Sheet; and

      

      (e) all
        other
        terms and conditions of this Agreement, the related Term Sheet and the
        Confirmation shall have been materially complied with.

      

      Subject
        to the foregoing conditions, the Purchaser shall pay to the Company on the
        related Closing Date the Purchase Price, plus accrued interest pursuant to
        Section 2.02 of this Agreement and the related Term Sheet, by wire transfer
        of
        immediately available funds to the account designated by the
        Company.

      

      Section
        11.18. Cooperation
        of Company with a Reconstitution.

      

      The
        Company and the Purchaser agree that with respect to some or all of the Mortgage
        Loans, on or after the related Closing Date, on one or more dates (each a
        "Reconstitution Date") at the Purchaser's sole option, the Purchaser may
        effect
        a sale (each, a "Reconstitution") of some or all of the Mortgage Loans then
        subject to this Agreement and the related Term Sheet, without recourse,
        to:

      

      (a) 
        one or
        more third party purchasers in one or more in whole loan transfers (each,
        a
        "Whole Loan Transfer"); or

      

      (b) one
        or
        more trusts or other entities to be formed as part of one or more pass-through
        transfers (each, a "Pass-Through Transfer");

      

      however,
        in no event shall there be more than three (3) persons at any given time
        having
        the status of "Purchaser" hereunder.

      

      The
        Company agrees to execute in connection with any agreements between the
        Purchaser and the Company in connection with a Whole Loan Transfer, a Company's
        warranties and servicing agreement or a participation and servicing agreement
        or
        similar agreement in form and substance reasonably acceptable to the parties,
        and in connection with a Pass-Through Transfer, a pooling and servicing
        agreement in form and substance reasonably acceptable to the parties,
        (collectively the agreements referred to herein are designated, the
        "Reconstitution Agreements"). It is understood that any such Reconstitution
        Agreements will not contain any greater obligations on the part of Company
        than
        are contained in this Agreement and the related Term Sheet.

      

      With
        respect to each Whole Loan Transfer and each Pass-Through Transfer entered
        into
        by the Purchaser, the Company agrees (1) to cooperate fully with the Purchaser
        and any prospective purchaser with respect to all reasonable requests and
        due
        diligence procedures; (2) to execute, deliver and perform all Reconstitution
        Agreements required by the Purchaser; (3) to restate the representations
        and
        warranties set forth in this Agreement (provided that with respect to those
        representations and warranties set forth in Section 3.02, the Company shall
        only
        restate those representations and warranties that relate in any way to the
        Mortgage Loan (or any set of facts with respect thereto) as of origination
        and
        any representations and warranties that relate to the servicing of such Mortgage
        Loan as of the settlement or closing date in connection with such Reconstitution
        (each, a "Reconstitution Date"). In that connection, the Company shall provide
        to such Company or issuer, as the case may be, and any other participants
        in
        such Reconstitution: (i) any and all information and appropriate verification
        of
        information which may be reasonably available to the Company, whether through
        letters of its auditors and counsel or otherwise, as the Purchaser or any
        such
        other participant shall request upon reasonable demand; and (ii) such additional
        representations, warranties, covenants, opinions of counsel, letters from
        auditors, and certificates of public officials or officers of the Company
        as are
        reasonably agreed upon by the Company and the Purchaser or any such other
        participant. The Purchaser shall be responsible for the costs relating to
        the
        delivery of such information. 

       

      All
        Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
        remain
        subject to, and serviced in accordance with the terms of, this Agreement
        and the
        related Term Sheet, and with respect thereto this Agreement and the related
        Term
        Sheet shall remain in full force and effect.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

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

       

      
        	 	 	 
	 	
                EMC
                  MORTGAGE CORPORATION

                Purchaser

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	Name:   	
                
Virginia
                Darrow
	 	Title: 	
                Attorney
                  in Fact

              

      

      

        
          	 	 	 
	 	
                  
                    CHEVY
                      CHASE BANK, F.S.B. 

                    Company

                  

                
	 
 	 
 	 
 
	
                	By:  	
                
	 	Name:   	
                  

                
	 	Title: 	
                

        

        

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

         

      

      EXHIBIT
        A

      CONTENTS
        OF MORTGAGE FILE

      

      With
        respect to each Mortgage Loan, the Mortgage File shall include each of the
        following items, which shall be available for inspection by the Purchaser,
        and
        which shall be retained by the Company in the Servicing File or delivered
        to the
        Purchaser or its designee pursuant to Sections 2.04 and 2.05 of the Purchase,
        Warranties and Servicing Agreement.

      

      1.
        The
        original Mortgage Note endorsed "Pay to the order of
        ____________________________________________________, without recourse,"
        and
        signed in the name of the Company by an authorized officer, with all intervening
        endorsements showing a complete chain of title from the originator to the
        Company, together with any applicable riders. If the Mortgage Loan was acquired
        by the Company in a merger, the endorsement must be by "[Company], successor
        by
        merger to the [name of predecessor]". If the Mortgage Loan was acquired or
        originated by the Company while doing business under another name, the
        endorsement must be by "[Company] formerly known as [previous name]". In
        the
        event that the original Mortgage Note is lost, a lost note affidavit may
        be
        provided.

      

      2.
        The
        original Mortgage (together with a standard adjustable rate mortgage rider)
        with
        evidence of recording thereon, or a copy thereof certified by the public
        recording office in which such mortgage has been recorded or, if the original
        Mortgage has not been returned from the applicable public recording office,
        a
        true certified copy, certified by the Company.

      

      3.
        The
        original or certified copy, certified by the Company, of the Primary Mortgage
        Insurance Policy, if required.

      

      4. At
        Purchaser’s option, the Company shall either deliver (i) the original
        Assignment, from the Company to _____________________________________, or
        in
        accordance with Purchaser's instructions, which assignment shall, but for
        any
        blanks requested by Purchaser, be in form and substance acceptable for
        recording; or (ii) if the Assignment of Mortgage is issued in accordance
        with
        MERS requirements, Company shall cause each Mortgage Loan to be registered
        with
        MERS in the name of Purchaser (or as otherwise directed by Purchaser). If
        an
        Assignment of Mortgage is issued in accordance with (i) above, and if the
        Mortgage Loan was acquired or originated by the Company while doing business
        under another name, the Assignment must be by "[Company] formerly known as
        [previous name]".

      

      5. The
        original policy of title insurance, including riders and endorsements thereto,
        or if the policy has not yet been issued, a written commitment or interim
        binder
        or preliminary report of title issued by the title insurance or escrow
        company.

      

      6. Originals
        of all recorded intervening Assignments, or copies thereof, certified by
        the
        public recording office in which such Assignments have been recorded showing
        a
        complete chain of title from the originator to the Company, with evidence
        of
        recording thereon, or a copy thereof certified by the public recording office
        in
        which such Assignment has been recorded or, if the original Assignment has
        not
        been returned from the applicable public recording office, a true certified
        copy, certified by the Company.

      

      7. Originals,
        or copies thereof certified by the public recording office in which such
        documents have been recorded, of each assumption, extension, modification,
        written assurance or substitution agreements, if applicable, or if the original
        of such document has not been returned from the applicable public recording
        office, a true certified copy, certified by the Company. 

      

      8. If
        the
        Mortgage Note or Mortgage or any other material document or instrument relating
        to the Mortgage Loan has been signed by a person on behalf of the Mortgagor,
        the
        original or copy of power of attorney or other instrument that authorized
        and
        empowered such person to sign bearing evidence that such instrument has been
        recorded, if so required in the appropriate jurisdiction where the Mortgaged
        Property is located, or a copy thereof certified by the public recording
        office
        in which such instrument has been recorded or, if the original instrument
        has
        not been returned from the applicable public recording office, a true certified
        copy, certified by the Company.

      

      9. Mortgage
        Loan closing statement (Form HUD-1) and any other truth-in-lending or real
        estate settlement procedure forms required by law.

      

      10.
        Residential loan application.

      

      11. Uniform
        underwriter and transmittal summary (FNMA Form 1008) or reasonable
        equivalent.

      

      12. Credit
        report on the mortgagor.

      

      13. Business
        credit report, if applicable.

      

      14. Residential
        appraisal report and attachments thereto.

      

      15. The
        original of any guarantee executed in connection with the Mortgage
        Note.

      

      16. Verification
        of employment and income except for Mortgage Loans originated under a Limited
        Documentation Program, all in accordance with Company's underwriting
        guidelines.

      

      17. Verification
        of acceptable evidence of source and amount of down payment, in accordance
        with
        Company's underwriting guidelines.

      

      18. Photograph
        of the Mortgaged Property (may be part of appraisal).

      

      19. Survey
        of
        the Mortgaged Property, if any.

      

      20. Sales
        contract, if applicable.

      

      21. If
        available, termite report, structural engineer’s report, water portability and
        septic certification.

      

      22. Any
        original security agreement, chattel mortgage or equivalent executed in
        connection with the Mortgage.

      

      23. Name
        affidavit, if applicable.

      

      Notwithstanding
        anything to the contrary herein, Company may provide one certificate for
        all of
        the Mortgage Loans indicating that the documents were delivered for
        recording.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

      

      CUSTODIAL
        ACCOUNT LETTER AGREEMENT

      

      

      To:        
         Chevy
        Chase Bank, F.S.B.

      _____________________

      _____________________

      

      (the
        "Depository")

      

      As
        "Company" under the Purchase, Warranties and Servicing Agreement, dated as
        of
        July 1, 2001, Adjustable Rate Mortgage Loans (the "Agreement"), we hereby
        authorize and request you to establish an account, as a Custodial Account
        pursuant to Section 4.04 of the Agreement, to be designated as "Chevy Chase
        Bank, F.S.B., in trust for EMC Mortgage Corporation". All deposits in the
        account shall be subject to withdrawal therefrom by order signed by the Company.
        This letter is submitted to you in duplicate. Please execute and return one
        original to us.

      

        
          	 	
                  CHEVY
                    CHASE BANK, F.S.B.

                
	 	 	 
	 	
                  By:

                	 
	 	
                  Name:

                	 
	 	
                  Title:

                	 

        

      

       

      

      The
        undersigned, as "Depository", hereby certifies that the above described account
        has been established under Account Number _____________ at the office of
        the
        depository indicated above, and agrees to honor withdrawals on such account
        as
        provided above. 

      
        

          
            	 	
                    CHEVY
                      CHASE BANK, F.S.B.

                  
	 	 	 
	 	
                    By:

                  	 
	 	
                    Name:

                  	 
	 	
                    Title:

                  	 

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        C

      

      ESCROW
        ACCOUNT LETTER AGREEMENT

      

      

      To:        
         Chevy
        Chase Bank, F.S.B.

      _____________________

      _____________________

      

      (the
        "Depository")

      

      As
        “Company” under the Purchase Warranties and Servicing Agreement, dated as of
        July 1, 2001, Adjustable Rate Mortgage Loans (the "Agreement"), we hereby
        authorize and request you to establish an account, as an Escrow Account pursuant
        to Section 4.06 of the Agreement, to be designated as " Chevy Chase Bank,
        F.S.B., in trust for EMC Mortgage Corporation, and various Mortgagors." All
        deposits in the account shall be subject to withdrawal therefrom by order
        signed
        by the Company. This letter is submitted to you in duplicate. Please execute
        and
        return one original to us.

      
        

          
            	 	
                    CHEVY
                      CHASE BANK, F.S.B.

                  
	 	 	 
	 	
                    By:

                  	 
	 	
                    Name:

                  	 
	 	
                    Title:

                  	 

          

        

        
 

      

      The
        undersigned, as "Depository", hereby certifies that the above described account
        has been established under Account Number __________________ , at the office
        of
        the depository indicated above, and agrees to honor withdrawals on such account
        as provided above. 

      
        

          
            	 	
                    CHEVY
                      CHASE BANK, F.S.B.

                  
	 	 	 
	 	
                    By:

                  	 
	 	
                    Name:

                  	 
	 	
                    Title:

                  	 

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        D

      

      FORM
        OF
        ASSIGNMENT AND ASSUMPTION

      

      THIS
        ASSIGNMENT AND ASSUMPTION AGREEMENT, dated ___________________, between
        __________________, a _____________________ corporation("Assignor") and
        _____________________, a __________________ corporation
        ("Assignee"):

      

      For
        and
        in consideration of the sum of TEN DOLLARS ($10.00) and other valuable
        consideration the receipt and sufficiency of which hereby are acknowledged,
        and
        of the mutual covenants herein contained, the parties hereto hereby agree
        as
        follows:

      

      1.             The
        Assignor hereby grants, transfers and assigns to Assignee all of the right,
        title and interest of Assignor, as Purchaser, in, to and under (a) those
        certain
        Mortgage Loans listed on Exhibit A attached hereto (the "Mortgage Loans")
        and
        (b) that certain Purchase, Warranties and Servicing Agreement, Adjustable
        Rate
        Mortgage Loans (the "Purchase, Warranties and Servicing Agreement"), dated
        as of
        July 1, 2001 by and among EMC Mortgage Corporation ("Purchaser"), and Chevy
        Chase Bank, F.S.B. (the "Company") with respect to the Mortgage
        Loans.

      

      The
        Assignor specifically reserves and does not assign to the Assignee hereunder
        any
        and all right, title and interest in, to and under and all obligations of
        the
        Assignor with respect to any mortgage loans subject to the Purchase, Warranties
        and Servicing Agreement which are not the Mortgage Loans set forth on Exhibit
        A
        attached hereto and are not the subject of this Assignment and Assumption
        Agreement.

      

      2.           
         The
        assignor warrants and represents to, and covenants with, the Assignee
        that:

      

      a. The
        Assignor is the lawful owner of the Mortgage Loans with the full right to
        transfer the Mortgage Loans free from any and all claims and encumbrances
        whatsoever;

      

      b. The
        Assignor has not received notice or, and has no knowledge of, any offsets,
        counterclaims or other defenses available to the Company with respect to
        the
        Purchase, Warranties and Servicing Agreement or the Mortgage Loans;

      

      c. The
        Assignor has not waived or agreed to any waiver under, or agreed to any
        amendment or other modification of, the Purchase, Warranties and Servicing
        Agreement or the Mortgage Loans, including without limitation the transfer
        of
        the servicing obligations under the Purchase, Warranties and Servicing
        Agreement. The Assignor has no knowledge of, and has not received notice
        of, any
        waivers under or amendments or other modifications of, or assignments of
        rights
        or obligations under or defaults under, the Purchase, Warranties and Servicing
        Agreement, or the Mortgage Loans; and

      

      d. Neither
        the Assignor nor anyone acting on its behalf has offered, transferred, pledged,
        sold or otherwise disposed of the Mortgage Loans, any interest in the Mortgage
        Loans or any other similar security to, or solicited any offer to buy or
        accept
        a transfer, pledge or other disposition of the Mortgage Loans, any interest
        in
        the Mortgage Loans or any other similar security from, or otherwise approached
        or negotiated with respect to the Mortgage Loans, any interest in the Mortgage
        Loans or any other similar security with, any person in any manner, or made
        by
        general solicitation by means of general advertising or in any other manner,
        or
        taken any other action which would constitute a distribution of the Mortgage
        Loans under the Securities Act of 1933 (the "1933 Act") or which would render
        the disposition of the Mortgage Loans a violation of Section 5 of the 1933
        Act
        or require registration pursuant thereto.

      

      3.             The
        Assignee warrants and represents to, and covenants with, the Assignor and
        the
        Company that:

      

      a. The
        Assignee is a corporation duly organized, validly existing and in good standing
        under the laws of the jurisdiction of its incorporation, and has all requisite
        corporate power and authority to acquire, own and purchase the Mortgage
        Loans;

      

      b. The
        Assignee has full corporate power and authority to execute, deliver and perform
        under this Assignment and Assumption Agreement, and to consummate the
        transactions set forth herein. The execution, delivery and performance of
        the
        Assignee of this Assignment and Assumption Agreement, and the consummation
        by it
        of the transactions contemplated hereby, have been duly authorized by all
        necessary corporate action of the Assignee. This Assignment and Assumption
        Agreement has been duly executed and delivered by the Assignee and constitutes
        the valid and legally binding obligation of the Assignee enforceable against
        the
        Assignee in accordance with its respective terms;

      

      c. To
        the
        best of Assignee's knowledge, no material consent, approval, order or
        authorization of, or declaration, filing or registration with, any governmental
        entity is required to be obtained or made by the Assignee in connection with
        the
        execution, delivery or performance by the Assignee of this Assignment and
        Assumption Agreement, or the consummation by it of the transactions contemplated
        hereby;

      

      d. The
        Assignee agrees to be bound, as Purchaser, by all of the terms, covenants
        and
        conditions of the Purchase, Warranties and Servicing Agreement and the Mortgage
        Loans, and from and after the date hereof, the Assignee assumes for the benefit
        of each of the Company and the Assignor all of the Assignor's obligations
        as
        Purchaser thereunder, with respect to the Mortgage Loans;

      

      e. The
        Assignee understands that the Mortgage Loans have not been registered under
        the
        1933 Act or the securities laws of any state;

      

      f.
        The
        purchase price being paid by the Assignee for the Mortgage Loans is in excess
        of
        $250,000 and will be paid by cash remittance of the full purchase price within
        sixty (60) days of the sale;

      

      g. The
        Assignee is acquiring the Mortgage Loans for investment for its own account
        only
        and not for any other person;

      

      h. The
        Assignee considers itself a substantial, sophisticated institutional investor
        having such knowledge and financial and business matters that it is capable
        of
        evaluating the merits and the risks of investment in the Mortgage
        Loans;

      

      i. The
        Assignee has been furnished with all information regarding the Mortgage Loans
        that it has requested from the Assignor or the Company;

      

      j. Neither
        the Assignee nor anyone acting on its behalf has offered, transferred, pledged,
        sold or otherwise disposed of the Mortgage Loans, an interest in the Mortgage
        Loans or any other similar security to, or solicited any offer to buy or
        accept
        a transfer, pledge or other disposition of the Mortgage Loans, any interest
        in
        the Mortgage Loans or any other similar security from, or otherwise approached
        or negotiated with respect to the Mortgage Loans, any interest in the Mortgage
        Loans or any other similar security with, any person in any manner, or made
        any
        general solicitation by means of general advertising or in any other manner,
        or
        taken any other action which would constitute a distribution of the Mortgage
        Loans under the 1933 Act or which would render the disposition of the Mortgage
        Loans a violation of Section 5 of the 1933 Act or require registration pursuant
        thereto, nor will it act, nor has it authorized or will it authorize any
        person
        to act, in such manner with respect to the Mortgage Loans; and

      

      k.
        Either: (1) the Assignee is not an employee benefit plan ("Plan") within
        the
        meaning of section 3(3) of the Employee Retirement Income Security Act of
        1974,
        as amended ("ERISA") or a plan (also "Plan") within the meaning of section
        4975(e)(1) of the Internal Revenue Code of 1986 ("Code"), and the Assignee
        is
        not directly or indirectly purchasing the Mortgage Loans on behalf of,
        investment manager of, as named fiduciary of, as Trustee of, or with assets
        of,
        a Plan; or (2) the Assignee's purchase of the Mortgage Loans will not result
        in
        a prohibited transaction under section 406 of ERISA or section 4975 of the
        Code.

      

      Distributions
        shall be made by wire transfer of immediately available funds to
        _____________________________

      for
        the
        account of _________________________________________

      account
        number ___________________________________________________. Applicable
        statements should be mailed to ____________________

      _____________________________________________________________.

      

      Any
        new
        loan number assigned to a Mortgage Loan by the Assignee shall be provided
        to the
        Company at the following address: Chevy Chase Bank, F.S.B., 7501
        Wisconsin Avenue, Bethesda, MD 20814, Attention: _______________.
        In
        addition, if Assignee has changed its document custodian from the previous
        custodian, such new custodian’s name, address and contact information shall be
        provided to the Company at the aforementioned address.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
        Assignor's address for purposes for all notices and correspondence related
        to
        the Mortgage Loans and this Agreement is:

      
         

        
          
            	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Attention: _________________	 

          

           

        

      

      

      IN
        WITNESS WHEREOF, the parties have caused this Assignment and Assumption to
        be
        executed by their duly authorized officers as of the date first above
        written.

      
         

         

        
          
            
              	 	 	 
	
                      Assignor

                    	 	 	
                      Assignee

                    	 
	 	 	 	 	 
	
                      By:
                        

                    	 	 	
                      By:
                        

                    	 
	
                      Its:
                        

                    	 	 	
                      Its:
                        

                    	 
	 	 	 	 	 
	
                      Tax
                        Payer Identification No.:

                    	 	
                      Tax
                        Payer Identification No.:

                    
	 	 	 

            

          

        

         

      

      Acknowledged:

      

      Chevy
        Chase Bank, F.S.B.

      

      By:___________________________

      Its:__________________________

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        E

      

      RESERVED

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        F

      

      RESERVED

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        G

      

      REQUEST
        FOR RELEASE/RETURN OF DOCUMENTS

      

      

      To
        Custodian/Name:

      Address:

      Date:

      

      In
        connection with the administration of the pool of mortgages held by you in
        custody for _______________ (“Owner”), the undersigned (the “Company”) requests
        the release of the mortgage documents for the mortgage described below for
        the
        reason indicated.

      
 

      Property
        address:      

      Pool
        number:

      Lender
        loan number:

      

      

      Original
        Mortgage Amount........................................$

      Date
        of
        Original Mortgage.........................................

      Interest
        Rate...............................................................

      Monthly
        Fixed Installment (P&I).................................

      Paid
        Through Date........................................................

      

      

      REASON
        FOR REQUESTING DOCUMENTS (Check one of the items below):

      

      ____
          On
        __________ (date), the above captioned mortgage loan was paid in full or
        the
        Company has been notified that payment in full has been or will be escrowed.
        The
        Company hereby certifies that all amounts with respect to this loan which
        are
        required to be paid have been or will be deposited in the Custodial Account
        as
        required.

      

      ____
          The
        above
        captioned loan is being placed in foreclosure and the original documents
        are
        required to proceed with the foreclosure action. The Company hereby certifies
        that the documents will be returned to the Owner in the event of
        reinstatement.

      

      ____
          Other
        (explain)

      _________________________________________________

      _________________________________________________
        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TO
        CUSTODIAN: PLEASE ACKNOWLEDGE RELEASE OF THE DOCUMENTS BY YOUR
        SIGNATURE.

      

      Lender
        Number: 149020004

      Lender
        Address: 6151 Chevy Chase Drive, Laurel, MD 20707, Telephone No: (800)
        933-9100

      

      Acknowledged:

      

        
          	
                  By
                    Custodian:

                	 	 	
                  By
                    Lender:

                	
                	 
	 	 	 	
                  CHEVY
                    CHASE BANK, F.S.B.

                	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	
                	 	 
	
                  Authorized
                    Signature

                	 	
                  Authorized
                    Signature

                	 
	
                  Name:

                	 	 	
                  Name:

                	 	
                
	
                  Date:
                    

                	 	 	
                  Date:
                    

                	 	 

        

      

      

      

      
        
          

        

      

      TO
        CUSTODIAN: PLEASE ACKNOWLEDGE RETURN OF THE DOCUMENTS BY YOUR
        SIGNATURE.

      

      Acknowledged:

      

        
          	
                  By
                    Custodian:

                	 	
                  Reason
                    For Returning Documents (check one):

                
	 	 	 	 	 	 	 
	 	 	 	
                   

                	
                  
                    Loan
                      was reinstated

                  

                	 
	
                  Authorized
                    Signature

                	 	 	 	 	 
	
                  Name:

                	 	 	 	 	 	 
	
                  Date:
                    

                	 	 	
                   

                	
                  Other:
                    (Explain) 

                	
                	 

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        H

      

      COMPANY’S
        UNDERWRITING GUIDELINES

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        I

      

      TERM
        SHEET

      

      This
        TERM
        SHEET (the "Term Sheet") dated _____________, between and Chevy Chase Bank,
        F.S.B., a federal savings bank, located at 7700 Old Georgetown Road, Bethesda,
        MD 20814 (the “Company”) and EMC Mortgage Corporation, a Delaware corporation,
        located at Mac Arthur Ridge II, 909 Hidden Ridge Drive, Suite 200, Irvine,
        Texas
        75038 (the "Purchaser") is made pursuant to the terms and conditions of that
        certain Purchase, Warranties and Servicing Agreement (the "Agreement") dated
        as
        of July 1, 2001, between the Company and the Purchaser, the provisions of
        which
        are incorporated herein as if set forth in full herein, as such terms and
        conditions may be modified or supplemented hereby. All initially capitalized
        terms used herein unless otherwise defined shall have the meanings ascribed
        thereto in the Agreement. 

      

      The
        Purchaser hereby purchases from the Company and the Company hereby sells
        to the
        Purchaser, all of the Company’s right, title and interest in and to the Mortgage
        Loans described on the Mortgage Loan Schedule annexed hereto as Schedule
        I,
        pursuant to and in accordance with the terms and conditions set forth in
        the
        Agreement, as same may be supplemented or modified hereby. Hereinafter, the
        Company shall service the Mortgage Loans for the benefit of the Purchaser
        and
        all subsequent transferees of the Mortgage Loans pursuant to and in accordance
        with the terms and conditions set forth in the Agreement. 

      

      1.           
         Definitions

      

      For
        purposes of the Mortgage Loans to be sold pursuant to this Term Sheet, the
        following terms shall have the following meanings:

      

      Aggregate
        Principal Balance

      (as
        of
        the Cut-Off Date):    

      

      Closing
        Date:    

      

      Custodian:    

      

      Cut-off
        Date:    

      

      Initial
        Weighted Average

      Mortgage
        Loan Remittance Rate:  

      

      Mortgage
        Loan:    

      

      Purchase
        Price Percentage:   

      

      Servicing
        Fee Rate:  

       

      Additional
        Closing Conditions: 

      

      In
        addition to the conditions specified in the Agreement, the obligation of
        each of
        the Company and the Purchaser is subject to the fulfillment, on or prior
        to the
        applicable Closing Date, of the following additional conditions: 

      

      Additional
        Loan Documents: 

      

      In
        addition to the contents of the Mortgage File specified in the Agreement,
        the
        following documents shall be delivered with respect to the Mortgage Loans:
        

      

      [Additional]
        [Modification] of Representations and Warranties:

       

      [In
        addition to the representations and warranties set forth in the Agreement,
        as of
        the date hereof, the Company makes the following additional representations
        and
        warranties with respect to the Mortgage Loans: [None]. [Notwithstanding anything
        to the contrary set forth in the Agreement, with respect to each Mortgage
        Loan
        to be sold on the Closing Date, the representation and warranty set forth
        in
        Section ______ of the Agreement shall be modified to read as
        follows:]

      

      Except
        as
        modified herein, Section ______ of the Agreement shall remain in full force
        and
        effect as of the date hereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

      
        

          
            	 	
                    CHEVY
                      CHASE BANK, F.S.B.

                  
	 	 	 
	 	
                    By:

                  	 
	 	
                    Name:

                  	 
	 	
                    Title:

                  	 

          

        

         

      

      
        

          
            	 	
                    
                      EMC
                        MORTGAGE CORPORATION

                    

                  
	 	 	 
	 	
                    By:

                  	 
	 	
                    Name:

                  	 
	 	
                    Title:

                  	 

          

        

        
 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        I

      

      MORTGAGE
        LOAN SCHEDULE

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

      

      AMENDMENT
        NO. 1 TO PURCHASE, WARRANTIES AND SERVICING
        AGREEMENT

      

      THIS
        AMENDMENT NO. 1, effective as of January 13, 2003, amends the Purchase,
        Warranties and Servicing Agreement by and between EMC Mortgage Corporation
        (the
“Purchaser”) and Chevy Chase Bank, F.S.B. (the “Company”), previously entered
        into as of July 1, 2002 (the “Agreement”). 

      

      RECITALS

      

      WHEREAS,
        the Company sells to the Purchaser, and the Purchaser purchases from the
        Company, from time to time, pursuant to the Agreement, certain conventional
        residential Mortgage Loans, including all Servicing Rights related thereto;
        and

      

      WHEREAS,
        in connection with future sales of Mortgage Loans to the Purchaser, the Company
        and the Purchaser wish to amend the Agreement as set forth below.

      

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants hereinafter
        set forth and for good and valuable consideration, the receipt and sufficiency
        of which are hereby acknowledged, the Purchaser and the Company agree to
        amend
        the Agreement as follows:

      

      1.  Section
        1.01 of the Agreement shall be amended as follows: (a) The definitions of
        Cash-Out Refinancing and Rate/Term Refinancing shall be added.

      

      “Cash-Out
        Refinancing:
        As
        defined in the Fannie Mae Guide under the heading Cash-Out Refinance.”

      

      “Rate/Term
        Refinancing:
        As
        defined in the Fannie Mae Guide under the heading Limited Cash-Out
        Refinance.”

      

      (b)
        Item
        (16) of the definition of “Mortgage
        Loan Schedule”
shall
        be revised as follows: “(16) a code indicating the purpose of the Mortgage Loan
        (i.e., purchase, Cash-Out Refinancing, Rate/Term Refinance);” 

      

      2.
        The second
        sentence of Section 3.02 (h) of the Agreement shall be deleted in its entirety
        and replaced with the following: “None
        of the Mortgage Loans are (a) loans subject to 12 CFR Part 226.31, 12 CFR
        Part
        226.32 or 12 CFR Part 226.34 of Regulation Z, the regulation implementing
        TILA,
        which implements the Home Ownership and Equity Protection Act of 1994, as
        amended or (b) classified and/or defined as a “high cost”, “covered”, or
“predatory” loan under any other state, federal or local law or regulation or
        ordinance, including, but not limited to, the States of Georgia or North
        Carolina, or the City of New York.”

      

      3.
        All
        other terms and conditions of the Agreement remain unchanged and in full
        force
        and effect.

       

      4.
        Capitalized terms used but not defined herein shall have the meanings ascribed
        to them in the Agreement.

      IN
        WITNESS WHEREOF, the parties hereto have caused this Addendum to be executed
        and
        delivered by their proper and duly authorized officers as of the day and
        year
        first above written.

      

       

      
        	EMC Mortgage
                Corporation 	 	Chevy Chase Bank,
                F.S.B.
	 	 	 	 	 
	BY:	 	 	BY:	 
	NAME:	 	 	NAME:	 
	 	 	 	 	 
	
                ITS:
                  (Title) 

              	 	 	
                ITS:
                  (Title) 

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

      AMENDMENT
        NUMBER TWO

      to
        the

      

      PURCHASE,
        WARRANTIES AND SERVICING AGREEMENT

      

      Dated
        as
        of February 1, 2006

      

      between

      

      EMC
        MORTGAGE CORPORATION, 

      as
        Purchaser

      

      and

      

      CHEVY
        CHASE BANK, F.S.B,

      as
        Company

      

      This
        AMENDMENT NUMBER TWO (this “Amendment”) is made and entered into this 31st day
        of January, 2006, by and between EMC Mortgage Corporation, a Delaware
        corporation, as purchaser (the “Purchaser”) and Chevy Chase Bank, F.S.B., as
        company (the “Company”) in connection with the Purchase, Warranties and
        Servicing Agreement, dated as of July 1, 2001, between the above mentioned
        parties (the “Agreement”). This Amendment is made pursuant to Section 11.02 of
        the Agreement.

      

      RECITALS

       

      WHEREAS,
         the
        parties hereto have entered into the Agreement; 

      

      WHEREAS,
        the Agreement provides that the parties thereto may enter into an amendment
        to
        the Agreement;

      

      WHEREAS,
        the parties hereto desire to amend the Agreement as set forth in this Amendment;
        and

      

      NOW,
        THEREFORE, in consideration of the premises and for other good and valuable
        consideration, the receipt and sufficiency of which is hereby acknowledged,
        the
        parties hereto agree as follows:

      

      1. Capitalized
        terms used herein and not defined herein shall have the meanings assigned
        to
        such terms in the Agreement or Regulation AB as applicable. 

      

      2. Article
        I
        of the Agreement is hereby amended effective as of the date hereof by adding
        the
        following definitions to Section 1.01: 

      

      Commission
        or SEC:
        The
        Securities and Exchange Commission.

      

      Depositor:
        The
        depositor, as such term is defined in Regulation AB, with respect to any
        Securitization Transaction and
        as
        identified in writing to the Company as the depositor for such Securitization
        Transaction.

      

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

      

      Master
        Servicer:
        With
        respect to any Securitization Transaction, the “master servicer,” if any,
        identified in the related transaction documents and as identified in writing
        to
        the Company as the depositor for such Securitization Transaction.

      

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

      

      Originator:
        A bank,
        savings and loan, or mortgage banker that creates a mortgage secured by a
        borrower’s residential real property and sells such mortgage in the secondary
        market.

      

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

      

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

      

      Qualified
        Correspondent:
        Any
        Person from which the Company purchased Mortgage Loans, provided that the
        following conditions are satisfied: (i) such Mortgage Loans were originated
        pursuant to an agreement between the Company and such Person that contemplated
        that such Person would underwrite mortgage loans from time to time, for sale
        to
        the Company, in accordance with underwriting guidelines designated by the
        Company (“Designated Guidelines”) or guidelines that do not vary materially from
        such Designated Guidelines; (ii) such Mortgage Loans were in fact underwritten
        as described in clause (i) above and were acquired by the Company within
        180
        days after origination; (iii) either (x) the Designated Guidelines were,
        at the
        time such Mortgage Loans were originated, used by the Company in origination
        of
        mortgage loans of the same type as the Mortgage Loans for the Company’s own
        account or (y) the Designated Guidelines were, at the time such Mortgage
        Loans
        were underwritten, designated by the Company on a consistent basis for use
        by
        lenders in originating mortgage loans to be purchased by the Company; and
        (iv)
        the Company employed, at the time such Mortgage Loans were acquired by the
        Company, pre-purchase or post-purchase quality assurance procedures (which
        may
        involve, among other things, review of a sample of mortgage loans purchased
        during a particular time period or through particular channels) designed
        to
        ensure that Persons from which it purchased mortgage loans properly applied
        the
        underwriting criteria designated by the Company. For the avoidance of doubt,
        a
“Qualified Correspondent” includes a “table broker” or mortgage lender that
        originates loans underwritten and funded by the Company or an Affiliate of
        the
        Company.

      

      Reconstitution
        Agreement:
        Any
        servicing agreement relating to a Reconstitution.

      

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

      

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

      

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

      

      Servicing
        Criteria:
        As of
        any date of determination, the “servicing criteria” set forth in Item 1122(d) of
        Regulation AB, or any amendments thereto, a summary of the requirements of
        which
        as of the date hereof is attached hereto as Exhibit
        M
        for
        convenience of reference only. In the event of a conflict or inconsistency
        between the terms of Exhibit
        M
        and the
        text of Item 1122(d) of Regulation AB, the text of Item 1122(d) of Regulation
        AB
        shall control (or those Servicing Criteria otherwise mutually agreed to by
        the
        Purchaser, the Company and any Person that will be responsible for signing
        any
        Sarbanes Certification with respect to a Securitization Transaction in response
        to evolving interpretations of Regulation AB and incorporated into a revised
        Exhibit
        M).

      

      Static
        Pool Information:
        Static
        pool information as described in Item 1105(a)(1)-(3) and 1105(c) of Regulation
        AB.

      

      Subcontractor:
        Any
        vendor, subcontractor or other Person that is not responsible for the overall
        servicing (as “servicing” is commonly understood by participants in the
        mortgage-backed securities market) of Mortgage Loans but performs one or
        more
        discrete functions identified in Item 1122(d) of Regulation AB with respect
        to
        Mortgage Loans under the direction or authority of the Company or a Subservicer.
        

      

      Third-Party
        Originator:
        Each
        Person, other than a Qualified Correspondent, that originated Mortgage Loans
        acquired by the Company, and shall not include a mortgage broker that does
        not
        fund loans.

      

      3. Article
        I
        of the Agreement is hereby amended effective as of the date hereof by deleting
        in its entirety the definition of Subservicer in Section 1.01 and replacing
        it
        with the following:

      

      Subservicer:
        Any
        Person that services Mortgage Loans on behalf of the Company or any Subservicer
        and is responsible for the performance (whether directly or through Subservicers
        or Subcontractors) of a substantial portion of the material servicing functions
        required to be performed by the Company under this Agreement or any
        Reconstitution Agreement that are identified in Item 1122(d) of Regulation
        AB;
        provided, however, that the term “Subservicer” shall not include any master
        servicer, or any special servicer engaged at the request of a Depositor,
        Purchaser or investor in a Securitization Transaction, nor any “back-up
        servicer” or trustee performing servicing functions on behalf of a
        Securitization Transaction.

      

      4. Article
        I
        of the Agreement is hereby amended effective as of the date hereof by deleting
        in its entirety the definition of Principal Prepayment in Section 1.01 and
        replacing it with the following:

      

      Principal
        Prepayment:
        Any
        payment or other recovery of principal on a Mortgage Loan full or partial
        which
        is received in advance of its scheduled Due Date, including any Prepayment
        Charge, and which is not accompanied by an amount of interest representing
        scheduled interest due on any date or dates in any month or months subsequent
        to
        the month of prepayment.

      

      5. Article
        III of the Agreement is hereby amended effective as of the date hereof by
        revising Section 3.01(n) as follows (new text underlined):

      

      (n) If
        requested by the Purchaser, the
        Company shall have delivered to the Purchaser the Company’s financial
        statements, for its last two complete fiscal years. If so, all such financial
        information fairly presents the pertinent results of operations and financial
        position for the period identified and has been prepared in accordance with
        generally accepted accounting principles consistently applied throughout
        the
        periods involved, except as set forth in the notes thereto. There has been
        no
        change in the servicing
        policies and procedures,
        business, operations, financial condition, properties or assets of the Company
        since the date of the Company’s financial information last provided to the
        Purchaser that would have a material adverse effect on its ability to perform
        its obligations under this Agreement and the related Term Sheet;

      

      6. Article
        III of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following new Section 3.01(p):

      

      (p) As
        of the
        date of each Pass-Through Transfer, and with respect to the representations
        (1)-(5) only if the Company is a “servicer” within the meaning of Item
        1108(a)(3) of Regulation AB, and with respect to representation (6) only
        if the
        Company meets the requirements for disclosure under Item 1117 of Regulation
        AB,
        and with respect to representation (7) only if the Company meets the
        requirements for disclosure under Item 1119 of Regulation AB and except as
        has
        been otherwise disclosed to the Purchaser, any Master Servicer and any
        Depositor: (1) no default or servicing related performance trigger has occurred
        as to any other securitization due to any act or failure to act of the Company;
        (2) no material noncompliance with applicable servicing criteria as to any
        other
        securitization has been disclosed or reported by the Company; (3) the Company
        has not been terminated as Servicer in a residential mortgage loan
        securitization, either due to a servicing default or to application of a
        servicing performance test or trigger; (4) no material changes to the Company’s
        servicing policies and procedures for similar loans has occurred in the
        preceding three years; (5) there are no aspects of the Company’s financial
        condition that could have a material adverse impact on the performance by
        the
        Company of its obligations hereunder; (6) there are no legal proceedings
        pending, or known to be contemplated by governmental authorities, against
        the
        Company that could be material to investors in the securities issued in such
        Pass-Through Transfer; and (7) there are no affiliations, relationships or
        transactions relating to the Company of a type that are described under Item
        1119 of Regulation AB.

      

      7. Article
        III of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following new Section 3.01(q):

      

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

      

      8. Article
        III of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following new Section 3.01(r):

      

      (r) Notwithstanding
        anything to the contrary in the Agreement, the Company shall (or shall cause
        each Subservicer and Third-Party Originator to), provided that the Company
        (and
        each Subservicer and Third-Party Originator, as the case may be) meets the
        disclosure requirements of Items 1117 and 1119 of Regulation AB, as the case
        may
        be, for such disclosure period (i) immediately notify the Purchaser, any
        Master
        Servicer and any Depositor in writing of (A) any legal proceedings pending,
        or
        known to be contemplated by governmental authorities against the Company,
        any
        Subservicer or any Third-Party Originator that could reasonably be expected
        to
        be material to investors in securities in such Securitization Transaction,
        (B)
        any known affiliations or relationships that develop following the closing
        date
        of a Pass-Through Transfer between the Company, any Subservicer or any
        Third-Party Originator 9provided that the requesting party identify, in writing,
        such parties by name) and any of the parties specified in clause (7) of
        paragraph (p) of this Section (and any other transaction party identified
        in
        writing by the requesting party) with respect to such Pass-Through
        Transfer, (C)
        any
        Event of Default under the terms of this Agreement or any Reconstitution
        Agreement, (D) any merger, consolidation or sale of substantially all of the
        assets of the Company, and (E) the Company’s entry into an agreement with a
        Subservicer to perform or assist in the performance of any of the Company’s
        obligations under this Agreement or any Reconstitution Agreement and (ii)
        provide to the Purchaser and any Depositor a description of such proceedings,
        affiliations or relationships.

      

      All
        notification pursuant to this Section 3.01(r), other than those pursuant
        to
        Section 3.01(r)(i)(A), should be sent to:

      

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067-3884

      Attention:
        Conduit Seller Approval Dept.

      Facsimile:
        (214) 626-3751

      Email:
        sellerapproval@bear.com

      

      With
        a
        copy to:

      

      Bear,
        Stearns & Co. Inc.

      383
        Madison Avenue, 3rd Floor

      New,
        York, NY 10179

      Attention:
        Global Credit Administration

      Facsimile:
        (212) 272-6564

      

      Notifications
        pursuant to Section 3.01(r)(i)(A) should be sent to: 

      

      EMC
        Mortgage Corporation

      Two
        Mac
        Arthur Ridge

      909
        Hidden Ridge Drive, Suite 200

      Irving,
        TX 75038

      Attention:
        Associate General Counsel for Loan Administration

      Facsimile:
        (972) 831-2555

      

      With
        copies to:

      

      Bear,
        Stearns & Co. Inc.

      383
        Madison Avenue, 3rd Floor

      New,
        York, NY 10179

      Attention:
        Global Credit Administration

      Facsimile:
        (212) 272-6564

      

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067-3884

      Attention:
        Conduit Seller Approval Dept.

      Facsimile:
        (214) 626-3751

      Email:
        sellerapproval@bear.com

      

      9. Article
        III of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following new Section 3.01(s):

      

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

      

      10. Article
        III of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following new Section 3.02(tt):

      

      With
        respect to each Mortgage Loan, information regarding the borrower credit
        files
        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.

      

      11.
         Article
        IV of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following after the second sentence of the first paragraph of Section
        4.01:

      

      In
        addition, the Company shall furnish information regarding the borrower credit
        files related to such Mortgage Loan to credit reporting agencies in compliance
        with the provisions of the Fair Credit Reporting Act and the applicable
        implementing regulations.

      

      12. Article
        IV of the Agreement is hereby amended effective as of the date hereof by
        adding
        this paragraph to the end of Section 4.02:

      

      The
        Company shall not waive any Prepayment Charge unless: (i) the enforceability
        thereof shall have been limited by bankruptcy, insolvency, moratorium,
        receivership and other similar laws relating to creditors’ rights generally,
        (ii) the enforcement thereof is illegal, or any local, state or federal agency
        has threatened legal action if the prepayment penalty is enforced, (iii)
        the
        mortgage debt has been accelerated in connection with a foreclosure or other
        involuntary payment or (iv) such waiver is standard and customary in servicing
        similar Mortgage Loans and relates to a default or a reasonably foreseeable
        default and would, in the reasonable judgment of the Company, maximize recovery
        of total proceeds taking into account the value of such Prepayment Charge
        and
        the related Mortgage Loan.

      

      13. Article
        IV of the Agreement is hereby amended effective as of the date hereof by
        revising the first paragraph of Section 4.03 by adding the following after
        the
        first sentence:

      

      In
        determining the delinquency status of any Mortgage Loan, the Company will
        use
        delinquency recognition policies as described to and approved by the Purchaser,
        and shall revise these policies as requested by the Purchaser from time to
        time.

      

      14. Article
        V
        of the Agreement is hereby amended effective as of the date hereof by deleting
        Section 5.02 in its entirety and replacing it with the following:

      

      Section
        5.02 Statements
        to the Purchaser.

      

      The
        Company shall furnish to Purchaser an individual loan accounting report,
        as of
        the last Business Day of each month, in the Company's assigned loan number
        order
        to document Mortgage Loan payment activity on an individual Mortgage Loan
        basis.
        With respect to each month, the corresponding individual loan accounting
        report
        shall be received by the Purchaser no later than the fifth Business Day of
        the
        following month on a disk or tape or other computer-readable format in such
        format as may be mutually agreed upon by both Purchaser and Company, and
        no
        later than the fifth Business Day of the following month in hard copy, and
        shall
        contain the following:

      

      (i) with
        respect to each Mortgage Loan and each Monthly Payment, the amount of such
        remittance allocable to principal (including a separate breakdown of any
        Principal Prepayment, including the date of such prepayment, and any prepayment
        penalties or premiums, along with a detailed report of interest on principal
        prepayment amounts remitted in accordance with Section 4.04);

      

      (ii) with
        respect to each Mortgage Loan and each Monthly Payment, the amount of such
        remittance allocable to interest;

      

      (iii) with
        respect to each Mortgage Loan, the amount of servicing compensation received
        by
        the Company during the prior distribution period;

      

      (iv) the
        Stated Principal Balance of each Mortgage Loan and the aggregate Stated
        Principal Balance of all Mortgage Loans as of the first day of the distribution
        period and the last day of the distribution period;

      

      (v) with
        respect to each Mortgage Loan, the current Mortgage Interest Rate;

      

      (vi) with
        respect to each Mortgage Loan, the aggregate amount of any Insurance Proceeds,
        Condemnation Proceeds, Liquidation Proceeds and REO Disposition Proceeds
        received during the prior distribution period;

      

      (vii) with
        respect to each Mortgage Loan, the amount of any Prepayment Interest Shortfalls
        paid by the Company in accordance with Section 4.04(viii) during the prior
        distribution period; 

      

      (viii) the
        beginning and ending balances of the Custodial Account and Escrow
        Account;

      

      (ix) the
        number of Mortgage Loans as of the first day of the distribution period and
        the
        last day of the distribution period; 

      

      (x) with
        respect to each Mortgage Loan, the Stated Principal Balance of each Mortgage
        Loan (a) delinquent as grouped in the following intervals through final
        liquidation of such Mortgage Loan: 30 to 59 days, 60 to 89 days, 90 days
        or
        more; (b) as to which foreclosure has commenced; and (c) as to which REO
        Property has been acquired;

      

      (xi) with
        respect to each Mortgage Loan, the amount and severity of any realized loss
        following liquidation of such Mortgage Loan; 

      

      (xii) with
        respect to each Mortgage Loan, and in the aggregate for all Mortgage Loans,
        the
        amount of any Monthly Advances made by the Company during the prior distribution
        period; 

      

      (xiii) with
        respect to each Mortgage Loan, a description of any Servicing Advances made
        by
        the Company with respect to such Mortgage Loan including the amount, terms
        and
        general purpose of such Servicing Advances, and the aggregate amount of
        Servicing Advances for all Mortgage Loans during the prior distribution
        period;

      

      (xiv) with
        respect to each Mortgage Loan, a description of any Nonrecoverable Advances
        made
        by the Company with respect to such Mortgage Loan including the amount, terms
        and general purpose of such Nonrecoverable Advances, and the aggregate amount
        of
        Nonrecoverable Advances for all Mortgage Loans during the prior distribution
        period;

      

      (xv) with
        respect to each Mortgage Loan, a description of any Monthly Advances, Servicing
        Advances and Nonrecoverable Advances reimbursed to the Company with respect
        to
        such Mortgage Loan during the prior distribution period pursuant to Section
        4.05, and the source of funds for such reimbursement, and the aggregate amount
        of any Monthly Advances, Servicing Advances and Nonrecoverable Advances
        reimbursed to the Company for all Mortgage Loans during the prior distribution
        period pursuant to Section 4.05; 

      

      (xvi) with
        respect to any Mortgage Loan, a description of any material modifications,
        extensions or waivers to the terms, fees, penalties or payments of such Mortgage
        Loan during the prior distribution period or that have cumulatively become
        material over time;

      

      (xvii) a
        description of any material breach of a representation or warranty set forth
        in
        Section 3.01 or Section 3.02 herein or of any other breach of a covenant
        or
        condition contained herein and the status of any resolution of such
        breach;

      

      (xviii) with
        respect to each Mortgage Loan, the Stated Principal Balance of any substitute
        Mortgage Loan provided by the Company and the Stated Principal Balance of
        any
        Mortgage Loan that has been replaced by a substitute Mortgage Loan in accordance
        with Section 3.03 herein;

      

      (xix) with
        respect to each Mortgage Loan, the Stated Principal Balance of any Mortgage
        Loan
        that has been repurchased by the Company in accordance with Section 3.03
        herein.

      

      In
        addition, the Company shall provide to the Purchaser such other information
        reasonably known or available to the Company that is related to Company’s
        performance of such servicing functions and that is reasonably required to
        facilitate preparation of distribution reports in accordance with Item 1121
        of
        Regulation AB, as amended from time to time. The Company shall also provide
        a
        monthly report, in the form of Exhibit
        E
        hereto,
        or such other form as is mutually acceptable to the Company, the Purchaser
        and
        any Master Servicer, Exhibit
        F
        with
        respect to defaulted mortgage loans and Exhibit
        N,
        with
        respect to realized losses and gains, with each such report.

      

      The
        Company shall prepare and file any and all information statements or other
        filings that any governmental taxing authority requires the Company to deliver
        to such taxing authority or to the Purchaser pursuant to any applicable law
        with
        respect to the Mortgage Loans and the transactions contemplated hereby. In
        addition, the Company shall provide Purchaser with such information concerning
        the Mortgage Loans as is necessary for Purchaser to prepare its federal income
        tax return as Purchaser may reasonably request from time to time.

       

      15. 
         Article
        V
        of the Agreement is hereby amended effective as of the date hereof by deleting
        the last paragraph of Section 5.03 in its entirety and replacing it with
        the
        following:

      

      The
        Company’s obligation to make such Monthly Advances as to any Mortgage Loan will
        continue through the last Monthly Payment due prior to the payment in full
        of
        the Mortgage Loans, or through the Remittance Date prior to the date on which
        the Mortgaged Property liquidates (including Insurance Proceeds, proceeds
        from
        the sale of REO Property or Condemnation Proceeds) with respect to the Mortgage
        Loan unless the Company deems such advance to be a Nonrecoverable Advance.
        In
        such event, the Company shall deliver to the purchaser an Officer’s Certificate
        of the Company to the effect that an officer of the Company has reviewed
        the
        related Mortgage File and has made the reasonable determination that any
        additional advances are Nonrecoverable Advances.

      

      16. 
         Article
        VI of the Agreement is hereby amended effective as of the date hereof by
        deleting Section 6.04 in its entirety and replacing it with the
        following:

      

      Section
        6.04 Annual
        Statement as to Compliance; Annual Certification.

      

      (a) The
        Company will deliver to the Purchaser and any Master Servicer, not later
        than
        March 1 of each calendar year beginning in 2007, an Officer’s Certificate
        reasonably acceptable to the Purchaser (an “Annual Statement of Compliance”)
        stating, as to the signatory thereof, that (i) a review of the servicing
        activities of the Company during the preceding calendar year and of servicing
        performance under this Agreement or other applicable servicing agreement
        has
        been made under such officers’ supervision and (ii) to the best of such
        officers’ knowledge, based on such review, the Company has fulfilled all of its
        servicing-related obligations under this Agreement or other applicable servicing
        agreement in all material respects throughout such year, or, if there has
        been a
        failure to fulfill any such obligation in any material respect, specifying
        each
        such failure known to such officer and the nature and status of cure provisions
        thereof. Such Annual Statement of Compliance shall contain no restrictions
        or
        limitations on its use. Copies of such statement shall be provided by the
        Company to the Purchaser upon request and by the Purchaser to any Person
        identified as a prospective purchaser of the Mortgage Loans. In the event
        that
        the Company has delegated any servicing responsibilities with respect to
        the
        Mortgage Loans to a Subservicer, the Company shall deliver an officer’s
        certificate (an “Annual Certification”) of the Subservicer as described above as
        to each Subservicer as and when required with respect to the
        Company.

      

      (b) With
        respect to any Mortgage Loans that are the subject of a Pass-Through Transfer,
        by March 1 of each calendar year beginning in 2007, an officer of the Company
        shall execute and deliver an Annual Certification to the Purchaser, any Master
        Servicer and any related Depositor for the benefit of each such entity and
        such
        entity’s affiliates that are transaction parties and the officers, directors and
        agents of any such entities that may rely on such Annual Certification in
        the
        fulfillment of their obligations with respect to Regulation AB, in the form
        attached hereto as Exhibit
        K.
        In the
        event that the Company has delegated any servicing responsibilities with
        respect
        to the Mortgage Loans to a Subservicer, the Company shall deliver an Annual
        Certification of the Subservicer as described above as to each Subservicer
        as
        and when required with respect to the Company.

      

      (c) If
        the
        Company cannot deliver the related Annual Statement of Compliance or Annual
        Certification by March 1st
        of such
        year, the Purchaser, at its sole option, may permit a cure period for the
        Company to deliver such Annual Statement of Compliance or Annual Certification,
        but in no event later than March 10th of such year.

      

      Failure
        of the Company to timely comply with this Section 6.04 shall be deemed an
        Event
        of Default, automatically, without notice and without any cure period, unless
        otherwise agreed to by the Purchaser as set forth in 6.04(c), and Purchaser
        may,
        in addition to whatever rights the Purchaser may have under Sections 3.03
        and
        8.01 and at law or equity or to damages, including injunctive relief and
        specific performance, terminate all the rights and obligations of the Company
        under this Agreement and in and to the Mortgage Loans and the proceeds thereof
        without compensating the Company except for compensation and rights arising
        prior to such termination. Such termination shall be considered with cause
        pursuant to Section 10.01 of this Agreement. This paragraph shall supersede
        any
        other provision in this Agreement or any other agreement to the
        contrary.

      

      17. Article
        VI of the Agreement is hereby amended effective as of the date hereof by
        deleting Section 6.05 in its entirety and replacing it with the
        following:

      

      Section
        6.05 [Reserved]

      

      18. Article
        VI of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following new Section 6.07:

      

      Section
        6.07 Assessment
        of Compliance with Servicing Criteria.

      

      On
        and
        after January 1, 2006, the Company shall service and administer, and shall
        cause
        each Subservicer to Servicer or administer, the Mortgage Loans in accordance
        with all applicable requirements of the Servicing Criteria.

      

      With
        respect to any Mortgage Loans that are the subject of a Pass-Through Transfer,
        the Company shall deliver to the Purchaser or its designee, any Master Servicer
        and any Depositor on or before March 1 of each calendar year beginning in
        2007,
        a report (an “Assessment of Compliance”) reasonably satisfactory to the
        Purchaser, any Master Servicer and any Depositor regarding the Company’s
        assessment of compliance with the Servicing Criteria during the preceding
        calendar year as required by Rules 13a-18 and 15d-18 of the Exchange Act
        and
        Item 1122 of Regulation AB or as otherwise required by the Master Servicer,
        which as of the date hereof, require a report by an authorized officer of
        the
        Company that contains the following:

      

      (a) A
        statement by such officer of its responsibility for assessing compliance
        with
        the Servicing Criteria applicable to the Company;

      

      (b) A
        statement by such officer that such officer used the Servicing Criteria to
        assess compliance with the Servicing Criteria applicable to the
        Company;

      

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

      

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

      

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

      

      Such
        report at a minimum shall address each of the Servicing Criteria specified
        on a
        certification substantially in the form of Exhibit
        M
        hereto
        delivered to the Purchaser concurrently with the execution of this
        Agreement.

      

      With
        respect to any Mortgage Loans that are the subject of a Pass-Through Transfer,
        on or before March 1 of each calendar year beginning in 2007, the Company
        shall
        furnish to the Purchaser or its designee, any Master Servicer and any Depositor
        a report (an “Attestation Report”) by a registered public accounting firm that
        attests to, and reports on, the Assessment of Compliance made by the Company,
        as
        required by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b)
        of
        Regulation AB or as otherwise required by the Master Servicer, which Attestation
        Report must be made in accordance with standards for attestation reports
        issued
        or adopted by the Public Company Accounting Oversight Board. 

      

      The
        Company shall cause each Subservicer, and each Subcontractor determined by
        the
        Company pursuant to Section 11.19 to be “participating in the servicing
        function” within the meaning of Item 1122 of Regulation AB, to deliver to the
        Purchaser, any Master Servicer and any Depositor an assessment of compliance
        and
        accountants’ attestation as and when provided in Sections 6.07.

      

      If
        the
        Company cannot deliver the related Assessment of Compliance or Attestation
        Report by March 1st
        of such
        year, the Purchaser, at its sole option, may permit a cure period for the
        Company to deliver such Assessment of Compliance or Attestation Report, but
        in
        no event later than March 10th of such year.

      

      Failure
        of the Company to timely comply with this Section 6.07 shall be deemed an
        Event
        of Default, automatically, without notice and without any cure period, unless
        otherwise agreed to by the Purchaser as described herein, and Purchaser may,
        in
        addition to whatever rights the Purchaser may have under Sections 3.03 and
        8.01
        and at law or equity or to damages, including injunctive relief and specific
        performance, terminate all the rights and obligations of the Company under
        this
        Agreement and in and to the Mortgage Loans and the proceeds thereof without
        compensating the Company except for compensation and rights arising prior
        to
        such termination. Such termination shall be considered with cause pursuant
        to
        Section 10.01 of this Agreement. This paragraph shall supersede any other
        provision in this Agreement or any other agreement to the contrary.

      

      Notwithstanding
        anything in this Agreement to the contrary, the Company will only be required
        to
        deliver an Assessment of Compliance and Attestation Report when it is not
        “participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB including Instruction 2 thereof upon prior written notice by
        the
        Purchaser that any Master Servicer has requested such information.

      

      19. Article
        VI of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following new Section 6.08:

      

      Section
        6.08 Intent
        of the Parties; Reasonableness.

      

      The
        Purchaser and the Company acknowledge and agree that a purpose of Sections
        3.01(p), 5.02, 6.04, 6.07, 11.18, 11.19 and Exhibit J of this Agreement is
        to
        facilitate compliance by the Purchaser and any Depositor with the provisions
        of
        Regulation AB and related rules and regulations of the Commission. None of
        the
        Purchaser, any Master Servicer or any Depositor shall exercise its right
        to
        request or require delivery of information or other performance under these
        provisions other than in good faith and as is reasonable, or for purposes
        other
        than compliance with the provisions of the Securities Act, the Exchange Act
        and
        the rules and regulations of the Commission thereunder that are applicable
        to
        any Securitization Transaction. The Company, the Purchaser, the Master Servicer
        and any Depositor acknowledge that interpretations of the requirements of
        Regulation AB may change over time, whether due to interpretive guidance
        provided by the Commission or its staff or consensus among participants in
        the
        asset-backed securities markets, and agrees to negotiate in good faith with
        the
        Purchaser, Master Servicer or any Depositor, upon a request made in good
        faith
        regarding the Company’s delivery of information under these provisions on the
        basis of evolving interpretations of Regulation AB. In connection with any
        Pass-Through Transfer, the Company shall cooperate with the Purchaser to
        deliver
        to the Purchaser (including any of its assignees or designees that are parties
        to the relevant transaction) and any Depositor, any and all statements, reports,
        certifications, records and any other information necessary in the good faith
        and reasonable determination of the Purchaser, Master Servicer or any Depositor
        to permit the Purchaser or such Depositor to comply with the provisions of
        Regulation AB, together with such disclosures relating to the Company, any
        Subservicer, any Third-Party Originator and the Mortgage Loans, or the servicing
        of the Mortgage Loans, reasonably believed by the Purchaser or any Depositor
        to
        be necessary in order to effect such compliance.

      

      20. Article
        IX of the Agreement is hereby amended effective as of the date hereof by
        deleting the first sentence of the last paragraph of Section 9.01 and replacing
        it with the following (new text underlined):

      

      Then,
        and
        in each and every such case, so long as an Event of Default shall not have
        been
        remedied, the Purchaser, by notice in writing to the Company (except in the
        case
        of an Event of Default under clauses (iii), (iv) or (v) above, or
        as
        otherwise stated herein,
        in
        which case, automatically and without notice) may, in addition to whatever
        rights the Purchaser or
        Master Servicer
        may have
        under Sections 3.03 and 8.01 and at law or equity or to damages, including
        injunctive relief and specific performance, terminate all the rights and
        obligations of the Company (and
        if the Company is servicing any of the Mortgage Loans in a Securitization
        Transaction, appoint a successor Servicer reasonably acceptable to any Master
        Servicer for such Securitization Transaction)
        under
        this Agreement and in and to the Mortgage Loans and the proceeds thereof
        without
        compensating the Company for the same except for compensation and rights
        arising
        prior to such termination.

      

      21. Article
        IX of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following at the end of the last paragraph of Section 9.01:

      

      The
        Company shall promptly reimburse the Purchaser (or any designee of the
        Purchaser, such as a master servicer) and any Depositor, as applicable, for
        all
        reasonable expenses incurred by the Purchaser (or such designee) or such
        Depositor, as such are incurred, in connection with the termination of the
        Company as Servicer for cause and the transfer of servicing of the Mortgage
        Loans to a successor Servicer due to such termination for cause. The provisions
        of this paragraph shall not limit whatever rights the Purchaser or any Depositor
        may have under other provisions of this Agreement and/or any applicable
        Reconstitution Agreement or otherwise, whether in equity or at law, such
        as an
        action for damages, specific performance or injunctive relief.

      

      22. Article
        XI of the Agreement is hereby amended effective as of the date hereof by
        restating Section 11.18 in its entirety as follows:

      

      Section
        11.18. Cooperation
        of Company with a Reconstitution.

      

      The
        Company and the Purchaser agree that with respect to some or all of the Mortgage
        Loans, on or after the related Closing Date, on one or more dates (each a
        "Reconstitution Date") at the Purchaser's sole option, the Purchaser may
        effect
        a sale (each, a "Reconstitution") of some or all of the Mortgage Loans then
        subject to this Agreement, without recourse, to:

      

      (a) one
        or
        more third party purchasers in one or more in whole loan transfers (each,
        a
        "Whole Loan Transfer"); or

      

      (b) one
        or
        more trusts or other entities to be formed as part of one or more Pass-Through
        Transfers.

      

      The
        Company agrees to execute in connection with any agreements among the Purchaser,
        the Company, and any Servicer in connection with a Whole Loan Transfer, an
        Assignment, Assumption and Recognition Agreement substantially in the form
        of
Exhibit
        D
        hereto,
        or, at Purchaser’s request, a seller's warranties and servicing agreement or a
        participation and servicing agreement or similar agreement in form and substance
        reasonably acceptable to the parties (including the Company), and in connection
        with a Pass-Through Transfer, a pooling and servicing agreement in form and
        substance reasonably acceptable to the parties and the Company, (collectively
        the agreements referred to herein are designated, the "Reconstitution
        Agreements"). It is understood that any such Reconstitution Agreements will
        not
        contain any greater obligations on the part of Company than are contained
        in
        this Agreement. Notwithstanding anything to the contrary in this Section
        11.18,
        the Company agrees that it is required to perform the obligations described
        in
Exhibit
        J
        hereto.

      

      With
        respect to each Whole Loan Transfer and each Pass-Through Transfer entered
        into
        by the Purchaser, the Company agrees (1) to cooperate fully with the Purchaser
        and any prospective purchaser with respect to all reasonable requests and,
        at
        the Purchaser’s expense due diligence procedures; (2) to execute, deliver and
        perform all Reconstitution Agreements required by the Purchaser subject to
        the
        limitations of this Section 11.18; and (3) to restate the representations
        and
        warranties set forth in this Agreement as of the settlement or closing date
        in
        connection with such Reconstitution (each, a "Reconstitution Date").

      

      In
        addition, the Company shall provide to such Servicer or issuer, as the case
        may
        be, and any other participants in such Reconstitution upon the Purchaser’s
        request and subject to the limitations of this Section 11.18:

      

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

      

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

      

      (iii) within
        5
        Business Days after request by the Purchaser, the information with respect
        to
        the Company (as Originator) and each Third-Party Originator of the Mortgage
        Loans as required under Item 1110(a) and (b) of Regulation AB, a summary
        of the
        requirements of which has of the date hereof is attached hereto as Exhibit
        L
        for
        convenience of reference only. If requested by the Purchaser, this will include
        information about the applicable credit-granting or underwriting
        criteria;

      

      (iv) within
        5
        Business Days after request by the Purchaser, the Company shall provide (or,
        as
        applicable, cause each Third-Party Originator to provide) Static Pool
        Information with respect to the mortgage loans (of a similar type as the
        Mortgage Loans, as reasonably identified by the Purchaser as provided below)
        originated by (i) the Company, if the Company is an originator of Mortgage
        Loans
        (including as an acquirer of Mortgage Loans from a Qualified Correspondent),
        and/or (ii) each Third-Party Originator. Such Static Pool Information shall
        be
        prepared by the Company (or Third-Party Originator) on the basis of its
        reasonable, good faith interpretation of the requirements of Item 1105(a)(1)-(3)
        and (c) provided, however, that Seller shall not be required to provide Static
        Pool Information with respect to mortgage loans originated prior to January
        1,
        2006 pursuant to Item 1105(f) of Regulation AB; provided, further, however
        that
        Seller shall provide such information if it becomes reasonably available
        to
        Seller. To the extent that there is reasonably available to the Company (or
        Third-Party Originator) Static Pool Information with respect to more than
        one
        mortgage loan type, the Purchaser or any Depositor shall be entitled to specify
        whether some or all of such information shall be provided pursuant to this
        paragraph. The content and presentation of such Static Pool Information may
        be
        in the form customarily provided by the Company, and need not be customized
        for
        the Purchaser or any Depositor. Such Static Pool Information for each vintage
        origination year or prior securitized pool, as applicable, shall be presented
        in
        increments no less frequently than quarterly over the life of the mortgage
        loans
        included in the vintage origination year or prior securitized pool. The most
        recent periodic increment must be as of a date no later than 135 days prior
        to
        the date of the prospectus or other offering document in which the Static
        Pool
        Information is to be included or incorporated by reference. The Static Pool
        Information shall be provided in an electronic format that provides a permanent
        record of the information provided, such as a portable document format (pdf)
        file, or other such electronic format as customarily provided by Seller or
        if
        Seller does not customarily provide such information as reasonably required
        by
        the Purchaser or the Depositor, as applicable and agreed to by the
        Company;

      

      (v)  
         within
        5
        Business Days after request by the Purchaser, information with respect to
        the
        Company (as Servicer) as required by Item
        1108(b) and (c) of Regulation AB,
        and
        provided the Company (as Servicer) meets the criteria in Item 1108(a)(3).
        A
        summary of the requirements of Item 1108(b) and (c) of Regulation AB is attached
        hereto as Exhibit
        L
        for
        convenience of reference only. In the event that the Company has delegated
        any
        servicing responsibilities with respect to the Mortgage Loans to a Subservicer,
        the Company shall provide the information required pursuant to this clause
        with
        respect to the Subservicer;

      

      (vi)  within
        5
        Business Days after request by the Purchaser, 

      (a)
        if
        the Company (or Third-Party Originator of Subservicer as the case may be)
        meets
        the disclosure criteria of Item 1117 of Regulation AB, information regarding
        any
        legal proceedings pending (or known to be contemplated by governmental
        authorities) against the Company (as Originator and as Servicer) and each
        Third-Party Originator of the Mortgage Loans and each Subservicer that could
        be
        material to investors in the Securities issued in the related Securitization
        Transaction, a summary of the requirements of Item 1117 of Regulation AB
        as of
        the date hereof is attached hereto as Exhibit
        L
        for
        convenience of reference only;

      (b)
        if
        the Company (or Third-Party Originator of Subservicer as the case may be)
        meets
        the disclosure criteria of Item 1119 of Regulation AB, information regarding
        affiliations with respect to the Company (as Originator and as Servicer)
        and
        each Third-Party Originator of the Mortgage Loans and each Subservicer as
        required by Item 1119(a) of Regulation AB, a summary of the requirements
        of Item
        1119(a) of Regulation AB as of the date hereof is attached hereto as
Exhibit
        L
        for
        convenience of reference only; and

      (c)
        if
        the Company (or Third-Party Originator of Subservicer as the case may be)
        meets
        the disclosure criteria of Item 1119 of Regulation AB,information regarding
        relationships and transactions with respect to the Company (as Originator
        and as
        Servicer) and each Third-Party Originator of the Mortgage Loans and each
        Subservicer as required by Item 1119(b) and (c) of Regulation AB, a summary
        of
        the requirements of Item 1119(b) and (c) of Regulation AB as of the date
        hereof
        is attached hereto as Exhibit
        L
        for
        convenience of reference only; and 

      

      (vii) if
        so
        requested by the Purchaser, the Company shall provide (or, as applicable,
        cause
        each Third-Party Originator to provide), at the expense of the requesting
        party
        (to the extent of any additional incremental expense associated with delivery
        pursuant to this Agreement), such statements and agreed-upon procedures letters
        of certified public accountants reasonably acceptable to the Purchaser or
        Depositor, as applicable, pertaining to Static Pool Information relating
        to
        prior securitized pools for securitizations closed on or after January 1,
        2006
        or, in the case of Static Pool Information with respect to the Company’s or
        Third-Party Originator’s originations or purchases, to calendar months
        commencing January 1, 2006, or to any financial information included in any
        other disclosure provided under this Section 11.18, as the Purchaser or such
        Depositor shall reasonably request. Such statements and letters shall be
        addressed to and be for the benefit of such parties as the Purchaser or such
        Depositor shall designate, which may include, by way of example, any Sponsor,
        any Depositor and any broker dealer acting as underwriter, placement agent
        or
        initial purchaser with respect to a Pass-Through Transfer. Any such statement
        or
        letter may take the form of a standard, generally applicable document
        accompanied by a reliance letter authorizing reliance by the addressees
        designated by the Purchaser or such Depositor;

      

      (viii) Following
        the date of any Pass-Through Transfer after January 1, 2006 containing Mortgage
        Loans and for the period while such Mortgage Loans are in any Pass-Through
        Transfer, the Purchaser agrees to furnish to the Company, within forty-five
        (45)
        days of the close of each related month, on a monthly basis, loan level
        performance information regarding the related Mortgage Loans, including
        delinquency, foreclosure and loss data, but excluding any personal borrower
        information, which Purchaser deems necessary for the Company’s compliance with
        Regulation AB, and to be used by the Company solely on an aggregate basis
        for
        Regulation AB disclosure purposes. The preceding sentence shall only apply
        to
        Mortgage Loans for which Purchaser is the Servicer; provided, however, that
        if
        Purchaser is no longer the Servicer of the related Mortgage Loans, the Purchaser
        shall use its best efforts to require the new Servicer to provide such
        information. The Company agrees that the Purchaser may thereafter provide
        updated performance information on the Mortgage Loans for any previous
        period.

      

      (ix) If
        so
        requested, in writing, by the Purchaser or any Depositor for the purpose
        of
        satisfying its reporting obligation under the Exchange Act with respect to
        any
        class of asset-backed securities, the Company shall (or shall cause each
        Subservicer and Third-Party Originator to), provided that the Company (and
        each
        Subservicer and Third-Party Originator, as the case may be) meets the disclosure
        requirements of items 1117 and 1119 of Regulation AB, as the case may be,
        for
        such disclosure period (i) provide prompt notice to the Purchaser, any Master
        Servicer and any Depositor in writing of (A) any legal proceedings pending,
        or
        known to be contemplated by governmental authorities against the Company,
        any
        Subservicer or any Third-Party Originator that could be material to investors
        in
        the securities issued in such Securitization Transaction that develop following
        the closing date of such Securitization Transaction, (B) any known affiliations
        or relationships that develop following the closing date of a Securitization
        Transaction between the Company, any Subservicer or any Third-Party Originator
        and any of the parties (provided that the requesting party identify, in writing,
        such parties by name) specified in clause (D) of paragraph (a) of this Section
        (and any other parties identified in writing by the requesting party) with
        respect to such Securitization Transaction, (C) any Event of Default under
        the
        terms of this Agreement or any Reconstitution Agreement, (D) any merger,
        consolidation or sale of substantially all of the assets of the Company,
        and (E)
        the Company’s entry into an agreement with a Subservicer to perform or assist in
        the performance of any of the Company’s obligations under this Agreement or any
        Reconstitution Agreement and (ii) provide to the Purchaser and any Depositor
        a
        description of such proceedings, affiliations or relationships. The obligations
        of the Company under this paragraph (ix) with respect to a Securitization
        Transaction shall terminate upon the termination of the Purchaser’s and
        Depositor’s reporting obligations under the Exchange Act with respect to such
        securitization; 

      

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

      

      (x)
        In
        addition to such information as the Company, as Servicer, is obligated to
        provide pursuant to other provisions of this Agreement, not later than ten
        days
        prior to the deadline for the filing of any distribution report on Form 10-D
        in
        respect of any Securitization Transaction that includes any of the Mortgage
        Loans serviced by the Company or any Subservicer, the Company or such
        Subservicer, as applicable, shall, to the extent the Company or such Subservicer
        has knowledge, provide to the party responsible for filing such report
        (including, if applicable, the Master Servicer) notice of the occurrence
        of any
        of the following events with respect to such Mortgage Loans serviced by the
        Company along with all information, data, and materials related thereto as
        may
        be required to be included in the related distribution report on Form 10-D
        (as
        specified in the provisions of Regulation AB referenced below):

      

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

      

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

      

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

      

      (xi)
        The
        Company shall provide to the Purchaser, any Master Servicer and any Depositor,
        evidence of the authorization of the person signing any certification or
        statement, copies or other evidence of Fidelity Bond Insurance and Errors
        and
        Omission Insurance policy, financial information and reports, and such other
        information related to the Company or any Subservicer or the Company or such
        Subservicer’s performance hereunder.

      

      In
        the
        event of a conflict or inconsistency between the terms of Exhibit
        L
        and the
        text of the applicable Item of Regulation AB as cited above, the text of
        Regulation AB, its adopting release and other public statements of the SEC
        shall
        control.

      

      The
        Company shall indemnify the Purchaser, the Depositor, and the Master Servicer,
        and each of their respective affiliates including as applicable each of the
        following parties participating in a Pass-Through Transfer: each sponsor
        and
        issuing entity; each Person (including, but not limited to, any Master Servicer,
        if applicable) responsible for the preparation, execution or filing of any
        report required to be filed with the Commission with respect to such
        Pass-Through Transfer, or for execution of a certification pursuant to Rule
        13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
        Pass-Through Transfer; each broker dealer acting as underwriter, placement
        agent
        or initial purchaser with respect to such Pass-Through Transfer, each Person
        who
        controls any of such parties or the Depositor (within the meaning of Section
        15
        of the Securities Act and Section 20 of the Exchange Act); and the respective
        present and former directors, officers, employees, agents and affiliates
        of each
        of the foregoing and of the Depositor (each, an “Indemnified Party”), and shall
        hold each of them harmless from and against any claims, losses, damages,
        penalties, fines, forfeitures, legal fees and expenses and related costs,
        judgments, and any other costs, fees and expenses that any of them may sustain
        (each, a “Regulation AB Loss”) arising out of or based upon:

      

      (i)(A)
        any
        untrue statement of a material fact contained or alleged to be contained
        in any
        information, report, certification, data, accountants’ letter or other material
        provided under this Section 11.18 by the Company or by another third-party
        on
        the direction of the Company,
        or
        provided under this Section 11.18 by or at the direction of any Subservicer,
        Subcontractor or Third-Party Originator (collectively, the “Company
        Information”), or (B) the omission or alleged omission to state in the Company
        Information a material fact required to be stated in the Company Information
        or
        necessary in order to make the statements therein, in the light of the
        circumstances under which they were made, not misleading; provided, by way
        of
        clarification, that clause (B) of this paragraph shall be construed solely
        by
        reference to the Company Information and not to any other information
        communicated in connection with a sale or purchase of securities, without
        regard
        to whether the Company Information or any portion thereof is presented together
        with or separately from such other information;

      

      (ii)
        any
        breach by the Company of its obligations under this Section 11.18, including
        particularly any failure by the Company, any Subservicer, any Subcontractor
        or
        any Third-Party Originator to deliver any information, report, certification,
        accountants’ letter or other material when and as required under this Section
        11.18, including any failure by the Company to identify pursuant to Section
        11.19 any Subcontractor “participating in the servicing function” within the
        meaning of Item 1122 of Regulation AB;

      

      (iii)
        any
        breach by the Company of a representation or warranty set forth in Section
        3.01
        or in a writing furnished pursuant to Section 3.01(q) and made as of a date
        prior to the closing date of the related Pass-Through Transfer, to the extent
        that such breach is not cured by such closing date, or any breach by the
        Company
        of a representation or warranty in a writing furnished pursuant to Section
        3.01(q) to the extent made as of a date subsequent to such closing date;
        or

      

      (iv)
        the
        negligence bad faith or willful misconduct of the Company in connection with
        its
        performance under this Section 11.18.

      

      In
        the
        case of any claim involving Regulation AB Losses instituted involving any
        untrue
        statement of a material fact alleged to be contained in any Company Information,
        the Purchaser shall notify the Company and the Company may, but only with
        the
        written approval of the Purchaser in the Purchaser’s sole discretion, retain
        counsel satisfactory to the Purchaser to represent the Purchaser with respect
        to
        the Regulation AB Losses (provided that the counsel so designated would have
        no
        actual or potential conflict of interest in connection with such
        representation), and the Company shall pay the fees and disbursements of
        such
        counsel related to such claim. If the Company assumes the defense of such
        proceeding, it shall be entitled to settle such proceeding with the written
        consent of the Purchaser (in its sole discretion) or, if such settlement
        provides for release of the Purchaser in connection with all matters relating
        to
        the proceeding which have been asserted against the Purchaser in such proceeding
        by the other parties to such settlement, without the consent of the
        Purchaser.

      

      For
        purposes of clarification with respect to the indemnification given above
        in
        this Section 11.18, the Seller shall only be required to indemnify the
        Indemnified Parties with respect to Regulation AB Losses that any Indemnified
        Party incurs when such Regulation AB Losses arise out of or are based upon
        Company Information and only with respect to those Mortgage Loans sold pursuant
        to this Agreement; provided, that the indemnification provided in this Section
        11.18 shall be the only indemnification with respect to Regulation AB Losses;
        provided, further, that if any loan performance information is not provided
        to
        the Company pursuant to this Agreement, the Company shall have no obligation
        to
        indemnify any Indemnified Party for Regulation AB Losses arising from the
        Company’s failure to provide Static Pool Information.

      

      If
        the
        indemnification provided for herein is unavailable or insufficient to hold
        harmless an Indemnified Party, then the Company agrees that it shall contribute
        to the amount paid or payable by such Indemnified Party as a result of any
        claims, losses, damages or liabilities incurred by such Indemnified Party
        in
        such proportion as is appropriate to reflect the relative fault of such
        Indemnified Party on the one hand and the Company on the other. 

      

      In
        the
        case of any failure of performance described above, the Company shall promptly
        reimburse the Purchaser, any Depositor, as applicable, and each Person
        responsible for the preparation, execution or filing of any report required
        to
        be filed with the Commission with respect to such Securitization Transaction,
        or
        for execution of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d)
        under the Exchange Act with respect to such Securitization Transaction, for
        all
        costs reasonably incurred by each such party in order to obtain the information,
        report, certification, accountants’ letter or other material not delivered as
        required by the Company, any Subservicer, any Subcontractor or any Third-Party
        Originator.

      

      This
        indemnification shall survive the termination of this Agreement or the
        termination of any party to this Agreement.

      

      All
        Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
        remain
        subject to, and serviced in accordance with the terms of, this Agreement
        and the
        related Term Sheet, and with respect thereto this Agreement and the related
        Term
        Sheet shall remain in full force and effect.

      

      23. Article
        XI of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following new Section 11.19:

      

      Section
        11.19. Use
        of
        Subservicers and Subcontractors.

      

      (a) The
        Company shall not hire or otherwise utilize the services of any Subservicer
        to
        fulfill any of the obligations of the Company as Servicer under this Agreement
        or any Reconstitution Agreement unless the Company complies with the provisions
        of paragraph (b) of this Section. The Company shall not hire or otherwise
        utilize the services of any Subcontractor, and shall not permit any Subservicer
        to hire or otherwise utilize the services of any Subcontractor, to fulfill
        any
        of the obligations of the Company as Servicer under this Agreement or any
        Reconstitution Agreement unless the Company complies with the provisions
        of
        paragraph (d) of this Section. 

      

      (b) The
        Company shall cause any Subservicer used by the Company (or by any Subservicer)
        for the benefit of the Purchaser and any Depositor to comply with the provisions
        of this Section and with Sections 3.01(p), 3.01(s), 6.04, 6.07 and 11.18
        of this
        Agreement to the same extent as if such Subservicer were the Company, and
        to
        provide the information required with respect to such Subservicer under Section
        3.01(r) of this Agreement. The Company shall be responsible for obtaining
        from
        each Subservicer and delivering to the Purchaser, any Master Servicer and
        any
        Depositor any Annual Statement of Compliance required to be delivered by
        such
        Subservicer under Section 6.04(a), any Assessment of Compliance and Attestation
        Report required to be delivered by such Subservicer under Section 6.07 and
        any
        Annual Certification required under Section 6.04(b) as and when required
        to be
        delivered under this Agreement.

      

      (c) The
        Company shall promptly upon request provide to the Purchaser, any Master
        Servicer and any Depositor (or any designee of the Depositor, such as an
        administrator) a written description (in form and substance satisfactory
        to the
        Purchaser, any Master Servicer and such Depositor) of the role and function
        of
        each Subcontractor utilized by the Company or any Subservicer, specifying
        (i)
        the identity of each such Subcontractor, (ii) which (if any) of such
        Subcontractors are “participating in the servicing function” within the meaning
        of Item 1122 of Regulation AB, and (iii) which elements of the Servicing
        Criteria will be addressed in assessments of compliance provided by each
        Subcontractor identified pursuant to clause (ii) of this paragraph.

      

      (d) As
        a
        condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB, the Company shall cause any such Subcontractor used by the
        Company (or by any Subservicer) for the benefit of the Purchaser and any
        Depositor to comply with the provisions of Sections 6.07 and 11.18 of this
        Agreement to the same extent as if such Subcontractor were the Company. The
        Company shall be responsible for obtaining from each Subcontractor and
        delivering to the Purchaser and any Depositor any Assessment of Compliance
        and
        Attestation Report and the other certificates required to be delivered by
        such
        Subservicer and such Subcontractor under Section 6.07, in each case as and
        when
        required to be delivered.

      

      24. Article
        XI of the Agreement is hereby amended effective as of the date hereof by
        adding
        the following new Section 11.20:

      

      Section
        11.20. Third
        Party Beneficiary Rights, Benefits and Obligations.

      

      For
        purposes of this Agreement, each Master Servicer shall be considered a
        third party beneficiary to this Agreement, entitled to all the rights and
        benefits hereof and as limited herein as if it were a direct party to this
        Agreement.

      

      25. The
        Agreement is hereby amended effective as of the date hereof by adding the
        following new Exhibit E:

       

      EXHIBIT
        E

      

      REPORTING
        DATA FOR MONTHLY REPORT

      

      
        	
                Standard
                  File Layout - Master Servicing

              
	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	 	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	 	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	 	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	 	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  Servicer's fee rate for a loan as reported by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  Servicer's fee amount for a loan as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment
                  amount.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	 	
                MM/DD/YYYY

              	
                10

              
	 	 	 	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO

              	
                2

              
	
                ACTION_CODE

              	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	 	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              

      

       

      26. The
        Agreement is hereby amended effective as of the date hereof by adding the
        following new Exhibit F:

      

      EXHIBIT
        F

      

      REPORTING
        DATA FOR DEFAULTED LOANS

      

      Standard
        File Layout - Delinquency Reporting

      

      
        	
                Column/Header
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR

              	
                 

              	
                 

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the Originator.

              	
                 

              	
                 

              
	
                CLIENT_NBR

              	
                Servicer
                  Client Number

              	
                 

              	
                 

              
	
                SERV_INVESTOR_NBR

              	
                Contains
                  a unique number as assigned by an external Servicer to identify
                  a group of
                  loans in their system.

              	
                 

              	
                 

              
	
                BORROWER_FIRST_NAME

              	
                First
                  Name of the Borrower.

              	
                 

              	
                 

              
	
                BORROWER_LAST_NAME

              	
                Last
                  name of the borrower.

              	
                 

              	
                 

              
	
                PROP_ADDRESS

              	
                Street
                  Name and Number of Property

              	
                 

              	
                 

              
	
                PROP_STATE

              	
                The
                  state where the property located.

              	
                 

              	
                 

              
	
                PROP_ZIP

              	
                Zip
                  code where the property is located.

              	
                 

              	
                 

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date that the borrower's next payment is due to the Servicer at
                  the end of
                  processing cycle, as reported by Servicer.

              	
                 

              	
                MM/DD/YYYY

              
	
                LOAN_TYPE

              	
                Loan
                  Type (i.e. FHA, VA, Conv)

              	
                 

              	
                 

              
	
                BANKRUPTCY_FILED_DATE

              	
                The
                  date a particular bankruptcy claim was filed.

              	
                 

              	
                MM/DD/YYYY

              
	
                BANKRUPTCY_CHAPTER_CODE

              	
                The
                  chapter under which the bankruptcy was filed.

              	
                 

              	
                 

              
	
                BANKRUPTCY_CASE_NBR

              	
                The
                  case number assigned by the court to the bankruptcy
                  filing.

              	
                 

              	
                 

              
	
                POST_PETITION_DUE_DATE

              	
                The
                  payment due date once the bankruptcy has been approved by the
                  courts

              	
                 

              	
                MM/DD/YYYY

              
	
                BANKRUPTCY_DCHRG_DISM_DATE

              	
                The
                  Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                  Discharged
                  and/or a Motion For Relief Was Granted. 

              	
                 

              	
                MM/DD/YYYY

              
	
                LOSS_MIT_APPR_DATE

              	
                The
                  Date The Loss Mitigation Was Approved By The Servicer

              	
                 

              	
                MM/DD/YYYY

              
	
                LOSS_MIT_TYPE

              	
                The
                  Type Of Loss Mitigation Approved For A Loan Such As;

              	
                 

              	
                 

              
	
                LOSS_MIT_EST_COMP_DATE

              	
                The
                  Date The Loss Mitigation /Plan Is Scheduled To End/Close

              	
                 

              	
                MM/DD/YYYY

              
	
                LOSS_MIT_ACT_COMP_DATE

              	
                The
                  Date The Loss Mitigation Is Actually Completed

              	
                 

              	
                MM/DD/YYYY

              
	
                FRCLSR_APPROVED_DATE

              	
                The
                  date DA Admin sends a letter to the Servicer with instructions
                  to begin
                  foreclosure proceedings.

              	
                 

              	
                MM/DD/YYYY

              
	
                ATTORNEY_REFERRAL_DATE

              	
                Date
                  File Was Referred To Attorney to Pursue Foreclosure

              	
                 

              	
                MM/DD/YYYY

              
	
                FIRST_LEGAL_DATE

              	
                Notice
                  of 1st legal filed by an Attorney in a Foreclosure Action

              	
                 

              	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_EXPECTED_DATE

              	
                The
                  date by which a foreclosure sale is expected to occur.

              	
                 

              	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_DATE

              	
                The
                  actual date of the foreclosure sale.

              	
                 

              	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_AMT

              	
                The
                  amount a property sold for at the foreclosure sale.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                EVICTION_START_DATE

              	
                The
                  date the Servicer initiates eviction of the borrower.

              	
                 

              	
                MM/DD/YYYY

              
	
                EVICTION_COMPLETED_DATE

              	
                The
                  date the court revokes legal possession of the property from the
                  borrower.

              	
                 

              	
                MM/DD/YYYY

              
	
                LIST_PRICE

              	
                The
                  price at which an REO property is marketed.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                LIST_DATE

              	
                The
                  date an REO property is listed at a particular price.

              	
                 

              	
                MM/DD/YYYY

              
	
                OFFER_AMT

              	
                The
                  dollar value of an offer for an REO property.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                OFFER_DATE_TIME

              	
                The
                  date an offer is received by DA Admin or by the Servicer.

              	
                 

              	
                MM/DD/YYYY

              
	
                REO_CLOSING_DATE

              	
                The
                  date the REO sale of the property is scheduled to close.

              	
                 

              	
                MM/DD/YYYY

              
	
                REO_ACTUAL_CLOSING_DATE

              	
                Actual
                  Date Of REO Sale

              	
                 

              	
                MM/DD/YYYY

              
	
                OCCUPANT_CODE

              	
                Classification
                  of how the property is occupied.

              	
                 

              	
                 

              
	
                PROP_CONDITION_CODE

              	
                A
                  code that indicates the condition of the property.

              	
                 

              	
                 

              
	
                PROP_INSPECTION_DATE

              	
                The
                  date a property inspection is performed.

              	
                 

              	
                MM/DD/YYYY

              
	
                APPRAISAL_DATE

              	
                The
                  date the appraisal was done.

              	
                 

              	
                MM/DD/YYYY

              
	
                CURR_PROP_VAL

              	
                 The
                  current "as is" value of the property based on brokers price opinion
                  or
                  appraisal.

              	
                2

              	
                 

              
	
                REPAIRED_PROP_VAL

              	
                The
                  amount the property would be worth if repairs are completed pursuant
                  to a
                  broker's price opinion or appraisal.

              	
                2

              	
                 

              
	
                If
                  applicable:

              	
                 

              	
                 

              	
                 

              
	
                DELINQ_STATUS_CODE

              	
                FNMA
                  Code Describing Status of Loan

              	
                 

              	
                 

              
	
                DELINQ_REASON_CODE

              	
                The
                  circumstances which caused a borrower to stop paying on a loan.
                  Code
                  indicates the reason why the loan is in default for this
                  cycle.

              	
                 

              	
                 

              
	
                MI_CLAIM_FILED_DATE

              	
                Date
                  Mortgage Insurance Claim Was Filed With Mortgage Insurance
                  Company.

              	
                 

              	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT

              	
                Amount
                  of Mortgage Insurance Claim Filed

              	
                 

              	
                No
                  commas(,) or dollar signs ($)

              
	
                MI_CLAIM_PAID_DATE

              	
                Date
                  Mortgage Insurance Company Disbursed Claim Payment

              	
                 

              	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT_PAID

              	
                Amount
                  Mortgage Insurance Company Paid On Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_FILED_DATE

              	
                Date
                  Claim Was Filed With Pool Insurance Company

              	
                 

              	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT

              	
                Amount
                  of Claim Filed With Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_PAID_DATE

              	
                Date
                  Claim Was Settled and The Check Was Issued By The Pool
                  Insurer

              	
                 

              	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT_PAID

              	
                Amount
                  Paid On Claim By Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_FILED_DATE

              	
                 Date
                  FHA Part A Claim Was Filed With HUD

              	
                 

              	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_AMT

              	
                 Amount
                  of FHA Part A Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_PAID_DATE

              	
                 Date
                  HUD Disbursed Part A Claim Payment

              	
                 

              	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part A Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_FILED_DATE

              	
                  Date
                  FHA Part B Claim Was Filed With HUD

              	
                 

              	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_AMT

              	
                  Amount
                  of FHA Part B Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_PAID_DATE

              	
                   Date
                  HUD Disbursed Part B Claim Payment

              	
                 

              	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part B Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                VA_CLAIM_FILED_DATE

              	
                 Date
                  VA Claim Was Filed With the Veterans Admin

              	
                 

              	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_DATE

              	
                 Date
                  Veterans Admin. Disbursed VA Claim Payment

              	
                 

              	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_AMT

              	
                 Amount
                  Veterans Admin. Paid on VA Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              

      

       

       

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting

       

      The
        Loss
        Mit Type
        field
        should show the approved Loss Mitigation Code as follows: 

       

      
        	·  	
                ASUM-Approved
                  Assumption

              

      

       

      
        	·  	
                BAP-Borrower
                  Assistance Program

              

      

       

      
        	·  	
                CO-
                  Charge Off

              

      

       

      
        	·  	
                DIL-
                  Deed-in-Lieu

              

      

       

      
        	·  	
                FFA-
                  Formal Forbearance Agreement

              

      

       

      
        	·  	
                MOD-
                  Loan Modification

              

      

       

      
        	·  	
                PRE-
                  Pre-Sale

              

      

       

      
        	·  	
                SS-
                  Short Sale

              

      

       

      
        	·  	
                MISC-Anything
                  else approved by the PMI or Pool
                  Insurer

              

      

       

      NOTE:
        Wells
        Fargo Bank will accept alternative Loss Mitigation Types to those above,
        provided that they are consistent with industry standards. If Loss Mitigation
        Types other than those above are used, the Servicer must supply Wells Fargo
        Bank
        with a description of each of the Loss Mitigation Types prior to sending
        the
        file.

       

      The
        Occupant
        Code
        field
        should show the current status of the property code as follows:

       

      
        	·  	
                Mortgagor

              

      

       

      
        	·  	
                Tenant

              

      

       

      
        	·  	
                Unknown
                  

              

      

       

      
        	·  	
                Vacant

              

      

       

      The
        Property
        Condition
        field
        should show the last reported condition of the property as follows:

       

      
        	·  	
                Damaged

              

      

       

      
        	·  	
                Excellent

              

      

       

      
        	·  	
                Fair

              

      

       

      
        	·  	
                Gone

              

      

       

      
        	·  	
                Good

              

      

       

      
        	·  	
                Poor

              

      

       

      
        	·  	
                Special
                  Hazard

              

      

       

      
        	·  	
                Unknown

              

      

       

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

       

      The
        FNMA
        Delinquent Reason Code
        field
        should show the Reason for Delinquency as follows: 

       

      

      
        	
                Delinquency
                  Code

              	
                Delinquency
                  Description

              
	
                001

              	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	
                FNMA-Marital
                  difficulties

              
	
                006

              	
                FNMA-Curtailment
                  of income

              
	
                007

              	
                FNMA-Excessive
                  Obligation

              
	
                008

              	
                FNMA-Abandonment
                  of property

              
	
                009

              	
                FNMA-Distant
                  employee transfer

              
	
                011

              	
                FNMA-Property
                  problem

              
	
                012

              	
                FNMA-Inability
                  to sell property

              
	
                013

              	
                FNMA-Inability
                  to rent property

              
	
                014

              	
                FNMA-Military
                  Service

              
	
                015

              	
                FNMA-Other

              
	
                016

              	
                FNMA-Unemployment

              
	
                017

              	
                FNMA-Business
                  failure

              
	
                019

              	
                FNMA-Casualty
                  loss

              
	
                022

              	
                FNMA-Energy
                  environment costs

              
	
                023

              	
                FNMA-Servicing
                  problems

              
	
                026

              	
                FNMA-Payment
                  adjustment

              
	
                027

              	
                FNMA-Payment
                  dispute

              
	
                029

              	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	
                FNMA-Fraud

              
	
                031

              	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	
                FNMA-Incarceration

              

      

       

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

       

      The
        FNMA
        Delinquent Status Code
        field
        should show the Status of Default as follows: 

       

      

      
        	
                Status
                  Code

              	
                Status
                  Description

              
	
                09

              	
                Forbearance

              
	
                17

              	
                Pre-foreclosure
                  Sale Closing Plan Accepted

              
	
                24

              	
                Government
                  Seizure

              
	
                26

              	
                Refinance

              
	
                27

              	
                Assumption

              
	
                28

              	
                Modification

              
	
                29

              	
                Charge-Off

              
	
                30

              	
                Third
                  Party Sale

              
	
                31

              	
                Probate

              
	
                32

              	
                Military
                  Indulgence

              
	
                43

              	
                Foreclosure
                  Started

              
	
                44

              	
                Deed-in-Lieu
                  Started

              
	
                49

              	
                Assignment
                  Completed

              
	
                61

              	
                Second
                  Lien Considerations

              
	
                62

              	
                Veteran’s
                  Affairs-No Bid

              
	
                63

              	
                Veteran’s
                  Affairs-Refund

              
	
                64

              	
                Veteran’s
                  Affairs-Buydown

              
	
                65

              	
                Chapter
                  7 Bankruptcy

              
	
                66

              	
                Chapter
                  11 Bankruptcy

              
	
                67

              	
                Chapter
                  13 Bankruptcy

              

      

       

      27. The
        Agreement is hereby amended effective as of the date hereof by adding the
        following new Exhibit J:

       

      EXHIBIT
        J

      

      COMPANY’S
        OBLIGATIONS IN CONNECTION 

      WITH
        A
        RECONSTITUTION

      

      • The
        Company shall (i) possess the ability to service to a securitization documents;
        (ii) service on a “Scheduled/Scheduled” reporting basis (advancing through the
        liquidation of an REO Property), (iii) make compensating interest payments
        on
        payoffs and curtailments and (iv) remit and report to a Master Servicer in
        format reasonably acceptable to such Master Servicer by the 10th calendar day of
        each month.

      

      • The
        Company shall provide an acceptable annual certification (officer’s certificate)
        to the Master Servicer (as required by the Sarbanes-Oxley Act of 2002) as
        well
        as any other annual certifications customarily required under the securitization
        documents (i.e. the annual statement as to compliance/annual independent
        certified public accountants’ servicing report due by March 1 of each year),
        provided that the Company has notice that such other annual certifications
        will
        be required.

      

      • The
        Company shall maintain its servicing system in accordance with the requirements
        of the Master Servicer.

      

      28. The
        Agreement is hereby amended effective as of the date hereof by adding the
        following new Exhibit K:

      

      EXHIBIT
        K

      

      FORM
        OF
        COMPANY CERTIFICATION

      

      Re:        
         The
        [ ]
        agreement dated as of [ l,
        200[ ]
        (the “Agreement”), among [IDENTIFY PARTIES]

      

      I,
        ____________________________, the _______________________ of [NAME OF COMPANY]
        (the “Company”), certify to [the Purchaser], [the Depositor], and the [Master
        Servicer] [Securities Administrator] [Trustee], and their officers, with
        the
        knowledge and intent that they will rely upon this certification,
        that:

      

      I
        have
        reviewed the servicer compliance statement of the Company provided in accordance
        with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
        assessment of the Company’s compliance with the servicing criteria set forth in
        Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance
        with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended
        (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing
        Assessment”), the registered public accounting firm’s attestation report
        provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act
        and
        Section 1122(b) of Regulation AB (the “Attestation Report”), and all servicing
        reports, officer’s certificates and other information relating to the servicing
        of the Mortgage Loans by the Company during 200[ ] that were delivered by
        the
        Company to the [Depositor] [Master Servicer] [Securities Administrator]
        [Trustee] pursuant to the Agreement (collectively, the “Company Servicing
        Information”);

      

      Based
        on
        my knowledge, the Company Servicing Information, taken as a whole, does not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Company Servicing Information;

      

      Based
        on
        my knowledge, all of the Company Servicing Information required to be provided
        by the Company under the Agreement has been provided to the [Depositor] [Master
        Servicer] [Securities Administrator] [Trustee];

      

      I
        am
        responsible for reviewing the activities performed by the Company as Servicer
        under the Agreement, and based on my knowledge and the compliance review
        conducted in preparing the Compliance Statement and except as disclosed in
        the
        Compliance Statement, the Servicing Assessment or the Attestation Report,
        the
        Company has fulfilled its obligations under the Agreement in all material
        respects; and

      

      The
        Compliance Statement required to be delivered by the Company pursuant to
        this
        Agreement, and the Servicing Assessment and Attestation Report required to
        be
        provided by the Company and by any Subservicer and Subcontractor pursuant
        to the
        Agreement, have been provided to the [Depositor] [Master Servicer]. Any material
        instances of noncompliance described in such reports have been disclosed
        to the
        [Depositor] [Master Servicer]. Any material instance of noncompliance with
        the
        Servicing Criteria has been disclosed in such reports.

      

      29. The
        Agreement is hereby amended effective as of the date hereof by adding the
        following new Exhibit L:

      

      EXHIBIT
        L

      

      SUMMARY
        OF APPLICABLE REGULATION AB REQUIREMENTS

      

      NOTE:
        This Exhibit L is provided for convenience of reference only. In the event
        of a
        conflict or inconsistency between the terms of this Exhibit L and the text
        of
        Regulation AB, the text of Regulation AB, its adopting release and other
        public
        statements of the SEC shall control. 

       

      Item
        1105(a)(1)-(3) and (c)

      

      -Provide
        static pool information with respect to mortgage loans that were originated
        or
        purchased by the Company and which are of the same type as the Mortgage
        Loans.

       

      -Provide
        static pool information regarding delinquencies, cumulative losses and
        prepayments for prior securitized pools of the Company.

       

      -If
        the
        Company has less than 3 years experience securitizing assets of the same
        type as
        the Mortgage Loans, the Company may provide the static pool information by
        vintage origination years regarding loans originated or purchased by the
        Company, instead of by prior securitized pool. A vintage origination year
        represents mortgage loans originated during the same year.

       

      -Such
        static pool information shall be for the prior five years, or for so long
        as the
        Company has been originating or purchasing (in the case of data by vintage
        origination year) or securitizing (in the case of data by prior securitized
        pools) such mortgage loans if for less than five years.

       

      -The
        static pool information for each vintage origination year or prior securitized
        pool, as applicable, shall be presented in monthly or quarterly increments
        over
        the life of the mortgage loans included in the vintage origination year or
        prior
        securitized pool.

       

      -Provide
        summary information for the original characteristics of the prior securitized
        pools or vintage origination years, as applicable and material, including:
        number of pool assets, original pool balance, weighted average initial loan
        balance, weighted average mortgage rate, weighted average and minimum and
        maximum FICO, product type, loan purpose, weighted average and minimum and
        maximum LTV, distribution of loans by mortgage rate, and geographic
        concentrations of 5% or more.

       

      Item
        1108(b) and (c)

      

      Provide
        the following information with respect to each servicer that will service,
        including interim service, 20% or more of the mortgage loans in any loan
        group
        in the securitization issued in the Pass-Through Transfer: 

       

      -a
        description of the Company’s form of organization;

       

      -a
        description of how long the Company has been servicing residential mortgage
        loans; a general discussion of the Company’s experience in servicing assets of
        any type as well as a more detailed discussion of the Company’s experience in,
        and procedures for the servicing function it will perform under this Agreement
        and any Reconstitution Agreements; information regarding the size, composition
        and growth of the Company’s portfolio of mortgage loans of the type similar to
        the Mortgage Loans and information on factors related to the Company that
        may be
        material to any analysis of the servicing of the Mortgage Loans or the related
        asset-backed securities, as applicable, including whether any default or
        servicing related performance trigger has occurred as to any other
        securitization due to any act or failure to act of the Company, whether any
        material noncompliance with applicable servicing criteria as to any other
        securitization has been disclosed or reported by the Company, and the extent
        of
        outsourcing the Company uses;

       

      -a
        description of any material changes to the Company’s policies or procedures in
        the servicing function it will perform under this Agreement and any
        Reconstitution Agreements for mortgage loans of the type similar to the Mortgage
        Loans during the past three years;

       

      -information
        regarding the Company’s financial condition to the extent that there is a
        material risk that the effect on one or more aspects of servicing resulting
        from
        such financial condition could have a material impact on the performance
        of the
        securities issued in the Pass-Through Transfer, or on servicing of mortgage
        loans of the same asset type as the Mortgage Loans;

       

      -any
        special or unique factors involved in servicing loans of the same type as
        the
        Mortgage Loans, and the Company’s processes and procedures designed to address
        such factors;

       

      -statistical
        information regarding principal and interest advances made by the Company
        on the
        Mortgage Loans and the Company’s overall servicing portfolio for the past three
        years; and

       

      -the
        Company’s process for handling delinquencies, losses, bankruptcies and
        recoveries, such as through liquidation of REO Properties, foreclosure, sale
        of
        the Mortgage Loans or workouts.

       

      Item
        1110(a)

      

      -Identify
        any originator or group of affiliated originators that originated, or is
        expected to originate, 10% or more of the mortgage loans in any loan group
        in
        the securitization issued in the Pass-Through Transfer.

      

      Item
        1110(b)

      

      Provide
        the following information with respect to any originator or group of affiliated
        originators that originated, or is expected to originate, 20% or more of
        the
        mortgage loans in any loan group in the securitization issued in the
        Pass-Through Transfer:

       

      -the
        Company’s form of organization; and

       

      -a
        description of the Company’s origination program and how long the Company has
        been engaged in originating residential mortgage loans, which description
        must
        include a discussion of the Company’s experience in originating mortgage loans
        of the same type as the Mortgage Loans and information regarding the size
        and
        composition of the Company’s origination portfolio as well as information that
        may be material to an analysis of the performance of the Mortgage Loans,
        such as
        the Company’s credit-granting or underwriting criteria for mortgage loans of the
        same type as the Mortgage Loans.

       

      Item
        1117

      

      -describe
        any legal proceedings pending against the Company or against any of its
        property, including any proceedings known to be contemplated by governmental
        authorities, that may be material to the holders of the securities issued
        in the
        Pass-Through Transfer.

       

      Item
        1119(a)

      

      -describe
        any affiliations of the Company, each other originator of the Mortgage Loans
        and
        each Subservicer with the sponsor, depositor, issuing entity, trustee, any
        originator, any other servicer, any significant obligor, enhancement or support
        provider or any other material parties related to the Pass-Through
        Transfer.

       

      Item
        1119(b)

      

      -describe
        any business relationship, agreement, arrangement, transaction or understanding
        entered into outside of the ordinary course of business or on terms other
        than
        those obtained in an arm’s length transaction with an unrelated third party,
        apart from the Pass-Through Transfer, between the Company, each other originator
        of the Mortgage Loans and each Subservicer, or their respective affiliates,
        and
        the sponsor, depositor or issuing entity or their respective affiliates,
        that
        exists currently or has existed during the past two years, that may be material
        to the understanding of an investor in the securities issued in the Pass-Through
        Transfer.

       

      Item
        1119(c)

      

      -describe
        any business relationship, agreement, arrangement, transaction or understanding
        involving or relating to the Mortgage Loans or the Pass-Through Transfer,
        including the material terms and approximate dollar amount involved, between
        the
        Company, each other originator of the Mortgage Loans and each Subservicer,
        or
        their respective affiliates and the sponsor, depositor or issuing entity
        or
        their respective affiliates, that exists currently or has existed during
        the
        past two years.

       

      30. The
        Agreement is hereby amended effective as of the date hereof by adding the
        following new Exhibit M:

      

      EXHIBIT
        M

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      

      The
        assessment of compliance to be delivered by [the Company] [Name of Subservicer]
        shall address, at a minimum, the criteria identified as below as “Applicable
        Servicing Criteria”:

      

      
        	
                Servicing
                  Criteria 

              	
                Applicable
                  Servicing Criteria

              
	
                Reference

              	
                Criteria

              	
                 

              
	
                 

              	
                General
                  Servicing Considerations

              	
                 

              
	
                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements.

              	
                 

              
	
                1122(d)(1)(ii)

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities.

              	
                 

              
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  Servicer
                  for the mortgage loans are maintained.

              	
                 

              
	
                1122(d)(1)(iv)

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements.

              	 
	
                 

              	
                Cash
                  Collection and Administration

              	 
	
                1122(d)(2)(i)

              	
                Payments
                  on mortgage loans are deposited into the appropriate custodial
                  bank
                  accounts and related bank clearing accounts no more than two business
                  days
                  following receipt, or such other number of days specified in the
                  transaction agreements.

              	
                 

              
	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel.

              	
                 

              
	
                1122(d)(2)(iii)

              	
                Advances
                  of funds or guarantees regarding collections, cash flows or distributions,
                  and any interest or other fees charged for such advances, are made,
                  reviewed and approved as specified in the transaction
                  agreements.

              	
                 

              
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of overcollateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements.

              	
                 

              
	
                1122(d)(2)(v)

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institution” with respect to
                  a foreign financial institution means a foreign financial institution
                  that
                  meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                  Act.

              	
                 

              
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized
                  access.

              	
                 

              
	
                1122(d)(2)(vii)

              	
                Reconciliations
                  are prepared on a monthly basis for all asset-backed securities
                  related
                  bank accounts, including custodial accounts and related bank clearing
                  accounts. These reconciliations are (A) mathematically accurate;
                  (B)
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction agreements;
                  (C)
                  reviewed and approved by someone other than the person who prepared
                  the
                  reconciliation; and (D) contain explanations for reconciling items.
                  These
                  reconciling items are resolved within 90 calendar days of their
                  original
                  identification, or such other number of days specified in the transaction
                  agreements.

              	 
	
                 

              	
                Investor
                  Remittances and Reporting

              	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of mortgage loans serviced by the
                  Servicer.

              	
                 

              
	
                1122(d)(3)(ii)

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements.

              	
                 

              
	
                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  Servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements.

              	
                 

              
	
                1122(d)(3)(iv)

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank
                  statements.

              	 
	
                 

              	
                Pool
                  Asset Administration

              	 
	
                1122(d)(4)(i)

              	
                Collateral
                  or security on mortgage loans is maintained as required by the
                  transaction
                  agreements or related mortgage loan documents.

              	
                 

              
	
                1122(d)(4)(ii)

              	
                Mortgage
                  loan and related documents are safeguarded as required by the transaction
                  agreements

              	
                 

              
	
                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements.

              	
                 

              
	
                1122(d)(4)(iv)

              	
                Payments
                  on mortgage loans, including any payoffs, made in accordance with
                  the
                  related mortgage loan documents are posted to the Servicer’s obligor
                  records maintained no more than two business days after receipt,
                  or such
                  other number of days specified in the transaction agreements, and
                  allocated to principal, interest or other items (e.g., escrow)
                  in
                  accordance with the related mortgage loan documents.

              	
                 

              
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the mortgage loans agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal
                  balance.

              	
                 

              
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor's mortgage loans
                  (e.g.,
                  loan modifications or re-agings) are made, reviewed and approved
                  by
                  authorized personnel in accordance with the transaction agreements
                  and
                  related pool asset documents.

              	
                 

              
	
                1122(d)(4)(vii)

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements.

              	
                 

              
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a mortgage
                  loan is delinquent in accordance with the transaction agreements.
                  Such
                  records are maintained on at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent mortgage loans including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or
                  unemployment).

              	
                 

              
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for mortgage loans with variable
                  rates are computed based on the related mortgage loan
                  documents.

              	
                 

              
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s mortgage loan
                  documents, on at least an annual basis, or such other period specified
                  in
                  the transaction agreements; (B) interest on such funds is paid,
                  or
                  credited, to obligors in accordance with applicable mortgage loan
                  documents and state laws; and (C) such funds are returned to the
                  obligor
                  within 30 calendar days of full repayment of the related mortgage
                  loans,
                  or such other number of days specified in the transaction
                  agreements.

              	
                 

              
	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the Servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements.

              	
                 

              
	
                1122(d)(4)(xii)

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the Servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission.

              	
                 

              
	
                1122(d)(4)(xiii)

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the Servicer, or such other number of days
                  specified in the transaction agreements.

              	
                 

              
	
                1122(d)(4)(xiv)

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements.

              	
                 

              
	
                1122(d)(4)(xv)

              	
                Any
                  external enhancement or other support, identified in Item 1114(a)(1)
                  through (3) or Item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements.

              	 
	
                 

              	
                 

              	
                 

              

      

      

       

      [NAME
        OF
        COMPANY] [NAME OF SUBSERVICER]

       

      Date: _________________________

      

       

      By: _________________________

      Name:
        

      Title:
        

      

      31. The
        Agreement is hereby amended as of the date hereof by adding the following
        new
        Exhibit N:

      

      EXHIBIT
        N

      

      REPORTING
        DATA FOR REALIZED LOSSES AND GAINS

      

      Calculation
        of Realized Loss/Gain Form 332- Instruction Sheet

      

      NOTE:
        Do not net or combine items. Show all expenses individually and all credits
        as
        separate line items. Claim packages are due on the remittance report date.
        Late
        submissions may result in claims not being passed until the following month.
        The
        Servicer is responsible to remit all funds pending loss approval and /or
        resolution of any disputed items. 

      1.  

       

      2.  The
        numbers on the 332 form correspond with the numbers listed below.

       

      Liquidation
        and Acquisition Expenses:

       

      1.           
         The
        Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
        an
        Amortization Schedule from date of default through liquidation breaking out
        the
        net interest and servicing fees advanced is required.

       

      2.           
         The
        Total
        Interest Due less the aggregate amount of servicing fee that would have been
        earned if all delinquent payments had been made as agreed. For documentation,
        an
        Amortization Schedule from date of default through liquidation breaking out
        the
        net interest and servicing fees advanced is required.

       

      3.            Accrued
        Servicing Fees based upon the Scheduled Principal Balance of the Mortgage
        Loan
        as calculated on a monthly basis. For documentation, an Amortization Schedule
        from date of default through liquidation breaking out the net interest and
        servicing fees advanced is required.

       

      4-12.     
         Complete
        as applicable. Required documentation:

       

      *
        For
        taxes and insurance advances - see page 2 of 332 form - breakdown required
        showing period

       

      of
        coverage, base tax, interest, penalty. Advances prior to default require
        evidence of Servicer efforts to recover advances.

       

      *
        For
        escrow advances - complete payment history 

       

      (to
        calculate advances from last positive escrow balance forward)

       

      *
        Other
        expenses -  copies of corporate advance history showing all payments

       

      *
        REO
        repairs > $1500 require explanation

       

      *
        REO
        repairs >$3000 require evidence of at least 2 bids.

       

      *
        Short
        Sale or Charge Off require P&L supporting the decision and WFB’s approved
        Officer Certificate 

       

      *
        Unusual
        or extraordinary items may require further documentation. 

       

      13.        
         The
        total
        of lines 1 through 12.

       

      3.   
          Credits:
        

       

      14-21. Complete
        as applicable. Required documentation:

       

      *
        Copy of
        the HUD 1 from the REO sale. If a 3rd
        Party
        Sale, bid instructions and Escrow Agent / Attorney

       

      Letter
        of
        Proceeds Breakdown.

       

      *
        Copy of
        EOB for any MI or gov't guarantee 

       

      *
        All
        other credits need to be clearly defined on the 332
        form      
     

       

      
        	 	
                22.

              	
                The
                  total of lines 14 through 21.

              

      

       

      Please
        Note: For
        HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b) for
        Part
        B/Supplemental proceeds.

       

       

      Total
        Realized Loss (or Amount of Any Gain)

       

      23. The
        total
        derived from subtracting line 22 from 13. If the amount represents a realized
        gain, show
        the
        amount in parenthesis ( ). 

       

      Calculation
        of Realized Loss/Gain Form 332

       

      Prepared
        by: __________________   Date:
        _______________

      Phone:
        ______________________ Email Address:_____________________

       

      
        	
                Servicer
                  Loan No.

              	
                 

              	
                Servicer
                  Name

              	
                 

              	
                Servicer
                  Address 

                 

              

      

       

      WELLS
        FARGO BANK, N.A. Loan No._____________________________

       

      Borrower's
        Name: _________________________________________________________

       

      Property
        Address: _________________________________________________________

       

      Liquidation
        Type: REO Sale  
        3rd
        Party Sale  Short
        Sale Charge
        Off 

       

      Was
        this loan granted a Bankruptcy deficiency or cramdown  Yes 
        No

       

      If
“Yes”,
        provide deficiency or cramdown amount
        _______________________________

       

      Liquidation
        and Acquisition Expenses:

      
        
          

            
              	
                      (1)

                    	
                      Actual
                        Unpaid Principal Balance of Mortgage Loan

                    	
                       

                    	$	 	
                      (1)

                    
	
                      (2)

                    	
                      Interest
                        accrued at Net Rate

                    	 	
                       

                    	 	
                      (2)

                    
	
                      (3)

                    	
                      Accrued
                        Servicing Fees

                    	 	
                       

                    	 	
                      (3)

                    
	
                      (4)

                    	
                      Attorney's
                        Fees

                    	 	
                       

                    	 	
                      (4)

                    
	
                      (5)

                    	
                      Taxes
                        (see page 2)

                    	 	
                       

                    	 	
                      (5)

                    
	
                      (6)

                    	
                      Property
                        Maintenance

                    	 	 	 	
                       

                    	 	
                      (6)

                    
	
                      (7)

                    	
                      MI/Hazard
                        Insurance Premiums (see page 2)

                    	
                       

                    	 	 	
                      (7)

                    
	
                      (8)

                    	
                      Utility
                        Expenses

                    	 	 	 	
                       

                    	 	
                      (8)

                    
	
                      (9)

                    	
                      Appraisal/BPO

                    	 	 	 	
                       

                    	 	
                      (9)

                    
	
                      (10)

                    	
                      Property
                        Inspections

                    	 	 	 	
                       

                    	 	
                      (10)

                    
	
                      (11)

                    	
                      FC
                        Costs/Other Legal Expenses

                    	 	 	 	
                      (11)

                    
	
                      (12)

                    	
                      Other
                        (itemize)

                    	 	 	 	
                       

                    	 	
                      (12)

                    
	 	 	
                      Cash
                        for Keys

                    	 	
                       

                    	 	 	
                      (12)

                    
	 	 	
                      HOA/Condo
                        Fees

                    	 	
                       

                    	 	 	
                      (12)

                    
	 	 	
                       

                    	 	
                       

                    	 	 	
                      (12)

                    
	 	 	 	 	 	 	 	 
	 	 	
                      Total
                        Expenses

                    	 	 	$	 	
                      
                        (13)

                      

                    
	
                      Credits:

                    	 	 	 	 	 	 	 
	
                      (14)

                    	
                      Escrow
                        Balance

                    	 	 	 	
                      $
                        

                    	 	
                      (14)

                    
	
                      (15)

                    	
                      HIP
                        Refund

                    	 	 	 	 	 	
                      
                        (15)

                      

                    
	
                      (16)

                    	
                      Rental
                        Receipts

                    	 	 	 	
                       

                    	 	
                      (16)

                    
	
                      (17)

                    	
                      Hazard
                        Loss Proceeds

                    	 	 	 	
                       

                    	 	
                      (17)

                    
	
                      (18)

                    	
                      Primary
                        Mortgage Insurance / Gov’t Insurance

                    	
                       

                    	 	 	(18a)

	
                      HUD
                        Part A

                    	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
                      HUD
                        Part B

                    	 	 	 	 	 	(18b)
	
                      (19)

                    	
                      Pool
                        Insurance Proceeds

                    	 	 	 	
                       

                    	 	
                      (19)

                    
	
                      (20)

                    	
                      Proceeds
                        from Sale of Acquired Property

                    	
                       

                    	 	 	
                      (20)

                    
	
                      (21)

                    	
                      Other
                        (itemize)

                    	 	 	 	
                       

                    	 	
                      (21)

                    
	 	
                       

                    	 	
                       

                    	
                       

                    	 	 	
                      (21)

                    
	 	 	 	 	 	 	 	 
	 	
                      Total
                        Credits

                    	 	 	 	
                      $

                    	 	
                      (22)

                    
	
                      Total
                        Realized Loss (or Amount of Gain)

                    	
                       

                    	
                       

                    	
                      $

                    	 	
                      (23)

                    

            

          

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Escrow
        Disbursement Detail

      

      

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of Coverage

              	
                Total
                  Paid

              	
                Base
                  Amount

              	
                Penalties

              	
                Interest

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

      

       

      32. Except
        as
        amended above, the Agreement shall continue to be in full force and effect
        in
        accordance with its terms.

      

      33. This
        Amendment may be executed by one or more of the parties hereto on any number
        of
        separate counterparts and of said counterparts taken together shall be deemed
        to
        constitute one and the same instrument.

      

      [SIGNATURE
        PAGES FOLLOW]

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

       

      
        	 	 	 
	 	
                EMC
                  MORTGAGE CORPORATION,

                as
                  Purchaser

              
	 
 	 
 	 
 
	 	By:  	
              
	 	Name:   	
                

              
	 	Title: 	 

      

       

      
        
          	 	 	 
	 	
                  
                    CHEVY
                      CHASE BANK, F.S.B.,

                    as
                      Company

                  

                
	 
 	 
 	 
 
	 	By:  	
                
	 	Name:   	
                  

                
	 	Title: 	 

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

      

    

    EXHIBIT
      I-2

    

    EMC
      SERVICING AGREEMENT

    
       

      

      

      

      ______________________________________________________________________________

       

      

      STRUCTURED
        ASSET MORTGAGE INVESTMENTS II INC.

      Owner

      

      and

      

      EMC
        MORTGAGE CORPORATION

      Servicer

      

       

      

      SERVICING
        AGREEMENT

      

      Dated
        as
        of January 1, 2006

      

       

      

      _________________________________________________________________

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBITS

      

      

      
        	
                Exhibit
                  A

              	
                Mortgage
                  Loan Schedule

              
	 	 
	
                Exhibit
                  B

              	
                Custodial
                  Account Letter Agreement

              
	 	 
	
                Exhibit
                  C

              	
                Escrow
                  Account Letter Agreement

              
	 	 
	
                Exhibit
                  D

              	
                Form
                  of Request for Release

              
	 	 
	
                Exhibit
                  E

              	
                Reporting
                  Data for Monthly Report

              
	 	 
	
                Exhibit
                  F

              	
                Reporting
                  Data for Defaulted Loans

              
	 	 
	
                Exhibit
                  G

              	
                Form
                  of Owner Certification

              
	 	 
	
                Exhibit
                  H

              	
                Summary
                  of Regulation AB Servicing Criteria

              
	 	 
	
                Exhibit
                  I

              	
                Summary
                  of Applicable Regulation AB Requirements

              
	 	 
	
                Exhibit
                  J

              	
                Servicing
                  Criteria to be Addressed in Assessment of Compliance

              
	 	 
	
                Exhibit
                  K

              	
                Reporting
                  Data for Realized Losses and Gains

              

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      THIS
        IS A
        SERVICING AGREEMENT, dated as of January 1, 2006, and is executed between
        Structured Asset Mortgage Investments II Inc. (the "Owner") and EMC Mortgage
        Corporation (the "Servicer").

       

      W
        I T N E
        S S E T H :

      

      WHEREAS,
        the Owner is the owner of the Mortgage Loans;

       

      WHEREAS,
        the Owner and the Servicer wish to prescribe the permanent management, servicing
        and control of the Mortgage Loans;

       

      NOW,
        THEREFORE, in consideration of the mutual agreements hereinafter set forth,
        and
        for other good and valuable consideration, the receipt and adequacy of which
        is
        hereby acknowledged, the Owner and the Servicer agree as follows:

       

      ARTICLE
        I

      DEFINITIONS

       

      Section
        1.01. Defined
        Terms.
        

       

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

       

      Accepted
        Servicing Practices:
        The
        procedures, including prudent collection and loan administration procedures,
        and
        the standard of care (i) employed by prudent mortgage servicers which service
        mortgage loans of the same type as the Mortgage Loans in the jurisdictions
        in
        which the related Mortgage Properties are located or (ii) in accordance with
        the
        Fannie Mae Guide or Freddie Mac Guide, subject to any variances negotiated
        with
        Fannie Mae or
        Freddie Mac and
        subject to the express provisions of this Agreement. Such standard of care
        shall
        not be lower than that the Servicer customarily employs and exercises in
        servicing and administering similar mortgage loans for its own account and
        shall
        be in full compliance with all federal, state, and local laws, ordinances,
        rules
        and regulations.

       

      Adjustment
        Date:
        As to
        each ARM Loan, the date on which the Mortgage Interest Rate is adjusted in
        accordance with the terms of the related Mortgage Note.

       

      Agreement:
        This
        Servicing Agreement including all exhibits hereto, amendments hereof and
        supplements hereto.

       

      ARM
        Loans:
        First
        lien, conventional, 1-4 family residential Mortgage Loans with interest rates
        which adjust from time to time in accordance with the related Index and are
        subject to Periodic Rate Caps and Lifetime Rate Caps and which may permit
        conversion to fixed interest rates.

       

      Business
        Day:
        Any day
        other than (i) a Saturday or Sunday, or (ii) a legal holiday in the States
        of
        Maryland, Minnesota, New York or the jurisdiction in which the Servicer conducts
        its servicing activities, or (iii) a day on which banks in the States of
        Maryland, Minnesota, New York or the jurisdiction in which the Servicer conducts
        its servicing activities are authorized or obligated by law or executive
        order
        to be closed.

       

      Code:
        The
        Internal Revenue Code of 1986, as it may be amended from time to time, or
        any
        successor statute thereto, and applicable U.S. Department of the Treasury
        regulations issued pursuant thereto.

       

      Commission
        or SEC:
        The
        Securities and Exchange Commission.

       

      Condemnation
        Proceeds:
        All
        awards or settlements in respect of a Mortgaged Property, whether permanent
        or
        temporary, partial or entire, by exercise of the power of eminent domain
        or
        condemnation, to the extent not required to be released to a Mortgagor in
        accordance with the terms of the related Mortgage Loan Documents.

       

      Custodial
        Account:
        One or
        more demand account or accounts created and maintained pursuant to Section
        4.04
        which shall be entitled "[_________] Custodial Account in trust for [Owner],
        Owner of Whole Loan Mortgages and various Mortgagors" established at a Qualified
        Depository, each of which accounts shall be held by such Qualified Depository
        in
        a fiduciary capacity, separate and apart from its funds and general
        assets.

       

      Custodian:
        Wells
        Fargo Bank, National Association, or such other custodian as Owner shall
        designate. 

       

      Cut-off
        Date:
        The
        open of business on [________] 1, 2006.

       

      Delinquent:
        As
        defined in the related pooling and servicing agreement.

       

      Depositor:
        The
        depositor, as such term is defined in Regulation AB, with respect to any
        Pass-Through Transfer.

       

      Determination
        Date:
        The
        15th day (or if such 15th day is not a Business Day, the Business Day
        immediately preceding such 15th day) of the month of the Remittance
        Date.

       

      Due
        Date:
        Each
        day on which payments of principal and interest are required to be paid in
        accordance with the terms of the related Mortgage Note, exclusive of any
        days of
        grace.

       

      Due
        Period:
        With
        respect to each Remittance Date, the period commencing on the second day
        of the
        month preceding the month of such Remittance Date and ending on the first
        day of
        the month of the Remittance Date.

       

      Escrow
        Account:
        The
        separate trust account or accounts created and maintained pursuant to Section
        4.06 which shall be entitled "[__________] Escrow Account, in trust for [Owner],
        Owner of Whole Loan Mortgages and various Mortgagors" and shall be established
        at a Qualified Depository, each of which accounts shall in no event contain
        funds in excess of the FDIC insurance limits.

       

      Escrow
        Payments:
        With
        respect to any Mortgage Loan, the amounts constituting ground rents, taxes,
        assessments, water rates, sewer rents, municipal charges, mortgage insurance
        premiums, fire and hazard insurance premiums, condominium charges, and any
        other
        payments required to be escrowed by the Mortgagor with the mortgagee pursuant
        to
        the Mortgage or any other document.

       

      Event
        of Default:
        Any one
        of the conditions or circumstances enumerated in Section 9.01.

       

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

       

      Fannie
        Mae:
        Fannie
        Mae, or any successor thereto.

       

      Fannie
        Mae Guide:
        The
        Fannie Mae Selling Guide and the Fannie Mae Servicing Guide and all amendments
        or additions thereto.

       

      Fidelity
        Bond:
        A
        fidelity bond to be maintained by the Servicer pursuant to Section
        4.12.

       

      FIRREA:
        The
        Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as
        amended
        from time to time.

       

      Freddie
        Mac:
        Freddie
        Mac, or any successor thereto.

       

      Freddie
        Mac Guide:
        The
        Freddie Mac Selling Guide and the Freddie Mac Servicing Guide and all amendments
        or additions thereto.

       

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

       

      GAAP:
        Generally accepted accounting procedures, consistently applied.

       

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

       

      Index:
        With
        respect to each ARM Loan, on the related Adjustment Date, the index used
        to
        determine the Mortgage Interest Rate on each such ARM Loan.

       

      Insurance
        Proceeds:
        With
        respect to each Mortgage Loan, proceeds of insurance policies insuring the
        Mortgage Loan or the related Mortgaged Property.

       

      Lifetime
        Rate Cap:
        With
        respect to each ARM Loan, the maximum Mortgage Interest Rate over the term
        of
        such Mortgage Loan, as specified in the related Mortgage Note.

       

      Liquidation
        Proceeds:
        Amounts, other than Insurance Proceeds and Condemnation Proceeds, received
        in
        connection with the liquidation of a defaulted Mortgage Loan, whether through
        the sale or assignment of such Mortgage Loan, trustee's sale, foreclosure
        sale
        or otherwise, other than amounts received following the acquisition of an
        REO
        Property pursuant to Section 4.13.

       

      Margin:
        With
        respect to each ARM Loan, the fixed percentage amount set forth in each related
        Mortgage Note which is added to the Index in order to determine the related
        Mortgage Interest Rate.

       

      Master
        Servicer:
        Wells
        Fargo Bank, National Association, its successors in interest and assigns,
        or any
        successor thereto designated by the Owner.

       

      Monthly
        Advance:
        The
        aggregate of the advances made by the Servicer on any Remittance Date pursuant
        to Section 5.03.

       

      Monthly
        Payment:
        With
        respect to each Mortgage Loan, the scheduled monthly payment of principal
        and
        interest thereon which is payable by the related Mortgagor under the related
        Mortgage Note.

       

      Mortgage:
        The
        mortgage, deed of trust or other instrument securing a Mortgage Note which
        creates a first lien on an unsubordinated estate in fee simple in real property
        securing the Mortgage Note.

       

      Mortgage
        Interest Rate:
        The
        annual rate at which interest accrues on any Mortgage Loan in accordance
        with
        the provisions of the related Mortgage Note, and in the case of an ARM Loan,
        as
        adjusted from time to time on each Adjustment Date for such Mortgage Loan
        to
        equal the Index for such Mortgage Loan plus the Margin for such Mortgage
        Loan,
        and subject to the limitations on such interest rate imposed by the Periodic
        Rate Cap and the Lifetime Rate Cap.

       

      Mortgage
        Loan:
        An
        individual Mortgage Loan described herein and as further identified on the
        Mortgage Loan Schedule, which Mortgage Loan includes without limitation the
        Mortgage Loan Documents, the Monthly Payments, Principal Prepayments,
        Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, REO Disposition
        Proceeds, and all other rights, benefits, proceeds and obligations arising
        from
        or in connection with such Mortgage Loan.

       

      Mortgage
        Loan Documents:
        The
        original mortgage loan legal documents held by the Custodian.

       

      Mortgage
        Loan Remittance Rate:
        With
        respect to each Mortgage Loan, the annual rate of interest remitted to the
        Owner, which shall be equal to the related Mortgage Interest Rate minus the
        Servicing Fee Rate.

       

      Mortgage
        Loan Schedule:
        The
        schedule of Mortgage Loans attached hereto as Exhibit
        A,
        such
        schedule being acceptable to the Owner and the Servicer.

       

      Mortgage
        Note:
        The
        note or other evidence of the indebtedness of a Mortgagor secured by a
        Mortgage.

       

      Mortgaged
        Property:
        The
        underlying real property securing repayment of a Mortgage Note.

       

      Mortgagor:
        The
        obligor on a Mortgage Note. 

       

      Net
        Liquidation Proceeds:
        As to
        any Mortgage Loan, Liquidation Proceeds net of unreimbursed Servicing Advances,
        Servicing Fees and Monthly Advances and expenses incurred by the Servicer
        in
        connection with the liquidation of the Mortgage Loan and the related Mortgaged
        Property.

       

      Nonrecoverable
        Advance:
        Any
        advance previously made by the Servicer pursuant to Section 5.03 or any
        Servicing Advance proposed to be made by the Servicer in respect of a Mortgage
        Loan or REO Property which, in the good faith judgment of the Servicer, may
        not
        be ultimately recoverable by the Servicer from Liquidation Proceeds or Insurance
        Proceeds on such Mortgage Loan or REO Property as provided herein. The
        determination by the Servicer that it has made a Nonrecoverable Advance,
        or that
        a proposed advance may constitute a Nonrecoverable Advance, shall be evidenced
        by an Officer's Certificate of the Servicer delivered to the Owner and detailing
        the reasons for such determination.

       

      Officer's
        Certificate:
        A
        certificate signed by the Chairman of the Board, the Vice Chairman of the
        Board,
        the President, a Senior Vice President or a Vice President or by the Treasurer
        or the Secretary or one of the Assistant Treasurers or Assistant Secretaries
        of
        the Servicer, and delivered to the Owner as required by this
        Agreement.

       

      Opinion
        of Counsel:
        A
        written opinion of counsel, who may be an employee of the party on behalf
        of
        whom the opinion is being given, reasonably acceptable to the
        Owner.

       

      Owner:
        Structured Asset Mortgage Investments II Inc., its successors in interest
        and
        assigns (including the Trustee in connection with a Pass-Through
        Transfer).

       

      Partial
        Principal Prepayment:
        A
        Principal Prepayment by a Mortgagor of a partial principal balance of a Mortgage
        Loan.

       

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

       

      Periodic
        Rate Cap:
        With
        respect to each ARM Loan, the maximum increase or decrease in the Mortgage
        Interest Rate on any Adjustment Date.

       

      Permitted
        Investments:
        Any one
        or more of the following obligations or securities:

       

      (i) direct
        obligations of, and obligations the timely payment of which are fully guaranteed
        by the United States of America or any agency or instrumentality of the United
        States of America the obligations of which are backed by the full faith and
        credit of the United States of America;

      

      (ii) (a)
        demand or time deposits, federal funds or bankers' acceptances issued by
        any
        depository institu-tion or trust company incorporated under the laws of the
        United States of America or any state thereof (including any Trustee or the
        Master Servicer) and subject to supervision and examination by federal and/or
        state banking authorities, provided that the commercial paper and/or the
        short-term deposit rating and/or the long-term unsecured debt obligations
        or
        deposits of such depository institution or trust company at the time of such
        investment or contractual commitment providing for such investment are rated
        in
        one of the two highest rating categories by each Rating Agency and (b) any
        other
        demand or time deposit or certificate of deposit that is fully insured by
        the
        Federal Deposit Insurance Cor-poration;

      

      (iii) repurchase
        obligations with respect to (a) any security described in clause (i) above
        or
        (b) any other security issued or guaranteed by an agency or instrumen-tality
        of
        the United States of America, the obligations of which are backed by the
        full
        faith and credit of the United States of America, in either case entered
        into
        with a depository institution or trust company (acting as principal) described
        in clause (ii)(a) above;

      

      (iv) securities
        bearing interest or sold at a discount issued by any corporation (including
        any
        Trustee or the Master Servicer) incorporated under the laws of the United
        States
        of America or any state thereof that are rated in one of the two highest
        rating
        categories by each Rating Agency at the time of such in-vestment or contractual
        commitment providing for such investment; provided,
        however,
        that
        securities issued by any particular corporation will not be Permitted
        Investments to the extent that investments therein will cause the then
        outstanding principal amount of secur-ities issued by such corporation and
        held
        as Permitted Investments to exceed 10% of the aggregate outstand-ing principal
        balances and amounts of all the Permitted Investments;

      

      (v) commercial
        paper (including both non-interest-bearing discount obligations and
        interest-bearing obliga-tions payable on demand or on a specified date not
        more
        than one year after the date of issuance there-of) which are rated in one
        of the
        two highest rating categories by each Rating Agency at the time of such
        investment;

      

      (vi) any
        other
        demand, money market or time deposit, obligation, security or investment
        as may
        be acceptable to each Rating Agency; and

      

      (vii) any
        money
        market funds the collateral of which consists of obligations fully guaranteed
        by
        the United States of America or any agency or instru-ment-al-ity of the United
        States of America the obligations of which are backed by the full faith and
        credit of the United States of America (which may include repurchase obligations
        secured by collateral described in clause (i)) and other securities (including
        money market or common trust funds for which any Trustee or the Master Servicer
        or any affiliate thereof acts as a manager or an advisor) and which money
        market
        funds are rated in one of the two highest rating categories by each Rating
        Agency;

      

      provided,
        however,
        that no
        instrument or security shall be a Permitted Investment if such instrument
        or
        security evidences a right to receive only interest payments with respect
        to the
        ob-li-ga-tions underlying such instrument or if such security provides for
        payment of both principal and interest with a yield to matur-ity in excess
        of
        120% of the yield to maturity at par.

       

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

       

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

       

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

       

      Prepayment
        Interest Shortfall:
        With
        respect to any Remittance Date, for each such Mortgage Loan that was the
        subject
        of a Principal Prepayment during the portion of the related Prepayment Period
        occurring between the first day of the related Prepayment Period and the
        last
        day of the calendar month preceding the month in which such Remittance Date
        occurs, an amount equal to interest (to be paid by the Servicer out of its
        own
        funds without reimbursement therefor) at the applicable Mortgage Loan Remittance
        Rate on the amount of such Principal Prepayment for the number of days
        commencing on the date on which the prepayment is applied and ending on the
        last
        day of the calendar month preceding such Remittance Date. 

       

      Prepayment
        Period:
        As to
        any Remittance Date, (a) in the case of Full Principal Prepayments, the period
        commencing on the 16th
        day of
        the month prior to the month in which the related Remittance
        Date
        occurs and ending on the 15th
        day of
        the month in which such Remittance Date occurs, and (b) in the case of Partial
        Principal Prepayments or other recoveries, the preceding calendar
        month.

       

      Primary
        Mortgage Insurance Policy:
        Each
        primary policy of mortgage insurance, or any replacement policy therefor
        obtained by the Servicer pursuant to Section 4.08.

       

      Prime
        Rate:
        The
        prime rate of U.S. money center banks as published from time to time in
The
        Wall Street Journal.

       

      Principal
        Prepayment:
        Any
        payment or other recovery of principal on a Mortgage Loan full or partial
        which
        is received in advance of its scheduled Due Date, including any Prepayment
        Charge and which is not accompanied by an amount of interest representing
        scheduled interest due on any date or dates in any month or months subsequent
        to
        the month of prepayment.

       

      Qualified
        Appraiser:
        An
        appraiser, duly appointed by the Servicer, who had no interest, direct or
        indirect in the Mortgaged Property or in any loan made on the security thereof,
        and whose compensation is not affected by the approval or disapproval of
        the
        Mortgage Loan, which appraiser and the appraisal made by such appraiser both
        satisfy the requirements of Title XI of FIRREA and the regulations promulgated
        thereunder, all as in effect on the date the Mortgage Loan was
        originated.

       

      Qualified
        Depository:
        (a) The
        Custodian, (b) a depository, the accounts of which are insured by the FDIC
        and
        the short term debt ratings and the long term deposit ratings of which are
        rated
        in one of the two highest rating categories by either of Moody’s Investors
        Service, Inc. or Fitch, Inc., or (c) a depository, the short-term debt
        obligations, or other short-term deposits of which are rated at least ‘A-2’ and
        the long-term unsecured debt obligations of which are rated at least ‘AA-’ by
        Standard & Poor's Ratings Service, a division of The McGraw Hill Companies
        Inc.

       

      Qualified
        Insurer:
        An
        insurance company duly qualified as such under the laws of the states in
        which
        the Mortgaged Properties are located, duly authorized and licensed in such
        states to transact the applicable insurance business and to write the insurance
        provided, approved as an insurer by Fannie Mae and Freddie Mac. 

       

      Rating
        Agency:
        Standard & Poor's Ratings Service, a division of The McGraw Hill Companies
        Inc., and Moody's Investors Service, Inc.

       

      Reconstitution
        Agreement: Any
        agreement involving any Pass-Through Transfer or Whole Loan
        Transfer.

       

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

       

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

       

      REMIC
        Provisions:
        The
        provisions of the Federal income tax law relating to a REMIC, which appear
        at
        Section 860A through 860G of the Code, and related provisions, and regulations,
        rulings or pronouncements promulgated thereunder, as the foregoing may be
        in
        effect from time to time.

       

      Remittance
        Date:
        The
        Remittance Date shall be the 23rd day of any month, or if such 23rd day is
        not a
        Business Day, the first Business Day immediately preceding such 23rd
        day.

       

      REO
        Disposition:
        The
        final sale by the Servicer of any REO Property.

       

      REO
        Disposition Proceeds:
        Amounts
        received by the Servicer in connection with a related REO
        Disposition.

       

      REO
        Property:
        A
        Mortgaged Property acquired by the Servicer on behalf of the Owner as described
        in Section 4.13.

       

      Sarbanes
        Certification:
        A
        certification required pursuant to The
        Sarbanes-Oxley Act of 2002 and the rules and regulations of the Commission
        promulgated thereunder (including any interpretations or amendments thereof
        by
        the Commission’s staff).

       

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

       

      Securities
        Administrator:
        The
        securities administrator with respect to any Pass-Through Transfer.

       

      Servicer:
        EMC
        Mortgage Corporation, or any of its successors in interest or any successor
        under this Agreement appointed as herein provided.

       

      Servicing
        Advances:
        All
        customary, reasonable and necessary "out of pocket" costs and expenses
        (including reasonable attorneys' fees and disbursements) incurred in the
        performance by the Servicer of its servicing obligations relating to each
        Mortgage Loan, including, but not limited to, the cost of (a) the preservation,
        restoration and protection of the Mortgaged Property, (b) any enforcement,
        administrative or judicial proceedings, or any legal work or advice specifically
        related to servicing the Mortgage Loans, including but not limited to,
        foreclosures, bankruptcies, condemnations, drug seizures, elections,
        foreclosures by subordinate or superior lienholders, and other legal actions
        incidental to the servicing of the Mortgage Loans (provided that such expenses
        are reasonable and that the Servicer specifies the Mortgage Loan(s) to which
        such expenses relate), (c) the management and liquidation of the Mortgaged
        Property if the Mortgaged Property is acquired in full or partial satisfaction
        of the Mortgage, (d) taxes, assessments, water rates, sewer rates and other
        charges which are or may become a lien upon the Mortgaged Property, and Primary
        Mortgage Insurance Policy premiums and fire and hazard insurance coverage
        and
        (e) compliance with the obligations under Section 4.08.

       

      Servicing
        Criteria:
        As of
        any date of determination, the “servicing criteria” set forth in Item 1122(d) of
        Regulation AB, or any amendments thereto, a summary of the requirements of
        which
        as of the date hereof is attached hereto as Exhibit H for convenience of
        reference only. In the event of a conflict or inconsistency between the terms
        of
        Exhibit H and the text of Item 1122(d) of Regulation AB, the text of Item
        1122(d) of Regulation AB shall control (or those Servicing Criteria otherwise
        mutually agreed to by the Owner, the Servicer and any Person that will be
        responsible for signing any Sarbanes Certification with respect to a
        Pass-Through Transfer in response to evolving interpretations of Regulation
        AB
        and incorporated into a revised Exhibit H).

       

      Servicing
        Fee:
        With
        respect to each Mortgage Loan, the amount of the annual servicing fee the
        Owner
        shall pay to the Servicer, which shall, for a period of one full month, be
        equal
        to one--twelfth of the product of (a) the applicable Servicing Fee Rate and
        (b)
        the outstanding principal balance of the Mortgage Loan. Such fee shall be
        payable monthly, computed on the basis of the same principal amount and period
        respecting which any related interest payment on a Mortgage Loan is computed.
        The obligation of the Owner to pay the Servicing Fee is limited to, and the
        Servicing Fee is payable from the interest portion of such Monthly Payment
        collected by the Servicer or as otherwise provided under Section
        4.05.

       

      Servicing
        Fee Rate:
        The
        Servicing Fee Rate shall be a rate per annum equal to 0.25%.

       

      Servicing
        File:
        The
        documents, records and other items pertaining to a particular Mortgage Loan
        and
        any additional documents relating to such Mortgage Loan as are in, or as
        may
        from time to time come into, the Servicer's possession.

       

      Servicing
        Officer:
        Any
        officer of the Servicer involved in, or responsible for, the administration
        and
        servicing of the Mortgage Loans whose name appears on a list of servicing
        officers furnished by the Servicer to the Owner upon request, as such list
        may
        from time to time be amended.

       

      Stated
        Principal Balance:
        As to
        each Mortgage Loan as of any date of determination, (i) the principal balance
        of
        such Mortgage Loan after giving effect to payments of principal due and received
        or for which a Monthly Advance has been made, minus (ii) all amounts previously
        distributed to the Owner with respect to the Mortgage Loan representing
        Principal Prepayments.

       

      Subcontractor:
        Any
        vendor, subcontractor or other Person that is not responsible for the overall
        servicing (as “servicing” is commonly understood by participants in the
        mortgage-backed securities market) of Mortgage Loans but performs one or
        more
        discrete functions identified in Item 1122(d) of Regulation AB with respect
        to
        Mortgage Loans under the direction or authority of the Servicer or a
        Subservicer. 

       

      Subservicer:
        Any
        Person that services Mortgage Loans on behalf of the Servicer or any Subservicer
        and is responsible for the performance (whether directly or through Subservicers
        or Subcontractors) of a substantial portion of the material servicing functions
        required to be performed by the Servicer under this Agreement or any
        Reconstitution Agreement that are identified in Item 1122(d) of Regulation
        AB.

       

      Trustee:
        The
        Person appointed as trustee in connection with any Pass-Through
        Transfer.

       

      Whole
        Loan Transfer:
        The
        sale or transfer of some or all of the ownership interest in the Mortgage
        Loans
        by the Owner to one or more third parties in whole loan or participation
        format,
        which third party may be Fannie Mae or Freddie Mac.

       

      ARTICLE
        II  
        

      SERVICING
        OF MORTGAGE LOANS; POSSESSION OF SERVICING FILES; BOOKS AND RECORDS; DELIVERY
        OF
        MORTGAGE LOAN DOCUMENTS

       

      Section
        2.01. Servicing
        of Mortgage Loans.
        

       

      The
        Servicer does hereby agree to service the Mortgage Loans in accordance with
        the
        terms of this Agreement. The rights of the Owner to receive payments with
        respect to the Mortgage Loans shall be as set forth in this
        Agreement.

       

      Section
        2.02. Maintenance
        of Servicing Files.
        

       

      The
        Servicer shall maintain a Servicing File consisting of all documents necessary
        to service the Mortgage Loans. The possession of each Servicing File by the
        Servicer is for the sole purpose of servicing the Mortgage Loan, and such
        retention and possession by the Servicer is in a custodial capacity only.
        The
        Servicer acknowledges that the ownership of each Mortgage Loan, including
        the
        Note, the Mortgage, all other Mortgage Loan Documents and all rights, benefits,
        proceeds and obligations arising therefrom or in connection therewith, has
        been
        vested in the Owner. All rights arising out of the Mortgage Loans including,
        but
        not limited to, all funds received on or in connection with the Mortgage
        Loans
        and all records or documents with respect to the Mortgage Loans prepared
        by or
        which come into the possession of the Servicer shall be received and held
        by the
        Servicer in trust for the exclusive benefit of the Owner as the owner of
        the
        related Mortgage Loans. Any portion of the related Servicing Files retained
        by
        the Servicer shall be appropriately identified in the Servicer's computer
        system
        to clearly reflect the ownership of the related Mortgage Loans by the Owner.
        The
        Servicer shall release its custody of the contents of the related Servicing
        Files only in accordance with written instructions of the Owner, except when
        such release is required as incidental to the Servicer's servicing of the
        Mortgage Loans, such written instructions shall not be required.

       

      Section
        2.03. Books
        and Records.
        

       

      The
        Servicer shall be responsible for maintaining, and shall maintain, a complete
        set of books and records for the Mortgage Loans which shall be appropriately
        identified in the Servicer's computer system to clearly reflect the ownership
        of
        the Mortgage Loan by the Owner. In particular, the Servicer shall maintain
        in
        its possession, available for inspection by the Owner, or its designee and
        shall
        deliver to the Owner upon demand, evidence of compliance with all federal,
        state
        and local laws, rules and regulations, and requirements of Fannie Mae or
        Freddie
        Mac, as applicable, including but not limited to documentation as to the
        method
        used in determining the applicability of the provisions of the Flood Disaster
        Protection Act of 1973, as amended, to the Mortgaged Property, documentation
        evidencing insurance coverage and eligibility of any condominium project
        for
        approval by Fannie Mae and periodic inspection reports as required by Section
        4.13. To the extent that original documents are not required for purposes
        of
        realization of Liquidation Proceeds or Insurance Proceeds, documents maintained
        by the Servicer may be in the form of microfilm or microfiche or such other
        reliable means of recreating original documents, including but not limited
        to,
        optical imagery techniques so long as the Servicer complies with the
        requirements of the Fannie Mae Guide.

       

      The
        Servicer shall maintain with respect to each Mortgage Loan and shall make
        available for inspection by any Owner or its designee the related Servicing
        File
        (or copies thereof) during the time the Owner retains ownership of a Mortgage
        Loan and thereafter in accordance with applicable laws and
        regulations.

       

      Section
        2.04. Transfer
        of Mortgage Loans.
        

       

      No
        transfer of a Mortgage Loan may be made unless such transfer is in compliance
        with the terms hereof. For the purposes of this Agreement, the Servicer shall
        be
        under no obligation to deal with any person with respect to this Agreement
        or
        any Mortgage Loan unless a notice of the transfer of such Mortgage Loan has
        been
        delivered to the Servicer in accordance with this Section 2.04. The Owner
        may,
        subject to the terms of this Agreement, sell and transfer one or more of
        the
        Mortgage Loans in accordance with Sections 10.02 and 11.12, provided,
        however, that the transferee will not be deemed to be an Owner hereunder
        binding
        upon the Servicer unless such transferee shall agree in writing to be bound
        by
        the terms of this Agreement and an assignment and assumption of this Agreement
        reasonably acceptable to the Servicer. The Owner shall advise the Servicer
        in
        writing of the transfer. Upon receipt of notice of the permitted transfer,
        the
        Servicer shall mark its books and records to reflect the ownership of the
        Mortgage Loans of such assignee, and shall release the previous Owner from
        its
        obligations hereunder with respect to the Mortgage Loans sold or
        transferred.

       

      Section
        2.05. Delivery
        of Mortgage Loan Documents.
        

       

      The
        Servicer shall forward to the Custodian on behalf of the Owner original
        documents evidencing an assumption, modification, consolidation or extension
        of
        any Mortgage Loan entered into in accordance with Section 4.01 or 6.01 within
        4
        week(s) of their execution; provided, however, that the Servicer shall provide
        the Custodian on behalf of the Owner with a certified true copy of any such
        document submitted for recordation within 4 week(s) after its execution,
        and
        shall provide the original of any document submitted for recordation or a
        copy
        of such document certified by the appropriate public recording office to
        be a
        true and complete copy of the original within 180 days of its execution.
        If
        delivery is not completed within 180 days solely due to delays in making
        such
        delivery by reason of the fact that such documents shall not have been returned
        by the appropriate recording office, the Servicer shall continue to use its
        best
        efforts to effect delivery as soon as possible thereafter.

       

      From
        time
        to time the Servicer may have a need for Mortgage Loan Documents to be released
        by the Custodian. If the Servicer shall require any of the Mortgage Loan
        Documents, the Servicer shall notify the Custodian in writing of such request
        in
        the form of the request for release attached hereto as Exhibit
        D.
        The
        Custodian shall deliver to the Servicer within five (5) Business Days, any
        requested Mortgage Loan Document previously delivered to the Custodian, provided
        that such documentation is promptly returned to the Custodian when the Servicer
        no longer requires possession of the document, and provided that during the
        time
        that any such documentation is held by the Servicer, such possession is in
        trust
        for the benefit of the Owner.

       

      ARTICLE
        III  
        

      REPRESENTATIONS
        AND WARRANTIES OF THE SERVICER

       

      The
        Servicer represents, warrants and covenants to the Owner that as of the date
        hereof or as of such date specifically provided herein:

       

      (a)
        The
        Servicer is a validly existing corporation in good standing under the laws
        of
        the State of its organization and is qualified to transact business in, is
        in
        good standing under the laws of, and possesses all licenses necessary for
        the
        conduct of its business in, each state in which any Mortgaged Property is
        located or is otherwise exempt or not required under applicable law to effect
        such qualification or license and no demand for such qualification or license
        has been made upon the Servicer by any such state, and in any event the Servicer
        is in compliance with the laws of each such State to the extent necessary
        to
        ensure the enforceability of each Mortgage Loan and the servicing of the
        Mortgage Loans in accordance with the terms of this Agreement;

       

      (b)
        The
        Servicer has full power and authority to execute, deliver and perform, and
        to
        enter into and consummate all transactions contemplated by this Agreement
        and to
        conduct its business as presently conducted, has duly authorized the execution,
        delivery and performance of this Agreement, has duly executed and delivered
        this
        Agreement, and this Agreement constitutes a legal, valid and binding obligation
        of the Servicer, enforceable against it in accordance with its terms subject
        to
        bankruptcy laws and other similar laws of general application affecting rights
        of creditors and subject to the application of the rules of equity, including
        those respecting the availability of specific performance;

       

      (c)
        None
        of
        the execution and delivery of this Agreement, the consummation of the
        transactions contemplated thereby and hereby, or the fulfillment of or
        compliance with the terms and conditions of this Agreement will conflict
        with
        any of the terms, conditions or provisions of the Servicer's articles of
        incorporation or by-laws or materially conflict with or result in a breach
        of
        any of the terms, conditions or provisions of any legal restriction or any
        agreement or instrument to which the Servicer is now a party or by which
        it is
        bound, or constitute a default or result in an acceleration under any of
        the
        foregoing, or result in the material violation of any law, rule, regulation,
        order, judgment or decree to which the Servicer or its property is
        subject;

       

      (d)
        There
        is
        no litigation pending or, to the Servicer's knowledge, threatened with respect
        to the Servicer which is reasonably likely to have a material adverse effect
        on
        the execution, delivery or enforceability of this Agreement, or which is
        reasonably likely to have a material adverse effect on the financial condition
        of the Servicer;

       

      (e)
        No
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Servicer
        of
        or compliance by the Servicer with this Agreement or the consummation of
        the
        transactions contemplated by this Agreement except for consents, approvals,
        authorizations and orders which have been obtained;

       

      (f)
        The
        Servicer is an approved seller/servicer of residential mortgage loans for
        Fannie
        Mae and Freddie Mac. The Servicer is in good standing to service mortgage
        loans
        for Fannie Mae and Freddie Mac and no event has occurred which would make
        the
        Servicer unable to comply with eligibility requirements or which would require
        notification to either Fannie Mae or Freddie Mac;

       

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

       

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

       

      (i)
        Notwithstanding anything to the contrary in the Agreement, the Servicer shall
        (or shall cause each Subservicer) (i) immediately notify the Owner, the Master
        Servicer and any Depositor in writing of (A) any material litigation or
        governmental proceedings pending against the Servicer or any Subservicer,
        (B)
        any affiliations or relationships that develop following the closing date
        of a
        Pass-Through Transfer between the Servicer or any Subservicer and any of
        the
        parties specified in clause (7) of paragraph (g) of this Article (and any
        other
        parties identified in writing by the requesting party) with respect to such
        Pass-Through Transfer, (C) any Event of Default under the terms of this
        Agreement or any Reconstitution Agreement, (D) any merger, consolidation
        or sale
        of substantially all of the assets of the Company, and (E) the Company’s entry
        into an agreement with a Subservicer to perform or assist in the performance
        of
        any of the Company’s obligations under this Agreement or any Reconstitution
        Agreement and (ii) provide to the Owner and any Depositor a description of
        such
        proceedings, affiliations or relationships; 

       

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

       

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

       

      ARTICLE
        IV  
        

      ADMINISTRATION
        AND SERVICING OF MORTGAGE LOANS

       

      Section
        4.01. Servicer
        to Act as Servicer.
        

       

      The
        Servicer, as independent contract servicer, shall service and administer
        the
        Mortgage Loans in accordance with this Agreement and with Accepted Servicing
        Practices (giving due consideration to the Owner's reliance on the Servicer),
        and shall have full power and authority, acting alone, to do or cause to
        be done
        any and all things in connection with such servicing and administration which
        the Servicer may deem necessary or desirable and consistent with the terms
        of
        this Agreement and with Accepted Servicing Practices and shall exercise the
        same
        care that it customarily employs for its own account. In addition, the Servicer
        shall furnish information regarding the borrower credit files related to
        such
        Mortgage Loan to credit reporting agencies in compliance with the provisions
        of
        the Fair Credit Reporting Act and the applicable implementing regulations.
        Except as set forth in this Agreement, the Servicer shall service the Mortgage
        Loans in accordance with Accepted Servicing Practices in compliance with
        the
        servicing provisions of the Fannie Mae Guide, which include, but are not
        limited
        to, provisions regarding the liquidation of Mortgage Loans, the collection
        of
        Mortgage Loan payments, the payment of taxes, insurance and other charges,
        the
        maintenance of hazard insurance with a Qualified Insurer, the maintenance
        of
        fidelity bond and errors and omissions insurance, inspections, the restoration
        of Mortgaged Property, the maintenance of Primary Mortgage Insurance Policies,
        insurance claims, and title insurance, management of REO Property, permitted
        withdrawals with respect to REO Property, liquidation reports, and reports
        of
        foreclosures and abandonments of Mortgaged Property, the transfer of Mortgaged
        Property, the release of Mortgage Loan Documents, annual statements, and
        examination of records and facilities. In the event of any conflict,
        inconsistency or discrepancy between any of the servicing provisions of this
        Agreement and any of the servicing provisions of the Fannie Mae Guide, the
        provisions of this Agreement shall control and be binding upon the Owner
        and the
        Servicer. The Owner may, at its option, deliver powers-of-attorney to the
        Servicer sufficient to allow the Servicer as servicer to execute all
        documentation requiring execution on behalf of Owner with respect to the
        servicing of the Mortgage Loans, including satisfactions, partial releases,
        modifications and foreclosure documentation or, in the alternative, shall
        as
        promptly as reasonably possible, execute and return such documentation to
        the
        Servicer.

       

      Consistent
        with the terms of this Agreement, the Servicer may waive, modify or vary
        any
        term of any Mortgage Loan or consent to the postponement of any such term
        or in
        any manner grant indulgence to any Mortgagor if in the Servicer's reasonable
        and
        prudent determination such waiver, modification, postponement or indulgence
        is
        not materially adverse to the Owner, provided, however, that with respect
        to any
        Mortgage Loan that is not in default or if default is not reasonably forseeable,
        unless the Servicer has provided   to the  Owner  a
        certification addressed to the  Owner, based on the advice of counsel
        or certified public accountants that have a national reputation with respect
        to
        taxation of REMICs that a modification of such Mortgage Loan will not result
        in
        the imposition of taxes on or disqualify from REMIC status any
        of  the REMICs and has obtained the prior written consent of
        the Owner, the Servicer shall not permit any modification with respect to
        any
        Mortgage Loan that would change the Mortgage Interest Rate, forgive the payment
        of principal or interest, reduce or increase the outstanding principal balance
        (except for actual payments of principal), change the final maturity date
        on
        such Mortgage Loan or waive a prepayment penalty or charge. In the event
        of any
        such modification which has been agreed to in writing by the Owner and which
        permits the deferral of interest or principal payments on any Mortgage Loan,
        the
        Servicer shall, on the Business Day immediately preceding the related Remittance
        Date in any month in which any such principal or interest payment has been
        deferred, deposit in the Custodial Account from its own funds, in accordance
        with Section 4.04 and Section 5.03, the difference between (a) such month's
        principal and one month's interest at the related Mortgage Loan Remittance
        Rate
        on the unpaid principal balance of such Mortgage Loan and (b) the amount
        paid by
        the Mortgagor. The Servicer shall be entitled to reimbursement for such advances
        to the same extent as for all other advances pursuant to Section 4.05. Without
        limiting the generality of the foregoing, the Servicer shall continue, and
        is
        hereby authorized and empowered, to prepare, execute and deliver, all
        instruments of satisfaction or cancellation, or of partial or full release,
        discharge and all other comparable instruments, with respect to the Mortgage
        Loans and with respect to the Mortgaged Properties.

       

      The
        Servicer shall perform all of its servicing responsibilities hereunder or
        may
        cause a subservicer to perform any such servicing responsibilities on its
        behalf, but the use by the Servicer of a subservicer shall not release the
        Servicer from any of its obligations hereunder and the Servicer shall remain
        responsible hereunder for all acts and omissions of each subservicer as fully
        as
        if such acts and omissions were those of the Servicer. Any such subservicer
        must
        be a Fannie Mae approved seller/servicer or a Freddie Mac seller/servicer
        in
        good standing and no event shall have occurred, including but not limited
        to, a
        change in insurance coverage, which would make it unable to comply with the
        eligibility requirements for lenders imposed by Fannie Mae or for
        seller/servicers by Freddie Mac, or which would require notification to Fannie
        Mae or Freddie Mac. The Servicer shall pay all fees and expenses of each
        subservicer from its own funds, and a subservicer's fee shall not exceed
        the
        Servicing Fee.

       

      At
        the
        cost and expense of the Servicer, without any right of reimbursement from
        the
        Custodial Account, the Servicer shall be entitled to terminate the rights
        and
        responsibilities of a subservicer and arrange for any servicing responsibilities
        to be performed by a successor subservicer meeting the requirements in the
        preceding paragraph, provided, however, that nothing contained herein shall
        be
        deemed to prevent or prohibit the Servicer, at the Servicer's option, from
        electing to service the related Mortgage Loans itself. In the event that
        the
        Servicer's responsibilities and duties under this Agreement are terminated
        pursuant to Section 8.04, 9.01 or 10.01, and if requested to do so by the
        Owner,
        the Servicer shall at its own cost and expense terminate the rights and
        responsibilities of each subservicer effective as of the date of termination
        of
        the Servicer. The Servicer shall pay all fees, expenses or penalties necessary
        in order to terminate the rights and responsibilities of each subservicer
        from
        the Servicer's own funds without reimbursement from the Owner.

       

      Notwithstanding
        any of the provisions of this Agreement relating to agreements or arrangements
        between the Servicer and a subservicer or any reference herein to actions
        taken
        through a subservicer or otherwise, the Servicer shall not be relieved of
        its
        obligations to the Owner and shall be obligated to the same extent and under
        the
        same terms and conditions as if it alone were servicing and administering
        the
        Mortgage Loans. The Servicer shall be entitled to enter into an agreement
        with a
        subservicer for indemnification of the Servicer by the subservicer and nothing
        contained in this Agreement shall be deemed to limit or modify such
        indemnification.

       

      Any
        subservicing agreement and any other transactions or services relating to
        the
        Mortgage Loans involving a subservicer shall be deemed to be between such
        subservicer and Servicer alone, and the Owner shall have no obligations,
        duties
        or liabilities with respect to such Subservicer including no obligation,
        duty or
        liability of Owner to pay such subservicer's fees and expenses. For purposes
        of
        distributions and advances by the Servicer pursuant to this Agreement, the
        Servicer shall be deemed to have received a payment on a Mortgage Loan when
        a
        subservicer has received such payment.

       

      Section
        4.02. Collection
        of Mortgage Loan Payments.
        

       

      Continuously
        from the date hereof until the date each Mortgage Loan ceases to be subject
        to
        this Agreement, the Servicer will proceed with diligence to collect all payments
        due under each Mortgage Loan when the same shall become due and payable and
        shall, to the extent such procedures shall be consistent with this Agreement
        and
        the terms and provisions of related Primary Mortgage Insurance Policy, follow
        such collection procedures as it follows with respect to mortgage loans
        comparable to the Mortgage Loans and held for its own account. Further, the
        Servicer will take reasonable care in ascertaining and estimating annual
        ground
        rents, taxes, assessments, water rates, fire and hazard insurance premiums,
        mortgage insurance premiums, and all other charges that, as provided in the
        Mortgage, will become due and payable to the end that the installments payable
        by the Mortgagors will be sufficient to pay such charges as and when they
        become
        due and payable.

       

      The
        Servicer shall not waive any Prepayment Charge unless: (i) the enforceability
        thereof shall have been limited by bankruptcy, insolvency, moratorium,
        receivership and other similar laws relating to creditors’ rights generally,
        (ii) the enforcement thereof is illegal, or any local, state or federal agency
        has threatened legal action if the prepayment penalty is enforced, (iii)
        the
        mortgage debt has been accelerated in connection with a foreclosure or other
        involuntary payment or (iv) such waiver is standard and customary in servicing
        similar Mortgage Loans and relates to a default or a reasonably foreseeable
        default and would, in the reasonable judgment of the Servicer, maximize recovery
        of total proceeds taking into account the value of such Prepayment Charge
        and
        the related Mortgage Loan. If a Prepayment Charge is waived, but does not
        meet
        the standards described above, then the Servicer is required to pay the amount
        of such waived Prepayment Charge by remitting such amount to the Owner by
        the
        Remittance Date.

       

      With
        respect to Mortgage Loans affected by Hurricane Katrina, if the Mortgaged
        Property is located in public and individual assistance counties as designated
        by FEMA (as set forth on its website www.fema.gov), the Servicer may cease
        charging of late fees and credit reporting activity for all Mortgagors in
        certain counties until May 1, 2006, and if reasonably prudent, may extend
        such
        period as long as necessary. In addition, the Servicer may suspend all
        foreclosure and bankruptcy activity relating to such certain Mortgage Loans
        until May 1, 2006, and if reasonably prudent, may extend such period as long
        as
        necessary.

       

      Section
        4.03. Realization
        Upon Defaulted Mortgage Loans.
        

       

      The
        Servicer shall use its reasonable efforts, consistent with the procedures
        that
        the Servicer would use in servicing loans for its own account and the
        requirements of the Fannie Mae Guide, to foreclose upon or otherwise comparably
        convert the ownership of properties securing such of the Mortgage Loans as
        come
        into and continue in default and as to which no satisfactory arrangements
        can be
        made for collection of delinquent payments pursuant to Section 4.01. In
        determining the delinquency status of any Mortgage Loan, the Servicer will
        apply
        the definition of Delinquent as such term is defined under the related pooling
        and servicing agreement. The Servicer shall use its reasonable efforts to
        realize upon defaulted Mortgage Loans in such manner as will maximize the
        receipt of principal and interest by the Owner, taking into account, among
        other
        things, the timing of foreclosure proceedings. The foregoing is subject to
        the
        provisions that, in any case in which Mortgaged Property shall have suffered
        damage, the Servicer shall not be required to expend its own funds toward
        the
        restoration of such property unless it shall determine in its discretion
        (i)
        that such restoration will increase the proceeds of liquidation of the related
        Mortgage Loan to the Owner after reimbursement to itself for such expenses,
        and
        (ii) that such expenses will be recoverable by the Servicer through Insurance
        Proceeds or Liquidation Proceeds from the related Mortgaged Property, as
        contemplated in Section 4.05. The Servicer shall be responsible for all costs
        and expenses incurred by it in any such proceedings or functions as Servicing
        Advances; provided, however, that it shall be entitled to reimbursement therefor
        as provided in Section 4.05. Notwithstanding anything to the contrary contained
        herein, in connection with a foreclosure or acceptance of a deed in lieu
        of
        foreclosure, in the event the Servicer has reasonable cause to believe that
        a
        Mortgaged Property is contaminated by hazardous or toxic substances or wastes,
        or if the Owner otherwise requests an environmental inspection or review
        of such
        Mortgaged Property, such an inspection or review is to be conducted by a
        qualified inspector. Upon completion of the inspection, the Servicer shall
        promptly provide the Owner with a written report of the environmental
        inspection. After reviewing the environmental inspection report, the Owner
        shall
        determine how the Servicer shall proceed with respect to the Mortgaged
        Property.

       

      Section
        4.04.  Establishment
        of Custodial Accounts; Deposits in Custodial Accounts.
        

       

      The
        Servicer shall segregate and hold all funds collected and received pursuant
        to
        each Mortgage Loan separate and apart from any of its own funds and general
        assets and shall establish and maintain one or more Custodial Accounts. Each
        Custodial Account shall be established with a Qualified Depository. To the
        extent such funds are not deposited in a Custodial Account, such funds may
        be
        invested in Permitted Investments for the benefit of the Owner (with any
        income
        earned thereon for the benefit of the Servicer). Custodial Accounts will
        be
        reconciled within 45 calendar days after the bank statement cut-off date.
        Funds
        deposited in the Custodial Account may be drawn on by the Servicer in accordance
        with Section 4.05. The creation of any Custodial Account shall be evidenced
        by a
        letter agreement in the form shown in Exhibit
        B
        hereto.
        The original of such letter agreement shall be furnished to the Owner upon
        request. The Servicer acknowledges and agrees that the Servicer shall bear
        any
        losses incurred with respect to Permitted Investments. The amount of any
        such
        losses shall be immediately deposited by the Servicer in the Custodial Account,
        out of the Servicer's own funds, with no right to reimbursement
        therefor.

       

      The
        Servicer shall deposit in a mortgage clearing account on a daily basis, and
        in
        the Custodial Account or Accounts no later than 48 hours after receipt and
        identification of funds and retain therein the following payments and
        collections:

       

      (i) all
        payments on account of principal, including Principal Prepayments and penalties,
        on the Mortgage Loans received after the Cut-off Date;

       

      (ii) all
        payments on account of interest on the Mortgage Loans adjusted to the related
        Mortgage Loan Remittance Rate received after the Cut-off Date;

       

      (iii) all
        Net
        Liquidation Proceeds received after the Cut-off Date;

       

      (iv) any
        net
        amounts received by the Servicer after the Cut-off Date in connection with
        any
        REO Property pursuant to Section 4.13;

       

      (v) all
        Insurance Proceeds received after the Cut-off Date including amounts required
        to
        be deposited pursuant to Sections 4.08 and 4.10, other than proceeds to be
        held
        in the Escrow Account and applied to the restoration or repair of the Mortgaged
        Property or released to the Mortgagor in accordance with the Servicer's normal
        servicing procedures, the loan documents or applicable law;

       

      (vi) all
        Condemnation Proceeds affecting any Mortgaged Property received after the
        Cut-off Date other than proceeds to be held in the Escrow Account and applied
        to
        the restoration or repair of the Mortgaged Property or released to the Mortgagor
        in accordance with the Servicer's normal servicing procedures, the loan
        documents or applicable law;

       

      (vii) any
        Monthly Advances as provided in Section 5.03;

       

      (viii) any
        amounts received after the Cut-off Date and required to be deposited in the
        Custodial Account pursuant to Section 6.02; and

       

      (ix) with
        respect to each full or partial Principal Prepayment received after the Cut-off
        Date, any Prepayment Interest Shortfalls, to the extent of the Servicer's
        aggregate Servicing Fee received with respect to the related Due
        Period.

       

      The
        foregoing requirements for deposit in the Custodial Account shall be exclusive,
        it being understood and agreed that, without limiting the generality of the
        foregoing, payments in the nature of late payment charges and assumption
        fees,
        to the extent permitted by Section 6.01, and all Prepayment Interest Excess
        need
        not be deposited by the Servicer in the Custodial Account. 

       

      Section
        4.05. Permitted
        Withdrawals From the Custodial Account.
        

       

      The
        Servicer may, from time to time, make withdrawals from the Custodial Account
        for
        the following purposes:

       

      (i) to
        make
        payments to the Owner in the amounts and in the manner provided for in Section
        5.01;

       

      (ii) to
        reimburse itself for Monthly Advances, the Servicer's right to reimburse
        itself
        pursuant to this subclause (ii) being limited to amounts received on the
        related
        Mortgage Loan which represent late collections (net of the related Servicing
        Fees) of principal and/or interest respecting which any such advance was
        made;

       

      (iii) to
        reimburse itself for unreimbursed Servicing Advances and Monthly Advances,
        the
        Servicer's right to reimburse itself pursuant to this subclause (iii) with
        respect to any Mortgage Loan being limited to Liquidation Proceeds, Condemnation
        Proceeds and Insurance Proceeds received after the Cut-off Date related to
        such
        Mortgage Loan;

       

      (iv) to
        pay to
        itself as servicing compensation (a) any interest earned on funds in the
        Custodial Account (all such interest to be withdrawn monthly not later than
        each
        Remittance Date) and (b) the Servicing Fee from that portion of any payment
        recovery attributable to interest on a particular Mortgage Loan;

       

      (v) to
        reimburse itself for any Nonrecoverable Advances;

       

      (vi) to
        transfer funds to another Qualified Depository in accordance with Section
        4.09
        hereof;

       

      (vii) to
        reimburse itself as provided in Section 8.03 hereof;

       

      (viii) to
        remove
        funds inadvertently placed in the Custodial Account in error by the Servicer;
        and

       

      (ix) to
        clear
        and terminate the Custodial Account upon the termination of this
        Agreement.

       

      Section
        4.06. Establishment
        of Escrow Accounts; Deposits in Escrow Accounts.
        

       

      The
        Servicer shall segregate and hold all funds collected and received pursuant
        to
        each Mortgage Loan which constitute Escrow Payments separate and apart from
        any
        of its own funds and general assets and shall establish and maintain one
        or more
        Escrow Accounts. Each Escrow Account shall be established with a Qualified
        Depository. To the extent such funds are not deposited in an Escrow Account,
        such funds may be invested in Permitted Investments. Funds deposited in an
        Escrow Account may be drawn on by the Servicer in accordance with Section
        4.07.
        The creation of any Escrow Account shall be evidenced by a letter agreement
        in
        the form shown in Exhibit
        C.
        The
        original of such letter agreement shall be furnished to the Owner upon request.
        The Servicer acknowledges and agrees that the Servicer shall bear any losses
        incurred with respect to Permitted Investments. The amount of any such losses
        shall be immediately deposited by the Servicer in the Escrow Account, as
        appropriate, out of the Servicer's own funds, with no right to reimbursement
        therefor.

       

      The
        Servicer shall deposit in a mortgage clearing account on a daily basis, and
        in
        the Escrow Account or Accounts no later than 48 hours after receipt of funds
        and
        retain therein:

       

      (i) all
        Escrow Payments collected on account of the Mortgage Loans, for the purpose
        of
        effecting timely payment of any items as are required under the terms of
        this
        Agreement;

       

      (ii) all
        Insurance Proceeds which are to be applied to the restoration or repair of
        any
        Mortgaged Property; and

       

      (iii) all
        Servicing Advances for Mortgagors whose Escrow Payments are insufficient
        to
        cover escrow disbursements.

       

      The
        Servicer shall make withdrawals from an Escrow Account only to effect such
        payments as are required under this Agreement, and for such other purposes
        as
        shall be as set forth in and in accordance with Section 4.07. Except as provided
        in Section 4.07, the Servicer shall be entitled to retain any interest paid
        on
        funds deposited in an Escrow Account by the Qualified Depository.

       

      Section
        4.07. Permitted
        Withdrawals From Escrow Account.
        

       

      Withdrawals
        from the Escrow Account may be made by the Servicer only:

       

      (i) to
        effect
        timely payments of ground rents, taxes, assessments, water rates, fire and
        hazard insurance premiums, Primary Mortgage Insurance Policy premiums, if
        applicable, and comparable items;

       

      (ii) to
        reimburse Servicer for any Servicing Advance made by Servicer with respect
        to a
        related Mortgage Loan but only from amounts received on the related Mortgage
        Loan which represent late payments or collections of Escrow Payments
        thereunder;

       

      (iii) to
        refund
        to the Mortgagor any funds as may be determined to be overages;

       

      (iv) for
        transfer to the Custodial Account in connection with an acquisition of REO
        Property;

       

      (v) for
        application to restoration or repair of the Mortgaged Property;

       

      (vi) to
        pay to
        the Servicer, or to the Mortgagor to the extent required by law, any interest
        paid on the funds deposited in the Escrow Account;

       

      (vii) to
        pay to
        the Mortgagors or other parties Insurance Proceeds deposited in accordance
        with
        Section 4.06; 

       

      (viii) to
        remove
        funds inadvertently placed in an Escrow Account in error by the Servicer;
        and

       

      (ix) to
        clear
        and terminate the Escrow Account on the termination of this Agreement.

       

      As
        part
        of its servicing duties, the Servicer shall pay to the Mortgagors interest
        on
        funds in an Escrow Account, to the extent required by law, and to the extent
        that interest earned on funds in the Escrow Account is insufficient, shall
        pay
        such interest from its own funds, without any reimbursement
        therefor.

       

      Section
        4.08. Payment
        of Taxes, Insurance and Other Charges, Maintenance of Primary Mortgage Insurance
        Policies, Collections Thereunder.
        

       

      With
        respect to each Mortgage Loan, the Servicer shall maintain accurate records
        reflecting the status of ground rents, taxes, assessments, water rates and
        other
        charges which are or may become a lien upon the Mortgaged Property and the
        status of Primary Mortgage Insurance Policy premiums and fire and hazard
        insurance coverage and shall obtain, from time to time, all bills for the
        payment of such charges, including renewal premiums and shall effect payment
        thereof prior to the applicable penalty or termination date and at a time
        appropriate for securing maximum discounts allowable, employing for such
        purpose
        deposits of the Mortgagor in the Escrow Account which shall have been estimated
        and accumulated by the Servicer in amounts sufficient for such purposes,
        as
        allowed under the terms of the Mortgage or applicable law. To the extent
        that
        the Mortgage does not provide for Escrow Payments, the Servicer shall determine
        that any such payments are made by the Mortgagor when due. The Servicer assumes
        full responsibility for the timely payment of all such bills and shall effect
        timely payments of all such bills irrespective of the Mortgagor's faithful
        performance in the payment of same or the making of the Escrow Payments and
        shall make advances from its own funds to effect such payments.

       

      The
        Servicer will maintain in full force and effect Primary Mortgage Insurance
        Policies issued by a Qualified Insurer with respect to each Mortgage Loan
        for
        which such coverage is herein required. Such coverage will be maintained
        until
        the ratio of the current outstanding principal balance of the related Mortgage
        Loan to the appraised value of the related Mortgaged Property, based on the
        most
        recent appraisal of the Mortgaged Property performed by a Qualified Appraiser,
        such appraisal to be included in the Servicing File, is reduced to an amount
        for
        which Fannie Mae no longer requires such insurance to be maintained. The
        Servicer will not cancel or refuse to renew any Primary Mortgage Insurance
        Policy that is required to be kept in force under this Agreement unless a
        replacement Primary Mortgage Insurance Policy for such canceled or nonrenewed
        policy is obtained from and maintained with a Qualified Insurer. The Servicer
        shall not take any action which would result in non-coverage under any
        applicable Primary Mortgage Insurance Policy of any loss which, but for the
        actions of the Servicer would have been covered thereunder. In connection
        with
        any assumption or substitution agreement entered into or to be entered into
        pursuant to Section 6.01, the Servicer shall promptly notify the insurer
        under
        the related Primary Mortgage Insurance Policy, if any, of such assumption
        or
        substitution of liability in accordance with the terms of such policy and
        shall
        take all actions which may be required by such insurer as a condition to
        the
        continuation of coverage under the Primary Mortgage Insurance Policy. If
        such
        Primary Mortgage Insurance Policy is terminated as a result of such assumption
        or substitution of liability, the Servicer shall obtain a replacement Primary
        Mortgage Insurance Policy as provided above.

       

      In
        connection with its activities as servicer, the Servicer agrees to prepare
        and
        present, on behalf of itself and the Owner, claims to the insurer under any
        Private Mortgage Insurance Policy in a timely fashion in accordance with
        the
        terms of such Primary Mortgage Insurance Policy and, in this regard, to take
        such action as shall be necessary to permit recovery under any Primary Mortgage
        Insurance Policy respecting a defaulted Mortgage Loan. Pursuant to Section
        4.04,
        any amounts collected by the Servicer under any Primary Mortgage Insurance
        Policy shall be deposited in the Custodial Account, subject to withdrawal
        pursuant to Section 4.05.

       

      Section
        4.09. Transfer
        of Accounts.
        

       

      The
        Servicer may transfer the Custodial Account or the Escrow Account to a different
        Qualified Depository from time to time. The Servicer shall notify the Owner
        of
        any such transfer within 15 Business Days of transfer. If any one of the
        investment ratings of a Qualified Depository holding funds or Eligible
        Investments in the Custodial Account or Escrow Account is downgraded by the
        issuing rating agency, the Servicer shall, within three (3) Business Days
        of
        receipt of notice of the downgrading, transfer all such accounts, funds and
        Permitted Investments to a different Qualified Depository in accordance with
        this Agreement.

       

      Section
        4.10. Maintenance
        of Hazard Insurance.
        

       

      The
        Servicer shall cause to be maintained for each Mortgage Loan fire and hazard
        insurance with extended coverage as is customary in the area where the Mortgaged
        Property is located in an amount which is equal to the lesser of (i) the
        maximum
        insurable value of the improvements securing such Mortgage Loan or (ii) the
        greater of (a) the outstanding principal balance of the Mortgage Loan, and
        (b)
        the percentage such that the proceeds thereof shall be sufficient to prevent
        the
        Mortgagor and/or the Mortgagee from becoming a co-insurer. If the Mortgaged
        Property is in an area identified in the Federal Register by the Federal
        Emergency Management Agency as being a special flood hazard area that has
        federally-mandated flood insurance requirements, the Servicer will cause
        to be
        maintained a flood insurance policy meeting the requirements of the current
        guidelines of the Federal Insurance Administration with a generally acceptable
        insurance carrier, in an amount representing coverage not less than the least
        of
        (i) the outstanding principal balance of the Mortgage Loan, (ii) the maximum
        insurable value of the improvements securing such Mortgage Loan or (iii)
        the
        maximum amount of insurance which is available under the Flood Disaster
        Protection Act of 1973, as amended. The Servicer shall also maintain on the
        REO
        Property, fire and hazard insurance with extended coverage in an amount which
        is
        at least equal to the maximum insurable value of the improvements which are
        a
        part of such property, liability insurance and, to the extent required and
        available under the Flood Disaster Protection Act of 1973, as amended, flood
        insurance in an amount as provided above. Any amounts collected by the Servicer
        under any such policies other than amounts to be deposited in the Escrow
        Account
        and applied to the restoration or repair of the Mortgaged Property or REO
        Property, or released to the Mortgagor in accordance with the Servicer's
        normal
        servicing procedures, shall be deposited in the Custodial Account, subject
        to
        withdrawal pursuant to Section 4.05. It is understood and agreed that no
        other
        additional insurance need be required by the Servicer or the Mortgagor or
        maintained on property acquired in respect of the Mortgage Loans, other than
        pursuant to the Fannie Mae Guide or such applicable state or federal laws
        and
        regulations as shall at any time be in force and as shall require such
        additional insurance. All such policies shall be endorsed with standard
        mortgagee clauses with loss payable to the Servicer and its successors and/or
        assigns and shall provide for at least thirty days prior written notice of
        any
        cancellation, reduction in the amount or material change in coverage to the
        Servicer. The Servicer shall not interfere with the Mortgagor's freedom of
        choice in selecting either his insurance carrier or agent, provided, however,
        that the Servicer shall not accept any such insurance policies from insurance
        companies unless such companies currently reflect a General Policy Rating
        in
        Best's Key Rating Guide currently acceptable to Fannie Mae and are licensed
        to
        do business in the state wherein the property subject to the policy is
        located.

       

      Section
        4.11 Maintenance
        of Mortgage Impairment Insurance Policy.

      

      In
        the
        event that the Servicer shall obtain and maintain a mortgage impairment or
        blanket policy issued by an issuer that has a Best rating of A:VI insuring
        against hazard losses on all of Mortgaged Properties securing the Mortgage
        Loans, then, to the extent such policy provides coverage in an amount equal
        to
        the amount required pursuant to Section 4.10 and otherwise complies with
        all
        other requirements of Section 4.10, the Servicer shall conclusively be deemed
        to
        have satisfied its obligations as set forth in Section 4.10, it being understood
        and agreed that such policy may contain a deductible clause, in which case
        the
        Servicer shall, in the event that there shall not have been maintained on
        the
        related Mortgaged Property or REO Property a policy complying with Section
        4.10,
        and there shall have been one or more losses which would have been covered
        by
        such policy, deposit in the Custodial Account the amount not otherwise payable
        under the blanket policy because of such deductible clause. In connection
        with
        its activities as Servicer of the Mortgage Loans, the Servicer agrees to
        prepare
        and present, on behalf of the Owner, claims under any such blanket policy
        in a
        timely fashion in accordance with the terms of such policy. Upon request
        of the
        Owner, the Servicer shall cause to be delivered to the Owner a certified
        true
        copy of such policy and a statement from the insurer thereunder that such
        policy
        shall in no event be terminated or materially modified without thirty (30)
        days
        prior written notice to the Owner.

      

      Section
        4.12. Fidelity
        Bond, Errors and Omissions Insurance.
        

       

      The
        Servicer shall maintain, at its own expense, a blanket fidelity bond and
        an
        errors and omissions insurance policy, with broad coverage with responsible
        companies that would meet the requirements of Fannie Mae or Freddie Mac on
        all
        officers, employees or other persons acting in any capacity with regard to
        the
        Mortgage Loans and who handle funds, money, documents and papers relating
        to the
        Mortgage Loans. The Fidelity Bond and errors and omissions insurance shall
        be in
        the form of the Mortgage Banker's Blanket Bond and shall protect and insure
        the
        Servicer against losses, including forgery, theft, embezzlement, fraud, errors
        and omissions and negligent acts of such persons. Such Fidelity Bond and
        errors
        and omissions insurance shall also protect and insure the Servicer against
        losses in connection with the failure to maintain any insurance policies
        required pursuant to this Agreement and the release or satisfaction of a
        Mortgage Loan without having obtained payment in full of the indebtedness
        secured thereby. No provision of this Section 4.12 requiring the Fidelity
        Bond
        and errors and omissions insurance shall diminish or relieve the Servicer
        from
        its duties and obligations as set forth in this Agreement. The minimum coverage
        under any such Fidelity Bond and insurance policy shall be at least equal
        to the
        corresponding amounts required by Fannie Mae in the Fannie Mae Guide or by
        Freddie Mac in the Freddie Mac Guide. The Servicer shall, upon request of
        Owner,
        deliver to the Owner a certificate from the surety and the insurer as to
        the
        existence of the Fidelity Bond and errors and omissions insurance policy
        and
        shall obtain a statement from the surety and the insurer that such Fidelity
        Bond
        or insurance policy shall in no event be terminated or materially modified
        without thirty days prior written notice to the Owner. The Servicer shall
        notify
        the Owner within five Business Days of receipt of notice that such Fidelity
        Bond
        or insurance policy will be, or has been, materially modified or terminated.
        The
        Owner and its successors or assigns as their interests may appear must be
        named
        as loss payees on the Fidelity Bond and as additional insured on the errors
        and
        omissions policy.

       

      Section
        4.13. Title,
        Management and Disposition of REO Property.
        

       

      In
        the
        event that title to any Mortgaged Property is acquired in foreclosure or
        by deed
        in lieu of foreclosure, the deed or certificate of sale shall be taken in
        the
        name of the Owner or its designee. Any such Person or Persons holding such
        title
        other than the Owner shall acknowledge in writing that such title is being
        held
        as nominee for the benefit of the Owner.

       

      The
        Servicer shall assume the responsibility for marketing each REO Property
        in
        accordance with Accepted Servicing Practices. Thereafter, the Servicer shall
        continue to provide certain administrative services to the Owner relating
        to
        such REO Property as set forth in this Section 4.13. The REO Property must
        be
        sold within three years following the end of the calendar year of the date
        of
        acquisition, unless a REMIC election has been made with respect to the
        arrangement under which the Mortgage Loans and REO Property are held and
        (i) the
        Owner shall have been supplied with an Opinion of Counsel (at the Servicer's
        expense) to the effect that the holding by the related trust of such Mortgaged
        Property subsequent to such three-year period (and specifying the period
        beyond
        such three-year period for which the Mortgaged Property may be held) will
        not
        result in the imposition of taxes on "prohibited transactions" of the related
        trust as defined in Section 860F of the Code, or cause the related REMIC
        to fail
        to qualify as a REMIC, in which case the related trust may continue to hold
        such
        Mortgaged Property (subject to any conditions contained in such Opinion of
        Counsel), or (ii) the Owner (at the Servicer's expense) or the Servicer shall
        have applied for, prior to the expiration of such three-year period, an
        extension of such three-year period in the manner contemplated by Section
        856(e)(3) of the Code, in which case the three-year period shall be extended
        by
        the applicable period. If a period longer than three years is permitted under
        the foregoing sentence and is necessary to sell any REO Property, the Servicer
        shall report monthly to the Owner as to progress being made in selling such
        REO
        Property.

       

      Notwithstanding
        any other provision of this Agreement, if a REMIC election has been made,
        no
        Mortgaged Property held by a REMIC shall be rented (or allowed to continue
        to be
        rented) or otherwise used for the production of income by or on behalf of
        the
        related trust or sold or managed in such a manner or pursuant to any terms
        that
        would (i) cause such Mortgaged Property to fail to qualify at any time as
        "foreclosure property" within a meaning of Section 860G(a)(8) of the Code,
        (ii)
        subject the related trust to the imposition of any federal or state income
        taxes
        on "net income from foreclosure property" with respect to such Mortgaged
        Property within the meaning of Section 860G(c) of the Code, or (iii) cause
        the
        sale of such Mortgaged Property to result in the receipt by the related trust
        or
        any income from non-permitted assets as described in Section 860F(a) (2)(B)
        of
        the Code, unless the Servicer has agreed to indemnify and hold harmless the
        related trust with respect to the imposition of any such taxes.

       

      The
        Servicer shall deposit or cause to be deposited, on a daily basis in each
        Custodial Account all revenues received with respect to the related REO Property
        and shall withdraw therefrom funds necessary for the proper operation,
        management and maintenance of the REO Property, including the cost of
        maintaining any hazard insurance pursuant to Section 4.10 hereof. The Servicer
        shall maintain separate records with respect to each REO Property identifying
        all deposits and withdrawals from the Custodial Account for each REO
        Property.

       

      The
        Servicer shall furnish to the Owner on each Remittance Date, an operating
        statement for each REO Property covering the operation of each REO Property
        for
        the previous month. Such operating statement shall be accompanied by such
        other
        information as the Owner shall reasonably request.

       

      The
        Servicer shall, either itself or through an agent selected by the Servicer,
        and
        in accordance with the Fannie Mae Guide, manage, conserve, protect and operate
        each REO Property in the same manner that it manages, conserves, protects
        and
        operates other foreclosed property for its own account, and in the same manner
        that similar property in the same locality as the REO Property is managed.
        Each
        REO Disposition shall be carried out by the Servicer at such price and upon
        such
        terms and conditions as the Servicer deems to be in the best interest of
        the
        Owner. The REO Disposition Proceeds from the sale of the REO Property shall
        be
        promptly deposited in the Custodial Account. As soon as practical thereafter,
        the expenses of such sale shall be paid and the Servicer shall reimburse
        itself
        for any related Servicing Advances, or Monthly Advances made pursuant to
        Section
        5.03.

       

      The
        Servicer shall cause each REO Property to be inspected promptly upon the
        acquisition of title thereto and shall cause each REO Property to be inspected
        at least monthly thereafter or more frequently as may be required by the
        circumstances. The Servicer shall make or cause the inspector to make a written
        report of each such inspection. Such reports shall be retained in the Servicing
        File and copies thereof shall be forwarded by the Servicer to the
        Owner.

       

      Section
        4.14.Notification
        of Adjustments.

       

      With
        respect to each Mortgage Loan, the Servicer shall adjust the Mortgage Interest
        Rate on the related Interest Rate Adjustment Date in compliance with
        requirements of applicable law and the related Mortgage and Mortgage Note.
        The
        Servicer shall execute and deliver any and all necessary notices required
        under
        applicable law and the terms of the related Mortgage Note and Mortgage regarding
        the Mortgage Interest Rate adjustments. The Servicer shall promptly, upon
        written request therefor, deliver to the Owner such notifications and any
        additional applicable data regarding such adjustments and the methods used
        to
        calculate and implement such adjustments. Upon the discovery by the Servicer
        or
        the receipt of notice from the Owner that the Servicer has failed to adjust
        a
        Mortgage Interest Rate in accordance with the terms of the related Mortgage
        Note
        and Mortgage, the Servicer shall immediately deposit in the Custodial Account
        from its own funds the amount of any interest loss or deferral caused to
        the
        Owner thereby.

       

      ARTICLE
        V  
        

      PAYMENTS
        TO THE OWNER

       

      Section
        5.01. Remittances.
        

       

      On
        each
        Remittance Date, the Servicer shall remit to the Owner (i) all amounts credited
        to the Custodial Account as of the close of business on the last day of the
        calendar month preceding the Determination Date, net of charges against or
        withdrawals from the Custodial Account pursuant to Section 4.05, except (a)
        Full
        Principal Prepayments received on or before the 15th day of the month in
        which a
        Remittance Date occurs shall be remitted to the Owner on the Remittance Date
        of
        such month, and (b) Full Principal Prepayments received after the 15th day
        of
        the month in which a Remittance Date occurs shall be remitted to the Owner
        on
        the next following Remittance Date, plus, to the extent not already deposited
        in
        the Custodial Account, the sum of (ii) all Monthly Advances, if any, which
        the
        Servicer is obligated to distribute pursuant to Section 5.03 and (iii) all
        Prepayment Interest Shortfalls the Servicer is required to make up pursuant
        to
        Section 4.04, minus (iv) any amounts attributable to Monthly Payments collected
        after the Cut-off Date but due on a Due Date or Dates subsequent to the last
        day
        of the related Due Period, which amounts shall be remitted on the related
        Remittance Date next succeeding the Due Period for such amounts.

       

      With
        respect to any remittance received by the Owner after the Business Day on
        which
        such payment was due, the Servicer shall pay to the Owner interest on any
        such
        late payment at an annual rate equal to the Prime Rate, adjusted as of the
        date
        of each change, plus two percentage points, but in no event greater than
        the
        maximum amount permitted by applicable law. Such interest shall be remitted
        to
        the Owner by the Servicer on the date such late payment is made and shall
        cover
        the period commencing with the day following such Business Day and ending
        with
        the Business Day on which such payment is made, both inclusive. The payment
        by
        the Servicer of any such interest shall not be deemed an extension of time
        for
        payment or a waiver of any Event of Default by the Servicer.

       

      Section
        5.02 Statements
        to the Owner and the Master Servicer.

       

      The
        Servicer shall furnish to the Owner and the Master Serivcer an individual
        Mortgage Loan accounting report (a ”Report”), as of the last Business Day of
        each month and the end of the related Prepayment Period, as applicable, in
        the
        Servicer's assigned loan number order to document Mortgage Loan payment activity
        on an individual Mortgage Loan basis. With respect to each month, such Report
        shall be received by the Owner and the Master Servicer no later than the
        tenth
        calendar day of the month of the related Remittance Date (or, with respect
        to
        information as to Full Principal Prepayments and prepayment penalties no
        later
        than one (1) Business Day after the end of each Prepayment Period), a report
        in
        an Excel (or compatible) electronic format, in such format as may be mutually
        agreed upon by both the Owner and the Servicer, and which shall provide the
        information required to be contained in the monthly statements to
        certificateholders as specified in the related pooling and servicing Agreement,
        to the extent applicable to the Servicer. 

       

      In
        addition, the Servicer shall provide to the Master Servicer and the Owner
        such
        other information known or available to the Servicer that is necessary in
        order
        to provide the distribution and pool performance information as required
        under
        Regulation AB, as amended from time to time, as determined by the Owner in
        its
        sole discretion. The Servicer shall also provide a monthly report, in the
        form
        of Exhibit E hereto, or such other form as is mutually acceptable to the
        Servicer, the Owner and the Master Servicer, Exhibit F with respect to defaulted
        mortgage loans and Exhibit K, with respect to realized losses and gains,
        with
        each such report. 

       

      The
        Servicer shall prepare and file any and all information statements or other
        filings required to be delivered to any governmental taxing authority or
        to
        Owner or the Master Servicer pursuant to any applicable law with respect
        to the
        Mortgage Loans and the transactions contemplated hereby. In addition, the
        Servicer shall provide the Owner and the Master Servicer with such information
        concerning the Mortgage Loans as is necessary for the Owner and
        the
        Master Servicer
        to
        prepare its federal income tax return as Owner and the Master Servicer may
        reasonably request from time to time.

       

      In
        addition, not more than 60 days after the end of each calendar year, the
        Servicer shall furnish to each Person who was an Owner and the Master Servicer
        at any time during such calendar year an annual statement in accordance with
        the
        requirements of applicable federal income tax law as to the aggregate of
        remittances of principal and interest for the applicable portion of such
        year.

       

      Section
        5.03. Monthly
        Advances by the Servicer.
        

       

      Not
        later
        than the close of business on the Business Day preceding each Remittance
        Date,
        the Servicer shall deposit in the Custodial Account an amount equal to all
        payments not previously advanced by the Servicer, whether or not deferred
        pursuant to Section 4.01, of Monthly Payments, adjusted to the related Mortgage
        Loan Remittance Rate, which are delinquent at the close of business on the
        related Determination Date; provided, however, that the amount of any such
        deposit may be reduced by the Amount Held for Future Distribution (as defined
        below) then on deposit in the Custodial Account. Any portion of the Amount
        Held
        for Future Distribution used to pay Monthly Advances shall be replaced by
        the
        Servicer by deposit into the Custodial Account on any future Remittance Date
        to
        the extent that the funds that are available in the Custodial Account for
        remittance to the Owner on such Remittance Date are less than the amount
        of
        payments required to be made to the Owner on such Remittance Date. 

       

      The
        "Amount Held for Future Distribution" as to any Remittance Date shall be
        the
        total of the amounts held in the Custodial Account at the close of business
        on
        the preceding Determination Date which were received after the Cut-off Date
        on
        account of (i) Liquidation Proceeds, Insurance Proceeds, and Principal
        Prepayments received or made in the month of such Remittance Date, and (ii)
        payments which represent early receipt of scheduled payments of principal
        and
        interest due on a date or dates subsequent to the related Due Date.

       

      The
        Servicer's obligation to make such Monthly Advances as to any Mortgage Loan
        will
        continue through the final disposition or liquidation of the Mortgaged Property,
        unless the Servicer deems such advance to be nonrecoverable from Liquidation
        Proceeds, REO Disposition Proceeds or Insurance Proceeds with respect to
        the
        applicable Mortgage Loan. In such latter event, the Servicer shall deliver
        to
        the Owner an Officer's Certificate of the Servicer to the effect that an
        officer
        of the Servicer has reviewed the related Servicing File and has obtained
        a
        recent appraisal and has made the reasonable determination that any additional
        advances are nonrecoverable from Liquidation or Insurance Proceeds with respect
        to the applicable Mortgage Loan.

       

      Section
        5.04. Liquidation
        Reports.
        

       

      Upon
        the
        foreclosure sale of any Mortgaged Property or the acquisition thereof by
        the
        Owner pursuant to a deed-in--lieu of foreclosure, the Servicer shall submit
        to
        the Owner a liquidation report with respect to such Mortgaged Property in
        such
        form as the Servicer and the Owner shall agree. The Servicer shall also provide
        reports on the status of REO Property containing such information as Owner
        may
        reasonably require.

       

      ARTICLE
        VI  
        

      GENERAL
        SERVICING PROCEDURES

       

      Section
        6.01. Assumption
        Agreements.
        

       

      The
        Servicer will, to the extent it has knowledge of any conveyance or prospective
        conveyance by any Mortgagor of a Mortgaged Property (whether by absolute
        conveyance or by contract of, sale, and whether or not the Mortgagor remains
        or
        is to remain liable under the Mortgage Note and/or the Mortgage), exercise
        its
        rights to accelerate the maturity of such Mortgage Loan under any "due-on-sale"
        clause to the extent permitted by law; provided, however, that the Servicer
        shall not exercise any such rights if prohibited by law or the terms of the
        Mortgage Note from doing so or if the exercise of such rights would impair
        or
        threaten to impair any recovery under the related Primary Mortgage Insurance
        Policy, if any. If the Servicer reasonably believes it is unable under
        applicable law to enforce such "due-on-sale" clause, the Servicer, will enter
        into an assumption agreement with the person to whom the Mortgaged Property
        has
        been conveyed or is proposed to be conveyed, pursuant to which such person
        becomes liable under the Mortgage Note and, to the extent permitted by
        applicable state law, the Mortgagor remains liable thereon. Where an assumption
        is allowed pursuant to this Section 6.01, the Servicer, with the prior consent
        of the primary mortgage insurer, if any, is authorized to enter into a
        substitution of liability agreement with the person to whom the Mortgaged
        Property has been conveyed or is proposed to be conveyed pursuant to which
        the
        original mortgagor is released from liability and such Person is substituted
        as
        mortgagor and becomes liable under the related Mortgage Note. Any such
        substitution of liability agreement shall be in lieu of an assumption
        agreement.

       

      In
        connection with any such assumption or substitution of liability, the Servicer
        shall follow the underwriting practices and procedures of the Fannie Mae
        Guide.
        With respect to an assumption or substitution of liability, the Mortgage
        Interest Rate borne by the related Mortgage Note and the amount of the Monthly
        Payment may not be changed. The Servicer shall notify the Owner that any
        such
        substitution of liability or assumption agreement has been completed by
        forwarding to the Owner the original of any such substitution of liability
        or
        assumption agreement, which document shall be added to the related Mortgage
        Loan
        Documents and shall, for all purposes, be considered a part of such related
        mortgage file to the same extent as all other documents and instruments
        constituting a part thereof. All fees collected by the Servicer for entering
        into an assumption or substitution of liability agreement shall belong to
        the
        Servicer.

       

      Notwithstanding
        the foregoing paragraphs of this section or any other provision of this
        Agreement, the Servicer shall not be deemed to be in default, breach or any
        other violation of its obligations hereunder by reason of any assumption
        of a
        Mortgage Loan by operation of law or any assumption which the Servicer may
        be
        restricted by law from preventing, for any reason whatsoever. For purposes
        of
        this Section 6.01, the term "assumption" is deemed to also include a sale
        of the
        Mortgaged Property subject to the Mortgage that is not accompanied by an
        assumption or substitution of liability agreement.

       

      Section
        6.02. Satisfaction
        of Mortgages and Release of Mortgage Loan Documents.

       

      Upon
        the
        payment in full of any Mortgage Loan, the Servicer will immediately notify
        the
        Custodian with a certification and request for release by a Servicing Officer,
        which certification shall include a statement to the effect that all amounts
        received in connection with such payment which are required to be deposited
        in
        the Custodial Account pursuant to Section 4.04 have been so deposited, and
        a
        request for delivery to the Servicer of the portion of the Mortgage Loan
        Documents held by the Custodian. Upon receipt of such certification and request,
        the Owner shall promptly release or cause the Custodian to promptly release
        the
        related Mortgage Loan Documents to the Servicer and the Servicer shall prepare
        and deliver for execution by the Owner or at the Owner's option execute under
        the authority of a power of attorney delivered to the Servicer by the Owner
        any
        satisfaction or release. No expense incurred in connection with any instrument
        of satisfaction or deed of reconveyance shall be chargeable to the Custodial
        Account.

       

      In
        the
        event the Servicer satisfies or releases a Mortgage without having obtained
        payment in full of the indebtedness secured by the Mortgage or should it
        otherwise prejudice any right the Owner may have under the mortgage instruments,
        the Servicer, upon written demand, shall remit within one Business Day to
        the
        Owner the then outstanding principal balance of the related Mortgage Loan
        by
        deposit thereof in the Custodial Account. The Servicer shall maintain the
        Fidelity Bond insuring the Servicer against any loss it may sustain with
        respect
        to any Mortgage Loan not satisfied in accordance with the procedures set
        forth
        herein.

       

      From
        time
        to time and as appropriate for the servicing or foreclosure of the Mortgage
        Loans, including for the purpose of collection under any Primary Mortgage
        Insurance Policy, upon request of the Servicer and delivery to the Custodian
        of
        a servicing receipt signed by a Servicing Officer, the Custodian shall release
        the portion of the Mortgage Loan Documents held by the Custodian to the
        Servicer. Such servicing receipt shall obligate the Servicer to promptly
        return
        the related Mortgage Loan Documents to the Custodian, when the need therefor
        by
        the Servicer no longer exists, unless the Mortgage Loan has been liquidated
        and
        the Liquidation Proceeds relating to the Mortgage Loan have been deposited
        in
        the Custodial Account or such documents have been delivered to an attorney,
        or
        to a public trustee or other public official as required by law, for purposes
        of
        initiating or pursuing legal action or other proceedings for the foreclosure
        of
        the Mortgaged Property either judicially or non-judicially, and the Servicer
        has
        promptly delivered to the Owner or the Custodian a certificate of a Servicing
        Officer certifying as to the name and address of the Person to which such
        documents were delivered and the purpose or purposes of such delivery. Upon
        receipt of a certificate of a Servicing Officer stating that such Mortgage
        Loan
        was liquidated, the servicing receipt shall be released by the Owner or the
        Custodian, as applicable, to the Servicer.

       

      Section
        6.03. Servicing
        Compensation.
        

       

      As
        compensation for its services hereunder, the Servicer shall be entitled to
        withdraw from the Custodial Account or to retain from interest payments on
        the
        Mortgage Loans the amounts provided for as the Servicer's Servicing Fee.
        Additional servicing compensation in the form of assumption fees, as provided
        in
        Section 6.01, late payment charges and other ancillary fees shall be retained
        by
        the Servicer to the extent not required to be deposited in the Custodial
        Account. The Servicer shall be required to pay all expenses incurred by it
        in
        connection with its servicing activities hereunder and shall not be entitled
        to
        reimbursement therefor except as specifically provided for.

       

      Section
        6.04. Annual
        Statement as to Compliance; Annual Certification.

       

      (a) The
        Servicer will deliver to the Owner and the Master Servicer, not later than
        March
        15th of each calendar year beginning in 2007, an Officer’s Certificate (an
“Annual Statement of Compliance”) stating, as to each signatory thereof, that
        (i) a review of the activities of the Servicer during the preceding calendar
        year and of performance under this Agreement or other applicable servicing
        agreement has been made under such officer’s supervision and (ii) to the best of
        such officer’s knowledge, based on such review, the Servicer has fulfilled all
        of its obligations under this Agreement or other applicable servicing agreement
        in all material respects throughout such year, or, if there has been a failure
        to fulfill any such obligation in any material respect, specifying each such
        failure known to such officer and the nature and status of cure provisions
        thereof. Such Annual Statement of Compliance shall contain no restrictions
        or
        limitations on its use. Copies of such statement shall be provided by the
        Servicer to the Owner upon request and by the Owner to any Person identified
        as
        a prospective purchaser of the Mortgage Loans. In the event that the Servicer
        has delegated any servicing responsibilities with respect to the Mortgage
        Loans
        to a Subservicer, the Servicer shall deliver an Annual Statement of Compliance
        of the Subservicer as described above as to each Subservicer as and when
        required with respect to the Servicer.

       

      (b) With
        respect to the Mortgage Loans, by March 15th of each calendar year beginning
        in
        2007, an officer of the Servicer shall execute and deliver an Officer’s
        Certificate (an “Annual Certification”) to the Owner, the Master Servicer, the
        Securities Administrator, and any related Depositor for the benefit of each
        such
        entity and such entity’s affiliates and the officers, directors and agents of
        any such entity and such entity’s affiliates, in the form attached hereto as
        Exhibit G. In the event that the Servicer has delegated any servicing
        responsibilities with respect to the Mortgage Loans to a Subservicer or a
        Subcontractor, to the extent such Subcontractor is “participating in the
        servicing function” pursuant to Item 1122 of Regulation AB, the Servicer shall
        deliver an Annual Certification as to each such Subservicer and Subcontractor,
        as and when required with respect to the Servicer.

       

      The
        Servicer shall indemnify and hold harmless the Master Servicer and its officers,
        directors, agents and affiliates from and against any losses, damages,
        penalties, fines, forfeitures, reasonable legal fees and related costs,
        judgments and other costs and expenses arising out of or based upon a breach
        by
        the Servicer or any of its officers, directors, agents or affiliates of its
        obligations under this Section 6.04 or Section 6.09 or the negligence, bad
        faith
        or willful misconduct of the Servicer in connection therewith. If the
        indemnification provided for herein is unavailable or insufficient to hold
        harmless the Master Servicer, then the Servicer agrees that it shall contribute
        to the amount paid or payable by the Master Servicer as a result of the losses,
        claims, damages or liabilities of the Master Servicer in such proportion
        as is
        appropriate to reflect the relative fault of the Master Servicer on the one
        hand
        and the Servicer on the other in connection with a breach of the Servicer’s
        obligations under this Section 6.04 or Section 6.09 or the Servicer’s
        negligence, bad faith or willful misconduct in connection
        therewith.

       

      Upon
        request by the Owner or the Master Servicer, the Servicer will deliver to
        such
        requesting party a copy of the audited (if such financial statements are
        available, otherwise unaudited) financial statements of the Servicer for
        the
        most recent fiscal year of the Servicer.

       

      Section
        6.05. [Reserved]

       

      Section
        6.06. Owner's
        Right to Examine Servicer Records.
        

       

      The
        Owner
        shall have the right to examine and audit, at its expense, upon reasonable
        notice to the Servicer, during business hours or at such other times as might
        be
        reasonable under applicable circumstances, any and all of the books, records,
        documentation or other information of the Servicer, or held by another for
        the
        Servicer or on its behalf or otherwise, which relate to the performance or
        observance by the Servicer of the terms, covenants or conditions of this
        Agreement.

       

      The
        Servicer shall provide to the Owner and any supervisory agents or examiners
        representing a state or federal governmental agency having jurisdiction over
        the
        Owner access to any documentation regarding the Mortgage Loans in the possession
        of the Servicer which may be required by any applicable regulations. Such
        access
        shall be afforded without charge, upon reasonable request, during normal
        business hours and at the offices of the Servicer, and in accordance with
        the
        applicable federal or state government regulations.

       

      Section
        6.07. Compliance
        with REMIC Provisions.
        

       

      If
        a
        REMIC election has been made with respect to the arrangement under which
        the
        Mortgage Loans and REO Property are held, the Servicer shall not take any
        action, cause the REMIC to take any action or fail to take (or fail to cause
        to
        be taken) any action that, under the REMIC Provisions, if taken or not taken,
        as
        the case may be could (i) endanger the status of the REMIC as a REMIC or
        (ii)
        result in the imposition of a tax upon the REMIC (including but not limited
        to
        the tax on "prohibited transactions" as defined in Section 860F(a)(2) of
        the
        Code and the tax on "contribution" to a REMIC set forth in Section 860G(d)
        of
        the Code unless the Servicer has received an Opinion of Counsel (at the expense
        of the party seeking to take such actions) to the effect that the contemplated
        action will not endanger such REMIC status or result in the imposition of
        any
        such tax.

       

      Section
        6.08. Non-solicitation.
        

       

      The
        Servicer shall not knowingly conduct any solicitation exclusively targeted
        to
        the Mortgagors for the purpose of inducing or encouraging the early prepayment
        or refinancing of the related Mortgage Loans. It is understood and agreed
        that
        promotions undertaken by the Servicer or any agent or affiliate of the Servicer
        which are directed to the general public at large, including, without
        limitation, mass mailings based on commercially acquired mailing lists,
        newspaper, radio and television advertisements shall not constitute solicitation
        under this section. Nothing contained herein shall prohibit the Servicer
        from
        (i) distributing to Mortgagors any general advertising including information
        brochures, coupon books, or other similar documentation which indicates services
        the Servicer offers, including refinances or (ii) providing financing of
        home
        equity loans to Mortgagors at the Mortgagor's request.

       

      Section
        6.09. Assessment
        of Compliance with Servicing Criteria.

       

      On
        and
        after January 1, 2006, the Servicer shall service and administer, and shall
        cause each subservicer to service or administer, the Mortgage Loans in
        accordance with all applicable requirements of the Servicing
        Criteria.

       

      With
        respect to the Mortgage Loans, the Servicer shall deliver to the Owner or
        its
        designee, the Master Servicer, the Securities Administrator, and any Depositor
        on or before March 15th of each calendar year beginning in 2007, a report
        (an
“Assessment of Compliance”) regarding the Servicer’s assessment of compliance
        with the Servicing Criteria during the preceding calendar year as required
        by
        Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB,
        or
        as otherwise required by the Master Servicer, which as of the date hereof,
        require a report by an authorized officer of the Servicer that contains the
        following:

       

      (a) A
        statement by such officer of its responsibility for assessing compliance
        with
        the Servicing Criteria applicable to the Servicer;

       

      (b) A
        statement by such officer that such officer used the Servicing Criteria to
        assess compliance with the Servicing Criteria applicable to the
        Servicer;

       

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

       

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

       

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

       

      Such
        report at a minimum shall address each of the Servicing Criteria specified
        on
        Exhibit J hereto.

       

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

       

      The
        Servicer shall cause each Subservicer, and each Subcontractor determined
        by the
        Servicer pursuant to Section 11.15 to be “participating in the servicing
        function” within the meaning of Item 1122 of Regulation AB, to deliver to the
        Owner, the Master Servicer, the Securities Administrator and any Depositor
        an
        assessment of compliance and accountants’ attestation as and when provided in
        Section 6.09.

       

      Section
        6.10. Intent
        of the Parties; Reasonableness.

       

      The
        Owner
        and the Servicer acknowledge and agree that a purpose of clause (g) of Article
        III, Sections 5.02, 6.04, 6.09 and 10.02 of this Agreement is to facilitate
        compliance by the Owner and any Depositor with the provisions of Regulation
        AB
        and related rules and regulations of the Commission. None of the Owner, the
        Master Servicer or any Depositor shall exercise its right to request delivery
        of
        information or other performance under these provisions other than in good
        faith, or for purposes other than compliance with the Securities Act, the
        Exchange Act and the rules and regulations of the Commission thereunder.
        The
        Servicer acknowledges that interpretations of the requirements of Regulation
        AB
        may change over time, whether due to interpretive guidance provided by the
        Commission or its staff, consensus among participants in the asset-backed
        securities markets, advice of counsel, or otherwise, and agrees to comply
        with
        requests made by the Owner or any Depositor in good faith for delivery of
        information under these provisions on the basis of evolving interpretations
        of
        Regulation AB. In connection with any Pass-Through Transfer, the Servicer
        shall
        cooperate fully with the Owner to deliver to the Owner (including any of
        its
        assignees or designees) and any Depositor, any and all statements, reports,
        certifications, records and any other information necessary in the good faith
        determination of the Owner or any Depositor to permit the Owner or such
        Depositor to comply with the provisions of Regulation AB, together with such
        disclosures relating to the Servicer, any Subservicer and the Mortgage Loans,
        or
        the servicing of the Mortgage Loans, reasonably believed by the Owner or
        any
        Depositor to be necessary in order to effect such compliance.

       

      ARTICLE
        VII  
        

      REPORTS
        TO BE PREPARED BY SERVICER

       

      Section
        7.01. Servicer
        Shall Provide Information as Reasonably Required.
        

       

      The
        Servicer shall furnish to the Owner upon request, during the term of this
        Agreement, such periodic, special or other reports or information, whether
        or
        not provided for herein, as shall be necessary, reasonable or appropriate
        with
        respect to the purposes of this Agreement. The Servicer may negotiate with
        the
        Owner for a reasonable fee for providing such report or information, unless
        (i)
        the Servicer is required to supply such report or information pursuant to
        any
        other section of this Agreement, or (ii) the report or information has been
        requested in connection with Internal Revenue Service or other regulatory
        agency
        requirements. All such reports or information shall be provided by and in
        accordance with all reasonable instructions and directions given by the Owner.
        The Servicer agrees to execute and deliver all such instruments and take
        all
        such action as the Owner, from time to time, may reasonably request in order
        to
        effectuate the purpose and to carry out the terms of this
        Agreement.

       

      ARTICLE
        VIII  
        

      THE
        SERVICER

       

      Section
        8.01. Indemnification;
        Third Party Claims.
        

       

      The
        Servicer agrees to indemnify the Owner, its successors and assigns, any agent
        of
        the Owner, and the Master Servicer, and hold each of such Persons harmless
        from
        and against any and all claims, losses, damages, penalties, fines, forfeitures,
        legal fees and related costs, judgments, and any other costs, fees and expenses
        that such Person may sustain in any way related to the failure of the Servicer
        to perform in any way its duties and service the Mortgage Loans in strict
        compliance with the terms of this Agreement and for breach of any representation
        or warranty of the Servicer contained herein. The Servicer shall immediately
        notify the Owner or other indemnified Person if a claim is made by a third
        party
        with respect to this Agreement or the Mortgage Loans, assume (with the consent
        of the Owner and such other Indemnified Person and with counsel reasonably
        satisfactory to the Owner and such Person) the defense of any such claim
        and pay
        all expenses in connection therewith, including counsel fees, and promptly
        pay,
        discharge and satisfy any judgment or decree which may be entered against
        it or
        such other indemnified Person in respect of such claim but failure to so
        notify
        the Owner and such other indemnified Person shall not limit its obligations
        hereunder. The Servicer agrees that it will not enter into any settlement
        of any
        such claim without the consent of the Owner and such other indemnified Person
        unless such settlement includes an unconditional release of the Owner and
        such
        other indemnified Person from all liability that is the subject matter of
        such
        claim. The provisions of this Section 8.01 shall survive termination of this
        Agreement.

       

      Section
        8.02. Merger
        or Consolidation of the Servicer.
        

       

      The
        Servicer will keep in full effect its existence, rights and franchises as
        a
        corporation under the laws of the state of its incorporation except as permitted
        herein, and will obtain and preserve its qualification to do business as
        a
        foreign corporation in each jurisdiction in which such qualification is or
        shall
        be necessary to protect the validity and enforceability of this Agreement
        or any
        of the Mortgage Loans and to perform its duties under this
        Agreement.

       

      Any
        Person into which the Servicer may be merged or consolidated, or any corporation
        resulting from any merger, conversion or consolidation to which the Servicer
        shall be a party, or any Person succeeding to the business of the Servicer
        whether or not related to loan servicing, shall be the successor of the Servicer
        hereunder, without the execution or filing of any paper or any further act
        on
        the part of any of the parties hereto, anything herein to the contrary
        notwithstanding; provided, however, that the successor or surviving Person
        shall
        be an institution (i) having a GAAP net worth of not less than $25,000,000,
        (ii)
        the deposits of which are insured by the FDIC, or which is a HUD-approved
        mortgagee whose primary business is in origination and servicing of first
        lien
        mortgage loans, and (iii) which is a Fannie Mae or Freddie Mac approved
        seller/servicer in good standing.

       

      Section
        8.03. Limitation
        on Liability of the Servicer and Others.
        

       

      Neither
        the Servicer nor any of the officers, employees or agents of the Servicer
        shall
        be under any liability to the Owner for any action taken or for refraining
        from
        the taking of any action in good faith pursuant to this Agreement, or for
        errors
        in judgment made in good faith; provided, however, that this provision shall
        not
        protect the Servicer or any such person against any breach of warranties
        or
        representations made herein, or failure to perform in any way its obligations
        in
        compliance with any standard of care set forth in this Agreement, or any
        liability which would otherwise be imposed by reason of gross negligence
        or any
        breach of the terms and conditions of this Agreement. The Servicer and any
        officer, employee or agent of the Servicer may rely in good faith on any
        document of any kind prima facie properly executed and submitted by the Owner
        respecting any matters arising hereunder. The Servicer shall not be under
        any
        obligation to appear in, prosecute or defend any legal action which is not
        incidental to its duties to service the Mortgage Loans in accordance with
        this
        Agreement and which in its opinion may involve it in any expenses or liability;
        provided, however, that the Servicer may, with the consent of the Owner,
        which
        consent shall not be unreasonably withheld, undertake any such action which
        it
        may deem necessary or desirable with respect to this Agreement and the rights
        and duties of the parties hereto. In such event, the reasonable legal expenses
        and costs of such action and any liability resulting therefrom shall be
        expenses, costs and liabilities for which the Owner will be liable, and the
        Servicer shall be entitled to be reimbursed therefor from the Custodial Account
        pursuant to Section 4.05.

       

      Section
        8.04. Servicer
        Not to Resign.
        

       

      The
        Servicer shall not resign from the obligations and duties hereby imposed
        on it
        except by mutual consent of the Servicer and the Owner or upon the determination
        that its duties hereunder are no longer permissible under applicable law
        and
        such incapacity cannot be cured by the Servicer. Any such determination
        permitting the resignation of the Servicer shall be evidenced by an Opinion
        of
        Counsel to such effect delivered to the Owner which Opinion of Counsel shall
        be
        in form and substance acceptable to the Owner. No such resignation shall
        become
        effective until a successor shall have assumed the Servicer's responsibilities
        and obligations hereunder in the manner provided in Section 11.01.

       

      Section
        8.05. No
        Transfer of Servicing.
        

       

      With
        respect to the retention of the Servicer to service the Mortgage Loans
        hereunder, the Servicer acknowledges that the Owner has acted in reliance
        upon
        the Servicer's independent status, the adequacy of its servicing facilities,
        plan, personnel, records and procedures, its integrity, reputation and financial
        standing and the continuance thereof. Without in any way limiting the generality
        of this section, the Servicer shall not either assign this Agreement or the
        servicing hereunder or delegate its rights or duties hereunder or any portion
        thereof, or sell or otherwise dispose of all or substantially all of its
        property or assets, without the prior written approval of the Owner, which
        approval shall not be unreasonably withheld; provided that the Servicer may
        assign the Agreement and the servicing hereunder without the consent of Owner
        to
        an affiliate of the Servicer to which all servicing of the Servicer is assigned
        so long as (i) such affiliate is a Fannie Mae and Freddie Mac approved servicer
        and (ii) if it is intended that such affiliate be spun off to the shareholders
        of the Servicer, such affiliate have a GAAP net worth of at least $25,000,000
        and (iii) such affiliate shall deliver to the Owner a certification pursuant
        to
        which such affiliate shall agree to be bound by the terms and conditions
        of this
        Agreement and shall certify that such affiliate is a Fannie Mae and Freddie
        Mac
        approved servicer in good standing.

       

      ARTICLE
        IX  
        

      DEFAULT

       

      Section
        9.01. Events
        of Default.
        

       

      In
        case
        one or more of the following Events of Default by the Servicer shall occur
        and
        be continuing, that is to say:

       

      (i) any
        failure by the Servicer to remit to the Owner any payment required to be
        made
        under the terms of this Agreement which continues unremedied for one (1)
        Business Day after written notice thereof (it being understood that this
        subparagraph shall not affect Servicer's obligation pursuant to Section 5.01
        to
        pay default interest on any remittance received by the Owner after the Business
        Day on which such payment was due); or

       

      (ii) any
        failure on the part of the Servicer duly to observe or perform in any material
        respect any other of the covenants or agreements on the part of the Servicer
        set
        forth in this Agreement (other than those described in clause (ix) hereof),
        the
        breach of which has a material adverse effect and which continue unremedied
        for
        a period of thirty days (except that such number of days shall be fifteen
        in the
        case of a failure to pay any premium for any insurance policy required to
        be
        maintained under this Agreement and such failure shall be deemed to have
        a
        material adverse effect) after the date on which written notice of such failure,
        requiring the same to be remedied, shall have been given to the Servicer
        by the
        Owner; or

       

      (iii) a
        decree
        or order of a court or agency or supervisory authority having jurisdiction
        for
        the appointment of a conservator or receiver or liquidator in any insolvency,
        bankruptcy, readjustment of debt, marshaling of assets and liabilities or
        similar proceedings, or for the winding-up or liquidation of its affairs,
        shall
        have been entered against the Servicer and such decree or order shall have
        remained in force undischarged or unstayed for a period of sixty days;
        or

       

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

       

      (v) the
        Servicer shall admit in writing its inability to pay its debts generally
        as they
        become due, file a petition to take advantage of any applicable insolvency
        or
        reorganization statute, make an assignment for the benefit of its creditors,
        or
        voluntarily suspend payment of its obligations; or

       

      (vi) the
        Servicer ceases to be approved by either Fannie Mae or Freddie Mac (to the
        extent such entities are then operating in a capacity similar to that in
        which
        they operate on the date hereof) as a mortgage loan servicer for more than
        thirty days to the extent such entities perform similar functions;
        or

       

      (vii) the
        Servicer attempts to assign its right to servicing compensation hereunder
        or the
        Servicer attempts, without the consent of the Owner, to sell or otherwise
        dispose of all or substantially all of its property or assets or to assign
        this
        Agreement or the servicing responsibilities hereunder or to delegate its
        duties
        hereunder or any portion thereof except as otherwise permitted herein;
        or

       

      (viii) the
        Servicer ceases to be qualified to transact business in any jurisdiction
        where
        it is currently so qualified, but only to the extent such non-qualification
        materially and adversely affects the Servicer's ability to perform its
        obligations hereunder; or

       

      (ix) failure
        by the Servicer to duly perform, within the required time period, its
        obligations under Section 6.04, 6.09 or any of clauses (v) through (viii)
        of
        Section 10.02;

       

      then,
        and
        in each and every such case, so long as an Event of Default shall not have
        been
        remedied, the Owner, by notice in writing to the Servicer may, in addition
        to
        whatever rights the Owner may have under Section 8.01 and at law or equity
        to
        damages, including injunctive relief and specific performance, terminate
        all the
        rights and obligations of the Servicer (and if the Servicer is servicing
        any of
        the Mortgage Loans in a Pass-Through Transfer, appoint a successor servicer
        reasonably acceptable to the Master Servicer for such Pass-Through Transfer)
        under this Agreement and in and to the Mortgage Loans and the proceeds thereof
        without compensating the Servicer for the same. On or after the receipt by
        the
        Servicer of such written notice, all authority and power of the Servicer
        under
        this Agreement, whether with respect to the Mortgage Loans or otherwise,
        shall
        pass to and be vested in the successor appointed pursuant to Section 11.01.
        Upon
        written request from the Owner, the Servicer shall prepare, execute and deliver,
        any and all documents and other instruments, place in such successor's
        possession all Servicing Files, and do or accomplish all other acts or things
        necessary or appropriate to effect the purposes of such notice of termination,
        whether to complete the transfer and endorsement or assignment of the Mortgage
        Loans and related documents, or otherwise, at the Servicer's sole expense.
        The
        Servicer agrees to cooperate with the Owner and such successor in effecting
        the
        termination of the Servicer's responsibilities and rights hereunder, including,
        without limitation, the transfer to such successor for administration by
        it of
        all cash amounts which shall at the time be credited by the Servicer to the
        Custodial Account or Escrow Account or thereafter received with respect to
        the
        Mortgage Loans or any REO Property.

       

      The
        Servicer shall promptly reimburse the Owner (or any designee of the Owner,
        such
        as a master servicer) and any Depositor, as applicable, for all reasonable
        expenses incurred by the Owner (or such designee) or such Depositor, as such
        are
        incurred, in connection with the termination of the Servicer as servicer
        and the
        transfer of servicing of the Mortgage Loans to a successor servicer, if the
        termination and/or transfer of servicing is for cause related to a servicer
        default. The provisions of this paragraph shall not limit whatever rights
        the
        Owner or any Depositor may have under other provisions of this Agreement
        and/or
        any applicable Reconstitution Agreement or otherwise, whether in equity or
        at
        law, such as an action for damages, specific performance or injunctive
        relief.

       

      Section
        9.02. Waiver
        of Defaults.
        

       

      The
        Owner
        may waive only by written notice any default by the Servicer in the performance
        of its obligations hereunder and its consequences. Upon any such waiver of
        a
        past default, such default shall cease to exist, and any Event of Default
        arising therefrom shall be deemed to have been remedied for every purpose
        of
        this Agreement. No such waiver shall extend to any subsequent or other default
        or impair any right consequent thereon except to the extent expressly so
        waived
        in writing.

       

      ARTICLE
        X  
        

      TERMINATION

       

      Section
        10.01. Termination.
        

       

      The
        respective obligations and responsibilities of the Servicer shall terminate
        upon: (i) the later of the final payment or other liquidation (or any advance
        with respect thereto) of the last Mortgage Loan or the disposition of all
        REO
        Property and the remittance of all funds due hereunder; or (ii) by mutual
        consent of the Servicer and the Owner in writing; or (iii) termination by
        the
        Owner pursuant to Section 9.01. Simultaneously with any such termination
        and the
        transfer of servicing hereunder, the Servicer shall be entitled to be reimbursed
        for any outstanding Servicing Advances and Monthly Advances. 

       

      Section
        10.02. Cooperation
        of Servicer with a Reconstitution.

       

      The
        Servicer and the Owner agree that with respect to some or all of the Mortgage
        Loans, on or after the related closing date, on one or more dates (each a
        "Reconstitution Date") at the Owner's sole option, the Owner may effect a
        sale
        (each, a "Reconstitution") of some or all of the Mortgage Loans then subject
        to
        this Agreement, without recourse, to:

       

      (a) one
        or
        more third party purchasers in one or more in whole loan transfers (each,
        a
        "Whole Loan Transfer"); or

       

      (b) one
        or
        more trusts or other entities to be formed as part of one or more Pass-Through
        Transfers.

       

      The
        Servicer agrees to execute in connection with any agreements among the Owner,
        the Servicer, and any servicer in connection with a Whole Loan Transfer,
        an
        assignment, assumption and recognition agreement, or, at Owner’s request, a
        seller's warranties and servicing agreement or a participation and servicing
        agreement or similar agreement in form and substance reasonably acceptable
        to
        the parties, and in connection with a Pass-Through Transfer, a pooling and
        servicing agreement in form and substance reasonably acceptable to the parties.
        It is understood that any such Reconstitution Agreements will not contain
        any
        greater obligations on the part of Servicer than are contained in this
        Agreement. 

       

      With
        respect to each Whole Loan Transfer and each Pass-Through Transfer entered
        into
        by the Owner, the Servicer agrees (1) to cooperate fully with the Owner and
        any
        prospective purchaser with respect to all reasonable requests and due diligence
        procedures; (2) to execute, deliver and perform all Reconstitution Agreements
        required by the Owner; (3) to restate the representations and warranties
        set
        forth in this Agreement as of the settlement or closing date in connection
        with
        such Reconstitution (each, a "Reconstitution Date"). 

       

      In
        addition, the Servicer shall provide to such servicer or issuer, as the case
        may
        be, and any other participants in such Reconstitution: 

       

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

       

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

       

      (iii) within
        5
        Business Days after request by the Owner, the information with respect to
        the
        Servicer (as servicer) as required by Item 1108(b) and (c) of Regulation
        AB, a
        summary of the requirements of which as of the date hereof is attached hereto
        as
        Exhibit I for convenience of reference only, as determined by Owner in its
        sole
        discretion. In the event that the Servicer has delegated any servicing
        responsibilities with respect to the Mortgage Loans to a Subservicer, the
        Servicer shall provide the information required pursuant to this clause with
        respect to the Subservicer;

       

      (iv) within
        5
        Business Days after request by the Owner, 

       

      (a)
        information regarding any legal proceedings pending (or known to be
        contemplated) against the Servicer (as servicer) and each Subservicer as
        required by Item 1117 of Regulation AB, a summary of the requirements of
        which
        as of the date hereof is attached hereto as Exhibit I for convenience of
        reference only, as determined by Owner in its sole discretion,

       

      (b)
        information regarding affiliations with respect to the Servicer (as servicer)
        and each Subservicer as required by Item 1119(a) of Regulation AB, a summary
        of
        the requirements of which as of the date hereof is attached hereto as Exhibit
        I
        for convenience of reference only, as determined by Owner in its sole
        discretion, and

       

      

      (c)
        information regarding relationships and transactions with respect to the
        Servicer (as servicer) and each Subservicer as required by Item 1119(b) and
        (c)
        of Regulation AB, a summary of the requirements of which as of the date hereof
        is attached hereto as Exhibit I for convenience of reference only, as determined
        by Owner in its sole discretion;

       

      (v) for
        the
        purpose of satisfying the reporting obligation under the Exchange Act with
        respect to any class of asset-backed securities, the Servicer shall (or shall
        cause each Subservicer to) (i) provide prompt notice to the Owner, the Master
        Servicer and any Depositor in writing of (A) any material litigation or
        governmental proceedings involving the Servicer or any Subservicer, (B) any
        affiliations or relationships that develop following the closing date of
        a
        Pass-Through Transfer between the Servicer or any Subservicer and any of
        the
        parties specified in clause (D) of paragraph (a) of this Section (and any
        other
        parties identified in writing by the requesting party) with respect to such
        Pass-Through Transfer, (C) any Event of Default under the terms of this
        Agreement or any Reconstitution Agreement, (D) any merger, consolidation
        or sale
        of substantially all of the assets of the Servicer, and (E) the Servicer’s entry
        into an agreement with a Subservicer to perform or assist in the performance
        of
        any of the Servicer’s obligations under this Agreement or any Reconstitution
        Agreement and (ii) provide to the Owner and any Depositor a description of
        such
        proceedings, affiliations or relationships; 

       

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

       

      (vii) in
        addition to such information as the Servicer, as servicer, is obligated to
        provide pursuant to other provisions of this Agreement, not later than ten
        days
        prior to the deadline for the filing of any distribution report on Form 10-D
        in
        respect of any Pass-Through Transfer that includes any of the Mortgage Loans
        serviced by the Servicer or any Subservicer, the Servicer or such Subservicer,
        as applicable, shall, to the extent the Servicer or such Subservicer has
        knowledge, provide to the party responsible for filing such report (including,
        if applicable, the Master Servicer) notice of the occurrence of any of the
        following events along with all information, data, and materials related
        thereto
        as may be required to be included in the related distribution report on Form
        10-D (as specified in the provisions of Regulation AB referenced
        below):

       

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

       

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

       

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

       

      (viii) the
        Servicer shall provide to the Owner, the Master Servicer and any Depositor,
        evidence of the authorization of the person signing any certification or
        statement, copies or other evidence of Fidelity Bond Insurance and Errors
        and
        Omission Insurance policy, financial information and reports, and such other
        information related to the Servicer or any Subservicer or the Servicer or
        such
        Subservicer’s performance hereunder.

       

      In
        the
        event of a conflict or inconsistency between the terms of Exhibit I and the
        text
        of the applicable Item of Regulation AB as cited above, the text of Regulation
        AB, its adopting release and other public statements of the SEC shall
        control.

       

      The
        Servicer shall indemnify the Owner, each affiliate of the Owner, and each
        of the
        following parties participating in a Pass-Through Transfer: each issuing
        entity;
        each Person (including, but not limited to, the Master Servicer, if applicable)
        responsible for the preparation, execution or filing of any report required
        to
        be filed with the Commission with respect to such Pass-Through Transfer,
        or for
        execution of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d)
        under
        the Exchange Act with respect to such Pass-Through Transfer; each broker
        dealer
        acting as underwriter, placement agent or initial purchaser, each Person
        who
        controls any of such parties or the Depositor (within the meaning of Section
        15
        of the Securities Act and Section 20 of the Exchange Act); and the respective
        present and former directors, officers, employees, agents and affiliates
        of each
        of the foregoing and of the Depositor (each, an “Indemnified Party”), and shall
        hold each of them harmless from and against any claims, losses, damages,
        penalties, fines, forfeitures, legal fees and expenses and related costs,
        judgments, and any other costs, fees and expenses that any of them may sustain
        arising out of or based upon:

       

      (i)(A)
        any untrue statement of a material fact contained or alleged to be contained
        in
        any information, report, certification, data, accountants’ letter or other
        material provided under this Section 10.02 by or on behalf of the Servicer,
        or
        provided under this Section 10.02, Sections 6.04 and 6.09 and by or on behalf
        of
        any Subservicer or Subcontractor (collectively, the “Servicer Information”), or
        (B) the omission or alleged omission to state in the Servicer Information
        a
        material fact required to be stated in the Servicer Information or necessary
        in
        order to make the statements therein, in the light of the circumstances under
        which they were made, not misleading; provided, by way of clarification,
        that
        clause (B) of this paragraph shall be construed solely by reference to the
        Servicer Information and not to any other information communicated in connection
        with a sale or purchase of securities, without regard to whether the Servicer
        Information or any portion thereof is presented together with or separately
        from
        such other information;

       

      (ii)
        any
        breach by the Servicer of its obligations under this Section 10.02, including
        particularly any failure by the Servicer, any Subservicer or any Subcontractor
        to deliver any information, report, certification, accountants’ letter or other
        material when and as required under this Section 10.02, including any failure
        by
        the Servicer to identify pursuant to Section 11.15 any Subcontractor
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB; 

       

      (iii)
        any
        breach by the Servicer of a representation or warranty set forth in Section
        Article III or in a writing furnished pursuant to clause (h) of Article III
        and
        made as of a date prior to the closing date of the related Pass-Through
        Transfer, to the extent that such breach is not cured by such closing date,
        or
        any breach by the Servicer of a representation or warranty in a writing
        furnished pursuant to clause (h) of Article III to the extent made as of
        a date
        subsequent to such closing date; or

       

      (iv)
        the
        negligence bad faith or willful misconduct of the Servicer in connection
        with
        its performance under this Section 10.02.

       

      If
        the
        indemnification provided for herein is unavailable or insufficient to hold
        harmless an Indemnified Party, then the Servicer agrees that it shall contribute
        to the amount paid or payable by such Indemnified Party as a result of any
        claims, losses, damages or liabilities incurred by such Indemnified Party
        in
        such proportion as is appropriate to reflect the relative fault of such
        Indemnified Party on the one hand and the Servicer on the other. 

       

      In
        the
        case of any failure of performance described above, the Servicer shall promptly
        reimburse the Owner, any Depositor, as applicable, and each Person responsible
        for the preparation, execution or filing of any report required to be filed
        with
        the Commission with respect to such Pass-Through Transfer, or for execution
        of a
        certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange
        Act with respect to such Pass-Through Transfer, for all costs reasonably
        incurred by each such party in order to obtain the information, report,
        certification, accountants’ letter or other material not delivered pursuant to
        this Section or Section 6.04 or Section 6.09 as required by the Servicer,
        any
        Subservicer or any Subcontractor.

       

      This
        indemnification shall survive the termination of this Agreement or the
        termination of any party to this Agreement.

       

      All
        Mortgage Loans not sold or transferred pursuant to a Whole Loan Transfer
        or Pass
        Through Transfer shall be subject to this Agreement and shall continue to
        be
        serviced in accordance with the terms of this Agreement and with respect
        thereto
        this Agreement shall remain in full force and effect.

       

      Section
        10.03. Master
        Servicer.
        

       

      The
        Servicer, including any successor servicer hereunder, shall be subject to the
        supervision of the Master Servicer, which Master Servicer shall be obligated
        to
        ensure that the Servicer services the Mortgage Loans in accordance with the
        provisions of this Agreement. The Master Servicer, acting on behalf of the
        Owner, shall have the same rights as the Owner to enforce the obligations
        of the
        Servicer under this Agreement. The Master Servicer shall be entitled to
        terminate the rights and obligations of the Servicer under this Agreement
        upon
        the failure of the Servicer to perform any of its obligations under this
        Agreement if such failure constitutes an Event of Default as provided in
        Article
        IX of this Agreement. Notwithstanding anything to the contrary, in no event
        shall the Master Servicer assume any of the obligations of the Owner under
        this
        Agreement.

       

      ARTICLE
        XI  
        

      MISCELLANEOUS
        PROVISIONS

       

      Section
        11.01. Successor
        to the Servicer.
        

       

      Prior
        to
        termination of the Servicer's responsibilities and duties under this Agreement
        pursuant to Sections 8.04, 9.01 or 10.01(ii), the Owner shall (i) succeed
        to and
        assume all of the Servicer's responsibilities, rights, duties and obligations
        under this Agreement, or (ii) appoint a successor having the characteristics
        set
        forth in Section 8.02 hereof and which shall succeed to all rights and assume
        all of the responsibilities, duties and liabilities of the Servicer under
        this
        Agreement prior to the termination of the Servicer's responsibilities, duties
        and liabilities under this Agreement. In connection with such appointment
        and
        assumption, the Owner may make such arrangements for the compensation of
        such
        successor out of payments on Mortgage Loans as the Owner and such successor
        shall agree. In the event that the Servicer's duties, responsibilities and
        liabilities under this Agreement should be terminated pursuant to the
        aforementioned sections, the Servicer shall discharge such duties and
        responsibilities during the period from the date it acquires knowledge of
        such
        termination until the effective date thereof with the same degree of diligence
        and prudence which it is obligated to exercise under this Agreement, and
        shall
        take no action whatsoever that might impair or prejudice the rights or financial
        condition of its successor. The resignation or removal of the Servicer pursuant
        to the aforementioned sections shall not become effective until a successor
        shall be appointed pursuant to this section and shall in no event relieve
        the
        Servicer of the representations and warranties made pursuant to Article III
        and
        the remedies available to the Owner under Section 8.01, it being understood
        and
        agreed that the provisions of such Article III and Section 8.01 shall be
        applicable to the Servicer notwithstanding any such resignation or termination
        of the Servicer, or the termination of this Agreement.

       

      Any
        successor appointed as provided herein shall execute, acknowledge and deliver
        to
        the Servicer and to the Owner an instrument accepting such appointment,
        whereupon such successor shall become fully vested with all the rights, powers,
        duties, responsibilities, obligations and liabilities of the Servicer, with
        like
        effect as if originally named as a party to this Agreement. Any termination
        or
        resignation of the Servicer or this Agreement pursuant to Section 8.04, 9.01
        or
        10.01 shall not affect any claims that the Owner may have against the Servicer
        arising prior to any such termination or resignation.

       

      The
        Servicer shall promptly deliver to the successor the funds in the Custodial
        Account and the Escrow Account and the Servicing Files and related documents
        and
        statements held by it hereunder and the Servicer shall account for all funds.
        The Servicer shall execute and deliver such instruments and do such other
        things
        all as may reasonably be required to more fully and definitely vest and confirm
        in the successor all such rights, powers, duties, responsibilities, obligations
        and liabilities of the Servicer. The successor shall make such arrangements
        as
        it may deem appropriate to reimburse the Servicer for unrecovered Monthly
        Advances and Servicing Advances which the successor retains hereunder and
        which
        would otherwise have been recovered by the Servicer pursuant to this Agreement
        but for the appointment of the successor servicer.

       

      Upon
        a
        successor's acceptance of appointment as such, the Servicer shall notify
        the
        Owner of such appointment.

       

      All
        reasonable costs and expenses incurred in connection with replacing the Servicer
        upon its resignation or the termination of the Servicer in accordance with
        the
        terms of this Agreement, including, without limitation, (i) all legal costs
        and
        expenses and all due diligence costs and expenses associated with an evaluation
        of the potential termination of the Servicer as a result of an Event of Default
        and (ii) all costs and expenses associated with the complete transfer of
        servicing, including all servicing files and all servicing data and the
        completion, correction or manipulation of such servicing data as may be required
        by the successor servicer to correct any errors or insufficiencies in the
        servicing data or otherwise to enable the successor service to service the
        Mortgage Loans in accordance with this Agreement, shall be payable on demand
        by
        the resigning or terminated Servicer without any right of reimbursement
        therefor.

       

      Section
        11.02. Amendment.
        

       

      This
        Agreement may be amended from time to time by the Servicer and the Owner
        by
        written agreement signed by the Servicer and the Owner.

       

      Section
        11.03. Recordation
        of Agreement.
        

       

      To
        the
        extent permitted by applicable law, this Agreement is subject to recordation
        in
        all appropriate public offices for real property records in all the counties
        or
        other comparable jurisdictions in which any of all the properties subject
        to the
        Mortgages are situated, and in any other appropriate public recording office
        or
        elsewhere, such recordation to be effected by the Servicer at the Owner's
        expense on direction of the Owner accompanied by an opinion of counsel to
        the
        effect that such recordation materially and beneficially affects the interest
        of
        the Owner or is necessary for the administration or servicing the Mortgage
        Loans.

       

      Section
        11.04. Governing
        Law.
        

       

      THIS
        AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
        LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS
        OF LAWS. THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL
        BE
        DETERMINED IN ACCORDANCE WITH SUCH LAWS.

       

      

      Section
        11.05. Notices.
        

       

      Any
        demands, notices or other communications permitted or required hereunder
        shall
        be in writing and shall be deemed conclusively to have been given if personally
        delivered at or mailed by registered mail, postage prepaid, and return receipt
        requested or transmitted by telecopier and confirmed by a similar mailed
        writing, as follows:

       

      (i)          
         if
        to the
        Servicer:

      

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        Texas 75067

      Attention:
        President or General Counsel

      Telecopier
        No.: (469) 759-4714

      

      (ii)         
         if
        to the
        Owner:

      

      Bear,
        Stearns & Co. Inc.

      383
        Madison Ave.

      New
        York,
        New York 10179

      Attention:
        Global Credit Administration

      Telecopier
        No.: (212) 272-3751 

      

      

      (iii)         
        if
        to the
        Master Servicer:

      

      Wells
        Fargo Bank, National Association

      P.O.
        Box
        98

      Columbia,
        Maryland 21046

      Attention:
        Master Servicing - Bear Stearns

      

      And
        for
        overnight delivery to:

      

      Wells
        Fargo Bank, National Association

      9062
        Old
        Annapolis Road

      Columbia,
        Maryland 21045

      Attention:
        Master Servicing - Bear Stearns

      Telecopier
        No.: (410) 715-2380

      

      or
        such
        other address as may hereafter be furnished to the other party by like notice.
        Any such demand, notice, or communication hereunder shall be deemed to have
        been
        received on the date delivered to or received at the premises of the address
        (as
        evidenced, in the case of registered or certified mail, by the date noted
        on the
        return receipt).

      

      Section
        11.06. Severability
        of Provisions.
        

       

      Any
        part,
        provision, representation or warranty of this Agreement which is prohibited
        or
        which is held to be void or unenforceable shall be ineffective to the extent
        of
        such prohibition or unenforceability without invalidating the remaining
        provisions hereof. 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 be ineffective, as to such jurisdiction,
        to the extent of such prohibition or unenforceability without invalidating
        the
        remaining provisions hereof, and any such prohibition or unenforceability
        in any
        jurisdiction as to any Mortgage Loan shall not invalidate or render
        unenforceable such provision in any other jurisdiction. 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. If the invalidity
        of any
        part, provision, representation or warranty of this Agreement shall deprive
        any
        party of the economic benefit intended to be conferred by this Agreement,
        the
        parties shall negotiate, in good faith, to develop a structure the economic
        effect of which is nearly as possible the same as the economic effect of
        this
        Agreement without regard to such invalidity.

       

      Section
        11.07. Exhibits

       

      The
        exhibits to this Agreement are hereby incorporated and made a part hereof
        and
        are an integral part of this Agreement.

       

      Section
        11.08. General
        Interpretive Principles.
        

       

      For
        purposes of this Agreement, except as otherwise expressly provided or unless
        the
        context otherwise requires:

       

      (i) the
        terms
        defined in this Agreement have the meanings assigned to them in this Agreement
        and include the plural as well as the singular, and the use of any gender
        herein
        shall be deemed to include the other gender;

       

      (ii) accounting
        terms not otherwise defined herein have the meanings assigned to them in
        accordance with generally accepted accounting principles;

       

      (iii) references
        herein to "Articles," "Sections," "Subsections," "Paragraphs," and other
        subdivisions without reference to a document are to designated Articles,
        Sections, Subsections, Paragraphs and other subdivisions of this
        Agreement;

       

      (iv) a
        reference to a Subsection without further reference to a Section is a reference
        to such Subsection as contained in the same Section in which the reference
        appears, and this rule shall also apply to Paragraphs and other
        subdivisions;

       

      (v) the
        words
        "herein," "hereof," "hereunder" and other words of similar import refer to
        this
        Agreement as a whole and not to any particular provision; and 

       

      (vi) the
        term
        "include" or "including" shall mean without limitation by reason of
        enumeration.

       

      Section
        11.09. Reproduction
        of Documents.
        

       

      This
        Agreement and all documents relating hereto, including, without limitation,
        (i)
        consents, waivers and modifications which may hereafter be executed, (ii)
        documents received by any party at the closing, and (iii) financial statements,
        certificates and other information previously or hereafter furnished, may
        be
        reproduced by any photographic, photostatic, microfilm, micro-card, miniature
        photographic or other similar process. The parties agree that any such
        reproduction shall be admissible in evidence as the original itself in any
        judicial or administrative proceeding, whether or not the original is in
        existence and whether or not such reproduction was made by a party in the
        regular course of business, and that any enlargement, facsimile or further
        reproduction of such reproduction shall likewise be admissible in
        evidence.

       

      Section
        11.10. Confidentiality
        of Information.
        

       

      Each
        party recognizes that, in connection with this Agreement, it may become privy
        to
        non-public information regarding the financial condition, operations and
        prospects of the other party. Except as required to be disclosed by law,
        each
        party agrees to keep all non-public information regarding the other party
        strictly confidential, and to use all such information solely in order to
        effectuate the purpose of this Agreement.

       

      Section
        11.11. Assignment
        by the Owner.
        

       

      The
        Owner
        shall have the right, without the consent of the Servicer hereof, to assign,
        in
        whole or in part, its interest under this Agreement with respect to some
        or all
        of the Mortgage Loans, and designate any person to exercise any rights of
        the
        Owner hereunder, by executing an assignment and assumption agreement reasonably
        acceptable to the Servicer and the assignee or designee shall accede to the
        rights and obligations hereunder of the Owner with respect to such Mortgage
        Loans. In no event shall Owner sell a partial interest in any Mortgage Loan.
        All
        references to the Owner in this Agreement shall be deemed to include its
        assignees or designees. It is understood and agreed between the Owners and
        the
        Servicer that no more than five (5) Persons shall have the right of owner
        under
        this Agreement at any one time.

       

      Section
        11.12. No
        Partnership.
        

       

      Nothing
        herein contained shall be deemed or construed to create a co-partnership
        or
        joint venture between the parties hereto and the services of the Servicer
        shall
        be rendered as an independent contractor and not as agent for
        Owner.

       

      Section
        11.13. Execution,
        Successors and Assigns.
        

       

      This
        Agreement may be executed in one or more counterparts and by the different
        parties hereto on separate counterparts, each of which, when so executed,
        shall
        be deemed to be an original; such counterparts, together, shall constitute
        one
        and the same agreement. Subject to Section 8.05, this Agreement shall inure
        to
        the benefit of and be binding upon the Servicer and the Owner and their
        respective successors and assigns.

       

      Section
        11.14. Entire
        Agreement.
        

       

      Each
        of
        the Servicer and the Owner acknowledge that no representations, agreements
        or
        promises were made to it by the other party or any of its employees other
        than
        those representations, agreements or promises specifically contained herein.
        This Agreement sets forth the entire understanding between the parties hereto
        and shall be binding upon all successors of both parties.

       

      Section
        11.15. Use
        of
        Subservicers and Subcontractors.

      

      (a) The
        Servicer shall not hire or otherwise utilize the services of any Subservicer
        to
        fulfill any of the obligations of the Servicer as servicer under this Agreement
        or any Reconstitution Agreement unless the Servicer complies with the provisions
        of paragraph (b) of this Section. The Servicer shall not hire or otherwise
        utilize the services of any Subcontractor, and shall not permit any Subservicer
        to hire or otherwise utilize the servicers of any Subcontractor, to fulfill
        any
        of the obligations of the Servicer as servicer under this Agreement or any
        Reconstitution Agreement unless the Servicer complies with the provisions
        of
        paragraph (d) of this Section. The Servicer must notify the Owner, the Master
        Servicer and any Depositor in writing of any affiliations or relationships
        that
        develop following the closing date between the Servicer or any Subservicer.
        

      

      (b) The
        Servicer shall cause any Subservicer used by the Servicer (or by any
        Subservicer) for the benefit of the Owner and any Depositor to comply with
        the
        provisions of this Section and with clauses (g) and (j) of Article III, Sections
        6.04, 6.09 and 10.02 of this Agreement to the same extent as if such Subservicer
        were the Owner, and to provide the information required with respect to such
        Subservicer under Section 3.01(i) of this Agreement. The Servicer shall be
        responsible for obtaining from each Subservicer and delivering to the Owner,
        the
        Master Servicer and any Depositor any Annual Statement of Compliance required
        to
        be delivered by such Subservicer under Section 6.04(a), any Assessment of
        Compliance and Attestation Report required to be delivered by such Subservicer
        under Section 6.09, any Annual Certification required under Section 6.04(b),
        any
        Additional Form 10-D Disclosure and any Form 8-K Disclosure Information,
        as and
        when required to be delivered.

      

      (c) The
        Servicer shall promptly upon request provide to the Owner, the Master Servicer
        and any Depositor (or any designee of the Depositor, such as an administrator)
        a
        written description (in form and substance satisfactory to the Owner, the
        Master
        Servicer and such Depositor) of the role and function of each Subcontractor
        utilized by the Servicer or any Subservicer, specifying (i) the identity
        of each
        such Subcontractor, (ii) which (if any) of such Subcontractors are
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB, and (iii) which elements of the Servicing Criteria will be
        addressed in assessments of compliance provided by each Subcontractor identified
        pursuant to clause (ii) of this paragraph.

      

      (d) As
        a condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB, the Servicer shall cause any such Subcontractor used by the
        Servicer (or by any Subservicer) for the benefit of the Owner and any Depositor
        to comply with the provisions of Sections 6.07 and 10.02 of this Agreement
        to
        the same extent as if such Subcontractor were the Servicer. The Servicer
        shall
        be responsible for obtaining from each Subcontractor and delivering to the
        Owner
        and any Depositor any Assessment of Compliance and Attestation Report and
        other
        certificates required to be delivered by such Subservicer and such Subcontractor
        under Section 6.09 (and any Annual Certification required under Section
        6.09(b)), in each case as and when required to be delivered.

      

      11.16. Third
        Party Beneficiary

       

      For
        purposes of this Agreement, each Master Servicer shall be considered a third
        party beneficiary to this Agreement, entitled to all the rights and benefits
        hereof as if it were a direct party to this Agreement.

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

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

       

      

      
        	
                EMC
                  MORTGAGE CORPORATION

                Servicer

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 
	 
	
                STRUCTURED
                  ASSET MORTGAGE INVESTMENTS II INC.

                Owner

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        A

      

      MORTGAGE
        LOAN SCHEDULE

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        B

      

      CUSTODIAL
        ACCOUNT LETTER AGREEMENT

      (date)

      

      

      To:______________________

      _________________________

      _________________________

      (the
        "Depository")

       

      As
        "Servicer" under the Servicing Agreement, dated as of [_____] 1, 2006, (the
        "Agreement"), we hereby authorize and request you to establish an account,
        as a
        Custodial Account pursuant to Section 4.04 of the Agreement, to be designated
        as
        "[Servicer] Custodial Account, in trust for [Owner], Owner of Whole Loan
        Mortgages, and various Mortgagors." All deposits in the account shall be
        subject
        to withdrawal therefrom by order signed by the Servicer. You may refuse any
        deposit which would result in violation of the requirement that the account
        be
        fully insured as described below. This letter is submitted to you in duplicate.
        Please execute and return one original to us.

       

      
        	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      The
        undersigned, as "Depository", hereby certifies that the above described account
        has been established under Account Number __________, at the office of the
        depository indicated above, and agrees to honor withdrawals on such account
        as
        provided above. The full amount deposited at any time in the account will
        be
        insured up to applicable limits by the Federal Deposit Insurance Corporation
        through the Bank Insurance Fund or the Savings Association Insurance Fund
        or
        will be invested in Permitted Investments as defined in the
        Agreement.

       

      

       

      
        	
                [         ]

              
	
                (name
                  of Depository)

              
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        C

      

      ESCROW
        ACCOUNT LETTER AGREEMENT

      

      (date)

      

      To:___________________________

      ______________________________

      ______________________________

      (the
        "Depository")

       

      

      As
        "Servicer" under the Servicing Agreement, dated as of [______] 1, 2006 (the
        "Agreement"), we hereby authorize and request you to establish an account,
        as an
        Escrow Account pursuant to Section 4.06 of the Agreement, to be designated
        as
        "[Servicer] Escrow Account, in trust for [Owner], Owner of Whole Loan Mortgages,
        and various Mortgagors." All deposits in the account shall be subject to
        withdrawal therefrom by order signed by the Servicer. You may refuse any
        deposit
        which would result in violation of the requirement that the account be fully
        insured as described below. This letter is submitted to you in duplicate.
        Please
        execute and return one original to us.

       

        

      
        	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      The
        undersigned, as "Depository", hereby certifies that the above described account
        has been established under Account Number __________, at the office of the
        depository indicated above, and agrees to honor withdrawals on such account
        as
        provided above. The full amount deposited at any time in the account will
        be
        insured up to applicable limits by the Federal Deposit Insurance Corporation
        through the Bank Insurance Fund or the Savings Association Insurance Fund
        or
        will be invested in Permitted Investments as defined in the
        Agreement.

       

      
        	
                [         ]

              
	
                (name
                  of Depository)

              
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        D

      

      REQUEST
        FOR RELEASE OF DOCUMENTS

      

      
        	
                To:

              	
                Wells
                  Fargo Bank, National Association

              
	 	 
	 	
                1015
                  10th Avenue S.E.

              
	 	 
	 	
                Mpls.,
                  MN 55414

              
	 	 
	 	
                Attn:
                  ________________

              

      

      

      
        	 	
                Re:

              	
                Custodial
                  Agreement dated as of November 30, 1999, between EMC Mortgage Corporation
                  and Wells Fargo Bank, National Association, as
                  Custodian

              

      

      

      In
        connection with the administration of the Mortgage Loans held by you as
        Custodian for the Owner pursuant to the above-captioned Custody Agreement,
        we
        request the release, and hereby acknowledge receipt, of the Custodian's Mortgage
        File for the Mortgage Loan described below, for the reason
        indicated.

       

      Mortgage
        Loan Number:

      

      Mortgagor
        Name, Address & Zip Code:

      

      Reason
        for Requesting Documents (check one):

       

      
        	
                _______

              	
                1.

              	
                Mortgage
                  Paid in Full

              
	 	 	 
	
                _______

              	
                2.

              	
                Foreclosure

              
	 	 	 
	
                _______

              	
                3.
                  

              	
                Substitution

              
	 	 	 
	
                _______

              	
                4.

              	
                Other
                  Liquidation (Repurchases, etc.)

              
	 	 	 
	
                _______

              	
                5.

              	
                Nonliquidation
                  

              
	 	 	 

      

      [Reason:_______________________________]

       

      Address
        to which Custodian should

       

      Deliver
        the Custodian's Mortgage File:

       

      
        	
                __________________________________________

              
	 
	
                __________________________________________

              
	 
	
                __________________________________________

              

      

       

      
 

      
        	
                By:

              	 
	 	
                (authorized
                  signer)

              
	
                Issuer:

              	 
	
                Address:

              	 
	
                Date:

              	 

      

      

      

      

      Custodian

      

      Wells
        Fargo Bank, National Association

       

      Please
        acknowledge the execution of the above request by your signature and date
        below:

       

      

      
        	 	 	 
	
                Signature

              	 	 	
                Date

              	 
	 	 	 	 	 
	
                Documents
                  returned to Custodian:

              	 	 	 
	 	 	 	 	 
	
                Custodian:

              	 	 	
                Date:

              	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        E

      

      REPORTING
        DATA FOR MONTHLY REPORT

      

      
        	
                Standard
                  File Layout - Master Servicing

              
	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	 	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	 	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	 	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	 	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  servicer's fee rate for a loan as reported by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  servicer's fee amount for a loan as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment
                  amount.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	 	
                MM/DD/YYYY

              	
                10

              
	 	 	 	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO

              	
                2

              
	
                ACTION_CODE

              	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	 	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      

       

      EXHIBIT
        F

       

       

      REPORTING
        DATA FOR DEFAULTED LOANS

      

      Standard
        File Layout - Delinquency Reporting

      

        
          	
                  (a)  Column/Header
                    Name

                	
                  (b)  Description

                	
                  (c)  Decimal

                	
                  (d)  Format
                    Comment

                
	
                  (e)  SERVICER_LOAN_NBR

                	
                  (f)  A
                    unique number assigned to a loan by the Servicer. This may be
                    different
                    than the LOAN_NBR

                	
                  (g)  

                	
                  (h)   

                
	
                  (i)  LOAN_NBR

                	
                  (j)  A
                    unique identifier assigned to each loan by the originator.

                	
                  (k)  

                	
                  (l)   

                
	
                  (m)  CLIENT_NBR

                	
                  (n)  Servicer
                    Client Number

                	
                  (o)  

                	
                  (p)  

                
	
                  (q)  SERV_INVESTOR_NBR

                	
                  (r)  Contains
                    a unique number as assigned by an external servicer to identify
                    a group of
                    loans in their system.

                	
                  (s)  

                	
                  (t)   

                
	
                  (u)  BORROWER_FIRST_NAME

                	
                  (v)  First
                    Name of the Borrower.

                	
                  (w)  

                	
                  (x)  

                
	
                  (y)  BORROWER_LAST_NAME

                	
                  (z)  Last
                    name of the borrower.

                	
                  (aa)  

                	
                  (bb)  

                
	
                  (cc)  PROP_ADDRESS

                	
                  (dd)  Street
                    Name and Number of Property

                	
                  (ee)  

                	
                  (ff)   

                
	
                  (gg)  PROP_STATE

                	
                  (hh)  The
                    state where the property located.

                	
                  (ii)  

                	
                  (jj)   

                
	
                  (kk)  PROP_ZIP

                	
                  (ll)  Zip
                    code where the property is located.

                	
                  (mm)  

                	
                  (nn)   

                
	
                  (oo)  BORR_NEXT_PAY_DUE_DATE

                	
                  (pp)  The
                    date that the borrower's next payment is due to the servicer
                    at the end of
                    processing cycle, as reported by Servicer.

                	
                  (qq)  

                	
                  (rr)  MM/DD/YYYY

                
	
                  (ss)  LOAN_TYPE

                	
                  (tt)  Loan
                    Type (i.e. FHA, VA, Conv)

                	
                  (uu)  

                	
                  (vv)   

                
	
                  (ww)  BANKRUPTCY_FILED_DATE

                	
                  (xx)  The
                    date a particular bankruptcy claim was filed.

                	
                  (yy)  

                	
                  (zz)  MM/DD/YYYY

                
	
                  (aaa)  BANKRUPTCY_CHAPTER_CODE

                	
                  (bbb)  The
                    chapter under which the bankruptcy was filed.

                	
                  (ccc)  

                	
                  (ddd)   

                
	
                  (eee)  BANKRUPTCY_CASE_NBR

                	
                  (fff)  The
                    case number assigned by the court to the bankruptcy
                    filing.

                	
                  (ggg)  

                	
                  (hhh)   

                
	
                  (iii)  POST_PETITION_DUE_DATE

                	
                  (jjj)  The
                    payment due date once the bankruptcy has been approved by the
                    courts

                	
                  (kkk)  

                	
                  (lll)  MM/DD/YYYY

                
	
                  (mmm)  BANKRUPTCY_DCHRG_DISM_DATE

                	
                  (nnn)  The
                    Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                    Discharged
                    and/or a Motion For Relief Was Granted. 

                	
                  (ooo)  

                	
                  (ppp)  MM/DD/YYYY

                
	
                  (qqq)  LOSS_MIT_APPR_DATE

                	
                  (rrr)  The
                    Date The Loss Mitigation Was Approved By The Servicer

                	
                  (sss)  

                	
                  (ttt)  MM/DD/YYYY

                
	
                  (uuu)  LOSS_MIT_TYPE

                	
                  (vvv)  The
                    Type Of Loss Mitigation Approved For A Loan Such As;

                	
                  (www)  

                	
                  (xxx)  

                
	
                  (yyy)  LOSS_MIT_EST_COMP_DATE

                	
                  (zzz)  The
                    Date The Loss Mitigation /Plan Is Scheduled To End/Close

                	
                  (aaaa)  

                	
                  (bbbb)  MM/DD/YYYY

                
	
                  (cccc)  LOSS_MIT_ACT_COMP_DATE

                	
                  (dddd)  The
                    Date The Loss Mitigation Is Actually Completed

                	
                  (eeee)  

                	
                  (ffff)  MM/DD/YYYY

                
	
                  (gggg)  FRCLSR_APPROVED_DATE

                	
                  (hhhh)  The
                    date DA Admin sends a letter to the servicer with instructions
                    to begin
                    foreclosure proceedings.

                	
                  (iiii)  

                	
                  (jjjj)  MM/DD/YYYY

                
	
                  (kkkk)  ATTORNEY_REFERRAL_DATE

                	
                  (llll)  Date
                    File Was Referred To Attorney to Pursue Foreclosure

                	
                  (mmmm)  

                	
                  (nnnn)  MM/DD/YYYY

                
	
                  (oooo)  FIRST_LEGAL_DATE

                	
                  (pppp)  Notice
                    of 1st legal filed by an Attorney in a Foreclosure Action

                	
                  (qqqq)  

                	
                  (rrrr)  MM/DD/YYYY

                
	
                  (ssss)  FRCLSR_SALE_EXPECTED_DATE

                	
                  (tttt)  The
                    date by which a foreclosure sale is expected to occur.

                	
                  (uuuu)  

                	
                  (vvvv)  MM/DD/YYYY

                
	
                  (wwww)  FRCLSR_SALE_DATE

                	
                  (xxxx)  The
                    actual date of the foreclosure sale.

                	
                  (yyyy)  

                	
                  (zzzz)  MM/DD/YYYY

                
	
                  (aaaaa)  FRCLSR_SALE_AMT

                	
                  (bbbbb)  The
                    amount a property sold for at the foreclosure sale.

                	
                  (ccccc)  2

                	
                  (ddddd)  No
                    commas(,) or dollar signs ($)

                
	
                  (eeeee)  EVICTION_START_DATE

                	
                  (fffff)  The
                    date the servicer initiates eviction of the borrower.

                	
                  (ggggg)  

                	
                  (hhhhh)  MM/DD/YYYY

                
	
                  (iiiii)  EVICTION_COMPLETED_DATE

                	
                  (jjjjj)  The
                    date the court revokes legal possession of the property from
                    the
                    borrower.

                	
                  (kkkkk)  

                	
                  (lllll)  MM/DD/YYYY

                
	
                  (mmmmm)  LIST_PRICE

                	
                  (nnnnn)  The
                    price at which an REO property is marketed.

                	
                  (ooooo)  2

                	
                  (ppppp)  No
                    commas(,) or dollar signs ($)

                
	
                  (qqqqq)  LIST_DATE

                	
                  (rrrrr)  The
                    date an REO property is listed at a particular price.

                	
                  (sssss)  

                	
                  (ttttt)  MM/DD/YYYY

                
	
                  (uuuuu)  OFFER_AMT

                	
                  (vvvvv)  The
                    dollar value of an offer for an REO property.

                	
                  (wwwww)  2

                	
                  (xxxxx)  No
                    commas(,) or dollar signs ($)

                
	
                  (yyyyy)  OFFER_DATE_TIME

                	
                  (zzzzz)  The
                    date an offer is received by DA Admin or by the Servicer.

                	
                  (aaaaaa)  

                	
                  (bbbbbb)  MM/DD/YYYY

                
	
                  (cccccc)  REO_CLOSING_DATE

                	
                  (dddddd)  The
                    date the REO sale of the property is scheduled to close.

                	
                  (eeeeee)  

                	
                  (ffffff)  MM/DD/YYYY

                
	
                  (gggggg)  REO_ACTUAL_CLOSING_DATE

                	
                  (hhhhhh)  Actual
                    Date Of REO Sale

                	
                  (iiiiii)  

                	
                  (jjjjjj)  MM/DD/YYYY

                
	
                  (kkkkkk)  OCCUPANT_CODE

                	
                  (llllll)  Classification
                    of how the property is occupied.

                	
                  (mmmmmm)  

                	
                  (nnnnnn)   

                
	
                  (oooooo)  PROP_CONDITION_CODE

                	
                  (pppppp)  A
                    code that indicates the condition of the property.

                	
                  (qqqqqq)  

                	
                  (rrrrrr)   

                
	
                  (ssssss)  PROP_INSPECTION_DATE

                	
                  (tttttt)  The
                    date a property inspection is performed.

                	
                  (uuuuuu)  

                	
                  (vvvvvv)  MM/DD/YYYY

                
	
                  (wwwwww)  APPRAISAL_DATE

                	
                  (xxxxxx)  The
                    date the appraisal was done.

                	
                  (yyyyyy)  

                	
                  (zzzzzz)  MM/DD/YYYY

                
	
                  (aaaaaaa)  CURR_PROP_VAL

                	
                  (bbbbbbb)   The
                    current "as is" value of the property based on brokers price
                    opinion or
                    appraisal.

                	
                  (ccccccc)  2

                	
                  (ddddddd)   

                
	
                  (eeeeeee)  REPAIRED_PROP_VAL

                	
                  (fffffff)  The
                    amount the property would be worth if repairs are completed pursuant
                    to a
                    broker's price opinion or appraisal.

                	
                  (ggggggg)  2

                	
                  (hhhhhhh)   

                
	
                  (iiiiiii)  If
                    applicable:

                	
                  (jjjjjjj)   

                	
                  (kkkkkkk)  

                	
                  (lllllll)   

                
	
                  (mmmmmmm)  DELINQ_STATUS_CODE

                	
                  (nnnnnnn)  FNMA
                    Code Describing Status of Loan

                	
                  (ooooooo)  

                	
                  (ppppppp)  

                
	
                  (qqqqqqq)  DELINQ_REASON_CODE

                	
                  (rrrrrrr)  The
                    circumstances which caused a borrower to stop paying on a loan.
                    Code
                    indicates the reason why the loan is in default for this
                    cycle.

                	
                  (sssssss)  

                	
                  (ttttttt)  

                
	
                  (uuuuuuu)  MI_CLAIM_FILED_DATE

                	
                  (vvvvvvv)  Date
                    Mortgage Insurance Claim Was Filed With Mortgage Insurance
                    Company.

                	
                  (wwwwwww)  

                	
                  (xxxxxxx)  MM/DD/YYYY

                
	
                  (yyyyyyy)  MI_CLAIM_AMT

                	
                  (zzzzzzz)  Amount
                    of Mortgage Insurance Claim Filed

                	
                  (aaaaaaaa)  

                	
                  (bbbbbbbb)  No
                    commas(,) or dollar signs ($)

                
	
                  (cccccccc)  MI_CLAIM_PAID_DATE

                	
                  (dddddddd)  Date
                    Mortgage Insurance Company Disbursed Claim Payment

                	
                  (eeeeeeee)  

                	
                  (ffffffff)  MM/DD/YYYY

                
	
                  (gggggggg)  MI_CLAIM_AMT_PAID

                	
                  (hhhhhhhh)  Amount
                    Mortgage Insurance Company Paid On Claim

                	
                  (iiiiiiii)  2

                	
                  (jjjjjjjj)  No
                    commas(,) or dollar signs ($)

                
	
                  (kkkkkkkk)  POOL_CLAIM_FILED_DATE

                	
                  (llllllll)  Date
                    Claim Was Filed With Pool Insurance Company

                	
                  (mmmmmmmm)  

                	
                  (nnnnnnnn)  MM/DD/YYYY

                
	
                  (oooooooo)  POOL_CLAIM_AMT

                	
                  (pppppppp)  Amount
                    of Claim Filed With Pool Insurance Company

                	
                  (qqqqqqqq)  2

                	
                  (rrrrrrrr)  No
                    commas(,) or dollar signs ($)

                
	
                  (ssssssss)  POOL_CLAIM_PAID_DATE

                	
                  (tttttttt)  Date
                    Claim Was Settled and The Check Was Issued By The Pool
                    Insurer

                	
                  (uuuuuuuu)  

                	
                  (vvvvvvvv)  MM/DD/YYYY

                
	
                  (wwwwwwww)  POOL_CLAIM_AMT_PAID

                	
                  (xxxxxxxx)  Amount
                    Paid On Claim By Pool Insurance Company

                	
                  (yyyyyyyy)  2

                	
                  (zzzzzzzz)  No
                    commas(,) or dollar signs ($)

                
	
                  (aaaaaaaaa)  FHA_PART_A_CLAIM_FILED_DATE

                	
                  (bbbbbbbbb)   Date
                    FHA Part A Claim Was Filed With HUD

                	
                  (ccccccccc)  

                	
                  (ddddddddd)  MM/DD/YYYY

                
	
                  (eeeeeeeee)  FHA_PART_A_CLAIM_AMT

                	
                  (fffffffff)   Amount
                    of FHA Part A Claim Filed

                	
                  (ggggggggg)  2

                	
                  (hhhhhhhhh)  No
                    commas(,) or dollar signs ($)

                
	
                  (iiiiiiiii)  FHA_PART_A_CLAIM_PAID_DATE

                	
                  (jjjjjjjjj)   Date
                    HUD Disbursed Part A Claim Payment

                	
                  (kkkkkkkkk)  

                	
                  (lllllllll)  MM/DD/YYYY

                
	
                  (mmmmmmmmm)  FHA_PART_A_CLAIM_PAID_AMT

                	
                  (nnnnnnnnn)   Amount
                    HUD Paid on Part A Claim

                	
                  (ooooooooo)  2

                	
                  (ppppppppp)  No
                    commas(,) or dollar signs ($)

                
	
                  (qqqqqqqqq)  FHA_PART_B_CLAIM_FILED_DATE

                	
                  (rrrrrrrrr)    Date
                    FHA Part B Claim Was Filed With HUD

                	
                  (sssssssss)  

                	
                  (ttttttttt)  MM/DD/YYYY

                
	
                  (uuuuuuuuu)  FHA_PART_B_CLAIM_AMT

                	
                  (vvvvvvvvv)    Amount
                    of FHA Part B Claim Filed

                	
                  (wwwwwwwww)  2

                	
                  (xxxxxxxxx)  No
                    commas(,) or dollar signs ($)

                
	
                  (yyyyyyyyy)  FHA_PART_B_CLAIM_PAID_DATE

                	
                  (zzzzzzzzz)     Date
                    HUD Disbursed Part B Claim Payment

                	
                  (aaaaaaaaaa)  

                	
                  (bbbbbbbbbb)  MM/DD/YYYY

                
	
                  (cccccccccc)  FHA_PART_B_CLAIM_PAID_AMT

                	
                  (dddddddddd)   Amount
                    HUD Paid on Part B Claim

                	
                  (eeeeeeeeee)  2

                	
                  (ffffffffff)  No
                    commas(,) or dollar signs ($)

                
	
                  (gggggggggg)  VA_CLAIM_FILED_DATE

                	
                  (hhhhhhhhhh)   Date
                    VA Claim Was Filed With the Veterans Admin

                	
                  (iiiiiiiiii)  

                	
                  (jjjjjjjjjj)  MM/DD/YYYY

                
	
                  (kkkkkkkkkk)  VA_CLAIM_PAID_DATE

                	
                  (llllllllll)   Date
                    Veterans Admin. Disbursed VA Claim Payment

                	
                  (mmmmmmmmmm)  

                	
                  (nnnnnnnnnn)  MM/DD/YYYY

                
	
                  (oooooooooo)  VA_CLAIM_PAID_AMT

                	
                  (pppppppppp)   Amount
                    Veterans Admin. Paid on VA Claim

                	
                  (qqqqqqqqqq)  2

                	
                  (rrrrrrrrrr)  No
                    commas(,) or dollar signs ($)

                

        

      

      
 

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting

       

      

       

      The
        Loss
        Mit Type
        field
        should show the approved Loss Mitigation Code as follows: 

      
        	
                ·  ASUM-

              	
                Approved
                  Assumption

              
	
                ·  BAP-

              	
                Borrower
                  Assistance Program

              
	
                ·  CO-

              	
                Charge
                  Off

              
	
                ·  DIL-

              	
                Deed-in-Lieu

              
	
                ·  FFA-

              	
                Formal
                  Forbearance Agreement

              
	
                ·  MOD-

              	
                Loan
                  Modification

              
	
                ·  PRE-

              	
                Pre-Sale

              
	
                ·  SS-

              	
                Short
                  Sale

              
	
                ·  MISC-

              	
                Anything
                  else approved by the PMI or Pool
                  Insurer

              

      

       

      

       

      NOTE:
        Wells Fargo Bank will accept alternative Loss Mitigation Types to those above,
        provided that they are consistent with industry standards. If Loss Mitigation
        Types other than those above are used, the Servicer must supply Wells Fargo
        Bank
        with a description of each of the Loss Mitigation Types prior to sending
        the
        file.

       

      

       

      The
        Occupant
        Code
        field should show the current status of the property code as
        follows:

      
        	
                ·  Mortgagor

              
	
                ·  Tenant

              
	
                ·  Unknown
                  

              
	
                ·  Vacant

              

      

       

      

       

      The
        Property
        Condition
        field should show the last reported condition of the property as follows:
        

      
        	
                ·  Damaged

              
	
                ·  Excellent

              
	
                ·  Fair

              
	
                ·  Gone

              
	
                ·  Good

              
	
                ·  Poor

              
	
                ·  Special
                  Hazard

              
	
                ·  Unknown

              

      

       

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

       

      

       

      The
        FNMA
        Delinquent Reason Code
        field should show the Reason for Delinquency as follows: 

       

      

      
        	
                Delinquency
                  Code

              	
                Delinquency
                  Description

              
	
                001

              	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	
                FNMA-Marital
                  difficulties

              
	
                006

              	
                FNMA-Curtailment
                  of income

              
	
                007

              	
                FNMA-Excessive
                  Obligation

              
	
                008

              	
                FNMA-Abandonment
                  of property

              
	
                009

              	
                FNMA-Distant
                  employee transfer

              
	
                011

              	
                FNMA-Property
                  problem

              
	
                012

              	
                FNMA-Inability
                  to sell property

              
	
                013

              	
                FNMA-Inability
                  to rent property

              
	
                014

              	
                FNMA-Military
                  Service

              
	
                015

              	
                FNMA-Other

              
	
                016

              	
                FNMA-Unemployment

              
	
                017

              	
                FNMA-Business
                  failure

              
	
                019

              	
                FNMA-Casualty
                  loss

              
	
                022

              	
                FNMA-Energy
                  environment costs

              
	
                023

              	
                FNMA-Servicing
                  problems

              
	
                026

              	
                FNMA-Payment
                  adjustment

              
	
                027

              	
                FNMA-Payment
                  dispute

              
	
                029

              	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	
                FNMA-Fraud

              
	
                031

              	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	
                FNMA-Incarceration

              

      

      

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

      

       

      The
        FNMA
        Delinquent Status Code
        field should show the Status of Default as follows: 

       

      

      
        	
                Status
                  Code

              	
                Status
                  Description

              
	
                09

              	
                Forbearance

              
	
                17

              	
                Pre-foreclosure
                  Sale Closing Plan Accepted

              
	
                24

              	
                Government
                  Seizure

              
	
                26

              	
                Refinance

              
	
                27

              	
                Assumption

              
	
                28

              	
                Modification

              
	
                29

              	
                Charge-Off

              
	
                30

              	
                Third
                  Party Sale

              
	
                31

              	
                Probate

              
	
                32

              	
                Military
                  Indulgence

              
	
                43

              	
                Foreclosure
                  Started

              
	
                44

              	
                Deed-in-Lieu
                  Started

              
	
                49

              	
                Assignment
                  Completed

              
	
                61

              	
                Second
                  Lien Considerations

              
	
                62

              	
                Veteran’s
                  Affairs-No Bid

              
	
                63

              	
                Veteran’s
                  Affairs-Refund

              
	
                64

              	
                Veteran’s
                  Affairs-Buydown

              
	
                65

              	
                Chapter
                  7 Bankruptcy

              
	
                66

              	
                Chapter
                  11 Bankruptcy

              
	
                67

              	
                Chapter
                  13 Bankruptcy

              

      

       

      

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        G

      

      FORM
        OF
        SERVICER CERTIFICATION

      

      Re: The
        [         ]
        agreement dated as of [     l,
        200[ ]
        (the “Agreement”), among [IDENTIFY PARTIES]

      

      I,
        ____________________________, the _______________________ of [NAME OF COMPANY]
        (the “Company”), certify to [the Purchaser], [the Depositor], and the [Master
        Servicer] [Securities Administrator] [Trustee], and their officers, with
        the
        knowledge and intent that they will rely upon this certification,
        that:

       

      I
        have
        reviewed the servicer compliance statement of the Company provided in accordance
        with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
        assessment of the Company’s compliance with the servicing criteria set forth in
        Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance
        with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended
        (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing
        Assessment”), the registered public accounting firm’s attestation report
        provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act
        and
        Section 1122(b) of Regulation AB (the “Attestation Report”), and all servicing
        reports, Officer’s Certificates and other information relating to the servicing
        of the Mortgage Loans by the Company during 200[ ] that were delivered by
        the
        Company to the [Depositor] [Master Servicer] [Securities Administrator]
        [Trustee] pursuant to the Agreement (collectively, the “Company Servicing
        Information”);

       

      Based
        on
        my knowledge, the Company Servicing Information, taken as a whole, does not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Company Servicing Information;

       

      Based
        on
        my knowledge, all of the Company Servicing Information required to be provided
        by the Company under the Agreement has been provided to the [Depositor] [Master
        Servicer] [Securities Administrator] [Trustee];

       

      I
        am
        responsible for reviewing the activities performed by the Company as servicer
        under the Agreement, and based on my knowledge and the compliance review
        conducted in preparing the Compliance Statement and except as disclosed in
        the
        Compliance Statement, the Servicing Assessment or the Attestation Report,
        the
        Company has fulfilled its obligations under the Agreement in all material
        respects; and

       

      The
        Compliance Statement required to be delivered by the Company pursuant to
        this
        Agreement, and the Servicing Assessment and Attestation Report required to
        be
        provided by the Company and by any Subservicer and Subcontractor pursuant
        to the
        Agreement, have been provided to the [Depositor] [Master Servicer]. Any material
        instances of noncompliance described in such reports have been disclosed
        to the
        [Depositor] [Master Servicer]. Any material instance of noncompliance with
        the
        Servicing Criteria has been disclosed in such reports.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        H

      

      SUMMARY
        OF REGULATION AB

      SERVICING
        CRITERIA

      

      NOTE:
        This Exhibit H is provided for convenience of reference only. In the event
        of a
        conflict or inconsistency between the terms of this Exhibit H and the text
        of
        Regulation AB, the text of Regulation AB, its adopting release and other
        public
        statements of the SEC shall control. 

       

      Item
        1122(d)

       

      
        	(b)  	
                General
                  servicing considerations.

              

      

       

      (1)  Policies
        and procedures are instituted to monitor any performance or other triggers
        and
        events of default in accordance with the transaction agreements.

       

      (2)  If
        any
        material servicing activities are outsourced to third parties, policies and
        procedures are instituted to monitor the third party’s performance and
        compliance with such servicing activities.

       

      (3)  Any
        requirements in the transaction agreements to maintain a back-up servicer
        for
        the mortgage loans are maintained.

       

      (4)  A
        fidelity bond and errors and omissions policy is in effect on the party
        participating in the servicing function throughout the reporting period in
        the
        amount of coverage required by and otherwise in accordance with the terms
        of the
        transaction agreements.

       

      
        	(c)  	
                Cash
                  collection and administration.

              

      

       

      (1)  Payments
        on mortgage loans are deposited into the appropriate custodial bank accounts
        and
        related bank clearing accounts no more than two business days following receipt,
        or such other number of days specified in the transaction
        agreements.

       

      (2)  Disbursements
        made via wire transfer on behalf of an obligor or
        to an
        investor are made only by authorized personnel.

       

      (3)  Advances
        of funds or guarantees regarding collections, cash flows or distributions,
        and
        any interest or other fees charged for such advances, are made, reviewed
        and
        approved as specified in the transaction agreements.

       

      (4)  The
        related accounts for the transaction, such as cash reserve accounts or accounts
        established as a form of overcollateralization, are separately maintained
        (e.g.,
        with respect to commingling of cash) as set forth in the transaction
        agreements.

       

      (5)  Each
        custodial account is maintained at a federally insured depository institution
        as
        set forth in the transaction agreements. For purposes of this criterion,
        “federally insured depository institution” with respect to a foreign financial
        institution means a foreign financial institution that meets the requirements
        of
        Rule 13k-1(b)(1) of the Securities Exchange Act.

       

      (6)  Unissued
        checks are safeguarded so as to prevent unauthorized access.

       

      (7)  Reconciliations
        are prepared on a monthly basis for all asset-backed securities related bank
        accounts, including custodial accounts and related bank clearing accounts.
        These
        reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar
        days after the bank statement cutoff date, or such other number of days
        specified in the transaction agreements; (C) reviewed and approved by someone
        other than the person who prepared the reconciliation; and (D) contain
        explanations for reconciling items. These reconciling items are resolved
        within
        90 calendar days of their original identification, or such other number of
        days
        specified in the transaction agreements.

       

      
        	(d)  	
                Investor
                  remittances and reporting.

              

      

       

      (1)  Reports
        to investors, including those to be filed with the Commission, are maintained
        in
        accordance with the transaction agreements and applicable Commission
        requirements. Specifically, such reports (A) are prepared in accordance with
        timeframes and other terms set forth in the transaction agreements; (B) provide
        information calculated in accordance with the terms specified in the transaction
        agreements; (C) are filed with the Commission as required by its rules and
        regulations; and (D) agree with investors’ or the trustee’s records as to the
        total unpaid principal balance and number of mortgage loans serviced by the
        Servicer.

       

      (2)  Amounts
        due to investors are allocated and remitted in accordance with timeframes,
        distribution priority and other terms set forth in the transaction
        agreements.

       

      (3)  Disbursements
        made to an investor are posted within two business days to the Servicer’s
        investor records, or such other number of days specified in the transaction
        agreements.

       

      (4)  Amounts
        remitted to investors per the investor reports agree with cancelled checks,
        or
        other form of payment, or custodial bank statements.

       

      
        	(e)  	
                Mortgage
                  Loan administration.

              

      

       

      (1)  Collateral
        or security on mortgage loans is maintained as required by the transaction
        agreements or related mortgage loan documents.

       

      (2)  Mortgage
        loan and related documents are safeguarded as required by the transaction
        agreements.

       

      (3)  Any
        additions, removals or substitutions to the asset pool are made, reviewed
        and
        approved in accordance with any conditions or requirements in the transaction
        agreements.

       

      (4)  Payments
        on mortgage loans, including any payoffs, made in accordance with the related
        mortgage loan documents are posted to the Servicer’s obligor records maintained
        no more than two business days after receipt, or such other number of days
        specified in the transaction agreements, and allocated to principal, interest
        or
        other items (e.g., escrow) in accordance with the related mortgage loan
        documents.

       

      (5)  The
        Servicer’s records regarding the mortgage loans agree with the Servicer’s
        records with respect to an obligor’s unpaid principal balance.

       

      (6)  Changes
        with respect to the terms or status of an obligor’s mortgage loans (e.g., loan
        modifications or re-agings) are made, reviewed and approved by authorized
        personnel in accordance with the transaction agreements and related mortgage
        loan documents.

       

      (7)  Loss
        mitigation or recovery actions (e.g., forbearance plans, modifications and
        deeds
        in lieu of foreclosure, foreclosures and repossessions, as applicable) are
        initiated, conducted and concluded in accordance with the timeframes or other
        requirements established by the transaction agreements.

       

      (8)  Records
        documenting collection efforts are maintained during the period a mortgage
        loan
        is delinquent in accordance with the transaction agreements. Such records
        are
        maintained on at least a monthly basis, or such other period specified in
        the
        transaction agreements, and describe the entity’s activities in monitoring
        delinquent mortgage loans including, for example, phone calls, letters and
        payment rescheduling plans in cases where delinquency is deemed temporary
        (e.g.,
        illness or unemployment).

       

      (9)  Adjustments
        to interest rates or rates of return for mortgage loans with variable rates
        are
        computed based on the related mortgage loan documents.

       

      (10)  Regarding
        any funds held in trust for an obligor (such as escrow accounts): (A) such
        funds
        are analyzed, in accordance with the obligor’s mortgage loan documents, on at
        least an annual basis, or such other period specified in the transaction
        agreements; (B) interest on such funds is paid, or credited, to obligors
        in
        accordance with applicable mortgage loan documents and state laws; and (C)
        such
        funds are returned to the obligor within 30 calendar days of full repayment
        of
        the related mortgage loans, or such other number of days specified in the
        transaction agreements.

       

      (11)  Payments
        made on behalf of an obligor (such as tax or insurance payments) are made
        on or
        before the related penalty or expiration dates, as indicated on the appropriate
        bills or notices for such payments, provided that such support has been received
        by the Servicer at least 30 calendar days prior to these dates, or such other
        number of days specified in the transaction agreements.

       

      (12)  Any
        late
        payment penalties in connection with any payment to be made on behalf of
        an
        obligor are paid from the Servicer’s funds and not charged to the obligor,
        unless the late payment was due to the obligor’s error or omission.

       

      (13)  Disbursements
        made on behalf of an obligor are posted within two business days to the
        obligor’s records maintained by the Servicer, or such other number of days
        specified in the transaction agreements.

       

      (14)  Delinquencies,
        charge-offs and uncollectable accounts are recognized and recorded in accordance
        with the transaction agreements.

       

      (15)  Any
        external enhancement or other support, identified in Item 1114(a)(1) through
        (3)
        or Item 1115 of Regulation AB, is maintained as set forth in the
        transaction agreements.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        I

      

      SUMMARY
        OF APPLICABLE REGULATION AB REQUIREMENTS

      

      NOTE:
        This Exhibit I is provided for convenience of reference only. In the event
        of a
        conflict or inconsistency between the terms of this Exhibit I and the text
        of
        Regulation AB, the text of Regulation AB, its adopting release and other
        public
        statements of the SEC shall control.

       

      Item
        1108(b) and (c)

       

      Provide
        the following information with respect to each servicer that will service,
        including interim service, 20% or more of the mortgage loans in any loan
        group
        in the securitization issued in the Pass-Through Transfer:

       

      -a
        description of the Owner’s form of organization;

      

      -a
        description of how long the Servicer has been servicing residential mortgage
        loans; a general discussion of the Servicer’s experience in servicing assets of
        any type as well as a more detailed discussion of the Servicer’s experience in,
        and procedures for the servicing function it will perform under this Agreement
        and any Reconstitution Agreements; information regarding the size, composition
        and growth of the Servicer’s portfolio of mortgage loans of the type similar to
        the Mortgage Loans and information on factors related to the Servicer that
        may
        be material to any analysis of the servicing of the Mortgage Loans or the
        related asset-backed securities, as applicable, including whether any default
        or
        servicing related performance trigger has occurred as to any other
        securitization due to any act or failure to act of the Servicer, whether
        any
        material noncompliance with applicable servicing criteria as to any other
        securitization has been disclosed or reported by the Servicer, and the extent
        of
        outsourcing the Servicer uses;

      

      -a
        description of any material changes to the Servicer’s policies or procedures in
        the servicing function it will perform under this Agreement and any
        Reconstitution Agreements for mortgage loans of the type similar to the Mortgage
        Loans during the past three years;

      

      -information
        regarding the Servicer’s financial condition to the extent that there is a
        material risk that the effect on one or more aspects of servicing resulting
        from
        such financial condition could have a material impact on the performance
        of the
        securities issued in the Pass-Through Transfer, or on servicing of mortgage
        loans of the same asset type as the Mortgage Loans;

      

      -any
        special or unique factors involved in servicing loans of the same type as
        the
        Mortgage Loans, and the Servicer’s processes and procedures designed to address
        such factors;

      

      -statistical
        information regarding principal and interest advances made by the Servicer
        on
        the Mortgage Loans and the Servicer’s overall servicing portfolio for the past
        three years; and

      

      -the
        Owner’s process for handling delinquencies, losses, bankruptcies and recoveries,
        such as through liquidation of REO Properties, foreclosure, sale of the Mortgage
        Loans or workouts.

      

      Item
        1117

      

      -describe
        any legal proceedings pending against the Servicer or against any of its
        property, including any proceedings known to be contemplated by governmental
        authorities, that may be material to the holders of the securities issued
        in the
        Pass-Through Transfer.

      

      Item
        1119(a)

       

      

      -describe
        any affiliations of the Servicer, each other originator of the Mortgage Loans
        and each Subservicer with the sponsor, depositor, issuing entity, trustee,
        any
        originator, any other servicer, any significant obligor, enhancement or support
        provider or any other material parties related to the Pass-Through
        Transfer.

      

      Item
        1119(b)

       

      

      -describe
        any business relationship, agreement, arrangement, transaction or understanding
        entered into outside of the ordinary course of business or on terms other
        than
        those obtained in an arm’s length transaction with an unrelated third party,
        apart from the Pass-Through Transfer, between the Servicer, each other
        originator of the Mortgage Loans and each Subservicer, or their respective
        affiliates, and the sponsor, depositor or issuing entity or their respective
        affiliates, that exists currently or has existed during the past two years,
        that
        may be material to the understanding of an investor in the securities issued
        in
        the Pass-Through Transfer.

      

      Item
        1119(c)

       

      

      -describe
        any business relationship, agreement, arrangement, transaction or understanding
        involving or relating to the Mortgage Loans or the Pass-Through Transfer,
        including the material terms and approximate dollar amount involved, between
        the
        Servicer, each other originator of the Mortgage Loans and each Subservicer,
        or
        their respective affiliates and the sponsor, depositor or issuing entity
        or
        their respective affiliates, that exists currently or has existed during
        the
        past two years.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      

      EXHIBIT
        J

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      

      SERVICING
        CRITERIA TO BE ADDRESSED

      IN
        ASSESSMENT OF COMPLIANCE

      (RMBS
        unless otherwise noted)

      

      Key:

      X
        -
        obligation

       

      Where
        there are multiple checks for criteria the attesting party will identify
        in
        their management assertion that they are attesting only to the portion of
        the
        distribution chain they are responsible for in the related transaction
        agreements.

      

      

      
        	
                RegAB
                  Reference

              	
                Servicing
                  Criteria

              	
                Servicers

              
	 	
                General
                  Servicing Considerations

              	 
	
                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements.

              	
                X

              
	
                1122(d)(1)(ii)

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities.

              	
                X

              
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the Pool Assets are maintained.

              	 
	
                1122(d)(1)(iv)

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements.

              	
                X

              
	 	
                Cash
                  Collection and Administration

              	 
	
                1122(d)(2)(i)

              	
                Payments
                  on pool assets are deposited into the appropriate custodial bank
                  accounts
                  and related bank clearing accounts no more than two business days
                  following receipt, or such other number of days specified in the
                  transaction agreements.

              	
                X

              
	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel.

              	
                X

              
	
                1122(d)(2)(iii)

              	
                Advances
                  of funds or guarantees regarding collections, cash flows or distributions,
                  and any interest or other fees charged for such advances, are made,
                  reviewed and approved as specified in the transaction
                  agreements.

              	
                X

              
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of over collateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements.

              	
                X

              
	
                1122(d)(2)(v)

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institution” with respect to
                  a foreign financial institution means a foreign financial institution
                  that
                  meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                  Act.

              	
                X

              
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized
                  access.

              	
                X

              
	
                1122(d)(2)(vii)

              	
                Reconciliations
                  are prepared on a monthly basis for all asset-backed securities
                  related
                  bank accounts, including custodial accounts and related bank clearing
                  accounts. These reconciliations are (A) mathematically accurate;
                  (B)
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction agreements;
                  (C)
                  reviewed and approved by someone other than the person who prepared
                  the
                  reconciliation; and (D) contain explanations for reconciling items.
                  These
                  reconciling items are resolved within 90 calendar days of their
                  original
                  identification, or such other number of days specified in the transaction
                  agreements.

              	
                X

              
	 	
                Investor
                  Remittances and Reporting

              	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of Pool Assets serviced by the
                  Servicer.

              	
                X

              
	
                1122(d)(3)(ii)

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements.

              	
                X

              
	
                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  Servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements.

              	
                X

              
	
                1122(d)(3)(iv)

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank
                  statements.

              	
                X

              
	 	
                Pool
                  Asset Administration

              	 
	
                1122(d)(4)(i)

              	
                Collateral
                  or security on pool assets is maintained as required by the transaction
                  agreements or related pool asset documents.

              	
                X

              
	
                1122(d)(4)(ii)

              	
                Pool
                  assets and related documents are safeguarded as required by the
                  transaction agreements

              	
                X

              
	
                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements.

              	
                X

              
	
                1122(d)(4)(iv)

              	
                Payments
                  on pool assets, including any payoffs, made in accordance with
                  the related
                  pool asset documents are posted to the Servicer’s obligor records
                  maintained no more than two business days after receipt, or such
                  other
                  number of days specified in the transaction agreements, and allocated
                  to
                  principal, interest or other items (e.g., escrow) in accordance
                  with the
                  related pool asset documents.

              	
                X

              
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the pool assets agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal
                  balance.

              	
                X

              
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor's pool assets
                  (e.g.,
                  loan modifications or re-agings) are made, reviewed and approved
                  by
                  authorized personnel in accordance with the transaction agreements
                  and
                  related pool asset documents.

              	
                X

              
	
                1122(d)(4)(vii)

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements.

              	
                X

              
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a pool
                  asset is delinquent in accordance with the transaction agreements.
                  Such
                  records are maintained on at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent pool assets including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or
                  unemployment).

              	
                X

              
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for pool assets with variable
                  rates
                  are computed based on the related pool asset documents.

              	
                X

              
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s pool asset documents,
                  on at least an annual basis, or such other period specified in
                  the
                  transaction agreements; (B) interest on such funds is paid, or
                  credited,
                  to obligors in accordance with applicable pool asset documents
                  and state
                  laws; and (C) such funds are returned to the obligor within 30
                  calendar
                  days of full repayment of the related pool assets, or such other
                  number of
                  days specified in the transaction agreements.

              	
                X

              
	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements.

              	
                X

              
	
                1122(d)(4)(xii)

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the Servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission.

              	
                X

              
	
                1122(d)(4)(xiii)

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the servicer, or such other number of days
                  specified in the transaction agreements.

              	
                X

              
	
                1122(d)(4)(xiv)

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements.

              	
                X

              
	
                1122(d)(4)(xv)

              	
                Any
                  external enhancement or other support, identified in Item 1114(a)(1)
                  through (3) or Item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements.

              	 

      

      

      
        	
                [NAME
                  OF OWNER] [NAME OF SUBSERVICER]

              
	
                Date:

              	 
	 	 
	
                 

                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        K

      

      REPORTING
        DATA FOR REALIZED LOSSES AND GAINS

      

      Calculation
        of Realized Loss/Gain Form 332- Instruction Sheet

      

      NOTE:
        Do not net or combine items. Show all expenses individually and all credits
        as
        separate line items. Claim packages are due within 90 days of liquidation.
        Late
        submissions may result in claims not being passed until the following month.
        The
        Servicer is responsible to remit all funds pending loss approval and /or
        resolution of any disputed items. 

      

       

      The
        numbers on the 332 form correspond with the numbers listed below.

       

      Liquidation
        and Acquisition Expenses:

       

      1.           
         The
        Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
        an
        Amortization Schedule from date of default through liquidation breaking out
        the
        net interest and servicing fees advanced is required.

       

      2.           
         The
        Total
        Interest Due less the aggregate amount of servicing fee that would have been
        earned if all delinquent payments had been made as agreed. For documentation,
        an
        Amortization Schedule from date of default through liquidation breaking out
        the
        net interest and servicing fees advanced is required.

      3.          
          Accrued
        Servicing Fees based upon the Scheduled Principal Balance of the Mortgage
        Loan
        as calculated on a monthly basis. For documentation, an Amortization Schedule
        from date of default through liquidation breaking out the net interest and
        servicing fees advanced is required.

      4-12.        Complete
        as applicable. Required documentation:

      *
        For
        taxes and insurance advances - see page 2 of 332 form - breakdown required
        showing period

      of
        coverage, base tax, interest, penalty. Advances prior to default require
        evidence of servicer efforts to recover advances.

      *
        For
        escrow advances - complete payment history 

      (to
        calculate advances from last positive escrow balance forward)

      *
        Other
        expenses -  copies of corporate advance history showing all payments

      *
        REO
        repairs > $1500 require explanation

      *
        REO
        repairs >$3000 require evidence of at least 2 bids.

      *
        Short
        Sale or Charge Off require P&L supporting the decision and WFB’s approved
        Officer Certificate 

      *
        Unusual
        or extraordinary items may require further documentation. 

      13.        
          The
        total
        of lines 1 through 12.

      Credits:
        

       

      14-21.    
         Complete
        as applicable. Required documentation:

      *
        Copy of
        the HUD 1 from the REO sale. If a 3rd
        Party
        Sale, bid instructions and Escrow Agent / Attorney

      Letter
        of
        Proceeds Breakdown.

      *
        Copy of
        EOB for any MI or gov't guarantee 

      *
        All
        other credits need to be clearly defined on the 332
        form      
     

       

      
        	 	
                22.

              	
                The
                  total of lines 14 through 21.

              

      

       

      Please
        Note: For
        HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b) for
        Part
        B/Supplemental proceeds.

       

      Total
        Realized Loss (or Amount of Any Gain)

       

      23. The
        total
        derived from subtracting line 22 from 13. If the amount represents a realized
        gain, show the amount in parenthesis ( ). 

       

       

      
         

        
          
            	
                     

                    Calculation
                      of Realized Loss/Gain Form
                      332

                  

          

           

          Prepared
            by: __________________   Date:
            _______________

          Phone:
            ______________________    Email
            Address:_____________________

          
            	 	 	 	 	 
	
                    Servicer
                      Loan No.

                     

                  	 	
                    Servicer
                      Name

                     

                  	 	
                    Servicer
                      Address 

                     

                     

                  

          

           

          WELLS
            FARGO BANK, N.A. Loan No._____________________________

           

          Borrower's
            Name: _________________________________________________________

          Property
            Address: _________________________________________________________

           

          Liquidation
            Type:     REO
            Sale  
            3rd
            Party Sale  Short
            Sale     Charge
            Off 

           

          Was
            this loan granted a Bankruptcy deficiency or cramdown  Yes      No

          If
“Yes”,
            provide deficiency or cramdown amount
            _______________________________

           

          
            Liquidation
              and Acquisition Expenses:

            
              
                

                  
                    	
                            (1)

                          	
                            Actual
                              Unpaid Principal Balance of Mortgage Loan

                          	
                             

                          	$	 	
                            (1)

                          
	
                            (2)

                          	
                            Interest
                              accrued at Net Rate

                          	 	
                             

                          	 	
                            (2)

                          
	
                            (3)

                          	
                            Accrued
                              Servicing Fees

                          	 	
                             

                          	 	
                            (3)

                          
	
                            (4)

                          	
                            Attorney's
                              Fees

                          	 	
                             

                          	 	
                            (4)

                          
	
                            (5)

                          	
                            Taxes
                              (see page 2)

                          	 	
                             

                          	 	
                            (5)

                          
	
                            (6)

                          	
                            Property
                              Maintenance

                          	 	 	 	
                             

                          	 	
                            (6)

                          
	
                            (7)

                          	
                            MI/Hazard
                              Insurance Premiums (see page 2)

                          	
                             

                          	 	 	
                            (7)

                          
	
                            (8)

                          	
                            Utility
                              Expenses

                          	 	 	 	
                             

                          	 	
                            (8)

                          
	
                            (9)

                          	
                            Appraisal/BPO

                          	 	 	 	
                             

                          	 	
                            (9)

                          
	
                            (10)

                          	
                            Property
                              Inspections

                          	 	 	 	
                             

                          	 	
                            (10)

                          
	
                            (11)

                          	
                            FC
                              Costs/Other Legal Expenses

                          	 	 	 	
                            (11)

                          
	
                            (12)

                          	
                            Other
                              (itemize)

                          	 	 	 	
                             

                          	 	
                            (12)

                          
	 	 	
                            Cash
                              for Keys

                          	 	
                             

                          	 	 	
                            (12)

                          
	 	 	
                            HOA/Condo
                              Fees

                          	 	
                             

                          	 	 	
                            (12)

                          
	 	 	
                             

                          	 	
                             

                          	 	 	
                            (12)

                          
	 	 	 	 	 	 	 	 
	 	 	
                            Total
                              Expenses

                          	 	 	$	 	
                            
                              (13)

                            

                          
	
                            Credits:

                          	 	 	 	 	 	 	 
	
                            (14)

                          	
                            Escrow
                              Balance

                          	 	 	 	
                            $
                              

                          	 	
                            (14)

                          
	
                            (15)

                          	
                            HIP
                              Refund

                          	 	 	 	 	 	
                            
                              (15)

                            

                          
	
                            (16)

                          	
                            Rental
                              Receipts

                          	 	 	 	
                             

                          	 	
                            (16)

                          
	
                            (17)

                          	
                            Hazard
                              Loss Proceeds

                          	 	 	 	
                             

                          	 	
                            (17)

                          
	
                            (18)

                          	
                            Primary
                              Mortgage Insurance / Gov’t Insurance

                          	
                             

                          	 	 	(18a)

	
                            HUD
                              Part A

                          	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
                            HUD
                              Part B

                          	 	 	 	 	 	(18b)
	
                            (19)

                          	
                            Pool
                              Insurance Proceeds

                          	 	 	 	
                             

                          	 	
                            (19)

                          
	
                            (20)

                          	
                            Proceeds
                              from Sale of Acquired Property

                          	
                             

                          	 	 	
                            (20)

                          
	
                            (21)

                          	
                            Other
                              (itemize)

                          	 	 	 	
                             

                          	 	
                            (21)

                          
	 	
                             

                          	 	
                             

                          	
                             

                          	 	 	
                            (21)

                          
	 	 	 	 	 	 	 	 
	 	
                            Total
                              Credits

                          	 	 	 	
                            $

                          	 	
                            (22)

                          
	
                            Total
                              Realized Loss (or Amount of Gain)

                          	
                             

                          	
                             

                          	
                            $

                          	 	
                            (23)

                          

                  

                

              

               

            

          

        

      

      

      Escrow
        Disbursement Detail

      

      

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of Coverage

              	
                Total
                  Paid

              	
                Base
                  Amount

              	
                Penalties

              	
                Interest

              
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 

      

       

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    EXHIBIT
      I-3

    

    WELLS
      FARGO SERVICING AGREEMENT

    

       

      EMC
        MORTGAGE CORPORATION

      

      Purchaser

      

      and

      

      WELLS
        FARGO BANK, N.A.

      

      Company

       

        
          

        

      

      

      

      AMENDED
        AND RESTATED MASTER 

      SELLER'S
        WARRANTIES AND SERVICING AGREEMENT

      

      Dated
        as of November 1, 2005

       

      
        
 

       

      Fixed
        Rate and Adjustable Rate Mortgage Loans

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      TABLE
        OF CONTENTS

      

      

       

      ARTICLE
        I

       

      DEFINITIONS

       

      ARTICLE
        II

       

      CONVEYANCE
        OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES; BOOKS AND RECORDS; CUSTODIAL
        AGREEMENT; DELIVERY OF DOCUMENTS

       

      ARTICLE
        III

       

      REPRESENTATIONS
        AND WARRANTIES REMEDIES AND BREACH

       

      ARTICLE
        IV

       

      ADMINISTRATION
        AND SERVICING OF MORTGAGE LOANS

       

      ARTICLE
        V

       

      PAYMENTS
        TO PURCHASER

       

      ARTICLE
        VI

       

      GENERAL
        SERVICING PROCEDURES

       

      ARTICLE
        VII

       

      COMPANY
        TO COOPERATE

       

      ARTICLE
        VIII

       

      THE
        COMPANY

       

      ARTICLE
        IX

       

      SECURITIZATION
        TRANSACTIONS; WHOLE LOAN TRANSFERS AND AGENCY TRANSFERS

       

      ARTICLE
        X

       

      DEFAULT

       

      ARTICLE
        XI

       

      TERMINATION

       

      ARTICLE
        XII

       

      MISCELLANEOUS
        PROVISIONS

       

      
        
          	
                  EXHIBITS

                
	 	 	 
	
                  Exhibit
                    A

                	 	
                  Form
                    of Assignment and Conveyance

                
	 	 	
                  Agreement

                
	
                  Exhibit
                    B

                	 	
                  Custodial
                    Agreement

                
	
                  Exhibit
                    C

                	 	
                  Contents
                    of Each Retained Mortgage File,

                
	 	 	
                  Servicing
                    File and Custodial Mortgage File 

                
	
                  Exhibit
                    D

                	 	
                  Servicing
                    Criteria

                
	
                  Exhibit
                    E

                	 	
                  Form
                    of Sarbanes Certification

                
	
                  Exhibit
                    F

                	 	
                  Form
                    of Sarbanes-Oxley Back-Up

                
	
                  Certification

                	 	 
	
                  Exhibit
                    G

                	 	
                  Form
                    of Assignment, Assumption and

                
	 	 	
                  Recognition
                    Agreement

                
	
                  Exhibit
                    H

                	 	
                  Electronic
                    Data File

                

        

      

       

      This
        is
        an Amended and Restated Master Seller's Warranties and Servicing Agreement
        for
        residential first mortgage loans, dated and effective as of November 1, 2005,
        and is executed between EMC Mortgage Corporation, as purchaser (the
        "Purchaser"), and Wells Fargo Bank, N.A., as seller and servicer (the
        "Company").

      

      

      W I T N E
60;S S E T H

      

      

      WHEREAS,
        the Purchaser has agreed to purchase from the Company and the Company has
        agreed
        to sell to the Purchaser from time to time (each a “Transaction”) certain
        residential Mortgage Loans which shall be delivered as whole loans (each
        a “Loan
        Package”) on various dates (each a “Closing Date”) as provided for in certain
        Assignment and Conveyance Agreements by and between the Purchaser and the
        Company as executed from time to time; and

      WHEREAS,
        each of the Mortgage Loans is secured by a mortgage, deed of trust or other
        security instrument creating a first lien on a residential dwelling located
        in
        the jurisdiction indicated on the related Mortgage Loan Schedule; and

      

      WHEREAS,
        the Purchaser and the Company wish to prescribe the manner of purchase of
        the
        Mortgage Loans and the conveyance, servicing and control of the Mortgage
        Loans.

      

      NOW,
        THEREFORE, in consideration of the mutual agreements hereinafter set forth,
        and
        for other good and valuable consideration, the receipt and adequacy of which
        is
        hereby acknowledged, the Purchaser and the Company agree as
        follows:

       

      ARTICLE
        I

       

      DEFINITIONS

      

      Whenever
        used herein, the following words and phrases, unless the content otherwise
        requires, shall have the following meanings:

      

      Accepted
        Servicing Practices:
        With
        respect to any Mortgage Loan, those mortgage servicing practices of prudent
        mortgage lending institutions which service mortgage loans of the same type
        as
        such Mortgage Loan in the jurisdiction where the related Mortgaged Property
        is
        located.

      

      Adjustment
        Date:
        As to
        each adjustable rate Mortgage Loan, the date on which the Mortgage Interest
        Rate
        is adjusted in accordance with the terms of the related Mortgage Note and
        Mortgage.

      

      Agency/Agencies:
        Fannie
        Mae, Freddie Mac or GNMA, or any of them as applicable.

      

      Agency
        Transfer:
        Any
        sale or transfer of some or all of the Mortgage Loans by the Purchaser to
        an
        Agency which sale or transfer is not a Securitization Transaction or Whole
        Loan
        Transfer.

      

      Agreement:
        This
        Amended and Restated Master Seller's Warranties and Servicing Agreement and
        all
        amendments hereof and supplements hereto.

      

      ALTA:
        The
        American Land Title Association or any successor thereto.

      

      Appraised
        Value:
        With
        respect to any Mortgage Loan, the lesser of (i) the value set forth on the
        appraisal made in connection with the origination of the related Mortgage
        Loan
        as the value of the related Mortgaged Property, or (ii) the purchase price
        paid
        for the Mortgaged Property, provided, however, in the case of a refinanced
        Mortgage Loan, such value shall be based solely on the appraisal made in
        connection with the origination of such Mortgage Loan.

      

      Assignment
        and Conveyance Agreement: With
        respect to each Transaction, the agreement between the Purchaser and the
        Company
        conveying to the Purchaser all the right, title and interest of the Company
        in
        and to the related Mortgage Loans listed on the related Mortgage Loan Schedule,
        a form of which is attached hereto as Exhibit A.

      

      Assignment
        of Mortgage:
        An
        assignment of the Mortgage, notice of transfer or equivalent instrument in
        recordable form, sufficient under the laws of the jurisdiction wherein the
        related Mortgaged Property is located to reflect the sale of the Mortgage
        to the
        Purchaser or if the related Mortgage has been recorded in the name of MERS
        or
        its designee, such actions as are necessary to cause the Purchaser to be
        shown
        as the owner of the related Mortgage on the records of MERS for purposes
        of the
        system of recording transfers of beneficial ownership of mortgages maintained
        by
        MERS, including assignment of the MIN Number which will appear either on
        the
        Mortgage or the Assignment of Mortgage to MERS.

      

      Assignment
        of Mortgage Note and Pledge Agreement:
        With
        respect to a Cooperative Loan, an assignment of the Mortgage Note and Pledge
        Agreement.

      

      Assignment
        of Proprietary Lease:
        With
        respect to a Cooperative Loan, an assignment of the Proprietary Lease sufficient
        under the laws of the jurisdiction wherein the related Cooperative Apartment
        is
        located to effect the assignment of such Proprietary Lease.

      

      Business
        Day:
        Any day
        other than (i) a Saturday or Sunday, or (ii) a day on which banking and savings
        and loan institutions in the states where the parties are located or are
        authorized or obligated by law or executive order to be closed.

      

      Buydown
        Agreement:
        An
        agreement between the Company and a Mortgagor, or an agreement among the
        Company, a Mortgagor and a seller of a Mortgaged Property or a third party
        with
        respect to a Mortgage Loan which provides for the application of Buydown
        Funds.

      

      Buydown
        Funds:
        In
        respect of any Buydown Mortgage Loan, any amount contributed by the seller
        of a
        Mortgaged Property subject to a Buydown Mortgage Loan, the buyer of such
        property, the Company or any other source, plus interest earned thereon,
        in
        order to enable the Mortgagor to reduce the payments required to be made
        from
        the Mortgagor’s funds in the early years of a Mortgage Loan.

      

      Buydown
        Mortgage Loan:
        Any
        Mortgage Loan in respect of which, pursuant to a Buydown Agreement, (i) the
        Mortgagor pays less than the full Monthly Payments specified in the Mortgage
        Note for a specified period, and (ii) the difference between the payments
        required under such Buydown Agreement and the Mortgage Note is provided from
        Buydown Funds.

      

      Buydown
        Period:
        The
        period of time when a Buydown Agreement is in effect with respect to a related
        Buydown Mortgage Loan.

      

      Closing
        Date:
        The
        date or dates, set forth in the related Commitment Letter, on which from
        time to
        time the Purchaser shall purchase and the Company shall sell the Mortgage
        Loans
        listed on the related Mortgage Loan Schedule for each Transaction.

      

      Code:
        The
        Internal Revenue Code of 1986, as it may be amended from time to time or
        any
        successor statute thereto, and applicable U.S. Department of the Treasury
        regulations issued pursuant thereto.

      

      Commission:
        The
        United States Securities and Exchange Commission.

      

      Commitment
        Letter:
        The
        commitment letter executed in relation to each Transaction that sets forth,
        among other things, the Purchase Price for the related Mortgage
        Loans.

      

      Company:
        Wells
        Fargo Bank, N.A., or its successor in interest or assigns, or any successor
        to
        the Company under this Agreement appointed as herein provided.

      

      Company
        Information:
        As
        defined in Section 9.01(f)(i)(A).

      

      Condemnation
        Proceeds:
        All
        awards or settlements in respect of a Mortgaged Property, whether permanent
        or
        temporary, partial or entire, by exercise of the power of eminent domain
        or
        condemnation, to the extent not required to be released to a Mortgagor in
        accordance with the terms of the related Mortgage Loan Documents.

      

      Cooperative:
        The
        entity that holds title (fee or an acceptable leasehold estate) to all of
        the
        real property that the Project comprises, including the land, separate dwelling
        units and all common areas.

       

      Cooperative
        Apartment:
        The
        specific dwelling unit relating to a Cooperative Loan.

       

      Cooperative
        Lien Search:
        A
        search for (a) federal tax liens, mechanics’ liens, lis
        pendens,
        judgments of record or otherwise against (i) the Cooperative, (ii) the seller
        of
        the Cooperative Apartment and (iii) the Company if the Cooperative Loan is
        a
        refinanced Mortgage Loan, (b) filings of financing statements and (c) the
        deed
        of the Project into the Cooperative.

       

      Cooperative
        Loan:
        A
        Mortgage Loan that is secured by Cooperative Shares and a Proprietary Lease
        granting exclusive rights to occupy the related Cooperative
        Apartment.

      

      Cooperative
        Shares:
        The
        shares of stock issued by a Cooperative, owned by the Mortgagor, and allocated
        to a Cooperative Apartment.

      

      Covered
        Loan:
        A
        Mortgage Loan categorized as “Covered” pursuant to the Standard & Poor’s
        Glossary for File Format for LEVELS® Version 5.6, Appendix E, as revised from
        time to time and in effect on each related Closing Date.

       

      Custodial
        Account:
        The
        separate account or accounts created and maintained pursuant to Section
        4.04.

      

      Custodial
        Agreement:
        The
        agreement governing the retention of the originals of each Mortgage Note,
        Mortgage, Assignment of Mortgage and other Mortgage Loan Documents, a form
        of
        which is annexed hereto as Exhibit B.

      

      Custodial
        Mortgage File:
        The
        items referred to as items (1), (2), (4), (5) and (10) in Exhibit C annexed
        hereto to be delivered by the Company to the Custodian on the related Closing
        Date with respect to a particular Mortgage Loan, and any additional documents
        required to be added to the Custodial Mortgage File and delivered to the
        custodian pursuant to this Agreement.

      

      Custodian:
        The
        custodian under the Custodial Agreement, or its successor in interest or
        assigns, or any successor to the Custodian under the Custodial Agreement
        as
        provided therein.

      

      Cut-off
        Date:
        With
        respect to each Transaction, the first day of the month in which the related
        Closing Date occurs.

      

      Deleted
        Mortgage Loan:
        A
        Mortgage Loan which is repurchased by the Company in accordance with the
        terms
        of this Agreement and which is, in the case of a substitution pursuant to
        Section 3.03, replaced or to be replaced with a Qualified Substitute Mortgage
        Loan.

      

      Depositor:
        The
        depositor, as such term is defined in Regulation AB, with respect to any
        Securitization Transaction.

      

      Determination
        Date:
        The
        Business Day immediately preceding the related Remittance Date.

      

      Due
        Date:
        The
        first day of the month on which the Monthly Payment is due on a Mortgage
        Loan,
        exclusive of any days of grace.

      

      Due
        Period:
        With
        respect to each Remittance Date, the period commencing on the second day
        of the
        month preceding the month of the Remittance Date and ending in the first
        day of
        the month of the Remittance Date.

      

      Electronic
        Data File:
        The
        final electronic file of the Mortgage Loans, in relation to each Transaction,
        provided by Company to the Purchaser on or before the related Closing
        Date.

      

      Errors
        and Omissions Insurance Policy:
        An
        errors and omissions insurance policy to be maintained by the Company pursuant
        to Section 4.12.

      

      Escrow
        Account:
        The
        separate account or accounts created and maintained pursuant to Section 4.06.
        

      

      Escrow
        Payments:
        With
        respect to any Mortgage Loan, the amounts constituting ground rents, taxes,
        assessments, water rates, sewer rents, municipal charges, mortgage insurance
        premiums, fire and hazard insurance premiums, condominium charges, and any
        other
        payments required to be escrowed by the Mortgagor with the mortgagee pursuant
        to
        the Mortgage or any other related document.

      

      Event
        of Default:
        Any one
        of the conditions or circumstances enumerated in Section 10.01.

      

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

      

      Fannie
        Mae:
        The
        Federal National Mortgage Association or any successor thereto.

      

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

      

      Fidelity
        Bond:
        A
        fidelity bond to be maintained by the Company pursuant to Section
        4.12.

      

      Freddie
        Mac:
        The
        Federal Home Loan Mortgage Corporation or any successor thereto.

      

      Gross
        Margin:
        With
        respect to each adjustable rate Mortgage Loan, the fixed percentage amount
        set
        forth in the related Mortgage Note which is added to the Index in order to
        determine the related Interest Rate, as set forth in the Mortgage Loan
        Schedule.

      

      High
        Cost Loan:
        A
        Mortgage Loan classified as (a) a “high cost” loan under the Home Ownership and
        Equity Protection Act of 1994, (b) a “high cost home,” “threshold,” “covered,”
“high risk home,” “predatory” or similar loan under any other applicable state,
        federal or local law or (c) a Mortgage Loan categorized as “High Cost” pursuant
        to the Standard & Poor’s Glossary for File Format for LEVELS® Version 5.6,
        Appendix E, as revised from time to time and in effect on each related Closing
        Date. 

       

      Home
        Loan:
        A
        Mortgage Loan categorized as “Home Loan” pursuant to the Standard & Poor’s
        Glossary for File Format for LEVELS® Version 5.6, Appendix E, as revised from
        time to time and in effect on each related Closing Date.

      

      Incremental
        Interest:
        As to
        any Incremental Rate Mortgage Loan, the amount of interest accrued on such
        Mortgage Loan attributable to the Incremental Rate; provided, however, that
        with
        respect to any payment of interest received in respect of such a Mortgage
        Loan
        (whether paid by the Mortgagor or received as Liquidation Proceeds or otherwise)
        which is less than the full amount of interest then due with respect to such
        Mortgage Loan, only that portion of such payment of interest that bears the
        same
        relationship to the total amount of such payment of interest as the Incremental
        Rate, if any, in respect of such Mortgage Loan bears to the Mortgage Interest
        Rate shall be allocated to the Incremental Interest with respect
        thereto.

      

      Incremental
        Rate:
        For an
        Incremental Rate Mortgage Loan, the per annum increase to the initial Mortgage
        Interest Rate set forth in the addendum to the related Mortgage Note, which
        increase takes effect upon the occurrence of certain specified conditions
        prior
        to the first Adjustment Date and remains in effect until the first Adjustment
        Date.

      

      Incremental
        Rate Mortgage Loan:
        A
        Mortgage Loan for which the related Mortgage Note includes an addendum that
        allows for an increase to the initial Mortgage Interest Rate upon the occurrence
        of certain specified conditions.

      

      Index:
        With
        respect to any adjustable rate Mortgage Loan, the index identified on the
        Mortgage Loan Schedule and set forth in the related Mortgage Note for the
        purpose of calculating the interest thereon.

      

      Insurance
        Proceeds:
        With
        respect to each Mortgage Loan, proceeds of insurance policies insuring the
        Mortgage Loan or the related Mortgaged Property.

      

      Interest
        Only Mortgage Loan:
        A
        Mortgage Loan for which an interest-only payment feature is allowed during
        the
        interest-only period set forth in the related Mortgage Note.

      

      Lender
        Paid Mortgage Insurance Policy or LPMI Policy:
        A PMI
        Policy for which the Company pays all premiums from its own funds, without
        reimbursement therefor.

      

      Liquidation
        Proceeds:
        Cash
        received in connection with the liquidation of a defaulted Mortgage Loan,
        whether through the sale or assignment of such Mortgage Loan, trustee's sale,
        foreclosure sale or otherwise, or the sale of the related Mortgaged Property
        if
        the Mortgaged Property is acquired in satisfaction of the Mortgage
        Loan.

      

      Loan-to-Value
        Ratio or LTV:
        With
        respect to any Mortgage Loan, the ratio of the original loan amount of the
        Mortgage Loan at its origination (unless otherwise indicated) to the Appraised
        Value of the Mortgaged Property.

      

      MERS:
        Mortgage Electronic Registration Systems, Inc., a Delaware corporation, or
        any
        successor in interest thereto.

      

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

      

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

      

      MIN:
        Mortgage Identification Number used to identify mortgage loans registered
        under
        MERS.

      

      Monthly
        Advance:
        The
        portion of each Monthly Payment that is delinquent with respect to each Mortgage
        Loan at the close of business on the Determination Date, required to be advanced
        by the Company pursuant to Section 5.03 on the Business Day immediately
        preceding the Remittance Date of the related month.

      

      Monthly
        Payment:
        The
        scheduled monthly payment of principal and interest on a Mortgage Loan or
        in the
        case of an Interest Only Mortgage Loan, payments of (i) interest, or (ii)
        principal and interest, if applicable, on a Mortgage Loan.

      

      Mortgage:
        The
        mortgage, deed of trust or other instrument securing a Mortgage Note, which
        creates a first lien on an unsubordinated estate in fee simple in real property
        securing the Mortgage Note or the Pledge Agreement securing the Mortgage
        Note
        for a Cooperative Loan.

      

      Mortgage
        Impairment Insurance Policy:
        A
        mortgage impairment or blanket hazard insurance policy as described in Section
        4.11.

      

      Mortgage
        Interest Rate:
        The
        annual rate of interest borne on a Mortgage Note in accordance with the
        provisions of the Mortgage Note.

      

      Mortgage
        Loan:
        An
        individual mortgage loan which is the subject of this Agreement, each Mortgage
        Loan originally sold and subject to this Agreement being identified on the
        Mortgage Loan Schedule, which Mortgage Loan includes without limitation the
        Retained Mortgage File, the Custodial Mortgage File, the Monthly Payments,
        Principal Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance
        Proceeds, REO Disposition Proceeds and all other rights, benefits, proceeds
        and
        obligations arising from or in connection with such Mortgage Loan.

      

      Mortgage
        Loan Documents:
        With
        respect to a Mortgage Loan, the original related Mortgage Note with applicable
        addenda and riders, the original related Security Instrument and the originals
        of any required addenda and riders, the original related Assignment and any
        original intervening related Assignments, the original related title insurance
        policy and evidence of the related PMI Policy, if any.

      

      Mortgage
        Loan Remittance Rate:
        With
        respect to each Mortgage Loan, the annual rate of interest remitted to the
        Purchaser, which shall be equal to the Mortgage Interest Rate minus the
        Servicing Fee Rate.

      

      Mortgage
        Loan Schedule:
        With
        respect to each Transaction, a schedule of Mortgage Loans, which shall be
        attached to the related Assignment and Conveyance Agreement, setting forth
        the
        following information with respect to each Mortgage Loan: (1) the Company’s
        Mortgage Loan number; (2) the city state and zip code of the Mortgaged Property;
        (3) a code indicating whether the Mortgaged Property is a single family
        residence, two-family residence, three-family residence, four-family residence,
        a Cooperative Loan, planned unit development or condominium; (4) the current
        Mortgage Interest Rate; (5) the current net Mortgage Interest Rate; (6) the
        current Monthly Payment; (7) the Gross Margin; (8) the original term to
        maturity; (9) the scheduled maturity date; (10) the principal balance of
        the
        Mortgage Loan as of the related Cut-off Date after deduction of payments
        of
        principal due on or before the related Cut-off Date whether or not collected;
        (11) the Loan-to-Value; (12) the next Adjustment Date; (13) the lifetime
        Mortgage Interest Rate cap; (14) whether the Mortgage Loan is convertible
        or
        not; (15) a code indicating the mortgage guaranty insurance company; (16)
        a code
        indicating whether the Mortgage Loan contains pledged assets; (17) a code
        indicating whether the Mortgage Loan has balloon payments; (18) a code
        indicating whether the Mortgage Loan is an Interest Only Mortgage Loan;
(16)
        a
        field indicating whether the Mortgage Loan is a Home Loan; and
        (17)
        the Servicing Fee.

      

      Mortgage
        Note:
        The
        note or other evidence of the indebtedness of a Mortgagor secured by a
        Mortgage.

      

      Mortgaged
        Property:
        The
        real property securing repayment of the debt evidenced by a Mortgage Note,
        or
        with respect to a Cooperative Loan, the Cooperative Apartment.

      

      Mortgagor:
        The
        obligor on a Mortgage Note.

      

      Officer's
        Certificate:
        A
        certificate signed by the Chairman of the Board or the Vice Chairman of the
        Board or the President or a Vice President or an Assistant Vice President
        and
        certified by the Treasurer or the Secretary or one of the Assistant Treasurers
        or Assistant Secretaries of the Company, and delivered to the Purchaser as
        required by this Agreement.

      

      Opinion
        of Counsel:
        A
        written opinion of counsel, who may be an employee of the Company, reasonably
        acceptable to the Purchaser.

      

      Periodic
        Interest Rate Cap:
        As to
        each adjustable rate Mortgage Loan, the maximum increase or decrease in the
        Mortgage Interest Rate on any Adjustment Date pursuant to the terms of the
        Mortgage Note.

      

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

      

      Pledge
        Agreement:
        With
        respect to a Cooperative Loan, the specific agreement creating a first lien
        on
        and pledge of the Cooperative Shares and the appurtenant Proprietary
        Lease.

       

      Pledge
        Instruments:
        With
        respect to a Cooperative Loan, the Stock Power, the Assignment of the
        Proprietary Lease and the Assignment of the Mortgage Note and Pledge
        Agreement.

       

      PMI
        Policy:
        A
        policy of primary mortgage guaranty insurance evidenced by an electronic
        form
        and certificate number issued by a Qualified Insurer, as required by this
        Agreement with respect to certain Mortgage Loans.

      

      Prime
        Rate:
        The
        prime rate announced to be in effect from time to time, as published as the
        average rate in The
        Wall Street Journal.

      

      Principal
        Prepayment:
        Any
        payment or other recovery of principal on a Mortgage Loan which is received
        in
        advance of its scheduled Due Date, including any prepayment penalty or premium
        thereon and which is not accompanied by an amount of interest representing
        scheduled interest due on any date or dates in any month or months subsequent
        to
        the month of prepayment.

      

      Principal
        Prepayment Period:
        The
        month preceding the month in which the related Remittance Date
        occurs.

      

      Project:
        With
        respect to a Cooperative Loan, all real property owned by the related
        Cooperative including the land, separate dwelling units and all common
        areas.

       

      Proprietary
        Lease:
        With
        respect to a Cooperative Loan, a lease on a Cooperative Apartment evidencing
        the
        possessory interest of the Mortgagor in such Cooperative Apartment. 

       

      Purchaser:
        EMC
        Mortgage Corporation, or its successor in interest or any successor to the
        Purchaser under this Agreement as herein provided.

      

      Purchase
        Price:
        The
        purchase price for each Loan Package shall be as stated in the related
        Commitment Letter.

      

      Qualified
        Correspondent:
        Any
        Person from which the Company purchased Mortgage Loans, provided that the
        following conditions are satisfied: (i) such Mortgage Loans were originated
        pursuant to an agreement between the Company and such Person that contemplated
        that such person would underwrite mortgage loans from time to time, for sale
        to
        the Company, in accordance with underwriting guidelines designated by the
        Company (“Designated Guidelines”) or guidelines that do not vary materially from
        such Designated Guidelines; (ii) such Mortgage Loans were in fact underwritten
        as described in clause (i) above and were acquired by the Company within
        180
        days after origination; (iii) either (x) the Designated Guidelines were,
        at the
        time such Mortgage Loans were originated, used by the Company in origination
        of
        mortgage loans of the same type as the Mortgage Loans for the Company’s own
        account or (y) the Designated Guidelines were, at the time such Mortgage
        Loans
        were underwritten, designated by the Company on a consistent basis for use
        by
        lenders in originating mortgage loans to be purchased by the Company; and
        (iv)
        the Company employed, at the time such Mortgage Loans were acquired by the
        Company, pre-purchased or post-purchased quality assurance procedures (which
        may
        involve, among other things, review of a sample or mortgage loans purchased
        during a particular time period or through particular channels) designed
        to
        ensure that Persons from which it purchased mortgage loans properly applied
        the
        underwriting criteria designated by the Company.

      

      Qualified
        Depository:
        A
        deposit account or accounts maintained with a federal or state chartered
        depository institution the deposits in which are insured by the FDIC to the
        applicable limits and the short-term unsecured debt obligations of which
        (or, in
        the case of a depository institution that is a subsidiary of a holding company,
        the short-term unsecured debt obligations of such holding company) are rated
        A-1
        by Standard & Poor’s Ratings Group or Prime-1 by Moody’s Investors Service,
        Inc. (or a comparable rating if another rating agency is specified by the
        Purchaser by written notice to the Company) at the time any deposits are
        held on
        deposit therein.

      

      Qualified
        Insurer:
        A
        mortgage guaranty insurance company duly authorized and licensed where required
        by law to transact mortgage guaranty insurance business and approved as an
        insurer by Fannie Mae or Freddie Mac.

      

      Qualified
        Substitute Mortgage Loan:
        A
        mortgage loan eligible to be substituted by the Company for a Deleted Mortgage
        Loan which must, on the date of such substitution, (i) have an outstanding
        principal balance, after deduction of all scheduled payments due in the month
        of
        substitution (or in the case of a substitution of more than one mortgage
        loan
        for a Deleted Mortgage Loan, an aggregate principal balance), not in excess
        of
        the Stated Principal Balance of the Deleted Mortgage Loan; (ii) have a Mortgage
        Loan Remittance Rate not less than and not more than two percent (2%) greater
        than the Mortgage Loan Remittance Rate of the Deleted Mortgage Loan; (iii) have
        a remaining term to maturity not greater than and not more than one year
        less
        than that of the Deleted Mortgage Loan; (iv) be of the same type as the Deleted
        Mortgage Loan and (v) comply with each representation and warranty set forth
        in
        Sections 3.01 and 3.02.

      

      Rating
        Agency/Agencies:
        Any
        nationally recognized statistical Rating Agency, or its successors, including
        Standard & Poor’s, a division of The McGraw-Hill Companies, Moody’s
        Investors Service, Inc. and Fitch Ratings.

      

      Recognition
        Agreement:
        An
        agreement whereby a Cooperative and a lender with respect to a Cooperative
        Loan
        (i) acknowledge that such lender may make, or intends to make, such Cooperative
        Loan, and (ii) make certain agreements with respect to such Cooperative
        Loan.

      

      Reconstitution:
        Any
        Securitization Transaction or Whole Loan Transfer.

      

      Reconstitution
        Agreement:
        The
        agreement or agreements entered into by the Company and the Purchaser and/or
        certain third parties on the Reconstitution Date or Dates with respect to
        any or
        all of the Mortgage Loans serviced hereunder, in connection with a Whole
        Loan
        Transfer or Securitization Transaction.

      

      Reconstitution
        Date:
        The
        date on which any or all of the Mortgage Loans serviced under this Agreement
        may
        be removed from this Agreement and reconstituted as part of a Securitization
        Transaction, Agency Transfer or Whole Loan Transfer pursuant to Section 9.01
        hereof. The Reconstitution Date shall be such date as the Purchaser shall
        designate. 

      

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

      

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

      

      REMIC
        Provisions:
        Provisions of the federal income tax law relating to a REMIC, which appear
        at
        Section 860A through 860G of Subchapter M of Chapter 1, Subtitle A of the
        Code,
        and related provisions, regulations, rulings or pronouncements promulgated
        thereunder, as the foregoing may be in effect from time to time.

      

      Remittance
        Date:
        The
        18th day (or if such 18th day is not a Business Day, the first Business Day
        immediately following) of any month.

      

      REO
        Disposition:
        The
        final sale by the Company of any REO Property.

      

      REO
        Disposition Proceeds:
        All
        amounts received with respect to an REO Disposition pursuant to Section
        4.16.

      

      REO
        Property:
        A
        Mortgaged Property acquired by the Company on behalf of the Purchaser through
        foreclosure or by deed in lieu of foreclosure, as described in Section
        4.16.

      

      Repurchase
        Price:
        Unless
        agreed otherwise by the Purchaser and the Company, a price equal to (i) the
        Stated Principal Balance of the Mortgage Loan plus (ii) interest on such
        Stated
        Principal Balance at the Mortgage Loan Remittance Rate from the date on which
        interest has last been paid and distributed to the Purchaser through the
        last
        day of the month in which such repurchase takes place, less amounts received
        or
        advanced in respect of such repurchased Mortgage Loan which are being held
        in
        the Custodial Account for distribution in the month of repurchase.

      

      Retained
        Mortgage File:
        The
        items referred to as items (3), (6), (7), (8) and (9) in Exhibit C annexed
        hereto with respect to a particular Mortgage Loan that are not required to
        be
        delivered to the Custodian pursuant to this Agreement, and any additional
        documents required to be added to the Retained Mortgage File pursuant to
        this
        Agreement.

      

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

      

      Securitization
        Transaction:
        Any
        transaction involving either (a) a sale or other transfer of some or all
        of the
        Mortgage Loans directly or indirectly to an issuing entity in connection
        with an
        issuance of publicly offered or privately placed, rated or unrated
        mortgage-backed securities or (b) an issuance of publicly offered or privately
        placed, rated or unrated securities, the payments on which are determined
        primarily by reference to one or more portfolios of residential mortgage
        loans
        consisting, in whole or in part, of some or all of the Mortgage
        Loans.

      

      Servicer:
        As
        defined in Section 9.01(e)(iii).

      

      Servicing
        Advances:
        All
        customary, reasonable and necessary "out of pocket" costs and expenses other
        than Monthly Advances (including reasonable attorney's fees and disbursements)
        incurred in the performance by the Company of its servicing obligations,
        including, but not limited to, the cost of (a) the preservation, restoration
        and
        protection of the Mortgaged Property, (b) any enforcement or judicial
        proceedings, including foreclosures, (c) the management and liquidation of
        any
        REO Property and (d) compliance with the obligations under Section 4.08 and
        4.10
        (excluding the Company’s obligations to pay the premiums on LPMI
        Policies).

      

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

      

      Servicing
        Fee:
        With
        respect to each Mortgage Loan, the amount of the annual fee the Purchaser
        shall
        pay to the Company, which shall, for a period of one full month, be equal
        to
        one-twelfth of the product of (a) the Servicing Fee Rate and (b) the outstanding
        principal balance of such Mortgage Loan. Such fee shall be payable monthly,
        computed on the basis of the same principal amount and period respecting
        which
        any related interest payment on a Mortgage Loan is received. The obligation
        of
        the Purchaser to pay the Servicing Fee is limited to, and the Servicing Fee
        is
        payable solely from, the interest portion (including recoveries with respect
        to
        interest from Liquidation Proceeds, to the extent permitted by Section 4.05)
        of
        such Monthly Payment collected by the Company, or as otherwise provided under
        Section 4.05.

      

      Servicing
        Fee Rate:
        The per
        annum percentage for each Mortgage Loan, as stated in the Commitment
        Letter.

      

      Servicing
        File:
        With
        respect to each Mortgage Loan, the file retained by the Company consisting
        of
        originals of all documents in the Retained Mortgage File which are not delivered
        to the Custodian and copies of the Mortgage Loan Documents listed in the
        Custodial Agreement the originals of which are delivered to the Custodian
        pursuant to Section 2.03.

      

      Servicing
        Officer:
        Any
        officer of the Company involved in or responsible for the administration
        and
        servicing of the Mortgage Loans whose name appears on a list of servicing
        officers furnished by the Company to the Purchaser upon request, as such
        list
        may from time to time be amended.

      

      Stated
        Principal Balance:
        As to
        each Mortgage Loan, (i) the principal balance of the Mortgage Loan at the
        related Cut-off Date after giving effect to payments of principal due on
        or
        before such date, whether or not received, minus (ii) all amounts previously
        distributed to the Purchaser with respect to the related Mortgage Loan
        representing payments or recoveries of principal or advances in lieu thereof.
        

      

      Static
        Pool Information:
        Static
        pool information as described in Item 1105(a)(1)-(3) and 1105(c) of Regulation
        AB.

      

      Stock
        Certificate:
        With
        respect to a Cooperative Loan, a certificate evidencing ownership of the
        Cooperative Shares issued by the Cooperative.

       

      Stock
        Power:
        With
        respect to a Cooperative Loan, an assignment of the Stock Certificate or
        an
        assignment of the Cooperative Shares issued by the Cooperative. 

       

      Subcontractor:
        Any
        vendor, subcontractor or other Person that is not responsible for the overall
        servicing (as “servicing” is commonly understood by participants in the
        mortgage-backed securities market) of Mortgage Loans but performs one or
        more
        discrete functions identified in Item 1122(d) of Regulation AB with respect
        to
        Mortgage Loans under the direction or authority of the Company or a
        Subservicer.

       

      Subservicer:
        Any
        Person that services Mortgage Loans on behalf of the Company or any Subservicer
        and is responsible for the performance (whether directly or through Subservicers
        or Subcontractors) of a substantial portion of the material servicing functions
        required to be performed by the Company under this Agreement or any
        Reconstitution Agreement that are identified in Item 1122(d) of Regulation
        AB.

       

      Subsidy
        Account:
        An
        account maintained by the Company specifically to hold all Subsidy Funds
        to be
        applied to individual Subsidy Loans.

      

      Subsidy
        Funds:
        With
        respect to any Subsidy Loans, funds contributed by the employer of a Mortgagor
        in order to reduce the payments required from the Mortgagor for a specified
        period in specified amounts.

      

      Subsidy
        Loan:
        Any
        Mortgage Loan subject to a temporary interest subsidy agreement pursuant
        to
        which the monthly interest payments made by the related Mortgagor will be
        less
        than the scheduled monthly interest payments on such Mortgage Loan, with
        the
        resulting difference in interest payments being provided by the employer
        of the
        Mortgagor. Each Subsidy Loan will be identified as such in the related
        Electronic Data File.

      

      Third-Party
        Originator:
        Each
        Person, other than a Qualified Correspondent, that originated Mortgage Loans
        acquired by the Company.

      

      Time$aver®
        Mortgage Loan:
        A
        Mortgage Loan which has been refinanced pursuant to a Company program that
        allows a rate/term refinance of an existing Company serviced loan with minimal
        documentation.

      

      Whole
        Loan Transfer:
        Any
        sale or transfer of some or all of the Mortgage Loans by the Purchaser to
        a
        third party, which sale or transfer is not a Securitization Transaction or
        Agency Transfer.

       

      ARTICLE
        II

       

      CONVEYANCE
        OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES; BOOKS AND RECORDS; CUSTODIAL
        AGREEMENT; DELIVERY OF DOCUMENTS

      

      Section
        2.01   Conveyance
        of Mortgage Loans; Possession of Custodial Mortgage Files; 

      Maintenance
        of Retained Mortgage Files and Servicing Files.

      

      Pursuant
        to an Assignment and Conveyance Agreement, on the related Closing Date, the
        Company, simultaneously with the payment of the Purchase Price by the Purchaser,
        shall thereby sell, transfer, assign, set over and convey to the Purchaser,
        without recourse, but subject to the terms of this Agreement and the related
        Assignment and Conveyance Agreement, all the right, title and interest of
        the
        Company in and to the Mortgage Loans listed on the respective Mortgage Loan
        Schedule annexed to such Assignment and Conveyance Agreement, together with
        the
        Retained Mortgage Files and Custodial Mortgage Files and all rights and
        obligations arising under the documents contained therein. Pursuant to Section
        2.03, the Company shall deliver the Custodial Mortgage File for each Mortgage
        Loan comprising the related Loan Package to the Custodian.

      

      The
        contents of each Retained Mortgage File not delivered to the Custodian are
        and
        shall be held in trust by the Company for the benefit of the Purchaser as
        the
        owner thereof. The Company shall maintain a Servicing File consisting of
        a copy
        of the contents of each Custodial Mortgage File and the originals of the
        documents in each Retained Mortgage File not delivered to the Custodian.
        The
        possession of each Retained Mortgage File and Servicing File by the Company
        is
        at the will of the Purchaser for the sole purpose of servicing the related
        Mortgage Loan, and such retention and possession by the Company is in a
        custodial capacity only. Upon the sale of the Mortgage Loans the ownership
        of
        each Mortgage Note, the related Mortgage and the related Custodial Mortgage
        File
        and Servicing File shall vest immediately in the Purchaser, and the ownership
        of
        all records and documents with respect to the related Mortgage Loan prepared
        by
        or which come into the possession of the Company shall vest immediately in
        the
        Purchaser and shall be retained and maintained by the Company, in trust,
        at the
        will of the Purchaser and only in such custodial capacity. The Company shall
        release its custody of the contents of any Servicing File only in accordance
        with written instructions from the Purchaser, unless such release is required
        as
        incidental to the Company's servicing of the Mortgage Loans or is in connection
        with a repurchase of any Mortgage Loan pursuant to Section 3.03 or 6.02.
        All
        such costs associated with the release, transfer and re-delivery to the Company
        shall be the responsibility of the Purchaser other than any related recording
        costs (especially in instances of breach).

      

      In
        addition, in connection with the assignment of any MERS Mortgage Loan, the
        Company agrees that it will cause, the MERS® System to indicate that such
        Mortgage Loans have been assigned by the Company to the Purchaser in accordance
        with this Agreement by including (or deleting, in the case of Mortgage Loans
        which are repurchased in accordance with this Agreement) in such computer
        files
        the information required by the MERS® System to identify the Purchaser as
        beneficial owner of such Mortgage Loans. 

      

      Section
        2.02 Books
        and Records; Transfers of Mortgage Loans.

      

      From
        and
        after the sale of the Mortgage Loans to the Purchaser in the related Loan
        Package on each Closing Date, all rights arising out of such Mortgage Loans
        including but not limited to all funds received on or in connection with
        such
        Mortgage Loans, shall be received and held by the Company in trust for the
        benefit of the Purchaser as owner of such Mortgage Loans, and the Company
        shall
        retain record title to the related Mortgages for the sole purpose of
        facilitating the servicing and the supervision of the servicing of such Mortgage
        Loans.

      

      The
        sale
        of each Mortgage Loan shall be reflected on the Company's balance sheet and
        other financial statements as a sale of assets by the Company. The Company
        shall
        be responsible for maintaining, and shall maintain, a complete set of books
        and
        records for each Mortgage Loan which shall be marked clearly to reflect the
        ownership of each Mortgage Loan by the Purchaser. In particular, the Company
        shall maintain in its possession, available for inspection by the Purchaser,
        or
        its designee, and shall deliver to the Purchaser upon demand, evidence of
        compliance with all federal, state and local laws, rules and regulations,
        and
        requirements of Fannie Mae or Freddie Mac, including but not limited to
        documentation as to the method used in determining the applicability of the
        provisions of the Flood Disaster Protection Act of 1973, as amended, to the
        Mortgaged Property, documentation evidencing insurance coverage and eligibility
        of any condominium project for approval by Fannie Mae or Freddie Mac and
        records
        of periodic inspections as required by Section 4.13. To the extent that original
        documents are not required for purposes of realization of Liquidation Proceeds
        or Insurance Proceeds, documents maintained by the Company may be in the
        form of
        microfilm or microfiche or such other reliable means of recreating original
        documents, including but not limited to, optical imagery techniques so long
        as
        the Company complies with the requirements of the Fannie Mae Selling and
        Servicing Guide, as amended from time to time.

      

      The
        Company shall maintain with respect to each Mortgage Loan and shall make
        available for inspection by any Purchaser or its designee the related Servicing
        File during the time the Purchaser retains ownership of such Mortgage Loan
        and
        thereafter in accordance with applicable laws and regulations.

      

      The
        Company shall keep at its servicing office books and records in which, subject
        to such reasonable regulations as it may prescribe, the Company shall note
        transfers of Mortgage Loans. No transfer of a Mortgage Loan may be made unless
        such transfer is in compliance with the terms hereof. For the purposes of
        this
        Agreement, the Company shall be under no obligation to deal with any Person
        with
        respect to this Agreement or the Mortgage Loans unless the books and records
        show such Person as the owner of the Mortgage Loan. The Purchaser may, subject
        to the terms of this Agreement, sell and transfer one or more of the Mortgage
        Loans. The Purchaser also shall advise the Company of the transfer. Upon
        receipt
        of notice of the transfer, the Company shall mark its books and records to
        reflect the ownership of the Mortgage Loans of such assignee, and shall release
        the previous Purchaser from its obligations hereunder with respect to the
        Mortgage Loans sold or transferred. Such notification of a transfer shall
        include a final loan schedule which shall be received by the Company no fewer
        than five (5) Business Days before the last Business Day of the month. If
        such
        notification is not received as specified above, the Company’s duties to remit
        and report as required by Section 5 shall begin with the next Due
        Period.

      

      Section
        2.03 Custodial
        Agreement; Delivery of Documents.

      

      On
        each
        Closing Date with respect to each Mortgage Loan comprising the related Loan
        Package, the Company shall deliver and release to the Custodian the related
        Custodial Mortgage File as set forth in Exhibit C attached hereto.

      

      The
        Custodian shall certify its receipt of any Mortgage Loan Documents actually
        received on or prior to such Closing Date and as required to be delivered
        pursuant to the Custodial Agreement, as evidenced by the Initial Certification
        of the Custodian in the form annexed to the Custodial Agreement. The Purchaser
        will be responsible for the fees and expenses of the Custodian.

      

      Upon
        the
        Purchaser’s request, the Company shall deliver to Purchaser or its designee
        within ten (10) days after such request such contents of the Retained Mortgage
        file so requested. In the event that the company fails to deliver to the
        Purchaser or its designee the requested contents of the Retained Mortgage
        File
        within such ten-day period, and if the Company does not cure such failure
        within
        five (5) days following receipt of written notification of such failure,
        the
        Company shall repurchase each related Mortgage Loan at the price and in the
        manner specified in Section 3.03.

      

      The
        Company shall forward to the Custodian original documents evidencing an
        assumption, modification, consolidation or extension of any Mortgage Loan
        entered into in accordance with Section 4.01 or 6.01 within one week of their
        execution, provided, however, that the Company shall provide the Custodian
        with
        a certified true copy of any such document submitted for recordation within
        ten
        (10) days of its execution, and shall provide the original of any document
        submitted for recordation or a copy of such document certified by the
        appropriate public recording office to be a true and complete copy of the
        original within sixty days of its submission for recordation.

      

      In
        the
        event the public recording office is delayed in returning any original document
        which the Company is required to deliver at any time to the Custodian in
        accordance with the terms of the Custodial Agreement or which the Company
        is
        required to maintain in the related Retained Mortgage File, the Company shall
        deliver to the Custodian or to the Retained Mortgage File, as applicable,
        within
        240 days of its submission for recordation, a copy of such document and an
        Officer's Certificate, which shall (i) identify the recorded document; (ii)
        state that the recorded document has not been delivered to the Custodian
        due
        solely to a delay by the public recording office, (iii) state the amount
        of time
        generally required by the applicable recording office to record and return
        a
        document submitted for recordation, and (iv) specify the date the applicable
        recorded document will be delivered to the Custodian. The Company will be
        required to deliver such document to the Custodian or to the Retained Mortgage
        File, as applicable, by the date specified in (iv) above. An extension of
        the
        date specified in (iv) above may be requested from the Purchaser, which consent
        shall not be unreasonably withheld.

      

      In
        the
        event that new, replacement, substitute or additional Stock Certificates
        are
        issued with respect to existing Cooperative Shares, the Company immediately
        shall deliver to the Custodian the new Stock Certificates, together with
        the
        related Stock Powers in blank. Such new Stock Certificates shall be subject
        to
        the related Pledge Instruments and shall be subject to all of the terms,
        covenants and conditions of this Agreement.

       

      ARTICLE
        III

       

      REPRESENTATIONS
        AND WARRANTIES REMEDIES AND BREACH

       

      Section
        3.01  Company
        Representations and Warranties.

       

      The
        Company hereby represents and warrants to the Purchaser that, as of the related
        Closing Date:

      

      
        	 	
                (a)

              	
                Due
                  Organization and Authority.

              

      

      

      
        	 	 	
                The
                  Company is a national banking association duly organized, validly
                  existing
                  and in good standing under the laws of the United States and has
                  all
                  licenses necessary to carry on its business as now being conducted
                  and is
                  licensed, qualified and in good standing in each state where a
                  Mortgaged
                  Property is located if the laws of such state require licensing
                  or
                  qualification in order to conduct business of the type conducted
                  by the
                  Company, and in any event the Company is in compliance with the
                  laws of
                  any such state to the extent necessary to ensure the enforceability
                  of the
                  related Mortgage Loan and the servicing of such Mortgage Loan in
                  accordance with the terms of this Agreement; the Company has the
                  full
                  power and authority to execute and deliver this Agreement and to
                  perform
                  in accordance herewith; the execution, delivery and performance
                  of this
                  Agreement (including all instruments of transfer to be delivered
                  pursuant
                  to this Agreement) by the Company and the consummation of the transactions
                  contemplated hereby have been duly and validly authorized; this
                  Agreement
                  evidences the valid, binding and enforceable obligation of the
                  Company;
                  and all requisite action has been taken by the Company to make
                  this
                  Agreement valid and binding upon the Company in accordance with
                  its
                  terms;

              

      

      

      
        	 	
                (b)

              	
                Ordinary
                  Course of Business.

              

      

      

      
        	 	 	
                The
                  consummation of the transactions contemplated by this Agreement
                  are in the
                  ordinary course of business of the Company, who is in the business
                  of
                  selling and servicing loans, and the transfer, assignment and conveyance
                  of the Mortgage Notes and the Mortgages by the Company pursuant
                  to this
                  Agreement are not subject to the bulk transfer or any similar statutory
                  provisions in effect in any applicable
                  jurisdiction;

              

      

      

      
        	 	
                (c)

              	
                No
                  Conflicts.

              

      

      

      
        	 	 	
                Neither
                  the execution and delivery of this Agreement, the acquisition of
                  the
                  Mortgage Loans by the Company, the sale of the Mortgage Loans to
                  the
                  Purchaser or the transactions contemplated hereby, nor the fulfillment
                  of
                  or compliance with the terms and conditions of this Agreement will
                  conflict with or result in a breach of any of the terms, articles
                  of
                  incorporation or by-laws or any legal restriction or any agreement
                  or
                  instrument to which the Company is now a party or by which it is
                  bound, or
                  constitute a default or result in the violation of any law, rule,
                  regulation, order, judgment or decree to which the Company or its
                  property
                  is subject, or impair the ability of the Purchaser to realize on
                  the
                  Mortgage Loans, or impair the value of the Mortgage
                  Loans;

              

      

      

      
        	 	
                (d)

              	
                Ability
                  to Service.

              

      

      

      
        	 	 	
                The
                  Company is an approved seller/servicer of conventional residential
                  mortgage loans for Fannie Mae or Freddie Mac, with the facilities,
                  procedures, and experienced personnel necessary for the sound servicing
                  of
                  mortgage loans of the same type as the Mortgage Loans. The Company
                  is in
                  good standing to sell mortgage loans to and service mortgage loans
                  for
                  Fannie Mae or Freddie Mac, and no event has occurred, including
                  but not
                  limited to a change in insurance coverage, which would make the
                  Company
                  unable to comply with Fannie Mae or Freddie Mac eligibility requirements
                  or which would require notification to either Fannie Mae or Freddie
                  Mac;

              

      

      

      
        	 	
                (e)

              	
                Reasonable
                  Servicing Fee.

              

      

      

      
        	 	 	
                The
                  Company acknowledges and agrees that the Servicing Fee represents
                  reasonable compensation for performing such services and that the
                  entire
                  Servicing Fee shall be treated by the Company, for accounting and
                  tax
                  purposes, as compensation for the servicing and administration
                  of the
                  Mortgage Loans pursuant to this
                  Agreement;

              

      

      

      
        	 	
                (f)

              	
                Ability
                  to Perform.

              

      

      

      
        	 	 	
                The
                  Company does not believe, nor does it have any reason or cause
                  to believe,
                  that it cannot perform each and every covenant contained in this
                  Agreement. The Company is solvent and the sale of the Mortgage
                  Loans will
                  not cause the Company to become insolvent. The sale of the Mortgage
                  Loans
                  is not undertaken to hinder, delay or defraud any of the Company's
                  creditors;

              

      

      

      
        	 	
                (g)

              	
                No
                  Litigation Pending.

              

      

      

      
        	 	 	
                There
                  is no action, suit, proceeding or investigation pending or threatened
                  against the Company which, either in any one instance or in the
                  aggregate,
                  may result in any material adverse change in the business, operations,
                  financial condition, properties or assets of the Company, or in
                  any
                  material impairment of the right or ability of the Company to carry
                  on its
                  business substantially as now conducted, or in any material liability
                  on
                  the part of the Company, or which would draw into question the
                  validity of
                  this Agreement or the Mortgage Loans or of any action taken or
                  to be
                  contemplated herein, or which would be likely to impair materially
                  the
                  ability of the Company to perform under the terms of this
                  Agreement;

              

      

      

      
        	 	
                (h)

              	
                No
                  Consent Required.

              

      

      

      
        	 	 	
                No
                  consent, approval, authorization or order of any court or governmental
                  agency or body is required for the execution, delivery and performance
                  by
                  the Company of or compliance by the Company with this Agreement
                  or the
                  sale of the Mortgage Loans as evidenced by the consummation of
                  the
                  transactions contemplated by this Agreement, or if required, such
                  approval
                  has been obtained prior to the related Closing
                  Date;

              

      

      

      
        	 	
                (i)

              	
                Selection
                  Process.
                  

              

      

      

      The
        Mortgage Loans were selected from among either the outstanding fixed rate
        or
        adjustable rate one- to four-family mortgage loans in the Company's mortgage
        banking portfolio at the related Closing Date as to which the representations
        and warranties set forth in Section 3.02 could be made and such selection
        was
        not made in a manner so as to affect adversely the interests of the
        Purchaser;

      

      
        	 	
                (j)

              	
                No
                  Untrue Information.

              

      

      

      
        	 	 	
                Neither
                  this Agreement nor any statement, report or other document furnished
                  or to
                  be furnished pursuant to this Agreement or in connection with the
                  transactions contemplated hereby contains any untrue statement
                  of fact or
                  omits to state a fact necessary to make the statements contained
                  therein
                  not misleading;

              

      

      

      
        	 	
                (k)

              	
                Sale
                  Treatment.

              

      

      

      
        	 	 	
                The
                  Company has determined that the disposition of the Mortgage Loans
                  pursuant
                  to this Agreement will be afforded sale treatment for accounting
                  and tax
                  purposes; 

              

      

      

      
        	 	
                (l)

              	
                No
                  Material Change.
                  

              

      

      

      
        	 	 	
                There
                  has been no material adverse change in the business, operations,
                  financial
                  condition or assets of the Company since the date of the Company’s most
                  recent financial statements; 

              

      

      

      
        	 	
                (m)

              	
                No
                  Brokers’ Fees.

              

      

      

      
        	 	 	
                The
                  Company has not dealt with any broker, investment banker, agent
                  or other
                  Person that may be entitled to any commission or compensation in
                  the
                  connection with the sale of the Mortgage Loans; and
                  

              

      

      
        

        
          	 	
                  (n)

                	
                  
                    MERS.

                  

                

        

         

      

      The
        Company is a member of MERS in good standing.

      

      Section
        3.02 Representations
        and Warranties Regarding Individual Mortgage Loans.

      

      As
        to
        each Mortgage Loan, the Company hereby represents and warrants to the Purchaser
        that as of the related Closing Date:

      

      
        	 	
                (a)

              	
                Mortgage
                  Loans as Described.

              

      

      

      
        	 	 	
                The
                  information set forth in the respective Mortgage Loan Schedule
                  and the
                  information contained on the respective Electronic Data File delivered
                  to
                  the Purchaser is true and correct;

              

      

      

      
        	 	
                (b)

              	
                Payments
                  Current.

              

      

      

      
        	 	 	
                All
                  payments required to be made up to the related Cut-off Date for
                  the
                  Mortgage Loan under the terms of the Mortgage Note have been made
                  and
                  credited. No payment under any Mortgage Loan has been thirty (30)
                  days
                  delinquent more than one time within twelve (12) months prior to
                  the
                  related Closing Date;

              

      

      

      
        	 	
                (c)

              	
                No
                  Outstanding Charges.

              

      

      

      
        	 	 	
                There
                  are no defaults in complying with the terms of the Mortgages, and
                  all
                  taxes, governmental assessments, insurance premiums, leasehold
                  payments,
                  water, sewer and municipal charges, which previously became due
                  and owing
                  have been paid, or an escrow of funds has been established in an
                  amount
                  sufficient to pay for every such item which remains unpaid and
                  which has
                  been assessed but is not yet due and payable. The Seller has not
                  advanced
                  funds, or induced, solicited directly or indirectly, the payment
                  of any
                  amount required under the Mortgage Loan, except for interest accruing
                  from
                  the date of the Mortgage Note or date of disbursement of the Mortgage
                  Loan
                  proceeds, whichever is later, to the day which precedes by one
                  month the
                  Due Date of the first installment of principal and
                  interest;

              

      

      

      
        	 	
                (d)

              	
                Original
                  Terms Unmodified.

              

      

      

      
        	 	 	
                The
                  terms of the Mortgage Note and Mortgage have not been impaired,
                  waived,
                  altered or modified in any respect, except by a written instrument
                  which
                  has been recorded, if necessary to protect the interests of the
                  Purchaser
                  and which has been delivered to the Custodian. The substance of
                  any such
                  waiver, alteration or modification has been approved by the issuer
                  of any
                  related PMI Policy and the title insurer, to the extent required
                  by the
                  policy, and its terms are reflected on the related Mortgage Loan
                  Schedule.
                  No Mortgagor has been released, in whole or in part, except in
                  connection
                  with an assumption agreement approved by the issuer of any related
                  PMI
                  Policy and the title insurer, to the extent required by the policy,
                  and
                  which assumption agreement was delivered to the Custodian pursuant
                  to the
                  terms of the Custodial Agreement;

              

      

      

      
        	 	
                (e)

              	
                No
                  Defenses.

              

      

      

      
        	 	 	
                The
                  Mortgage Loan is not subject to any right of rescission, set-off,
                  counterclaim or defense, including without limitation the defense
                  of
                  usury, nor will the operation of any of the terms of the Mortgage
                  Note or
                  the Mortgage, or the exercise of any right thereunder, render either
                  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 without limitation the defense of usury, and no such
                  right of
                  rescission, set-off, counterclaim or defense has been asserted
                  with
                  respect thereto;

              

      

      

      
        	 	
                (f)

              	
                No
                  Satisfaction of Mortgage.

              

      

      

      
        	 	 	
                The
                  Mortgage has not been satisfied, canceled, subordinated or rescinded,
                  in
                  whole or in part, and the Mortgaged Property has not been released
                  from
                  the lien of the Mortgage, in whole or in part, nor has any instrument
                  been
                  executed that would effect any such release, cancellation, subordination
                  or rescission;

              

      

      

      
        	 	
                (g)

              	
                Validity
                  of Mortgage Documents.

              

      

      

      
        	 	 	
                The
                  Mortgage Note and the Mortgage and related documents are genuine,
                  and each
                  is the legal, valid and binding obligation of the maker thereof
                  enforceable in accordance with its terms. All parties to the Mortgage
                  Note
                  and the Mortgage had legal capacity to enter into the Mortgage
                  Loan and to
                  execute and deliver the Mortgage Note and the Mortgage, and the
                  Mortgage
                  Note and the Mortgage have been duly and properly executed by such
                  parties;

              

      

      

      With
        respect to each Cooperative Loan, the Mortgage Note, the Mortgage, the Pledge
        Agreement, and related documents are genuine, and each is the legal, valid
        and
        binding obligation of the maker thereof enforceable in accordance with its
        terms. All parties to the Mortgage Note, the Mortgage, the Pledge Agreement,
        the
        Proprietary Lease, the Stock Power, Recognition Agreement and the Assignment
        of
        Proprietary Lease had legal capacity to enter into the Mortgage Loan and
        to
        execute and deliver such documents, and such documents have been duly and
        properly executed by such parties;

       

      
        	 	(h)	No Fraud.

        	 	 	 

        	 	 	
                No
                  error, omission, misrepresentation, negligence, fraud or similar
                  occurrence with respect to a Mortgage Loan has taken place on the
                  part of
                  the Company, or the Mortgagor, or to the best of the Company’s knowledge,
                  any appraiser, any builder, or any 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;

              

      

      

      
        	 	
                (i)

              	
                Compliance
                  with Applicable Laws.

              

      

      

      
        	 	 	
                Any
                  and all requirements of any federal, state or local law including,
                  without
                  limitation, usury, truth-in-lending, real estate settlement procedures,
                  consumer credit and privacy protection, equal credit opportunity,
                  disclosure or predatory and abusive lending laws applicable to
                  the
                  Mortgage Loan have been complied with, and the Company shall maintain
                  in
                  its possession, available for the Purchaser's inspection, and shall
                  deliver to the Purchaser upon demand, evidence of compliance with
                  all such
                  requirements. All inspections, licenses and certificates required
                  to be
                  made or issued with respect to all occupied portions of the Mortgaged
                  Property and, with respect to the use and occupancy of the same,
                  including
                  but not limited to certificates of occupancy and fire underwriting
                  certificates, have been made or obtained from the appropriate
                  authorities;

              

      

      

      
        	 	
                (j)

              	
                Location
                  and Type of Mortgaged Property.

              

      

      

      
        	 	 	
                The
                  Mortgaged Property is located in the state identified in the related
                  Mortgage Loan Schedule and consists of a single, contiguous parcel
                  of real
                  property with a detached single family residence erected thereon,
                  or a
                  two- to four-family dwelling, or an individual condominium unit
                  in a
                  condominium project, or a Cooperative Apartment, or an individual
                  unit in
                  a planned unit development or a townhouse, provided, however, that
                  any
                  condominium project or planned unit development shall conform with
                  the
                  applicable Fannie Mae requirements, or the underwriting guidelines
                  of the
                  company, regarding such dwellings, and no residence or dwelling
                  is a
                  mobile home. As of the respective date of the appraisal for each
                  Mortgaged
                  Property, any Mortgaged Property being used for commercial purposes
                  conforms to the underwriting guidelines of the Company and, to
                  the best of
                  the Company’s knowledge, since the date of such appraisal, no portion of
                  the Mortgage Property has been used for commercial purposes outside
                  of the
                  underwriting guidelines of the
                  Company;

              

      

       

      
        	 	(k)	Valid First Lien.

        	 	 	 

        	 	 	
                The
                  Mortgage is a valid, subsisting and enforceable first lien on the
                  Mortgaged Property, including all buildings on the Mortgaged Property
                  and
                  all installations and mechanical, electrical, plumbing, heating
                  and air
                  conditioning systems located in or annexed to such buildings, and
                  all
                  additions, alterations and replacements made at any time with respect
                  to
                  the foregoing. The lien of the Mortgage is subject only
                  to:

              

      

      

      
        	 	
                (1)

              	
                the
                  lien of current real property taxes and assessments not yet due
                  and
                  payable;

              

      

      

      
        	 	
                (2)

              	
                covenants,
                  conditions and restrictions, rights of way, easements and other
                  matters of
                  the public record as of the date of recording acceptable to mortgage
                  lending institutions generally and specifically referred to in
                  the
                  lender's title insurance policy delivered to the originator of
                  the
                  Mortgage Loan and (i) referred to or otherwise considered in the
                  appraisal
                  made for the originator of the Mortgage Loan and (ii) which do
                  not
                  adversely affect the Appraised Value of the Mortgaged Property
                  set forth
                  in such appraisal; and

              

      

      

      
        	 	
                (3)

              	
                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 the mortgage or the use, enjoyment, value or marketability
                  of
                  the related Mortgaged Property.

              

      

      

      
        	 	 	
                Any
                  security agreement, chattel mortgage or equivalent document related
                  to and
                  delivered in connection with the Mortgage Loan establishes and
                  creates a
                  valid, subsisting and enforceable first lien and first priority
                  security
                  interest on the property described therein and the Company has
                  full right
                  to sell and assign the same to the Purchaser;

              

      

      

      With
        respect to each Cooperative Loan, each Pledge Agreement creates a valid,
        enforceable and subsisting first security interest in the Cooperative Shares
        and
        Proprietary Lease, subject only to (i) the lien of the related Cooperative
        for
        unpaid assessments representing the Mortgagor’s pro rata share of the
        Cooperative’s payments for its blanket mortgage, current and future real
        property taxes, insurance premiums, maintenance fees and other assessments
        to
        which like collateral is commonly subject and (ii) other matters to which
        like
        collateral is commonly subject which do not materially interfere with the
        benefits of the security intended to be provided by the Pledge Agreement;
        provided, however, that the appurtenant Proprietary Lease may be subordinated
        or
        otherwise subject to the lien of any mortgage on the Project;

       

      
        	 	(l)	Full Disbursement of Proceeds.

        	 	 	 

        	 	 	
                The
                  proceeds of the Mortgage Loan have been fully disbursed, except
                  for
                  escrows established or created due to seasonal weather conditions,
                  and
                  there is no requirement for future advances thereunder. All costs,
                  fees
                  and expenses incurred in making or closing the Mortgage Loan and
                  the
                  recording of the Mortgage were paid, and the Mortgagor is not entitled
                  to
                  any refund of any amounts paid or due under the Mortgage Note or
                  Mortgage;

              

      

      

      
        	 	
                (m)

              	
                Consolidation
                  of Future Advances.

              

      

      

      
        	 	 	
                Any
                  future advances made prior to the related 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 lien of the Mortgage securing the consolidated
                  principal amount is expressly insured as having first lien priority
                  by a
                  title insurance policy, an endorsement to the policy insuring the
                  mortgagee’s consolidated interest or by other title evidence acceptable to
                  Fannie Mae or Freddie Mac; the consolidated principal amount does
                  not
                  exceed the original principal amount of the Mortgage Loan; the
                  Seller
                  shall not make future advances after the related Cut-Off
                  Date;

              

      

       

      
        	 	(n)	Ownership.

        	 	 	 

        	 	 	
                The
                  Company is the sole owner of record and holder of the Mortgage
                  Loan and
                  the related Mortgage Note and the Mortgage are not assigned or
                  pledged,
                  and the Company has good and marketable title thereto and has full
                  right
                  and authority to transfer and sell the Mortgage Loan to the Purchaser.
                  The
                  Company is transferring the Mortgage Loan free and clear of any
                  and all
                  encumbrances, liens, pledges, equities, participation interests,
                  claims,
                  charges or security interests of any nature encumbering such Mortgage
                  Loan;

              

      

      

      (o) Origination/Doing
        Business.

      

      
        	 	 	
                The
                  Mortgage Loan was originated by a savings and loan association,
                  a savings
                  bank, a commercial bank, a credit union, an 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.
                  All parties which have had any interest in the Mortgage Loan, whether
                  as
                  mortgagee, assignee, pledgee or otherwise, are (or, during the
                  period in
                  which they held and disposed of such interest, were) (1) in compliance
                  with any and all applicable licensing requirements of the laws
                  of the
                  state wherein the Mortgaged Property is located, and (2) organized
                  under
                  the laws of such state, or (3) qualified to do business in such
                  state, or
                  (4) federal savings and loan associations or national banks having
                  principal offices in such state, or (5) not doing business in such
                  state;

              

      

       

      
        	 	(p)	LTV, PMI Policy.

        	 	 	 

        	 	 	
                Each
                  Mortgage Loan has an LTV as set forth in the related Mortgage Loan
                  Schedule and related Electronic Data File. Except as indicated
                  on the
                  Electronic Data File, those Mortgage Loans with an LTV greater
                  than 80% at
                  the time of origination, a portion of the unpaid principal balance
                  of the
                  Mortgage Loan is and will be insured as to payment defaults by
                  a PMI
                  Policy. If the Mortgage Loan is insured by a PMI Policy for which
                  the
                  Mortgage pays all premiums, the coverage will remain in place until
                  (i)
                  the LTV is decreased to 78% or (ii) the PMI Policy is otherwise
                  terminated
                  pursuant to the Homeowners Protection Act of 1998, 12 USC 4901,
                  et seq.
                  All provisions of such PMI Policy and LPMI Policy have been and
                  are being
                  complied with, such PMI Policy and LPMI Policy is in full force
                  and
                  effect, and all premiums due thereunder have been paid. The Qualified
                  Insurer has a claims paying ability acceptable to Fannie Mae or
                  Freddie
                  Mac. Any Mortgage Loan subject to a PMI Policy obligates the Mortgagor
                  or
                  in the case of an LPMI Policy, obligates the Company, thereunder
                  to
                  maintain the PMI Policy or LPMI Policy and to pay all premiums
                  and charges
                  in connection therewith. The Mortgage Interest Rate for the Mortgage
                  Loan
                  as set forth on the related Mortgage Loan Schedule is net of any
                  such
                  insurance premium. No prior holder of the Mortgage, including the
                  Company,
                  has done, by act or omission, anything which would impair the coverage
                  of
                  such PMI Policy or LPMI Policy;

              

      

       

      
        	 	(q)	Title Insurance.

        	 	 	 

        	 	 	
                The
                  Mortgage Loan is covered by an ALTA lender's title insurance policy
                  or
                  other generally acceptable form of policy of insurance acceptable
                  to
                  Fannie Mae or Freddie Mac, issued by a title insurer acceptable
                  to Fannie
                  Mae or Freddie Mac and qualified to do business in the jurisdiction
                  where
                  the Mortgaged Property is located, insuring the Company, its successors
                  and assigns, as to the first priority lien of the Mortgage in the
                  original
                  principal amount of the Mortgage Loan, subject only to the exceptions
                  contained in clauses (1), (2) and (3) of Paragraph (k) of this
                  Section
                  3.02, and against any loss by reason of the invalidity or unenforceability
                  of the lien resulting from the provisions of the Mortgage providing
                  for
                  adjustment to the Mortgage Interest Rate and Monthly Payment. The
                  Company
                  is the sole insured of such lender's title insurance policy, and
                  such
                  lender's title insurance policy is in full force and effect and
                  will be in
                  force and effect upon the consummation of the transactions contemplated
                  by
                  this Agreement. No claims have been made under such lender's title
                  insurance policy, and no prior holder of the Mortgage, including
                  the
                  Company, has done, by act or omission, anything which would impair
                  the
                  coverage of such lender's title insurance
                  policy;

              

      

       

      
        	 	(r)	No
                Defaults.

        	 	 	 

        	 	 	
                There
                  is no default, breach, violation or event of acceleration existing
                  under
                  the Mortgage or the Mortgage Note and no event which, with the
                  passage of
                  time or with notice and the expiration of any grace or cure period,
                  would
                  constitute a default, breach, violation or event of acceleration,
                  and
                  neither the Company nor its predecessors have waived any default,
                  breach,
                  violation or event of acceleration;

              

      

       

      
        	 	(s)	No Mechanics' Liens.

        	 	 	 

        	 	 	
                There
                  are no mechanics' or similar liens or claims which have been filed
                  for
                  work, labor or material (and no rights are outstanding that under
                  the law
                  could give rise to such liens) affecting the related Mortgaged
                  Property
                  which are or may be liens prior to, or equal or coordinate with,
                  the lien
                  of the related Mortgage which are not insured against by the title
                  insurance policy referenced in Paragraph (q)
                  above;

              

      

       

      
        	 	(t)	Location of Improvements; No Encroachments.

        	 	 	 

        	 	 	
                Except
                  as insured against by the title insurance policy referenced in
                  Paragraph
                  (q) above, all improvements which were considered in determining
                  the
                  Appraised Value of the Mortgaged Property lay wholly within the
                  boundaries
                  and building restriction lines of the Mortgaged Property and no
                  improvements on adjoining properties encroach upon the Mortgaged
                  Property.
                  No improvement located on or being part of the Mortgaged Property
                  is in
                  violation of any applicable zoning law or
                  regulation;

              

      

      

      
        	 	
                (u)

              	
                Payment
                  Terms.

              

      

      

      
        	 	 	
                Except
                  with respect to the Interest Only Mortgage Loans, principal payments
                  commenced no more than 60 days after the funds were disbursed to
                  the
                  Mortgagor in connection with the Mortgage Loan. The Mortgage Loans
                  have an
                  original term to maturity of not more than 30 years, with interest
                  payable
                  in arrears on the first day of each month. As to each adjustable
                  rate
                  Mortgage Loan on each applicable Adjustment Date, the Mortgage
                  Interest
                  Rate will be adjusted to equal the sum of the Index plus the applicable
                  Gross Margin, rounded up or down to the nearest multiple of 0.125%
                  indicated by the Mortgage Note; provided that the Mortgage Interest
                  Rate
                  will not increase or decrease by more than 2.00% on any Adjustment
                  Date,
                  and will in no event exceed the maximum Mortgage Interest Rate
                  or be lower
                  than the minimum Mortgage Interest Rate listed on the Mortgage
                  Loan
                  Schedule for such Mortgage Loan. Each adjustable rate Mortgage
                  Note
                  requires a monthly payment which is sufficient, during the period
                  prior to
                  the first adjustment to the Mortgage Interest Rate, to fully amortize
                  the
                  outstanding principal balance as of the first day of such period
                  over the
                  then remaining term of such Mortgage Note and to pay interest at
                  the
                  related Mortgage Interest Rate; provided however, with respect
                  to any
                  Interest Only Mortgage Loans, the Mortgage Note allows a Monthly
                  Payment
                  of interest only during the period prior to the first Adjustment
                  Date and
                  upon the first adjustment to the Mortgage Interest Rate, the Mortgage
                  Note
                  requires a Monthly Payment of principal and interest, sufficient
                  to fully
                  amortize the outstanding principal balance over the then remaining
                  term of
                  such Mortgage Loan. As to each adjustable rate Mortgage Loan, if
                  the
                  related Mortgage Interest Rate changes on an adjustment date, the
                  then
                  outstanding principal balance will be reamortized over the remaining
                  life
                  of such Mortgage Loan. No Mortgage Loan contains terms or provisions
                  which
                  would result in negative amortization;

              

      

       

      
        	 	(v)	Customary
                Provisions.

        	 	 	 

        	 	 	
                The
                  Mortgage contains customary and enforceable provisions such as
                  to render
                  the rights and remedies of the holder thereof adequate for the
                  realization
                  against the Mortgaged Property of the benefits of the security
                  provided
                  thereby, 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 a Mortgagor
                  which
                  would interfere with the right to sell the Mortgaged Property at
                  a
                  trustee's sale or the right to foreclose the
                  Mortgage;

              

      

       

      
        	 	(w)	Occupancy of the Mortgaged Property.

        	 	 	 

        	 	 	
                As
                  of the date of origination, the Mortgaged Property was lawfully
                  occupied
                  under applicable law;

              

      

       

      
        	 	(x)	No Additional Collateral.

        	 	 	 

        	 	 	
                The
                  Mortgage Note is not and has not been secured by any collateral,
                  pledged
                  account, except as indicated on the Electronic Data File, or other
                  security except the lien of the corresponding Mortgage and the
                  security
                  interest of any applicable security agreement or chattel mortgage
                  referred
                  to in (k) above;

              

      

       

      
        	 	(y)	Deeds
                of Trust.

        	 	 	 

        	 	 	
                In
                  the event the Mortgage constitutes 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 the Mortgage,
                  and no
                  fees or expenses are or will become payable by the Mortgagee to
                  the
                  trustee under the deed of trust, except in connection with a trustee's
                  sale after default by the
                  Mortgagor;

              

      

       

      
        	 	(z)	Acceptable
                Investment.

        	 	 	 

        	 	 	
                The
                  Company has no knowledge of any circumstances or conditions with
                  respect
                  to the Mortgage Loan, the Mortgaged Property, the Mortgagor or
                  the
                  Mortgagor's credit standing that can reasonably be expected to
                  cause
                  private institutional investors to regard the Mortgage Loan as
                  an
                  unacceptable investment, cause the Mortgage Loan to become delinquent,
                  or
                  adversely affect the value or marketability of the Mortgage
                  Loan;

              

      

       

      
        	 	(aa)	Transfer of Mortgage Loans.

        	 	 	 

        	 	 	
                If
                  the Mortgage Loan is not a MERS Mortgage Loan, the Assignment upon
                  the
                  insertion of the name of the assignee and recording information
                  is in
                  recordable form and is acceptable for recording under the laws
                  of the
                  jurisdiction in which the Mortgaged Property is
                  located;

              

      

       

      
        	 	(bb)	Mortgaged Property Undamaged.

        	 	 	 

        	 	 	
                The
                  Mortgaged Property is undamaged by waste, fire, earthquake or earth
                  movement, windstorm, flood, tornado or other casualty so as to
                  affect
                  adversely the value of the Mortgaged Property as security for the
                  Mortgage
                  Loan or the use for which the premises were
                  intended;

              

      

       

      
        	 	(cc)	Collection Practices; Escrow Deposits.

        	 	 	 

        	 	 	
                The
                  origination and collection practices used with respect to the Mortgage
                  Loan have been in accordance with Accepted Servicing Practices,
                  and have
                  been in all material respects legal and proper. With respect to
                  escrow
                  deposits and Escrow Payments, all such payments are in the possession
                  of
                  the Company and there exist no deficiencies in connection therewith
                  for
                  which customary arrangements for repayment thereof have not been
                  made. All
                  Escrow Payments have been collected in full compliance with state
                  and
                  federal law. No escrow deposits or Escrow Payments or other charges
                  or
                  payments due the Company have been capitalized under the Mortgage
                  Note;

              

      

       

      
        	 	(dd)	No
                Condemnation.

        	 	 	 

        	 	 	
                There
                  is no proceeding pending or to the best of the Company’s knowledge
                  threatened for the total or partial condemnation of the related
                  Mortgaged
                  Property;

              

      

       

      
        	 	(ee)	The
                Appraisal.

        	 	 	 

        	 	 	
                The
                  Servicing File contains an appraisal of the related Mortgaged Property.
                  As
                  to each Time$aver® Mortgage Loan, the appraisal may be from the original
                  of the existing Company-serviced loan, which was refinanced via
                  such
                  Time$aver® Mortgage Loan. The appraisal was conducted by an appraiser who
                  had no interest, direct or indirect, in the Mortgaged Property
                  or in any
                  loan made on the security thereof; and whose compensation is not
                  affected
                  by the approval or disapproval of the Mortgage Loan, and the appraisal
                  and
                  the appraiser both satisfy the applicable requirements of Title
                  XI of the
                  Financial Institution Reform, Recovery, and Enforcement Act of
                  1989 and
                  the regulations promulgated thereunder, all as in effect on the
                  date the
                  Mortgage Loan was originated;

              

      

       

      
        	 	(ff)	Insurance.

        	 	 	 

        	 	 	
                The
                  Mortgaged Property securing each Mortgage Loan is insured by an
                  insurer
                  acceptable to Fannie Mae or Freddie Mac against loss by fire and
                  such
                  hazards as are covered under a standard extended coverage endorsement
                  and
                  such other hazards as are customary in the area where the Mortgaged
                  Property is located pursuant to insurance policies conforming to
                  the
                  requirements of Section 4.10, in an amount which is at least equal
                  to the
                  lesser of (a) 100% of the insurable value, on a replacement cost
                  basis, of
                  the improvements on the related Mortgaged Property, and (b) the
                  greater of
                  (i) the outstanding principal balance of the Mortgage Loan and
                  (ii) an
                  amount such that the proceeds of such insurance shall be sufficient
                  to
                  prevent the application to the Mortgagor or the loss payee of any
                  coinsurance clause under the policy. If the Mortgaged Property
                  is a
                  condominium unit, it is included under the coverage afforded by
                  a blanket
                  policy for the project. If the improvements on the Mortgaged Property
                  are
                  in an area identified in the Federal Register by the Federal Emergency
                  Management Agency as having special flood hazards, a flood insurance
                  policy meeting the requirements of the current guidelines of the
                  Federal
                  Insurance Administration is in effect with a generally acceptable
                  insurance carrier, in an amount representing coverage not less
                  than the
                  least of (A) the outstanding principal balance of the Mortgage Loan,
                  (B) the full insurable value and (C) the maximum amount of
                  insurance which was available under the Flood Disaster Protection
                  Act of
                  1973, as amended. All individual insurance policies contain a standard
                  mortgagee clause naming the Company and its successors and assigns
                  as
                  mortgagee, and all premiums thereon have been paid. The Mortgage
                  obligates
                  the Mortgagor thereunder to maintain a hazard insurance policy
                  at the
                  Mortgagor's cost and expense, and on the Mortgagor's failure to
                  do so,
                  authorizes the holder of the Mortgage to obtain and maintain such
                  insurance at such Mortgagor's cost and expense, and to seek reimbursement
                  therefor from the Mortgagor. The hazard insurance policy is the
                  valid and
                  binding obligation of the insurer, is in full force and effect,
                  and will
                  be in full force and effect and inure to the benefit of the Purchaser
                  upon
                  the consummation of the transactions contemplated by this Agreement.
                  The
                  Company has not acted or failed to act so as to impair the coverage
                  of any
                  such insurance policy or the validity, binding effect and enforceability
                  thereof;

              

      

      

      
        	 	
                (gg)

              	
                Servicemembers’
                  Civil Relief Act.

              

      

      

      
        	 	 	
                The
                  Mortgagor has not notified the Company, and the Company has no
                  knowledge
                  of any relief requested or allowed to the Mortgagor under the
                  Servicemembers’ Civil Relief Act, as
                  amended;

              

      

      

      
        	 	
                (hh)

              	
                No
                  Graduated Payments or Contingent Interests.

              

      

      

      
        	 	 	
                The
                  Mortgage Loan is not a graduated payment mortgage loan and the
                  Mortgage
                  Loan does not have a shared appreciation or other contingent interest
                  feature;

              

      

      

      
        	 	
                (ii)

              	
                No
                  Construction Loans.

              

      

      

      
        	 	 	
                No
                  Mortgage Loan was made in connection with (i) the construction
                  or
                  rehabilitation of a Mortgage Property or (ii) facilitating the
                  trade-in or
                  exchange of a Mortgaged Property other than a construction-to-permanent
                  loan which has converted to a permanent Mortgage
                  Loan;

              

      

      

      
        	 	
                (jj)

              	
                Underwriting.

              

      

      

      
        	 	 	
                Each
                  Mortgage Loan was underwritten in accordance with the underwriting
                  guidelines of the Company, which were in effect at the time the
                  Mortgage
                  Loan was originated; and the Mortgage Note and Mortgage are on
                  forms
                  acceptable to Freddie Mac or Fannie
                  Mae;

              

      

      

      
        	 	
                (kk)

              	
                Buydown
                  Mortgage Loans.

              

      

      

      
        	 	 	
                With
                  respect to each Mortgage Loan that is a Buydown Mortgage
                  Loan:

              

      

      

      
        	 	
                (i)

              	
                On
                  or before the date of origination of such Mortgage Loan, the Company
                  and
                  the Mortgagor, or the Company, the Mortgagor and the seller of
                  the
                  Mortgaged Property or a third party entered into a Buydown Agreement.
                  The
                  Buydown Agreement provides that the seller of the Mortgaged Property
                  (or
                  third party) shall deliver to the Company temporary Buydown Funds
                  in an
                  amount equal to the aggregate undiscounted amount of payments that,
                  when
                  added to the amount the Mortgagor on such Mortgage Loan is obligated
                  to
                  pay on each Due Date in accordance with the terms of the Buydown
                  Agreement, is equal to the full scheduled Monthly Payment due on
                  such
                  Mortgage Loan. The temporary Buydown Funds enable the Mortgagor
                  to qualify
                  for the Buydown Mortgage Loan. The effective interest rate of a
                  Buydown
                  Mortgage Loan if less than the interest rate set forth in the related
                  Mortgage Note will increase within the Buydown Period as provided
                  in the
                  related Buydown Agreement so that the effective interest rate will
                  be
                  equal to the interest rate as set forth in the related Mortgage
                  Note. The
                  Buydown Mortgage Loan satisfies the requirements of Fannie Mae
                  or Freddie
                  Mac guidelines;

              

      

      

      
        	 	
                (ii)

              	
                The
                  Mortgage and Mortgage Note reflect the permanent payment terms
                  rather than
                  the payment terms of the Buydown Agreement. The Buydown Agreement
                  provides
                  for the payment by the Mortgagor of the full amount of the Monthly
                  Payment
                  on any Due Date that the Buydown Funds are available. The Buydown
                  Funds
                  were not used to reduce the original principal balance of the Mortgage
                  Loan or to increase the Appraised Value of the Mortgage Property
                  when
                  calculating the Loan-to-Value Ratios for purposes of the Agreement
                  and, if
                  the Buydown Funds were provided by the Company and if required
                  under
                  Fannie Mae or Freddie Mac guidelines, the terms of the Buydown
                  Agreement
                  were disclosed to the appraiser of the Mortgaged
                  Property;

              

      

      

      
        	 	
                (iii)

              	
                The
                  Buydown Funds may not be refunded to the Mortgagor unless the Mortgagor
                  makes a principal payment for the outstanding balance of the Mortgage
                  Loan;

              

      

      

      
        	 	
                (iv)

              	
                As
                  of the date of origination of the Mortgage Loan, the provisions
                  of the
                  related Buydown Agreement complied with the requirements of Fannie
                  Mae or
                  Freddie Mac regarding buydown
                  agreements.

              

      

      

      
        	 	
                (ll)

              	
                Delivery
                  of Custodial Mortgage Files.

              

      

      

      Any
        documents required to be delivered by the Company under this Agreement have
        been
        delivered to the Custodian. The Company is in possession of a complete, true
        and
        accurate Retained Mortgage File and Custodial Mortgage File in compliance
        with
        Exhibit C hereto;

      

      
        	 	
                (mm)

              	
                No
                  Violation of Environmental Laws.

              

      

      

      There
        is
        no pending action or proceeding directly involving any Mortgaged Property
        of
        which the Company is aware in which compliance with any environmental law,
        rule
        or regulation is an issue; and to the best of the Company’s knowledge, nothing
        further remains to be done to satisfy in full all requirements of each such
        law,
        rule or regulation constituting a prerequisite to use and enjoyment of said
        property; 

      

      
        	 	
                (nn)

              	
                No
                  Bankruptcy.

              

      

      

      No
        Mortgagor was a debtor in any state or federal bankruptcy or insolvency
        proceeding at the time the Mortgage Loan was originated and to the best of
        the
        Company’s knowledge, as of the related Closing Date, the Company has not
        received notice that any Mortgagor is a debtor under any state or federal
        bankruptcy or insolvency proceeding; 

       

      
        
          	 	
                  (oo)

                	
                  HOEPA.

                

        

         

      

      No
        Mortgage Loan is a High Cost Loan or Covered Loan;

       

      
        
          	 	
                  (pp)

                	
                  Cooperative
                    Loans.

                

        

         

      

      With
        respect to each Cooperative Loan:

      

      
        	 	
                (i)

              	
                The
                  Cooperative Shares are held by a person as a tenant-stockholder
                  in a
                  Cooperative. Each original UCC financing statement, continuation
                  statement
                  or other governmental filing or recordation necessary to create
                  or
                  preserve the perfection and priority of the first lien and security
                  interest in the Cooperative Loan and Proprietary Lease has been
                  timely and
                  properly made. Any security agreement, chattel mortgage or equivalent
                  document related to the Cooperative Loan and delivered to Purchaser
                  or its
                  designee establishes in Purchaser a valid and subsisting perfected
                  first
                  lien on and security interest in the Mortgaged Property described
                  therein,
                  and Purchaser has full right to sell and assign the same. The Proprietary
                  Lease term expires no less than five years after the Mortgage Loan
                  term or
                  such other term acceptable to Fannie Mae or Freddie
                  Mac;

              

      

      

      
        	 	
                (ii)

              	
                A
                  Cooperative Lien Search has been made by a company competent to
                  make the
                  same which company is acceptable to Fannie Mae and qualified to
                  do
                  business in the jurisdiction where the Cooperative is
                  located;

              

      

      

      
        	 	
                (iii)

              	
                (a)
                  The term of the related Proprietary Lease is not less than the
                  terms of
                  the Cooperative Loan; (b) there is no provision in any Proprietary
                  Lease
                  which requires the Mortgagor to offer for sale the Cooperative
                  Shares
                  owned by such Mortgagor first to the Cooperative; (c) there is
                  no
                  prohibition in any Proprietary Lease against pledging the Cooperative
                  Shares or assigning the Proprietary Lease; (d) the Cooperative
                  has been
                  created and exists in full compliance with the requirements for
                  residential cooperatives in the jurisdiction in which the Project
                  is
                  located and qualifies as a cooperative housing corporation under
                  Section
                  210 of the Code; (e) the Recognition Agreement is on a form published
                  by
                  Aztech Document Services, Inc. or includes similar provisions;
                  and (f) the
                  Cooperative has good and marketable title to the Project, and owns
                  the
                  Project either in fee simple or under a leasehold that complies
                  with the
                  requirements of the Fannie Mae Guidelines; such title is free and
                  clear of
                  any adverse liens or encumbrances, except the lien of any blanket
                  mortgage;

              

        	 	 	 

        	 	(iv)	
                The
                  Company has the right under the terms of the Mortgage Note, Pledge
                  Agreement and Recognition Agreement to pay any maintenance charges
                  or
                  assessments owed by the Mortgagor;

              

        	 	 	 

        	 	(v)  	
                Each
                  Stock Power (i) has all signatures guaranteed or (ii) if all signatures
                  are not guaranteed, then such Cooperative Shares will be transferred
                  by
                  the stock transfer agent of the Cooperative if the Company undertakes
                  to
                  convert the ownership of the collateral securing the related Cooperative
                  Loan;

              

      

       

      
        
          
            	 	
                    (qq)

                  	
                    Georgia
                      Fair Lending Act.

                  

          

           

        

      

      There
        is
        no Mortgage Loan that was originated on or after October 1, 2002 and before
        March 7, 2003, which is secured by property located in the State of
        Georgia;

      
         

        
          
            
              	 	
                      (rr)

                    	
                      Methodology.

                    

            

             

          

        

      

      The
        methodology used in underwriting the extension of credit for each 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 confirmed that at the time of origination
        (application/approval) the borrower had a reasonable ability to make timely
        payments on the Mortgage Loan;

       

      
        
          
            
              
                	 	
                        (ss)

                      	
                        
                          Imposition
                            of a Premium.

                        

                      

              

               

            

          

        

      

      With
        respect to any Mortgage Loan that contains a provision permitting imposition
        of
        a premium upon a prepayment prior to maturity: (i) the prepayment premium
        is
        disclosed to the borrower in the loan documents pursuant to applicable state
        and
        federal law, and (ii) notwithstanding any state or federal law to the contrary,
        the Company shall recommend that such prepayment premium is not imposed in
        any
        instance when the mortgage debt is accelerated as the result of the borrower’s
        default in making the loan payments;

       

      
        
          
            
              
                	 	
                        (tt)

                      	
                        
                          Single
                            Premium Credit Life.

                        

                      

              

               

            

          

        

      

      No
        Mortgagor was required to purchase any single premium credit insurance policy
        (e.g. life, disability, accident, unemployment or health insurance products)
        or
        debt cancellation agreement as a condition of obtaining the extension of
        credit.
        No Mortgagor obtained a prepaid single premium credit insurance policy (e.g.
        life, disability, accident, unemployment or health insurance product) as
        part of
        the origination of the Mortgage Loan. No proceeds from any Mortgage Loan
        were
        used to purchase single premium credit insurance policies or debt cancellation
        agreements as part of the origination of, or as a condition to closing, such
        Mortgage Loan;

      
         

        
          
            
              
                
                  	 	
                          (uu)

                        	
                          
                            No
                              Arbitration Provision.
                              

                          

                        

                

                 

              

            

          

        

      

      
        	 	 	
                With
                  respect to each Mortgage Loan, 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;

              

      

      

      
        	 	
                (ww)

              	
                Credit
                  Reporting.

              

      

      

      With
        respect to each Mortgage Loan, the Company has fully furnished, in accordance
        with the Fair Credit Reporting Act and its implementing regulations, accurate
        and complete information (i.e. favorable and unfavorable) on its borrower
        credit
        files to Equifax, Experian and Trans Union Credit Information Company (three
        of
        the credit repositories), on a monthly basis; and

      
        
           

          
            
              
                
                  
                    	 	
                            (xx)

                          	
                            
                              
                                Illinois
                                  Interest Act.

                              

                            

                          

                  

                   

                

              

            

          

        

      

      Any
        Mortgage Loan with a Mortgaged Property in the State of Illinois complies
        with
        the Illinois Interest Act.

      

      Section
        3.03 Repurchase.

      

      It
        is
        understood and agreed that the representations and warranties set forth in
        Sections 3.01 and 3.02 shall survive the sale of the Mortgage Loans to the
        Purchaser and the delivery of the Mortgage Loan Documents to the Custodian
        and
        shall inure to the benefit of the Purchaser, notwithstanding any restrictive
        or
        qualified endorsement on any Mortgage Note or Assignment of Mortgage or the
        examination or failure to examine any Custodial Mortgage Files or Retained
        Mortgage File. Upon discovery by either the Company or the Purchaser of a
        breach
        of any of the foregoing representations and warranties which materially and
        adversely affects the value of the Mortgage Loans or the interest of the
        Purchaser (or which materially and adversely affects the interests of Purchaser
        in the related Mortgage Loan in the case of a representation and warranty
        relating to a particular Mortgage Loan), the party discovering such breach
        shall
        give prompt written notice to the other.

      

      Within
        ninety (90) days of the earlier of either discovery by or notice to the Company
        of any breach of a representation or warranty which materially and adversely
        affects the value of the Mortgage Loans, the Company shall use its best efforts
        promptly to cure such breach in all material respects and, if such breach
        cannot
        be cured, the Company shall, at the Purchaser's option, repurchase such Mortgage
        Loan at the Repurchase Price. In the event that a breach shall involve any
        representation or warranty set forth in Section 3.01, and such breach cannot
        be
        cured within 90 days of the earlier of either discovery by or notice to the
        Company of such breach, all of the Mortgage Loans shall, at the Purchaser's
        option, be repurchased by the Company at the Repurchase Price. However, if
        the
        breach shall involve a representation or warranty set forth in Section 3.02
        and
        the Company discovers or receives notice of any such breach within 120 days
        of
        the related Closing Date, the Company shall, if the breach cannot be cured,
        at
        the Purchaser's option and provided that the Company has a Qualified Substitute
        Mortgage Loan, rather than repurchase the Mortgage Loan as provided above,
        remove such Mortgage Loan (a "Deleted Mortgage Loan") and substitute in its
        place a Qualified Substitute Mortgage Loan or Loans, provided that any such
        substitution shall be effected not later than 120 days after the related
        Closing
        Date. If the Company has no Qualified Substitute Mortgage Loan, it shall
        repurchase the deficient Mortgage Loan within ninety (90) days of the written
        notice of the breach or the failure to cure, whichever is later. Any repurchase
        of a Mortgage Loan or Loans pursuant to the foregoing provisions of this
        Section
        3.03 shall be accomplished by deposit in the Custodial Account of the amount
        of
        the Repurchase Price for distribution to Purchaser on the next scheduled
        Remittance Date, after deducting therefrom any amount received in respect
        of
        such repurchased Mortgage Loan or Loans and being held in the Custodial Account
        for future distribution.

      

      At
        the
        time of repurchase or substitution, the Purchaser and the Company shall arrange
        for the reassignment of the Deleted Mortgage Loan to the Company and the
        delivery to the Company of any documents held by the Custodian relating to
        the
        Deleted Mortgage Loan. If
        the
        Company repurchases a Mortgage Loan that is a MERS Mortgage Loan, the Company
        shall cause MERS to designate on the MERS® System to remove the Purchaser as the
        beneficial holder with respect to such Mortgage Loan. In
        the
        event of a repurchase or substitution, the Company shall, simultaneously
        with
        such reassignment, give written notice to the Purchaser that such repurchase
        or
        substitution has taken place, amend the related Mortgage Loan Schedule to
        reflect the withdrawal of the Deleted Mortgage Loan from this Agreement,
        and, in
        the case of substitution, identify a Qualified Substitute Mortgage Loan and
        amend the related Mortgage Loan Schedule to reflect the addition of such
        Qualified Substitute Mortgage Loan to this Agreement. In connection with
        any
        such substitution, the Company shall be deemed to have made as to such Qualified
        Substitute Mortgage Loan the representations and warranties set forth in
        this
        Agreement except that all such representations and warranties set forth in
        this
        Agreement shall be deemed made as of the date of such substitution. The Company
        shall effect such substitution by delivering to the Custodian for such Qualified
        Substitute Mortgage Loan the documents required by Section 2.03, with the
        Mortgage Note endorsed as required by Section 2.03. No substitution will
        be made
        in any calendar month after the Determination Date for such month. The Company
        shall deposit in the Custodial Account the Monthly Payment less the Servicing
        Fee due on such Qualified Substitute Mortgage Loan or Loans in the month
        following the date of such substitution. Monthly Payments due with respect
        to
        Qualified Substitute Mortgage Loans in the month of substitution shall be
        retained by the Company. With respect to any Deleted Mortgage loan,
        distributions to Purchaser shall include the Monthly Payment due on any Deleted
        Mortgage Loan in the month of substitution, and the Company shall thereafter
        be
        entitled to retain all amounts subsequently received by the Company in respect
        of such Deleted Mortgage Loan.

      

      For
        any
        month in which the Company substitutes a Qualified Substitute Mortgage Loan
        for
        a Deleted Mortgage Loan, the Company shall determine the amount (if any)
        by
        which the aggregate principal balance of all Qualified Substitute Mortgage
        Loans
        as of the date of substitution is less than the aggregate Stated Principal
        Balance of all Deleted Mortgage Loans (after application of scheduled principal
        payments due in the month of substitution). The amount of such shortfall
        shall
        be distributed by the Company in the month of substitution pursuant to Section
        5.01. Accordingly, on the date of such substitution, the Company shall deposit
        from its own funds into the Custodial Account an amount equal to the amount
        of
        such shortfall.

      

      In
        addition to such repurchase or substitution obligation, the Company shall
        indemnify the Purchaser and hold it harmless against any losses, damages,
        penalties, fines, forfeitures, reasonable and necessary legal fees and related
        costs, judgments, and other costs and expenses resulting from any claim,
        demand,
        defense or assertion based on or grounded upon, or resulting from, a breach
        of
        the Company representations and warranties contained in this Agreement. It
        is
        understood and agreed that the obligations of the Company set forth in this
        Section 3.03 to cure, substitute for or repurchase a defective Mortgage Loan
        and
        to indemnify the Purchaser as provided in this Section 3.03 constitute the
        sole
        remedies of the Purchaser respecting a breach of the foregoing representations
        and warranties.

      

      Any
        cause
        of action against the Company relating to or arising out of the breach of
        any
        representations and warranties made in Sections 3.01 and 3.02 shall accrue
        as to
        any Mortgage Loan upon (i) discovery of such breach by the Purchaser or notice
        thereof by the Company to the Purchaser, (ii) failures by the Company to
        cure
        such breach or repurchase such Mortgage Loan as specified above, and (iii)
        demand upon the Company by the Purchaser for compliance with this
        Agreement.

      

      In
        the
        event a Mortgage Loan pays off in full on or before the related Closing Date,
        the Company must repay the Purchaser the difference between the Unpaid Principal
        Balance of such Mortgage Loan as of the date of pay off and the Unpaid Principal
        Balance multiplied by the purchase price percentage adjusted, if necessary
        in
        accordance with the Commitment Letter.

       

      ARTICLE
        IV

       

      ADMINISTRATION
        AND SERVICING OF MORTGAGE LOANS

      

      Section
        4.01 Company
        to Act as Servicer.

      

      The
        Company, as an independent contractor, shall service and administer the Mortgage
        Loans and shall have full power and authority, acting alone or through the
        utilization of a Subcontractor, to do any and all things in connection with
        such
        servicing and administration which the Company may deem necessary or desirable,
        consistent with the terms of this Agreement and with Accepted Servicing
        Practices. The
        Company shall be responsible for any and all acts of a Subcontractor, and
        the
        Company’s utilization of a Subcontractor shall in no way relieve the liability
        of the Company under this Agreement. 

      

      Consistent
        with the terms of this Agreement, the Company may waive, modify or vary any
        term
        of any Mortgage Loan or consent to the postponement of strict compliance
        with
        any such term or in any manner grant indulgence to any Mortgagor if in the
        Company's reasonable and prudent determination such waiver, modification,
        postponement or indulgence is not materially adverse to the Purchaser, provided,
        however, that the Company shall not make any future advances with respect
        to a
        Mortgage Loan and (unless the Mortgagor is in default with respect to the
        Mortgage Loan or such default is, in the judgment of the Company, imminent
        and
        the Company has obtained the prior written consent of the Purchaser) the
        Company
        shall not permit any modification with respect to any Mortgage Loan that
        would
        change the Mortgage Interest Rate, defer or forgive the payment of principal
        (except for actual payments of principal) or change the final maturity date
        on
        such Mortgage Loan. In the event of any such modification which permits the
        deferral of interest or principal payments on any Mortgage Loan, the Company
        shall, on the Business Day immediately preceding the Remittance Date in any
        month in which any such principal or interest payment has been deferred,
        deposit
        in the Custodial Account from its own funds, in accordance with Section 5.03,
        the difference between (a) such month's principal and one month's interest
        at
        the Mortgage Loan Remittance Rate on the unpaid principal balance of such
        Mortgage Loan and (b) the amount paid by the Mortgagor. The Company shall
        be
        entitled to reimbursement for such advances to the same extent as for all
        other
        advances made pursuant to Section 5.03. Without limiting the generality of
        the
        foregoing, the Company shall continue, and is hereby authorized and empowered,
        to execute and deliver on behalf of itself and the Purchaser, all instruments
        of
        satisfaction or cancellation, or of partial or full release, discharge and
        all
        other comparable instruments, with respect to the Mortgage Loans and with
        respect to the Mortgaged Properties. If reasonably required by the Company,
        the
        Purchaser shall furnish the Company with any powers of attorney and other
        documents necessary or appropriate to enable the Company to carry out its
        servicing and administrative duties under this Agreement.

      

      In
        servicing and administering the Mortgage Loans, the Company shall employ
        procedures (including collection procedures) and exercise the same care that
        it
        customarily employs and exercises in servicing and administering mortgage
        loans
        for its own account, giving due consideration to Accepted Servicing Practices
        where such practices do not conflict with the requirements of this Agreement,
        and the Purchaser's reliance on the Company.

      

      The
        Company is authorized and empowered by the Purchaser, in its own name, when
        the
        Company believes it appropriate in its reasonable judgment to register any
        Mortgage Loan on the MERS® System, or cause the removal from the registration of
        any Mortgage Loan on the MERS® System, with written consent of the Purchaser, to
        execute and deliver, on behalf of the Purchaser, any and all instruments
        of
        assignment and other comparable instruments with respect to such assignment
        or
        re-recording of a Mortgage in the name of MERS, solely as nominee for the
        Purchaser and its successors and assigns. 

      

      The
        Company shall cause to be maintained for each Cooperative Loan a copy of
        the
        financing statements and shall file and such financing statements and
        continuation statements as necessary, in accordance with the Uniform Commercial
        Code applicable in the jurisdiction in which the related Cooperative Apartment
        is located, to perfect and protect the security interest and lien of the
        Purchaser.

      

      The
        Company shall apply any Principal Prepayment on an Interest Only Mortgage
        Loan
        to the then-outstanding principal balance, at which time the interest-only
        payment feature shall be extinguished. The related Monthly Payment shall
        thereafter consist of both principal and interest components, and the amount
        of
        such Monthly Payment shall not change prior to the next Adjustment
        Date.

      

      Section
        4.02 Liquidation
        of Mortgage Loans.

      

      In
        the
        event that any payment due under any Mortgage Loan and not postponed pursuant
        to
        Section 4.01 is not paid when the same becomes due and payable, or in the
        event
        the Mortgagor fails to perform any other covenant or obligation under the
        Mortgage Loan and such failure continues beyond any applicable grace period,
        the
        Company shall take such action as (1) the Company would take under similar
        circumstances with respect to a similar mortgage loan held for its own account
        for investment, (2) shall be consistent with Accepted Servicing Practices,
        (3)
        the Company shall determine prudently to be in the best interest of Purchaser,
        and (4) is consistent with any related PMI Policy. In the event that any
        payment
        due under any Mortgage Loan is not postponed pursuant to Section 4.01 and
        remains delinquent for a period of 90 days or any other default continues
        for a
        period of 90 days beyond the expiration of any grace or cure period, the
        Company
        shall commence foreclosure proceedings, the Company shall notify the Purchaser
        in writing of the Company's intention to do so, and the Company shall not
        commence foreclosure proceedings if the Purchaser objects to such action
        within
        three (3) Business Days of receiving such notice. In the event the Purchaser
        objects to such foreclosure action, the Company shall not be required to
        make
        Monthly Advances with respect to such Mortgage Loan, pursuant to Section
        5.03,
        and the Company's obligation to make such Monthly Advances shall terminate
        on
        the 90th day referred to above. In such connection, the Company shall from
        its
        own funds make all necessary and proper Servicing Advances, provided, however,
        that the Company shall not be required to expend its own funds in connection
        with any foreclosure or towards the restoration or preservation of any Mortgaged
        Property, unless it shall determine (a) that such preservation, restoration
        and/or foreclosure will increase the proceeds of liquidation of the Mortgage
        Loan to Purchaser after reimbursement to itself for such expenses and (b)
        that
        such expenses will be recoverable by it either through Liquidation Proceeds
        (respecting which it shall have priority for purposes of withdrawals from
        the
        Custodial Account pursuant to Section 4.05) or through Insurance Proceeds
        (respecting which it shall have similar priority).

      

      Notwithstanding
        anything to the contrary contained herein, in connection with a foreclosure
        or
        acceptance of a deed in lieu of foreclosure, in the event the Company has
        reasonable cause to believe that a Mortgaged Property is contaminated by
        hazardous or toxic substances or wastes, or if the Purchaser otherwise requests
        an environmental inspection or review of such Mortgaged Property, such an
        inspection or review is to be conducted by a qualified inspector. The cost
        for
        such inspection or review shall be borne by the Purchaser. Upon completion
        of
        the inspection or review, the Company shall promptly provide the Purchaser
        with
        a written report of the environmental inspection.

      

      After
        reviewing the environmental inspection report, the Purchaser shall determine
        how
        the Company shall proceed with respect to the Mortgaged Property. In the
        event
        (a) the environmental inspection report indicates that the Mortgaged Property
        is
        contaminated by hazardous or toxic substances or wastes and (b) the Purchaser
        directs the Company to proceed with foreclosure or acceptance of a deed in
        lieu
        of foreclosure, the Company shall be reimbursed for all reasonable costs
        associated with such foreclosure or acceptance of a deed in lieu of foreclosure
        and any related environmental clean up costs, as applicable, from the related
        Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to
        fully
        reimburse the Company, the Company shall be entitled to be reimbursed from
        amounts in the Custodial Account pursuant to Section 4.05 hereof. In the
        event
        the Purchaser directs the Company not to proceed with foreclosure or acceptance
        of a deed in lieu of foreclosure, the Company shall be reimbursed for all
        Servicing Advances made with respect to the related Mortgaged Property from
        the
        Custodial Account pursuant to Section 4.05 hereof.

      

      Section
        4.03 Collection
        of Mortgage Loan Payments.

      

      Continuously
        from the related Cut-off Date until the principal and interest on all Mortgage
        Loans are paid in full, the Company shall proceed diligently to collect all
        payments due under each of the Mortgage Loans when the same shall become
        due and
        payable and shall take special care in ascertaining and estimating Escrow
        Payments and all other charges that will become due and payable with respect
        to
        the Mortgage Loan and the Mortgaged Property, to the end that the installments
        payable by the Mortgagors will be sufficient to pay such charges as and when
        they become due and payable.

      

      Section
        4.04 Establishment
        of and Deposits to Custodial Account.

      

      The
        Company shall segregate and hold all funds collected and received pursuant
        to a
        Mortgage Loan separate and apart from any of its own funds and general assets
        and shall establish and maintain one or more Custodial Accounts, in the form
        of
        time deposit or demand accounts, titled "Wells Fargo Bank, N.A. in trust
        for the
        Purchaser and/or subsequent purchasers of Mortgage Loans - P & I." The
        Custodial Account shall be established with a Qualified Depository. Upon
        request
        of the Purchaser and within ten (10) days thereof, the Company shall provide
        the
        Purchaser with written confirmation of the existence of such Custodial Account.
        Any funds deposited into the Custodial Account shall at all times be insured
        to
        the fullest extent allowed by applicable law. Funds deposited in the Custodial
        Account may be drawn on by the Company in accordance with Section
        4.05.

      

      The
        Company shall deposit in the Custodial Account within one (1) Business Day
        of
        Company’s receipt, and retain therein, the following collections received by the
        Company and payments made by the Company after the related Cut-off Date,
        other
        than payments of principal and interest due on or before the related Cut-off
        Date, or received by the Company prior to the related Cut-off Date but allocable
        to a period subsequent thereto:

      

      
        	 	
                (i)

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

              

      

      

      
        	 	
                (ii)

              	
                all
                  payments on account of interest on the Mortgage Loans adjusted
                  to the
                  Mortgage Loan Remittance Rate;

              

      

      

      
        	 	
                (iii)

              	
                all
                  Liquidation Proceeds;

              

      

      

      
        	 	
                (iv)

              	
                all
                  Insurance Proceeds including amounts required to be deposited pursuant
                  to
                  Section 4.10 (other than proceeds to be held in the Escrow Account
                  and
                  applied to the restoration or repair of the Mortgaged Property
                  or released
                  to the Mortgagor in accordance with Section 4.14), Section 4.11
                  and
                  Section 4.15;

              

      

      

      
        	 	
                (v)

              	
                all
                  Condemnation Proceeds which are not applied to the restoration
                  or repair
                  of the Mortgaged Property or released to the Mortgagor in accordance
                  with
                  Section 4.14;

              

      

      

      
        	 	
                (vi)

              	
                any
                  amount required to be deposited in the Custodial Account pursuant
                  to
                  Section 4.01, 5.03, 6.01 or 6.02;

              

      

      

      
        	 	
                (vii)

              	
                any
                  amounts payable in connection with the repurchase of any Mortgage
                  Loan
                  pursuant to Section 3.03 and all amounts required to be deposited
                  by the
                  Company in connection with a shortfall in principal amount of any
                  Qualified Substitute Mortgage Loan pursuant to Section
                  3.03;

              

      

      

      
        	 	
                (viii)

              	
                with
                  respect to each Principal Prepayment an amount (to be paid by the
                  Company
                  out of its funds) which, when added to all amounts allocable to
                  interest
                  received in connection with the Principal Prepayment, equals one
                  month's
                  interest on the amount of principal so prepaid at the Mortgage
                  Loan
                  Remittance Rate;

              

      

      

      
        	 	
                (ix)

              	
                any
                  amounts required to be deposited by the Company pursuant to Section
                  4.11
                  in connection with the deductible clause in any blanket hazard
                  insurance
                  policy;

              

      

      

      
        	 	
                (x)

              	
                any
                  amounts received with respect to or related to any REO Property
                  and all
                  REO Disposition Proceeds pursuant to Section 4.16; and
                  

              

      

      

      
        	 	
                (xi)

              	
                an
                  amount from the Subsidy Account that when added to the Mortgagor’s payment
                  will equal the full monthly amount due under the related Mortgage
                  Note.

              

      

      

      The
        foregoing requirements for deposit into the Custodial Account shall be
        exclusive, it being understood and agreed that, without limiting the generality
        of the foregoing, payments in the nature of late payment charges and assumption
        fees, to the extent permitted by Section 6.01, need not be deposited by the
        Company into the Custodial Account. Any interest paid on funds deposited
        in the
        Custodial Account by the depository institution shall accrue to the benefit
        of
        the Company and the Company shall be entitled to retain and withdraw such
        interest from the Custodial Account pursuant to Section 4.05.

      

      Section
        4.05 Permitted
        Withdrawals From Custodial Account.

      

      The
        Company shall, from time to time, withdraw funds from the Custodial Account
        for
        the following purposes:

      
        

        
          	 	
                  (i)

                	to make payments to the Purchaser in the amounts
                  and in
                  the manner provided for in Section 5.01;

          	 	 	 

          	 	(ii)	
                  to
                    reimburse itself for Monthly Advances of the Company's funds
                    made pursuant
                    to Section 5.03, the Company's right to reimburse itself pursuant
                    to this
                    subclause (ii) being limited to amounts received on the related
                    Mortgage
                    Loan which represent late payments of principal and/or interest
                    respecting
                    which any such advance was made, it being understood that, in
                    the case of
                    any such reimbursement, the Company's right thereto shall be
                    prior to the
                    rights of Purchaser, except that, where the Company is required
                    to
                    repurchase a Mortgage Loan pursuant to Section 3.03 or 6.02,
                    the Company's
                    right to such reimbursement shall be subsequent to the payment
                    to the
                    Purchaser of the Repurchase Price pursuant to such sections and
                    all other
                    amounts required to be paid to the Purchaser with respect to
                    such Mortgage
                    Loan;

                

          	 	 	 

          	 	(iii)	to
                  reimburse itself for unreimbursed Servicing Advances, and for any
                  unpaid
                  Servicing Fees, the Company's right to reimburse itself pursuant
                  to this
                  subclause (iii) with respect to any Mortgage Loan being limited
                  to related
                  Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds
                  and such
                  other amounts as may be collected by the Company from the Mortgagor
                  or
                  otherwise relating to the Mortgage Loan, it being understood that,
                  in the
                  case of any such reimbursement, the Company's right thereto shall
                  be prior
                  to the rights of Purchaser, except that where the Company is required
                  to
                  repurchase a Mortgage Loan pursuant to Section 3.03 or 6.02, in
                  which case
                  the Company's right to such reimbursement shall be subsequent to
                  the
                  payment to the Purchaser of the Repurchase Price pursuant to such
                  sections
                  and all other amounts required to be paid to the Purchaser with
                  respect to
                  such Mortgage Loan. Upon Purchaser's request, the Company shall
                  provide
                  documentation supporting the Company's Servicing
                  Advances;

          	 	 	 

          	 	(iv)	to
                  pay itself interest on funds deposited in the Custodial
                  Account;

          	 	 	 

          	 	(v)	
                  to
                    reimburse itself for expenses incurred and reimbursable to it
                    pursuant to
                    Section 8.01;

                

          	 	 	 

          	 	(vi)	
                  to
                    pay any amount required to be paid pursuant to Section 4.16 related
                    to any
                    REO Property, it being understood that, in the case of any such
                    expenditure or withdrawal related to a particular REO Property,
                    the amount
                    of such expenditure or withdrawal from the Custodial Account
                    shall be
                    limited to amounts on deposit in the Custodial Account with respect
                    to the
                    related REO Property;

                

          	 	 	 

          	 	(vii)	to reimburse itself for any Servicing Advances
                  or REO
                  expenses after liquidation of the Mortgaged Property not otherwise
                  reimbursed above;

          	 	 	 

          	 	(viii)	to remove funds inadvertently placed in the
                  Custodial
                  Account by the Company; and

          	 	 	 

          	 	(ix)	
                  to
                    clear and terminate the Custodial Account upon the termination
                    of this
                    Agreement.

                

        

        
           

        

      

      In
        the
        event that the Custodial Account is interest bearing, on each Remittance
        Date,
        the Company shall withdraw all funds from the Custodial Account except for
        those
        amounts which, pursuant to Section 5.01, the Company is not obligated to
        remit
        on such Remittance Date. The Company may use such withdrawn funds only for
        the
        purposes described in this Section 4.05.

      

      Section
        4.06 Establishment
        of and Deposits to Escrow Account.

      

      The
        Company shall segregate and hold all funds collected and received pursuant
        to a
        Mortgage Loan constituting Escrow Payments separate and apart from any of
        its
        own funds and general assets and shall establish and maintain one or more
        Escrow
        Accounts, in the form of time deposit or demand accounts, titled, "Wells
        Fargo
        Bank, N.A., in trust for the Purchaser and/or subsequent purchasers of
        Residential Mortgage Loans, and various Mortgagors - T & I." The Escrow
        Accounts shall be established with a Qualified Depository, in a manner which
        shall provide maximum available insurance thereunder. Upon request of the
        Purchaser and within ten (10) days thereof, the Company shall provide the
        Purchaser with written confirmation of the existence of such Escrow Account.
        Funds deposited in the Escrow Account may be drawn on by the Company in
        accordance with Section 4.07.

      

      The
        Company shall deposit in the Escrow Account or Accounts within one (1) Business
        Days of Company’s receipt, and retain therein:

      

      
        	 	
                (i)

              	
                all
                  Escrow Payments collected on account of the Mortgage Loans, for
                  the
                  purpose of effecting timely payment of any such items as required
                  under
                  the terms of this Agreement;

              

      

      

      
        	 	
                (ii)

              	
                all
                  amounts representing Insurance Proceeds or Condemnation Proceeds
                  which are
                  to be applied to the restoration or repair of any Mortgaged Property;
                  and

              

      

      

      
        	 	
                (iii)

              	
                all
                  payments on account of Buydown
                  Funds.

              

      

      

      The
        Company shall make withdrawals from the Escrow Account only to effect such
        payments as are required under this Agreement, as set forth in Section 4.07.
        The
        Company shall be entitled to retain any interest paid on funds deposited
        in the
        Escrow Account by the depository institution, other than interest on escrowed
        funds required by law to be paid to the Mortgagor. To the extent required
        by
        law, the Company shall pay interest on escrowed funds to the Mortgagor
        notwithstanding that the Escrow Account may be non-interest bearing or that
        interest paid thereon is insufficient for such purposes.

      

      Section
        4.07 Permitted
        Withdrawals From Escrow Account.

      

      Withdrawals
        from the Escrow Account or Accounts may be made by the Company
        only:

      

      
        	 	
                (i)

              	
                to
                  effect timely payments of ground rents, taxes, assessments, water
                  rates,
                  mortgage insurance premiums, condominium charges, fire and hazard
                  insurance premiums or other items constituting Escrow Payments
                  for the
                  related Mortgage;

              

      

      

      
        	 	
                (ii)

              	
                to
                  reimburse the Company for any Servicing Advances made by the Company
                  pursuant to Section 4.08 with respect to a related Mortgage Loan,
                  but only
                  from amounts received on the related Mortgage Loan which represent
                  late
                  collections of Escrow Payments
                  thereunder;

              

      

      

      
        	 	
                (iii)

              	
                to
                  refund to any Mortgagor any funds found to be in excess of the
                  amounts
                  required under the terms of the related Mortgage
                  Loan;

              

      

      

      
        	 	
                (iv)

              	
                for
                  transfer to the Custodial Account and application to reduce the
                  principal
                  balance of the Mortgage Loan in accordance with the terms of the
                  related
                  Mortgage and Mortgage Note;

              

      

      

      
        	 	
                (v)

              	
                for
                  application to restoration or repair of the Mortgaged Property
                  in
                  accordance with the procedures outlined in Section
                  4.14;

              

      

      

      
        	 	
                (vi)

              	
                to
                  pay to the Company, or any Mortgagor to the extent required by
                  law, any
                  interest paid on the funds deposited in the Escrow
                  Account;

              

      

      

      
        	 	
                (vii)

              	
                to
                  remove funds inadvertently placed in the Escrow Account by the
                  Company;

              

      

      

      
        	 	
                (viii)

              	
                to
                  remit to Purchaser payments on account of Buydown Funds as applicable;
                  and

              

      

      

      
        	 	
                (ix)

              	
                to
                  clear and terminate the Escrow Account on the termination of this
                  Agreement.

              

      

      

      Section
        4.08 Payment
        of Taxes, Insurance and Other Charges.

      

      With
        respect to each Mortgage Loan, the Company shall maintain accurate records
        reflecting the status of ground rents, taxes, assessments, water rates, sewer
        rents, and other charges which are or may become a lien upon the Mortgaged
        Property and the status of PMI Policy premiums and fire and hazard insurance
        coverage and shall obtain, from time to time, all bills for the payment of
        such
        charges (including renewal premiums) and shall effect payment thereof prior
        to
        the applicable penalty or termination date, employing for such purpose deposits
        of the Mortgagor in the Escrow Account which shall have been estimated and
        accumulated by the Company in amounts sufficient for such purposes, as allowed
        under the terms of the Mortgage. The Company assumes full responsibility
        for the
        timely payment of all such bills and shall effect timely payment of all such
        charges irrespective of each Mortgagor's faithful performance in the payment
        of
        same or the making of the Escrow Payments, and the Company shall make advances
        from its own funds to effect such payments.

      

      Section
        4.09 Protection
        of Accounts.

      

      The
        Company may transfer the Custodial Account, the Subsidy Account or the Escrow
        Account to a different Qualified Depository from time to time with prior
        written
        notice to Purchaser.

      

      Section
        4.10 Maintenance
        of Hazard Insurance.

      

      The
        Company shall cause to be maintained for each Mortgage Loan hazard insurance
        such that all buildings upon the Mortgaged Property are insured by an insurer
        acceptable to Fannie Mae or Freddie Mac against loss by fire, hazards of
        extended coverage and such other hazards as are customary in the area where
        the
        Mortgaged Property is located, in an amount which is at least equal to the
        lesser of (i) 100% of the insurable value, on a replacement cost basis, of
        the
        improvements on the related Mortgaged Property, and (ii) the greater of (a)
        the
        outstanding principal balance of the Mortgage Loan and (b) an amount such
        that
        the proceeds of such insurance shall be sufficient to prevent the application
        to
        the Mortgagor or the loss payee of any coinsurance clause under the policy.
        In
        the event a hazard insurance policy shall be in danger of being terminated,
        or
        in the event the insurer shall cease to be acceptable to Fannie Mae or Freddie
        Mac, the Company shall notify the Purchaser and the related Mortgagor, and
        shall
        use its best efforts, as permitted by applicable law, to obtain from another
        qualified insurer a replacement hazard insurance policy substantially and
        materially similar in all respects to the original policy. In no event, however,
        shall a Mortgage Loan be without a hazard insurance policy at any time, subject
        only to Section 4.11 hereof.

      

      If
        upon
        origination of the Mortgage Loan, the related Mortgaged Property was located
        in
        an area identified by the Flood Emergency Management Agency as having special
        flood hazards (and such flood insurance has been made available) a flood
        insurance policy meeting the requirements of the current guidelines of the
        Federal Insurance Administration is in effect with a generally acceptable
        insurance carrier acceptable to Fannie Mae or Freddie Mac in an amount
        representing coverage equal to the lesser of (i) the minimum amount required,
        under the terms of coverage, to compensate for any damage or loss on a
        replacement cost basis (or the unpaid balance of the mortgage if replacement
        cost coverage is not available for the type of building insured) and (ii)
        the
        maximum amount of insurance which is available under the Flood Disaster
        Protection Act of 1973, as amended. If at any time during the term of the
        Mortgage Loan, the Company determines in accordance with applicable law that
        a
        Mortgaged Property is located in a special flood hazard area and is not covered
        by flood insurance or is covered in an amount less than the amount required
        by
        the Flood Disaster Protection Act of 1973, as amended, the Company shall
        notify
        the related Mortgagor that the Mortgagor must obtain such flood insurance
        coverage, and if said Mortgagor fails to obtain the required flood insurance
        coverage within forty-five (45) days after such notification, the Company
        shall
        immediately force place the required flood insurance on the Mortgagor’s behalf,
        as permitted by applicable law.

      

      If
        a
        Mortgage is secured by a unit in a condominium project, the Company shall
        verify
        that the coverage required of the owner's association, including hazard,
        flood,
        liability, and fidelity coverage, is being maintained in accordance with
        then
        current Fannie Mae requirements, and secure from the owner's association
        its
        agreement to notify the Company promptly of any change in the insurance coverage
        or of any condemnation or casualty loss that may have a material effect on
        the
        value of the Mortgaged Property as security.

      

       

      In
        the
        event that any Purchaser or the Company shall determine that the Mortgaged
        Property should be insured against loss or damage by hazards and risks not
        covered by the insurance required to be maintained by the Mortgagor pursuant
        to
        the terms of the Mortgage, the Company shall communicate and consult with
        the
        Mortgagor with respect to the need for such insurance and bring to the
        Mortgagor's attention the required amount of coverage for the Mortgaged Property
        and if the Mortgagor does not obtain such coverage, the Company shall
        immediately force place the required coverage on the Mortgagor’.

      

      All
        policies required hereunder shall name the Company as loss payee and shall
        be
        endorsed with standard or union mortgagee clauses, without contribution,
        which
        shall provide for at least 30 days prior written notice of any cancellation,
        reduction in amount or material change in coverage.

      

      The
        Company shall not interfere with the Mortgagor's freedom of choice in selecting
        either his insurance carrier or agent, provided, however, that the Company
        shall
        not accept any such insurance policies from insurance companies unless such
        companies are acceptable to Fannie Mae and Freddie Mac and are licensed to
        do
        business in the jurisdiction in which the Mortgaged Property is located.
        The
        Company shall determine that such policies provide sufficient risk coverage
        and
        amounts, that they insure the property owner, and that they properly describe
        the property address.

      

      Pursuant
        to Section 4.04, any amounts collected by the Company under any such policies
        (other than amounts to be deposited in the Escrow Account and applied to
        the
        restoration or repair of the related Mortgaged Property, or property acquired
        in
        liquidation of the Mortgage Loan, or to be released to the Mortgagor, in
        accordance with the Company's normal servicing procedures as specified in
        Section 4.14) shall be deposited in the Custodial Account subject to withdrawal
        pursuant to Section 4.05.

      

      Section
        4.11 Maintenance
        of Mortgage Impairment Insurance.

      

      In
        the
        event that the Company shall obtain and maintain a blanket policy insuring
        against losses arising from fire and hazards covered under extended coverage
        on
        all of the Mortgage Loans, then, to the extent such policy provides coverage
        in
        an amount equal to the amount required pursuant to Section 4.10 and otherwise
        complies with all other requirements of Section 4.10, it shall conclusively
        be
        deemed to have satisfied its obligations as set forth in Section 4.10. The
        Company shall prepare and make any claims on the blanket policy as deemed
        necessary by the Company in accordance with Accepted Servicing Practices.
        Any
        amounts collected by the Company under any such policy relating to a Mortgage
        Loan shall be deposited in the Custodial Account subject to withdrawal pursuant
        to Section 4.05. Such policy may contain a deductible clause, in which case,
        in
        the event that there shall not have been maintained on the related Mortgaged
        Property a policy complying with Section 4.10, and there shall have been
        a loss
        which would have been covered by such policy, the Company shall deposit in
        the
        Custodial Account at the time of such loss the amount not otherwise payable
        under the blanket policy because of such deductible clause, such amount to
        be
        deposited from the Company's funds, without reimbursement therefor. Upon
        request
        of the Purchaser, the Company shall cause to be delivered to such Purchaser
        a
        certificate of insurance and a statement from the insurer thereunder that
        such
        policy shall in no event be terminated or materially modified without 30
        days'
        prior written notice to such Purchaser.

      

      Section
        4.12 Maintenance
        of Fidelity Bond and Errors and Omissions Insurance.

      

      The
        Company shall maintain with responsible companies, at its own expense, a
        blanket
        Fidelity Bond and an Errors and Omissions Insurance Policy, with broad coverage
        on all officers, employees or other Persons acting in any capacity requiring
        such Persons to handle funds, money, documents or papers relating to the
        Mortgage Loans ("Company Employees"). Any such Fidelity Bond and Errors and
        Omissions Insurance Policy shall be in the form of the Mortgage Banker's
        Blanket
        Bond and shall protect and insure the Company against losses, including forgery,
        theft, embezzlement, fraud, errors and omissions and negligent acts of such
        Company Employees. Such Fidelity Bond and Errors and Omissions Insurance
        Policy
        also shall protect and insure the Company against losses in connection with
        the
        release or satisfaction of a Mortgage Loan without having obtained payment
        in
        full of the indebtedness secured thereby. No provision of this Section 4.12
        requiring such Fidelity Bond and Errors and Omissions Insurance Policy shall
        diminish or relieve the Company from its duties and obligations as set forth
        in
        this Agreement. The minimum coverage under any such bond and insurance policy
        shall be with a company acceptable to Fannie Mae or Freddie Mac and in amounts
        at least equal to the amounts acceptable to Fannie Mae or Freddie Mac. Upon
        the
        request of any Purchaser, the Company shall cause to be delivered to such
        Purchaser a certified true copy of such fidelity bond and insurance policy
        and a
        statement from the surety and the insurer that such fidelity bond and insurance
        policy shall in no event be terminated or materially modified without 30
        days'
        prior written notice to the Purchaser.

      

      Section
        4.13 Inspections.

      

      If
        any
        Mortgage Loan is more than 60 days delinquent, the Company immediately shall
        inspect the Mortgaged Property and shall conduct subsequent inspections in
        accordance with Accepted Servicing Practices or as may be required by the
        primary mortgage guaranty insurer. The Company shall keep a record of each
        such
        inspection and shall provide the Purchaser with copies of such upon
        request.

      

      Section
        4.14 Restoration
        of Mortgaged Property.

      

      The
        Company need not obtain the approval of the Purchaser prior to releasing
        any
        Insurance Proceeds or Condemnation Proceeds to the Mortgagor to be applied
        to
        the restoration or repair of the Mortgaged Property if such release is in
        accordance with Accepted Servicing Practices. For claims greater than $15,000,
        at a minimum the Company shall comply with the following conditions in
        connection with any such release of Insurance Proceeds or Condemnation
        Proceeds:

      
        

        
          	 	
                  (i)

                	
                  
                    the
                      Company shall receive satisfactory independent verification
                      of completion
                      of repairs and issuance of any required approvals with respect
                      thereto;

                  

                

          	 	 	 

          	 	(ii)	
                  the
                    Company shall take all steps necessary to preserve the priority
                    of the
                    lien of the Mortgage, including, but not limited to requiring
                    waivers with
                    respect to mechanics' and materialmen's
                    liens;

                

          	 	 	 

          	 	(iii)	
                  the
                    Company shall verify that the Mortgage Loan is not in default;
                    and

                

          	 	 	 

          	 	(iv)	
                  pending
                    repairs or restoration, the Company shall place the Insurance
                    Proceeds or
                    Condemnation Proceeds in the Escrow
                    Account.

                

        

         

      

      If
        the
        Purchaser is named as an additional loss payee, the Company is hereby empowered
        to endorse any loss draft issued in respect of such a claim in the name of
        the
        Purchaser.

      

      Section
        4.15 Maintenance
        of PMI Policy; Claims.

      

      Each
        Mortgage Loan has an LTV as indicated on the Mortgage Loan Schedule and
        Electronic Data File. Except as indicated on the Electronic Data File, with
        respect to each Mortgage Loan with an LTV in excess of 80% at the time of
        origination, the Company shall, without any cost to the Purchaser maintain
        or
        cause the Mortgagor to maintain in full force and effect a PMI Policy or
        LPMI
        Policy insuring a portion of the unpaid principal balance of the Mortgage
        Loan
        as to payment defaults. If the Mortgage Loan is insured by a PMI Policy for
        which the Mortgagor pays all premiums, the coverage will remain in place
        until
        (i) the LTV decreases to 78% or (ii) the PMI Policy is otherwise terminated
        pursuant to the Homeowners Protection Act of 1998, 12 USC 4901, et seq. In
        the
        event that such PMI Policy shall be terminated other than as required by
        law,
        the Company shall obtain from another Qualified Insurer a comparable replacement
        policy, with a total coverage equal to the remaining coverage of such terminated
        PMI Policy. If the insurer shall cease to be a Qualified Insurer, the Company
        shall determine whether recoveries under the PMI Policy and LPMI Policy are
        jeopardized for reasons related to the financial condition of such insurer,
        it
        being understood that the Company shall in no event have any responsibility
        or
        liability for any failure to recover under the PMI Policy or LPMI Policy
        for
        such reason. If the Company determines that recoveries are so jeopardized,
        it
        shall notify the Purchaser and the Mortgagor, if required, and obtain from
        another Qualified Insurer a replacement insurance policy. The Company shall
        not
        take any action which would result in noncoverage under any applicable PMI
        Policy or LPMI Policy of any loss which, but for the actions of the Company
        would have been covered thereunder. In connection with any assumption or
        substitution agreement entered into or to be entered into pursuant to Section
        6.01, the Company shall promptly notify the insurer under the related PMI
        Policy
        or LPMI Policy, if any, of such assumption or substitution of liability in
        accordance with the terms of such PMI Policy or LPMI Policy and shall take
        all
        actions which may be required by such insurer as a condition to the continuation
        of coverage under such PMI Policy or LPMI Policy. If such PMI Policy is
        terminated as a result of such assumption or substitution of liability, the
        Company shall obtain a replacement PMI Policy or LPMI Policy as provided
        above.

      

      In
        connection with its activities as servicer, the Company agrees to prepare
        and
        present, on behalf of itself and the Purchaser, claims to the insurer under
        any
        PMI Policy in a timely fashion in accordance with the terms of such PMI Policy
        and, in this regard, to take such action as shall be necessary to permit
        recovery under any PMI Policy respecting a defaulted Mortgage Loan. Pursuant
        to
        Section 4.04, any amounts collected by the Company under any PMI Policy shall
        be
        deposited in the Custodial Account, subject to withdrawal pursuant to Section
        4.05.

      

      Section
        4.16 Title,
        Management and Disposition of REO Property.

      

      In
        the
        event that title to any Mortgaged Property is acquired in foreclosure or
        by deed
        in lieu of foreclosure, the deed or certificate of sale shall be taken in
        the
        name of the Purchaser, or in the event the Purchaser is not authorized or
        permitted to hold title to real property in the state where the REO Property
        is
        located, or would be adversely affected under the "doing business" or tax
        laws
        of such state by so holding title, the deed or certificate of sale shall
        be
        taken in the name of such Person or Persons as shall be consistent with an
        Opinion of Counsel obtained by the Company from any attorney duly licensed
        to
        practice law in the state where the REO Property is located. The Person or
        Persons holding such title other than the Purchaser shall acknowledge in
        writing
        that such title is being held as nominee for the Purchaser.

      

      The
        Purchaser shall have the option to manage and operate the REO Property provided
        the Purchaser gives written notice of its intention to do so within thirty
        (30)
        days after such REO Property is acquired in foreclosure or by deed in lieu
        of
        foreclosure. The election by the Purchaser to manage the REO Property shall
        not
        constitute a termination of any rights of the Company pursuant to Section
        11.02.
        Upon the Company's receipt of such written notice, it shall be relived of
        any
        obligation to manage, conserve, protect, operate, dispose or sell the Mortgaged
        Property for the Purchaser, or its designee. All such duties will become
        the
        obligation of the Purchaser, or its designee. In such connection, upon the
        Mortgaged Property being acquired on behalf of the Purchaser, or its designee,
        the Company shall fully cooperate with Purchaser to transfer management of
        the
        REO Property to Purchaser, or its designee, and shall immediately submit
        a
        statement of expenses to the Purchaser for reimbursement within 30 days for
        all
        Monthly Advances and Servicing Advances. If Company does not receive
        reimbursement of such expenses from the Purchaser within the 30-days of the
        statement of expenses, Company shall be permitted to withdraw such amount
        from
        the Custodial Account pursuant to Section 4.05.

      

      In
        the
        event the Purchaser does not elect to manage an REO Property, the Company
        shall
        manage, conserve and protect the related REO Property for the Purchaser.
        The
        Company, either itself or through an agent selected by the Company, shall
        manage
        the REO Property in the same manner that it manages, conserves, protects
        and
        operates other foreclosed property for its own account, and in the same manner
        that similar property in the same locality as the REO Property is managed.
        The
        Company shall attempt to sell the same (and may temporarily rent the same
        for a
        period not greater than one year, except as otherwise provided below) on
        such
        terms and conditions as the Company deems to be in the best interest of the
        Purchaser.

      

      The
        Company shall use its best efforts to dispose of the REO Property as soon
        as
        possible and shall sell such REO Property in any event within one year after
        title has been taken to such REO Property, unless (i) a REMIC election has
        not
        been made with respect to the arrangement under which the Mortgage Loans
        and the
        REO Property are held, and (ii) the Company determines, and gives an appropriate
        notice to the Purchaser to such effect, that a longer period is necessary
        for
        the orderly liquidation of such REO Property. If a period longer than one
        year
        is permitted under the foregoing sentence and is necessary to sell any REO
        Property, (i) the Company shall report monthly to the Purchaser as to the
        progress being made in selling such REO Property and (ii) if, with the written
        consent of the Purchaser, a purchase money mortgage is taken in connection
        with
        such sale, such purchase money mortgage shall name the Company as mortgagee,
        and
        such purchase money mortgage shall not be held pursuant to this Agreement,
        but
        instead a separate participation agreement among the Company and Purchaser
        shall
        be entered into with respect to such purchase money mortgage.

      

      The
        Company shall also maintain on each REO Property fire and hazard insurance
        with
        extended coverage in amount which is at least equal to the maximum insurable
        value of the improvements which are a part of such property, liability insurance
        and, to the extent required and available under the Flood Disaster Protection
        Act of 1973, as amended, flood insurance in the amount required
        above.

      

      The
        disposition of REO Property shall be carried out by the Company at such price,
        and upon such terms and conditions, as the Company deems to be in the best
        interests of the Purchaser. The proceeds of sale of the REO Property shall
        be
        promptly deposited in the Custodial Account. As soon as practical thereafter
        the
        expenses of such sale shall be paid and the Company shall reimburse itself
        for
        any related unreimbursed Servicing Advances, unpaid Servicing Fees and
        unreimbursed advances made pursuant to Section 5.03. On the Remittance Date
        immediately following the Principal Prepayment Period in which such sale
        proceeds are received the net cash proceeds of such sale remaining in the
        Custodial Account shall be distributed to the Purchaser.

      

      The
        Company shall withdraw the Custodial Account funds necessary for the proper
        operation management and maintenance of the REO Property, including the cost
        of
        maintaining any hazard insurance pursuant to Section 4.10 and the fees of
        any
        managing agent of the Company, or the Company itself. The Company shall make
        monthly distributions on each Remittance Date to the Purchaser of the net
        cash
        flow from the REO Property (which shall equal the revenues from such REO
        Property net of the expenses described in the Section 4.16 and of any reserves
        reasonably required from time to time to be maintained to satisfy anticipated
        liabilities for such expenses).

      

      Section
        4.17 Real
        Estate Owned Reports.

      

      Together
        with the statement furnished pursuant to Section 5.02, the Company shall
        furnish
        to the Purchaser on or before the Remittance Date each month a statement
        with
        respect to any REO Property covering the operation of such REO Property for
        the
        previous month and the Company's efforts in connection with the sale of such
        REO
        Property and any rental of such REO Property incidental to the sale thereof
        for
        the previous month. That statement shall be accompanied by such other
        information as the Purchaser shall reasonably request.

      

      Section
        4.18 Liquidation
        Reports.

      

      Upon
        the
        foreclosure sale of any Mortgaged Property or the acquisition thereof by
        the
        Purchaser pursuant to a deed in lieu of foreclosure, the Company shall submit
        to
        the Purchaser a liquidation report with respect to such Mortgaged
        Property.

      

      Section
        4.19 Reports
        of Foreclosures and Abandonments of Mortgaged Property.

      

      Following
        the foreclosure sale or abandonment of any Mortgaged Property, the Company
        shall
        report such foreclosure or abandonment as required pursuant to Section 6050J
        of
        the Code. The Company shall file information reports with respect to the
        receipt
        of mortgage interest received in a trade or business and information returns
        relating to cancellation of indebtedness income with respect to any Mortgaged
        Property as required by the Code. Such reports shall be in form and substance
        sufficient to meet the reporting requirements imposed by the Code.

      

      Section
        4.20 Application
        of Buydown Funds.

      

      With
        respect to each Buydown Mortgage Loan, the Company shall have deposited into
        the
        Escrow Account, no later than the last day of the month, Buydown Funds in
        an
        amount equal to the aggregate undiscounted amount of payments that, when
        added
        to the amount the Mortgagor on such Mortgage Loan is obligated to pay on
        all Due
        Dates in accordance with the terms of the Buydown Agreement, is equal to
        the
        full scheduled Monthly Payments which are required to be paid by the Mortgagor
        under the terms of the related Mortgage Note (without regard to the related
        Buydown Agreement as if the Mortgage Loan were not subject to the terms of
        the
        Buydown Agreement). With respect to each Buydown Mortgage Loan, the Company
        will
        distribute to the Purchaser on each Remittance Date an amount of Buydown
        Funds
        equal to the amount that, when added to the amount required to be paid on
        such
        date by the related Mortgagor, pursuant to and in accordance with the related
        Buydown Agreement, equals the full Monthly Payment that would otherwise be
        required to be paid on such Mortgage Loan by the related Mortgagor under
        the
        terms of the related Mortgage Note (as if the Mortgage Loan were not a Buydown
        Mortgage Loan and without regard to the related Buydown Agreement).

      

      If
        the
        Mortgagor on a Buydown Mortgage Loan defaults on such Mortgage Loan during
        the
        Buydown Period and the Mortgaged Property securing such Buydown Mortgage
        Loan is
        sold in the liquidation thereof (either by the Company or the insurer under
        any
        related Primary Insurance Policy) the Company shall, on the Remittance Date
        following the date upon which Liquidation Proceeds or REO Disposition proceeds
        are received with respect to any such Buydown Mortgage Loan, distribute to
        the
        Purchaser all remaining Buydown Funds for such Mortgage Loan then remaining
        in
        the Escrow Account. Pursuant to the terms of each Buydown Agreement, any
        amounts
        distributed to the Purchaser in accordance with the preceding sentence will
        be
        applied to reduce the outstanding principal balance of the related Buydown
        Mortgage Loan. If a Mortgagor on a Buydown Mortgage Loan prepays such Mortgage
        Loan in its entirety during the related Buydown Period, the Company shall
        be
        required to withdraw from the Escrow Account any Buydown Funds remaining
        in the
        Escrow Account with respect to such Buydown Mortgage Loan in accordance with
        the
        related Buydown Agreement. If a principal prepayment by a Mortgagor on a
        Buydown
        Mortgage Loan during the related Buydown Period, together with any Buydown
        Funds
        then remaining in the Escrow Account related to such Buydown Mortgage Loan,
        would result in a principal prepayment of the entire unpaid principal balance
        of
        the Buydown Mortgage Loan, the Company shall distribute to the Purchaser
        on the
        Remittance Date occurring in the month immediately succeeding the month in
        which
        such Principal Prepayment is received, all Buydown Funds related to such
        Mortgage Loan so remaining in the Escrow Account, together with any amounts
        required to be deposited into the Custodial Account.

      

      Section
        4.21 Notification
        of Adjustments.

      

      With
        respect to each adjustable rate Mortgage Loan, the Company shall adjust the
        Mortgage Interest Rate on the related Interest Rate Adjustment Date in
        compliance with the requirements of applicable law and the related Mortgage
        and
        Mortgage Note. The Company shall execute and deliver any and all necessary
        notices required under applicable law and the terms of the related Mortgage
        Note
        and Mortgage regarding the Mortgage Interest Rate adjustments. Upon the
        discovery by the Company or the receipt of notice from the Purchaser that
        the
        Company has failed to adjust a Mortgage Interest Rate in accordance with
        the
        terms of the related Mortgage Note, the Company shall immediately deposit
        in the
        Custodial Account from its own funds the amount of any interest loss or deferral
        caused the Purchaser thereby.

      

      Section
        4.22 Confidentiality/Protection
        of Customer Information.

      

      The
        Company shall keep confidential and shall not divulge to any party, without
        the
        Purchaser's prior written consent, the price paid by the Purchaser for the
        Mortgage Loans, except to the extent that it is reasonable and necessary
        for the
        Company to do so in working with legal counsel, auditors, taxing authorities
        or
        other governmental agencies. Each party agrees that it shall comply with
        all
        applicable laws and regulations regarding the privacy or security of Customer
        Information and shall maintain appropriate administrative, technical and
        physical safeguards to protect the security, confidentiality and integrity
        of
        Customer Information, including maintaining security measures designed to
        meet
        the Interagency Guidelines Establishing Standards for Safeguarding Customer
        Information, 66 Fed. Reg. 8616 (the “Interagency Guidelines”), if applicable.
        For purposes of this Section 4.22, the term “Customer Information” shall have
        the meaning assigned to it in the Interagency Guidelines. 

      

      Section
        4.23 Fair
        Credit Reporting Act

      

      The
        Company, in its capacity as servicer for each Mortgage Loan, agrees to fully
        furnish, in accordance with the Fair Credit Reporting Act and its implementing
        regulations, accurate and complete information (e.g., favorable and unfavorable)
        on its borrower credit files to Equifax, Experian and Trans Union Credit
        Information Company (three of the credit repositories), on a monthly
        basis.

       

      Section
        4.24 Establishment
        of and Deposits to Subsidy Account.  

       

       

      The
        Company shall segregate and hold all Subsidy Funds collected and received
        pursuant to the Subsidy Loans separate and apart from any of its own funds
        and
        general assets and shall establish and maintain one or more Subsidy Accounts,
        in
        the form of time deposit or demand accounts, titled “Wells Fargo Bank, N.A., in
        trust for the Purchaser, its successors or assigns, and/or subsequent purchasers
        of residential Mortgage Loans, and various Mortgagors.” The Subsidy Account
        shall be an eligible deposit account established with an eligible
        institution.

       

      The
        Company shall, from time to time, withdraw funds from the Subsidy Account
        for
        the following purposes:

       

      
        	 	
                (i)

              	
                to
                  deposit in the Custodial Account in the amounts and in the manner
                  provided
                  for in Section 4.04(xi);

              

      

       

      
        	 	
                (ii)

              	
                to
                  transfer funds to another eligible institution in accordance with
                  Section
                  4.09 hereof;

              

        	 	 	 

        	 	(iii)	
                to
                  withdraw funds deposited in error;
                  and

              

      

       

      
        	 	
                (iv)

              	
                to
                  clear and terminate the Subsidy Account upon the termination of
                  this
                  Agreement.

              

      

       

      Notwithstanding
        anything to the contrary elsewhere in this Agreement, the Company may employ
        the
        Escrow Account as the Subsidy Account to the extent that the Company can
        separately identify any Subsidy Funds deposited therein.

      

      Section
        4.25 Use
        of
        Subservicers and Subcontractors.

      

      The
        Company shall not hire or otherwise utilize the services of any Subservicer
        to
        fulfill any of the obligations of the Company under this Agreement or any
        Reconstitution Agreement unless the Company complies with the provisions
        of
        paragraph (a) of this Section 4.25. The Company shall not hire or otherwise
        utilize the services of any Subcontractor, and shall not permit any Subservicer
        to hire or otherwise utilize the services of any Subcontractor, to fulfill
        any
        of the obligations of the Company under this Agreement or any Reconstitution
        Agreement unless the Company complies with the provisions of paragraph (b)
        of
        this Section 4.25.

      

      (a) It
        shall
        not be necessary for the Company to seek the consent of the Purchaser or
        any
        Depositor to the utilization of any Subservicer. The Company shall cause
        any
        Subservicer used by the Company (or by any Subservicer) for the benefit of
        the
        Purchaser and any Depositor to comply with the provisions of this Section
        4.25
        and with Sections 6.04, 6.06, 9.01(e)(iii), 9.01(e)(v) and 9.01(f) of this
        Agreement to the same extent as if such Subservicer were the Company, and
        to
        provide the information required with respect to such Subservicer under Section
        9.01(e)(iv) of this Agreement. The Company shall be responsible for obtaining
        from each Subservicer and delivering to the Purchaser and any Depositor any
        servicer compliance statement required to be delivered by such Subservicer
        under
        Section 6.04 and any assessment of compliance and attestation required to
        be
        delivered by such Subservicer under Section 6.06 and any certification required
        to be delivered to the Person that will be responsible for signing the Sarbanes
        Certification under Section 6.06 as and when required to be
        delivered.

      

      (b) It
        shall
        not be necessary for the Company to seek the consent of the Purchaser or
        any
        Depositor to the utilization of any Subcontractor. The Company shall promptly
        upon request provide to the Purchaser and any Depositor (or any designee
        of the
        Depositor, such as a master servicer or administrator) a written description
        (in
        form and substance satisfactory to the Purchaser and such Depositor) of the
        role
        and function of each Subcontractor utilized by the Company or any Subservicer,
        specifying (i) the identity of each such Subcontractor, (ii) which (if any)
        of
        such Subcontractors are “participating in the servicing function” within the
        meaning of Item 1122 of Regulation AB, and (iii) which elements of the Servicing
        Criteria will be addressed in assessments of compliance provided by each
        Subcontractor identified pursuant to clause (ii) of this paragraph.

      

      As
        a
        condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB, the Company shall cause any such Subcontractor used by the
        Company (or by any Subservicer) for the benefit of the Purchaser and any
        Depositor to comply with the provisions of Sections 6.06 and 9.01(f) of this
        Agreement to the same extent as if such Subcontractor were the Company. The
        Company shall be responsible for obtaining from each Subcontractor and
        delivering to the Purchaser and any Depositor any assessment of compliance
        and
        attestation required to be delivered by such Subcontractor under Section
        6.06,
        in each case as and when required to be delivered.

       

      ARTICLE
        V

       

      PAYMENTS
        TO PURCHASER

      

      Section
        5.01 Remittances.

      

      On
        each
        Remittance Date the Company shall remit by wire transfer of immediately
        available funds to the Purchaser (a) all amounts deposited in the Custodial
        Account as of the close of business on the Determination Date (net of charges
        against or withdrawals from the Custodial Account pursuant to Section 4.05),
        plus (b) all amounts, if any, which the Company is obligated to distribute
        pursuant to Section 5.03, minus (c) any amounts attributable to Principal
        Prepayments received after the applicable Principal Prepayment Period which
        amounts shall be remitted on the following Remittance Date, together with
        any
        additional interest required to be deposited in the Custodial Account in
        connection with such Principal Prepayment in accordance with Section 4.04(viii);
        minus (d) any amounts attributable to Monthly Payments collected but due
        on a
        Due Date or Dates subsequent to the first day of the month of the Remittance
        Date, and minus (e) any amounts attributable to Buydown Funds being held
        in the
        Custodial Account, which amounts shall be remitted on the Remittance Date
        next
        succeeding the Due Period for such amounts.

      

      With
        respect to any remittance received by the Purchaser after the Business Day
        on
        which such payment was due, the Company shall pay to the Purchaser interest
        on
        any such late payment at an annual rate equal to the Prime Rate, adjusted
        as of
        the date of each change, plus three percentage points, but in no event greater
        than the maximum amount permitted by applicable law. Such interest shall
        cover
        the period commencing with the day following the Business Day such payment
        was
        due and ending with the Business Day on which such payment is made to the
        Purchaser, both inclusive. Such interest shall be remitted by wire transfer
        of
        immediately available funds within one Business Day following agreement by
        the
        Purchaser and the Company of the penalty amount. The payment by the Company
        of
        any such interest shall not be deemed an extension of time for payment or
        a
        waiver of any Event of Default by the Company.

      

      Section
        5.02 Statements
        to Purchaser.

      

      Not
        later
        than the Remittance Date, the Company shall furnish to the Purchaser a monthly
        remittance advice in the standard form of electronic Alltel® file, as to the
        period ending on the last day of the preceding month. If requested by the
        Purchaser prior to the related Closing Date, the first monthly remittance
        advice
        due to the Purchaser following such Closing Date shall be furnished by the
        12th
        calendar
        day, or if such day is not a Business Day, then the preceding Business
        Day.

      

      Section
        5.03 Monthly
        Advances by Company.

      

      On
        the
        Business Day immediately preceding each Remittance Date, the Company shall
        deposit in the Custodial Account from its own funds or from amounts held
        for
        future distribution an amount equal to all Monthly Payments (with interest
        adjusted to the Mortgage Loan Remittance Rate) which were due on the Mortgage
        Loans during the applicable Due Period and which were delinquent at the close
        of
        business on the immediately preceding Determination Date or which were deferred
        pursuant to Section 4.01. Any amounts held for future distribution and so
        used
        shall be replaced by the Company by deposit in the Custodial Account on or
        before any future Remittance Date if funds in the Custodial Account on such
        Remittance Date shall be less than payments to the Purchaser required to
        be made
        on such Remittance Date. The Company's obligation to make such Monthly Advances
        as to any Mortgage Loan will continue through the last Monthly Payment due
        prior
        to the payment in full of the Mortgage Loan, or through the last Remittance
        Date
        prior to the Remittance Date for the distribution of all Liquidation Proceeds
        and other payments or recoveries (including REO Disposition Proceeds, Insurance
        Proceeds and Condemnation Proceeds) with respect to the Mortgage Loan; provided,
        however, that such obligation shall cease if the Company determines, in its
        sole
        reasonable opinion, that advances with respect to such Mortgage Loan are
        non-recoverable by the Company from Liquidation Proceeds, Insurance Proceeds,
        REO Disposition Proceeds, Condemnation Proceeds, or otherwise with respect
        to a
        particular Mortgage Loan. In the event that the Company determines that any
        such
        advances are non-recoverable, the Company shall provide the Purchaser with
        a
        certificate signed by two officers of the Company evidencing such
        determination.

       

      ARTICLE
        VI

       

      GENERAL
        SERVICING PROCEDURES

      

      Section
        6.01 Transfers
        of Mortgaged Property.

      

      The
        Company shall use its best efforts to enforce any "due-on-sale" provision
        contained in any Mortgage or Mortgage Note and to deny assumption by the
        Person
        to whom the Mortgaged Property has been or is about to be sold whether by
        absolute conveyance or by contract of sale, and whether or not the Mortgagor
        remains liable on the Mortgage and the Mortgage Note. When the Mortgaged
        Property has been conveyed by the Mortgagor, the Company shall, to the extent
        it
        has knowledge of such conveyance, immediately notify the Purchaser and exercise
        its rights to accelerate the maturity of such Mortgage Loan under the
        "due-on-sale" clause applicable thereto, provided, however, that the Company
        shall not exercise such rights if prohibited by law from doing so or if the
        exercise of such rights would impair or threaten to impair any recovery under
        the related PMI Policy, if any.

      

      If
        the
        Company reasonably believes it is unable under applicable law to enforce
        such
        "due-on-sale" clause, the Company shall enter into (i) an assumption and
        modification agreement with the Person to whom such property has been conveyed,
        pursuant to which such Person becomes liable under the Mortgage Note and
        the
        original Mortgagor remains liable thereon or (ii) in the event the Company
        is
        unable under applicable law to require that the original Mortgagor remain
        liable
        under the Mortgage Note and the Company has the prior consent of the primary
        mortgage guaranty insurer, a substitution of liability agreement with the
        purchaser of the Mortgaged Property pursuant to which the original Mortgagor
        is
        released from liability and the purchaser of the Mortgaged Property is
        substituted as Mortgagor and becomes liable under the Mortgage Note. If an
        assumption fee is collected by the Company for entering into an assumption
        agreement the fee will be retained by the Company as additional servicing
        compensation. In connection with any such assumption, neither the Mortgage
        Interest Rate borne by the related Mortgage Note, the term of the Mortgage
        Loan,
        the outstanding principal amount of the Mortgage Loan nor any other materials
        terms shall be changed without Purchaser’s consent.

      

      To
        the
        extent that any Mortgage Loan is assumable, the Company shall inquire diligently
        into the credit worthiness of the proposed transferee, and shall use the
        underwriting criteria for approving the credit of the proposed transferee
        which
        are used with respect to underwriting mortgage loans of the same type as
        the
        Mortgage Loans. If the credit of the proposed transferee does not meet such
        underwriting criteria, the Company diligently shall, to the extent permitted
        by
        the Mortgage or the Mortgage Note and by applicable law, accelerate the maturity
        of the Mortgage Loan.

      

      Section
        6.02 Satisfaction
        of Mortgages and Release of Mortgage Loan Documents.

      

      Upon
        the
        payment in full of any Mortgage Loan, or the receipt by the Company of a
        notification that payment in full will be escrowed in a manner customary
        for
        such purposes, the Company shall notify the Purchaser in the Monthly Remittance
        Advice as provided in Section 5.02, and may request the release of any Mortgage
        Loan Documents.

      

      If
        the
        Company satisfies or releases a Mortgage without first having obtained payment
        in full of the indebtedness secured by the Mortgage or should the Company
        otherwise prejudice any rights the Purchaser may have under the mortgage
        instruments, upon written demand of the Purchaser, the Company shall repurchase
        the related Mortgage Loan at the Repurchase Price by deposit thereof in the
        Custodial Account within 2 Business Days of receipt of such demand by the
        Purchaser. The Company shall maintain the Fidelity Bond and Errors and Omissions
        Insurance Policy as provided for in Section 4.12 insuring the Company against
        any loss it may sustain with respect to any Mortgage Loan not satisfied in
        accordance with the procedures set forth herein.

      

      Section
        6.03 Servicing
        Compensation.

      

      As
        compensation for its services hereunder, the Company shall be entitled to
        withdraw from the Custodial Account or to retain from interest payments on
        the
        Mortgage Loans the amount of its Servicing Fee. The Servicing Fee shall be
        payable monthly and shall be computed on the basis of the outstanding principal
        balance and for the period respecting which any related interest payment
        on a
        Mortgage Loan is computed. The obligation of the Purchaser to pay the Servicing
        Fee is limited to, and payable solely from, the interest portion of such
        Monthly
        Payments.

      

      Additional
        servicing compensation in the form of assumption fees, to the extent provided
        in
        Section 6.01, and late payment charges shall be retained by the Company to
        the
        extent not required to be deposited in the Custodial Account. The Company
        shall
        be required to pay all expenses incurred by it in connection with its servicing
        activities hereunder and shall not be entitled to reimbursement thereof except
        as specifically provided for herein.

      

      Section
        6.04 Annual
        Statements as to Compliance.

      

      (i) The
        Company shall deliver to the Purchaser, on or before February 28, 2006, an
        Officer's Certificate, stating that (x) a review of the activities of the
        Company during the preceding calendar year and of performance under this
        Agreement or similar agreements has been made under such officer's supervision,
        and (y) to the best of such officer's knowledge, based on such review, the
        Company has fulfilled all its obligations under this Agreement throughout
        such
        year, or, if there has been a default in the fulfillment of any such obligation,
        specifying each such default known to such officer and the nature and status
        thereof and the action being taken by the Company to cure such
        default.

      

      (ii) On
        or
        before March 1 of each calendar year, commencing in 2007, the Company shall
        deliver to the Purchaser and any Depositor a statement of compliance addressed
        to the Purchaser and such Depositor and signed by an authorized officer of
        the
        Company, to the effect that (a) a review of the Company’s activities during the
        immediately preceding calendar year (or applicable portion thereof) and of
        its
        performance under this Agreement and any applicable Reconstitution Agreement
        during such period has been made under such officer’s supervision, and (b) to
        the best of such officers’ knowledge, based on such review, the Company has
        fulfilled all of its obligations under this Agreement and any applicable
        Reconstitution Agreement in all material respects throughout such calendar
        year
        (or applicable portion thereof) or, if there has been a failure to fulfill
        any
        such obligation in any material respect, specifically identifying each such
        failure known to such officer and the nature and the status
        thereof.

      

      Section
        6.05 Annual
        Independent Public Accountants' Servicing Report.

      

      Except
        with respect to Securitization Transactions occurring on or after January
        1,
        2006, on or before February 28, 2006, the Company, at its expense, shall
        cause a
        firm of independent public accountants which is a member of the American
        Institute of Certified Public Accountants to furnish a statement to each
        Purchaser to the effect that such firm has examined certain documents and
        records relating to the servicing of the mortgage loans similar in nature
        and
        that such firm is of the opinion that the provisions of this or similar
        agreements have been complied with, and that, on the basis of such examination
        conducted substantially in compliance with the Single Attestation Program
        for
        Mortgage Bankers, nothing has come to their attention which would indicate
        that
        such servicing has not been conducted in compliance therewith, except for
        (i)
        such exceptions as such firm shall believe to be immaterial, and (ii) such
        other
        exceptions as shall be set forth in such statement. By providing Purchaser
        a
        copy of a Uniform Single Attestation Program Report from their independent
        public accountant's on an annual basis, Company shall be considered to have
        fulfilled its obligations under this Section 6.05.

      

      Section
        6.06 Report
        on Assessment of Compliance and Attestation.

      

      With
        respect to any Mortgage Loans that are the subject of a Securitization
        Transaction occurring on or before March 1 of each calendar year, commencing
        in
        2007, the Company shall:

      

      
        	(i)  	
                deliver
                  to the Purchaser and any Depositor a report (in form and substance
                  reasonably satisfactory to the Purchaser and such Depositor) regarding
                  the
                  Company’s assessment of compliance with the Servicing Criteria during the
                  immediately preceding calendar year, as required under Rules 13a-18
                  and
                  15d-18 of the Exchange Act and Item 1122 of Regulation AB. Such
                  report
                  shall be addressed to the Purchaser and such Depositor and signed
                  by an
                  authorized officer of the Company and shall address each of the
                  Servicing
                  Criteria specified on a certification substantially in the form
                  of Exhibit
                  D hereto;

              

      

      

      
        	(ii)  	
                deliver
                  to the Purchaser and any Depositor a report of a registered public
                  accounting firm reasonably acceptable to the Purchaser and such
                  Depositor
                  that attests to, and reports on, the assessment of compliance made
                  by the
                  Company and delivered pursuant to the preceding paragraph. Such
                  attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g)
                  of
                  Regulation S-X under the Securities Act and the Exchange Act;
                  

              

      

      

      
        	(iii)  	
                cause
                  each Subservicer and each Subcontractor, determined by the Company
                  pursuant to Section 425(b) to be “participating in the servicing function”
                  within the meaning of Item 1122 of Regulation AB, to deliver to
                  the
                  Purchaser and such Depositor an assessment of compliance and accountants’
                  attestation as and when provided in paragraphs (a) and (b) of this
                  Section
                  6.06; and 

              

      

      

      
        	(iv)  	
                deliver
                  to the Purchaser, any Depositor and any other Person that will
                  be
                  responsible for signing the certification (a “Sarbanes Certification”)
                  required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act
                  (pursuant
                  to Section 302 of the Sarbanes-Oxley Act of 2002) on behalf of
                  an
                  asset-backed issuer with respect to a Securitization Transaction
                  a
                  certification in the form attached hereto as Exhibit
                  E.

              

      

      

      The
        Company acknowledges that the parties identified in clause (iv) above may
        rely
        on the certification provided by the Company pursuant to such clause in signing
        a Sarbanes Certification and filing such with the Commission.

      

      Section
        6.07 Remedies.

      

      (i) Any
        failure by the Company, any Subservicer, any Subcontractor or any Third-Party
        Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under Article 9, Section 6.04,
        Section 6.05 or Section 6.06, or any breach by the Company of a representation
        or warranty set forth in Section 9.01(e)(iv)(A), or in a writing furnished
        pursuant to Section 9.01(e)(iv)(B) and made as of a date prior to the closing
        date of the related Securitization Transaction, to the extent that such breach
        is not cured by such closing date, or any breach by the Company of a
        representation or warranty in a writing furnished pursuant to Section
        9.01(e)(iv)(B) to the extent made as of a date subsequent to such closing
        date,
        shall, except as provided in sub-clause (ii) of this Section, immediately
        and
        automatically, without notice or grace period, constitute an Event of Default
        with respect to the Company under this Agreement and any applicable
        Reconstitution Agreement, and shall entitle the Purchaser or Depositor, as
        applicable, in its sole discretion to terminate the rights and obligations
        of
        the Company as servicer under this Agreement and/or any applicable
        Reconstitution Agreement without payment (notwithstanding anything in this
        Agreement or any applicable Reconstitution Agreement to the contrary) of
        any
        compensation to the Company; provided that to the extent than any provision
        of
        this Agreement and/or any applicable Reconstitution Agreement expressly provides
        for the survival of certain rights or obligations following termination of
        the
        Company as servicer, such provision shall be given effect.

      

      (ii) Any
        failure by the Company, any Subservicer or any Subcontractor to deliver any
        information, report, certification or accountants’ letter when and as required
        under Section 6.04, Section 6.05 or Section 6.06, including any failure by
        the
        Company to identify any Subcontract “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB, which continues unremedied
        for
        ten (10) calendar days after the date on which such information, report,
        certification or accountants’ letter was required to be delivered shall
        constitute an Event of Default with respect to the Company under this Agreement
        and any applicable Reconstitution Agreement, and shall entitle the Purchaser
        or
        Depositor, as applicable, in its sole discretion to terminate the rights
        and
        obligations of the Company under this Agreement and/or any applicable
        Reconstitution Agreement without payment (notwithstanding anything in this
        Agreement to the contrary) of any compensation to the Company; provided that
        to
        the extent that any provision of this Agreement and/or any applicable
        Reconstitution Agreement expressly provides for the survival of certain rights
        or obligations following termination of the Company as servicer, such provision
        shall be given effect.

      

      (iii) The
        Company shall promptly reimburse the Purchaser (or any designee of the
        Purchaser, such as a master servicer) and any Depositor, as applicable, for
        all
        reasonable expenses incurred by the Purchaser (or such designee) or such
        Depositor, as such are incurred, in connection with the termination of the
        Company as servicer and the transfer of servicing of the Mortgage Loans to
        a
        successor servicer. The provisions of this paragraph shall not limit whatever
        rights the Purchaser or any Depositor may have under other provisions of
        this
        Agreement and/or any applicable Reconstitution Agreement or otherwise, whether
        in equity or at law, such as an action for damages, specific performance
        or
        injunctive relief.

      

      Section
        6.08 Right
        to Examine Company Records.

      

      The
        Purchaser, or its designee, shall have the right to examine and audit any
        and
        all of the books, records, or other information of the Company, whether held
        by
        the Company or by another on its behalf, with respect to or concerning this
        Agreement or the Mortgage Loans, during business hours or at such other times
        as
        may be reasonable under applicable circumstances, upon reasonable advance
        notice. The Purchaser shall pay its own expenses associated with such
        examination.

      

      Section
        6.09 Compliance
        with REMIC Provisions.

      

      If
        a
        REMIC election has been made with respect to the arrangement under which
        the
        Mortgage Loans and REO Property are held, the Company shall not take any
        action,
        cause the REMIC to take any action or fail to take (or fail to cause to be
        taken) any action that, under the REMIC Provisions, if taken or not taken, as
        the case may be, could (i) endanger the status of the REMIC as a REMIC or
        (ii)
        result in the imposition of a tax upon the REMIC (including but not limited
        to
        the tax on “prohibited transactions” as defined Section 860(a)(2) of the Code
        and the tax on “contributions” to a REMIC set forth in Section 860(d) of the
        Code) unless the Company has received an Opinion of Counsel (at the expense
        of
        the party seeking to take such action) to the effect that the contemplated
        action will not endanger such REMIC status or result in the imposition of
        any
        such tax.

       

      ARTICLE
        VII

       

      COMPANY
        TO COOPERATE

      

      Section
        7.01 Provision
        of Information.

      

      During
        the term of this Agreement, the Company shall furnish to the Purchaser such
        periodic, special, or other reports or information, and copies or originals
        of
        any documents contained in the Servicing File for each Mortgage Loan provided
        for herein. All other special reports or information not provided for herein
        as
        shall be necessary, reasonable, or appropriate with respect to the Purchaser
        or
        any regulatory agency will be provided at the Purchaser’s expense. All such
        reports, documents or information shall be provided by and in accordance
        with
        all reasonable instructions and directions which the Purchaser may
        give.

      

      The
        Company shall execute and deliver all such instruments and take all such
        action
        as the Purchaser may reasonably request from time to time, in order to
        effectuate the purposes and to carry out the terms of this
        Agreement.

      

      Section
        7.02 Financial
        Statements; Servicing Facility.

      

      In
        connection with marketing the Mortgage Loans, the Purchaser may make available
        to a prospective Purchaser a Consolidated Statement of Operations of the
        Company
        for the most recently completed two (2) fiscal years for which such a statement
        is available, as well as a Consolidated Statement of Condition at the end
        of the
        last two fiscal years covered by such Consolidated Statement of Operations.
        The
        Company also shall make available any comparable interim statements to the
        extent any such statements have been prepared by or on behalf of the Company
        (and are available upon request to members or stockholders of the Company
        or to
        the public at large).

      

      The
        Company also shall make available to Purchaser or prospective Purchaser a
        knowledgeable financial or accounting officer for the purpose of answering
        questions respecting recent developments affecting the Company or the financial
        statements of the Company, and to permit any prospective purchaser to inspect
        the Company's servicing facilities for the purpose of satisfying such
        prospective purchaser that the Company has the ability to service the Mortgage
        Loans as provided in this Agreement.

       

      ARTICLE
        VIII

       

      THE
        COMPANY

      

      Section
        8.01 Indemnification;
        Third Party Claims.

      

      The
        Company shall indemnify the Purchaser and hold it harmless against any and
        all
        claims, losses, damages, penalties, fines, forfeitures, reasonable and necessary
        legal fees and related costs, judgments, and any other costs, fees and expenses
        that the Purchaser may sustain in any way related to the failure of the Company
        to perform its duties and service the Mortgage Loans in strict compliance
        with
        the terms of this Agreement. The Company immediately shall notify the Purchaser
        if a claim is made by a third party with respect to this Agreement or the
        Mortgage Loans, assume (with the prior written consent of the Purchaser)
        the
        defense of any such claim and pay all expenses in connection therewith,
        including counsel fees, and promptly pay, discharge and satisfy any judgment
        or
        decree which may be entered against it or the Purchaser in respect of such
        claim. The Company shall follow any written instructions received from the
        Purchaser in connection with such claim. The Purchaser promptly shall reimburse
        the Company for all amounts advanced by it pursuant to the preceding sentence
        except when the claim is in any way related to the Company's indemnification
        pursuant to Section 3.03, or the failure of the Company to service and
        administer the Mortgage Loans in strict compliance with the terms of this
        Agreement.

      

      Section
        8.02 Merger
        or Consolidation of the Company.

      

      The
        Company shall keep in full effect its existence, rights and franchises and
        shall
        obtain and preserve its qualification to do business in each jurisdiction
        in
        which such qualification is or shall be necessary to protect the validity
        and
        enforceability of this Agreement or any of the Mortgage Loans and to perform
        its
        duties under this Agreement.

      

      Any
        Person into which the Company may be merged or consolidated, or any corporation
        resulting from any merger, conversion or consolidation to which the Company
        shall be a party, or any Person succeeding to the business of the Company,
        shall
        be the successor of the Company hereunder, without the execution or filing
        of
        any paper or any further act on the part of any of the parties hereto, anything
        herein to the contrary notwithstanding, provided, however, that the successor
        or
        surviving Person shall be an institution which is a Fannie Mae/Freddie
        Mac-approved company in good standing and has a net worth of no less than
        $25
        million. Furthermore, in the event the Company transfers or otherwise disposes
        of all or substantially all of its assets to an affiliate of the Company,
        such
        affiliate shall satisfy the condition above, and shall also be fully liable
        to
        the Purchaser for all of the Company's obligations and liabilities
        hereunder.

      

      Section
        8.03 Limitation
        on Liability of Company and Others.

      

      Neither
        the Company nor any of the directors, officers, employees or agents of the
        Company shall be under any liability to the Purchaser for any action taken
        or
        for refraining from the taking of any action in good faith pursuant to this
        Agreement, or for errors in judgment, provided, however, that this provision
        shall not protect the Company or any such Person against any breach of
        warranties or representations made herein, or failure to perform its obligations
        in strict compliance with any standard of care set forth in this Agreement
        or
        any other liability which would otherwise be imposed under this Agreement.
        The
        Company and any director, officer, employee or agent of the Company may rely
        in
        good faith on any document of any kind prima facie properly executed and
        submitted by any Person respecting any matters arising hereunder. The Company
        shall not be under any obligation to appear in, prosecute or defend any legal
        action which is not incidental to its duties to service the Mortgage Loans
        in
        accordance with this Agreement and which in its opinion may involve it in
        any
        expense or liability, provided, however, that the Company may, with the consent
        of the Purchaser, undertake any such action which it may deem necessary or
        desirable in respect to this Agreement and the rights and duties of the parties
        hereto. In such event, the Company shall be entitled to reimbursement from
        the
        Purchaser of the reasonable legal expenses and costs of such
        action.

      

      Section
        8.04 Limitation
        on Resignation and Assignment by Company.

      

      The
        Purchaser has entered into this Agreement with the Company and subsequent
        Purchaser will purchase the Mortgage Loans in reliance upon the independent
        status of the Company, and the representations as to the adequacy of its
        servicing facilities, plant, personnel, records and procedures, its integrity,
        reputation and financial standing, and the continuance thereof. Therefore,
        the
        Company shall neither assign this Agreement or the servicing rights hereunder
        or
        delegate its rights or duties hereunder (other than pursuant to Section 4.01)
        or
        any portion hereof or sell or otherwise dispose of all of its property or
        assets
        without the prior written consent of the Purchaser, which consent shall not
        be
        unreasonably withheld.

      

      The
        Company shall not resign from the obligations and duties hereby imposed on
        it
        except by mutual consent of the Company and the Purchaser or upon the
        determination that its duties hereunder are no longer permissible under
        applicable law and such incapacity cannot be cured by the Company. Any such
        determination permitting the resignation of the Company shall be evidenced
        by an
        Opinion of Counsel to such effect delivered to the Purchaser which Opinion
        of
        Counsel shall be in form and substance acceptable to the Purchaser. No such
        resignation shall become effective until a successor shall have assumed the
        Company's responsibilities and obligations hereunder in the manner provided
        in
        Section 12.01.

      

      Without
        in any way limiting the generality of this Section 8.04, in the event that
        the
        Company either shall assign this Agreement or the servicing responsibilities
        hereunder or delegate its duties hereunder (other than pursuant to Section
        4.01)
        or any portion thereof or sell or otherwise dispose of all or substantially
        all
        of its property or assets, without the prior written consent of the Purchaser,
        then the Purchaser shall have the right to terminate this Agreement upon
        notice
        given as set forth in Section 10.01, without any payment of any penalty or
        damages and without any liability whatsoever to the Company or any third
        party.

       

      ARTICLE
        IX

       

      SECURITIZATION
        TRANSACTIONS; WHOLE LOAN TRANSFERS AND AGENCY TRANSFERS

      

      Section
        9.01 Securitization
        Transactions; Whole Loan Transfers and Agency Transfers

      

      The
        Purchaser and the Company agree that with respect to some or all of the Mortgage
        Loans, the Purchaser, at its sole option, may effect Whole Loan Transfers,
        Agency Transfer or Securitization Transactions, retaining the Company as
        the
        servicer thereof or subservicer if a master servicer is employed, or as
        applicable the "seller/servicer." On the Reconstitution Date, the Mortgage
        Loans
        transferred may cease to be covered by this Agreement; provided, however,
        that,
        in the event that any Mortgage Loan transferred pursuant to this Section
        9.01 is
        rejected by the transferee, the Company shall continue to service such rejected
        Mortgage Loan on behalf of the Purchaser in accordance with the terms and
        provisions of this Agreement.

      

      The
        Company shall cooperate with the Purchaser in connection with each Whole
        Loan
        Transfer, Agency Transfer or Securitization Transaction in accordance with
        this
        Section 9.01. In connection therewith:

      

      
        	 	
                (a)

              	
                the
                  Company shall make all representations and warranties with respect
                  to the
                  Mortgage Loans as of the related Closing Date and with respect
                  to the
                  Company itself as of the closing date of each Whole Loan Transfer,
                  Agency
                  Transfer or Securitization
                  Transaction;

              

      

      

      
        	 	
                (b)

              	
                the
                  Company shall negotiate in good faith and execute any seller/servicer
                  agreements required to effectuate the foregoing provided such agreements
                  create no greater obligation or cost on the part of the Company
                  than
                  otherwise set forth in this
                  Agreement;

              

      

      

      
        	 	
                (c)

              	
                the
                  Company shall provide as
                  applicable:

              

      

      

      
        	 	
                (i)

              	
                any
                  and all information and appropriate verification of information
                  which may
                  be reasonably available to the Company, whether through letters
                  of its
                  auditors and counsel or otherwise, as the Purchaser shall
                  request;

              

        	 	 	 

        	 	(ii)	
                such
                  additional representations, warranties, covenants, opinions of
                  counsel,
                  letters from auditors, and certificates of public officials or
                  officers of
                  the Company as are reasonably believed necessary by the trustee,
                  any
                  Rating Agency or the Purchaser, as the case may be, in connection
                  with
                  such Whole Loan Transfers, Agency Transfers or Securitization
                  Transactions. The Purchaser shall pay all third party costs associated
                  with the preparation of such information. The Company shall execute
                  any
                  seller/servicer agreements required within a reasonable period
                  of time
                  after receipt of such seller/servicer agreements which time shall
                  be
                  sufficient for the Seller and Seller's counsel to review such
                  seller/servicer agreements. Under this Agreement, the Company shall
                  retain
                  a Servicing Fee for each Mortgage Loan, at no less than the applicable
                  Servicing Fee Rate; and

              

        	 	 	 

        	 	(iii)	
                at
                  any time as required by any Rating Agency, such additional documents
                  from
                  the related Retained Mortgage File to the Custodian as may be required
                  by
                  such Rating Agency;

              

      

       

      
        	 	(d)	
                the
                  Company shall with respect to any Mortgage Loans that are subject
                  to a
                  Securitization Transaction occurring
                  on or before December 31, 2005,in
                  which the filing of a Sarbanes-Oxley Certification directly with
                  the
                  Commission is required, by February 28, 2006, or in connection
                  with any
                  additional Sarbanes-Oxley Certification required to be filed upon
                  thirty
                  (30) days written request, an officer of the Company shall execute
                  and
                  deliver an Officer’s Certification substantially in the form attached
                  hereto as Exhibit F, to the entity filing the Sarbanes-Oxley Certification
                  directly with the Commission (such as the Purchaser, any master
                  servicer,
                  any trustee
                  or
                  any depositor) for the benefit of such entity and such entity’s affiliates
                  and the officers, directors and agents of such entity and such
                  entity’s
                  affiliates, and shall indemnify such entity or persons arising
                  out of any
                  breach of Company’s obligations
                  or
                  representations
                  relating thereto as provided in such Officer’s Certification.

              

        	 	 	 

        	 	
                (e)

              	
                the
                  Company shall, in connection with any Securitization Transaction
                  occurring
                  on or after January 1, 2006, the Company shall (1) within five
                  (5)
                  Business Days following request by the Purchaser or any Depositor,
                  provide
                  to the Purchaser and such Depositor (or, as applicable, cause each
                  Third-Party Originator and each Subservicer to provide), in writing
                  and in
                  form and substance reasonably satisfactory to the Purchaser and
                  such
                  Depositor, the information and materials specified in paragraphs
                  (i),
                  (ii), (iii) and (vii) of this subsection (e), and (2) as promptly
                  as
                  practicable following notice to or discovery by the Company, provide
                  to
                  the Purchaser and any Depositor (in writing and in form and substance
                  reasonably satisfactory to the Purchaser and such Depositor) the
                  information specified in paragraph (iv) of this subsection
                  (e).

              

      

      

      
        	 	
                (i)

              	
                if
                  so requested by the Purchaser or any Depositor, the Company shall
                  provide
                  such information regarding (1) the Company, as originator of the
                  Mortgage
                  Loans (including as an acquirer of Mortgage Loans from a Qualified
                  Correspondent), or (2) each Third-Party Originator, and (3) as
                  applicable,
                  each Subservicer, as is requested for the purpose of compliance
                  with Items
                  1103(a)(1), 1105, 1110, 1117 and 1119 of Regulation AB. Such information
                  shall include, at a minimum:

              

      

      

      
        	 	
                (A)

              	
                the
                  originator’s form of organization;

              

      

      

      
        	 	
                (B)

              	
                a
                  description of the originator’s origination program and how long the
                  originator has been engaged in originating residential mortgage
                  loans,
                  which description shall include a discussion of the originator’s
                  experience in originating mortgage loans of a similar type as the
                  Mortgage
                  Loans; information regarding the size and composition of the originator’s
                  origination portfolio; and information that may be material, in
                  the good
                  faith judgment of the Purchaser, to an analysis of the performance
                  of the
                  Mortgage Loans, including the originators’ credit-granting or underwriting
                  criteria for mortgage loans of similar type(s) as the Mortgage
                  Loans and
                  such other information as the Purchaser or any Depositor may reasonably
                  request for the purpose of compliance with Item 1110(b)(2) of Regulation
                  AB;

              

      

       

      
        	 	
                (C)

              	
                a
                  description of any material legal or governmental proceedings pending
                  (or
                  known to be contemplated) against the Company, each Third-Party
                  Originator
                  and each Subservicer; and

              

      

      

      
        	 	
                (D)

              	
                a
                  description of any affiliation or relationship between the Company,
                  each
                  Third-Party Originator, each Subservicer and any of the following
                  parties
                  to a Securitization Transaction, as such parties are identified
                  to the
                  Company by the Purchaser or any Depositor in writing in advance
                  of a
                  Securitization Transaction:

              

      

       

      
        
          	 	
                  (1)

                	
                  the
                    sponsor;

                
	 	
                  (2)

                	
                  the
                    depositor;

                
	 	
                  (3)

                	
                  the
                    issuing entity;

                
	 	
                  (4)

                	
                  any
                    servicer;

                
	 	
                  (5)

                	
                  any
                    trustee;

                
	 	
                  (6)

                	
                  any
                    originator;

                
	 	
                  (7)

                	
                  any
                    significant obligor;

                
	 	
                  (8)

                	
                  any
                    enhancement or support provider; and

                
	 	
                  (9)

                	
                  any
                    other material transaction
                    party.

                

        

      

       

      
        	 	
                (ii)

              	
                If
                  so requested by the Purchaser or any Depositor, the Company shall
                  provide
                  (or, as applicable, cause each Third-Party Originator to provide)
                  Static
                  Pool Information with respect to the mortgage loans (of a similar
                  type as
                  the Mortgage Loans, as reasonably identified by the Purchaser as
                  provided
                  below) originated by (1) the Company, if the Company is an originator
                  of
                  Mortgage Loans (including as an acquirer of Mortgage Loans from
                  a
                  Qualified Correspondent), and/or (2) each Third-Party Originator.
                  Such
                  Static Pool Information shall be prepared by the Company (or Third-Party
                  Originator) on the basis of its reasonable, good faith interpretation
                  of
                  the requirements of Item 1105(a)(1)-(3) of Regulation AB. To the
                  extent
                  that there is reasonably available to the Company (or Third-Party
                  Originator) Static Pool Information with respect to more than one
                  mortgage
                  loan type, the Purchaser or any Depositor shall be entitled to
                  specify
                  whether some or all of such information shall be provided pursuant
                  to this
                  paragraph. The content of such Static Pool Information may be in
                  the form
                  customarily provided by the Company, and need not be customized
                  for the
                  Purchaser or any Depositor. Such Static Pool Information for each
                  vintage
                  origination year or prior securitized pool, as applicable, shall
                  be
                  presented in increments no less frequently than quarterly over
                  the life of
                  the mortgage loans included in the vintage origination year or
                  prior
                  securitized pool. The most recent periodic increment must be as
                  of a date
                  no later than 135 days prior to the date of the prospectus or other
                  offering document in which the Static Pool Information is to be
                  included
                  or incorporated by reference. The Static Pool Information shall
                  be
                  provided in an electronic format that provides a permanent record
                  of the
                  information provided, such as a portable document format (pdf)
                  file, or
                  other such electronic format reasonably required by the Purchaser
                  or the
                  Depositor, as applicable.

              

      

      

      If
        so
        requested by the Purchaser or any Depositor, the Company shall provide (or,
        as
        applicable, cause each Third-Party Originator to provide), at the expense
        of the
        requesting party (to the extent of any additional incremental expense associated
        with delivery pursuant to this Agreement), such statements and agreed-upon
        procedures letters of certified public accountants reasonably acceptable
        to the
        Purchaser or Depositor, as applicable, pertaining to Static Pool Information
        relating to prior securitized pools for securitizations closed on or after
        January 1, 2006 or, in the case of Static Pool Information with respect to
        the
        Company’s or Third-Party Originator’s originations or purchases, to calendar
        months commencing January 1, 2006, as the Purchaser or such Depositor shall
        reasonably request. Such statements and letters shall be addressed to and
        be for
        the benefit of such parties as the Purchaser or such Depositor shall designate,
        which may include, by way of example, any sponsor, any Depositor and any
        broker
        dealer acting as underwriter, placement agent or initial purchaser with respect
        to a Securitization Transaction. Any such statement or letter may take the
        form
        of a standard, generally applicable document accompanied by a reliance letter
        authorizing reliance by the addressees designated by the Purchaser or such
        Depositor.

      

      
        	 	
                (iii)

              	
                If
                  so requested by the Purchaser or any Depositor, the Company shall
                  provide
                  such information regarding the Company, as servicer of the Mortgage
                  Loans,
                  and each Subservicer (each of the Company and each Subservicer,
                  for
                  purposes of this paragraph, a “Servicer”), as is requested for the purpose
                  of compliance with Items 1108 of Regulation AB. Such information
                  shall
                  include, at a minimum:

              

      

      

      
        	 	
                (A)

              	
                the
                  Servicer’s form of organization;

              

      

      

      
        	 	
                (B)

              	
                a
                  description of how long the Servicer has been servicing residential
                  mortgage loans; a general discussion of the Servicer’s experience in
                  servicing assets of any type as well as a more detailed discussion
                  of the
                  Servicer’s experience in, and procedures for, the servicing function it
                  will perform under this Agreement and any Reconstitution Agreements;
                  information regarding the size, composition and growth of the Servicer’s
                  portfolio of residential mortgage loans of a type similar to the
                  Mortgage
                  Loans and information on factors related to the Servicer that may
                  be
                  material, in the good faith judgment of the Purchaser or any Depositor,
                  to
                  any analysis of the servicing of the Mortgage Loans or the related
                  asset-backed securities, as applicable, including, without limitation:
                  

              

      

      

      
        	 	
                (1)

              	
                whether
                  any prior securitizations of mortgage loans of a type similar to
                  the
                  Mortgage Loans involving the Servicer have defaulted or experienced
                  an
                  early amortization or other performance triggering event because
                  of
                  servicing during the three-year period immediately preceding the
                  related
                  Securitization Transaction;

              

      

      

      
        	 	
                (2)

              	
                the
                  extent of outsourcing the Servicer
                  utilizes;

              

      

      

      
        	 	
                (3)

              	
                whether
                  there has been previous disclosure of material noncompliance with
                  the
                  applicable servicing criteria with respect to other securitizations
                  of
                  residential mortgage loans involving the Servicer as a servicer
                  during the
                  three-year period immediately preceding the related Securitization
                  Transaction;

              

      

      

      
        	 	
                (4)

              	
                whether
                  the Servicer has been terminated as servicer in a residential mortgage
                  loan securitization, either due to a servicing default or to application
                  of a servicing performance test or trigger; and

              

      

      

      
        	 	
                (5)

              	
                such
                  other information as the Purchaser or any Depositor may reasonably
                  request
                  for the purpose of compliance with Item 1108(b)(2) of Regulation
                  AB;

              

      

      

      
        	 	
                (C)

              	
                a
                  description of any material changes during the three-year period
                  immediately preceding the related Securitization Transaction to
                  the
                  Servicer’s policies or procedures with respect to the servicing function
                  it will perform under this Agreement and any Reconstitution Agreements
                  for
                  mortgage loans of a type similar to the Mortgage
                  Loans;

              

      

      

      
        	 	
                (D)

              	
                information
                  regarding the Servicer’s financial condition, to the extent that there is
                  a material risk that an adverse financial event or circumstance
                  involving
                  the Servicer could have a material adverse effect on the performance
                  by
                  the Company of its servicing obligations under this Agreement or
                  any
                  Reconstitution Agreement;

              

      

      

      
        	 	
                (E)

              	
                information
                  regarding advances made by the Servicer on the Mortgage Loans and
                  the
                  Servicer’s overall servicing portfolio of residential mortgage loans for
                  the three-year period immediately preceding the related Securitization
                  Transaction, which may be limited to a statement by an authorized
                  officer
                  of the Servicer to the effect that the Servicer has made all advances
                  required to be made on residential mortgage loans serviced by it
                  during
                  such period, or, if such statement would not be accurate, information
                  regarding the percentage and type of advances not made as required,
                  and
                  the reasons for such failure to
                  advance;

              

      

      

      
        	 	
                (F)

              	
                a
                  description of the Servicer’s processes and procedures designed to address
                  any special or unique factors involved in servicing loans of a
                  similar
                  type as the Mortgage Loans;

              

      

      

      
        	 	
                (G)

              	
                a
                  description of the Servicer’s processes for handling delinquencies,
                  losses, bankruptcies and recoveries, such as through liquidation
                  of
                  mortgaged properties, sale of defaulted mortgage loans or workouts;
                  and
                  

              

      

      

      
        	 	
                (H)

              	
                information
                  as to how the Servicer defines or determines delinquencies and
                  charge-offs, including the effect of any grace period, re-aging,
                  restructuring, partial payments considered current or other practices
                  with
                  respect to delinquency and loss
                  experience.

              

      

      

      
        	 	
                (iv)

              	
                If
                  so requested by the Purchaser or any Depositor for the purpose
                  of
                  satisfying its reporting obligation under the Exchange Act with
                  respect to
                  any class of asset-backed securities, the Company shall (or shall
                  cause
                  each Subservicer and Third-Party Originator to) (1) notify the
                  Purchaser
                  and any Depositor in writing of (A) any material litigation or
                  governmental proceedings pending against the Company, any Subservicer
                  or
                  any Third-Party Originator and (B) any affiliations or relationships
                  that
                  develop following the closing date of a Securitization Transaction
                  between
                  the Company, any Subservicer or any Third-Party Originator and
                  any of the
                  parties specified in Section 9.01(e)(i)(D) (and any other parties
                  identified in writing by the requesting party) with respect to
                  such
                  Securitization Transaction, and (2) provide to the Purchaser and
                  any
                  Depositor a description of such proceedings, affiliations or
                  relationships.

              

      

      

      
        	 	
                (v)

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

              

      

      

      
        	 	
                (vi)

              	
                (A)

              	
                The
                  Company shall represent to the Purchaser, as of the date on which
                  information is first provided to the Purchaser under this Section
                  9.01(e)
                  that, except as disclosed in writing to the Purchaser prior to
                  such date:
                  (1) the Company is not aware and has not received notice that any
                  default,
                  early amortization or other performance triggering event has occurred
                  as
                  to any other securitization due to any act or failure to act of
                  the
                  Company; (2) the Company has not been terminated as servicer in
                  a
                  residential mortgage loan securitization, either due to a servicing
                  default or to application of a servicing performance test or trigger;
                  (3)
                  no material noncompliance with the applicable servicing criteria
                  with
                  respect to other securitizations of residential mortgage loans
                  involving
                  the Company as servicer has been disclosed or reported by the Company;
                  (4)
                  no material changes to the Company’s policies or procedures with respect
                  to the servicing function it will perform under this Agreement
                  and any
                  Reconstitution Agreement for mortgage loans of a type similar to
                  the
                  Mortgage Loans have occurred during the three-year period immediately
                  preceding the related Securitization Transaction; (5) there are
                  no aspects
                  of the Company’s financial condition that could have a material adverse
                  effect on the performance by the Company of its servicing obligations
                  under this Agreement or any Reconstitution Agreement; (6) there
                  are no
                  material legal or governmental proceedings pending (or known to
                  be
                  contemplated) against the Company, any Subservicer or any Third-Party
                  Originator; and (7) there are no affiliations, relationships or
                  transactions relating to the Company, any Subservicer or any Third-Party
                  Originator with respect to any Securitization Transaction and any
                  party
                  thereto identified by the related Depositor of a type described
                  in Item
                  1119 of Regulation AB.

              

      

      

      
        	 	
                (B)

              	
                If
                  so requested by the Purchaser on any date following the date on
                  which
                  information is first provided to the Purchaser under this Section
                  9.01(e),
                  the Company shall, within five (5) Business Days following such
                  request,
                  confirm in writing the accuracy of the representations and warranties
                  set
                  forth in sub clause (A) above or, if any such representation and
                  warranty
                  is not accurate as of the date of such request, provide reasonably
                  adequate disclosure of the pertinent facts, in writing, to the
                  requesting
                  party.

              

      

      

      
        	 	
                (vii)

              	
                In
                  addition to such information as the Company, as servicer, is obligated
                  to
                  provide pursuant to other provisions of this Agreement, if so requested
                  by
                  the Purchaser or any Depositor, the Company shall provide such
                  information
                  reasonably available to the Company regarding the performance of
                  the
                  Mortgage Loans as is reasonably required to facilitate preparation
                  of
                  distribution reports in accordance with Item 1121 of Regulation
                  AB.

              

      

      

      
        	 	
                (f)

              	
                the
                  Company shall indemnify the Purchaser, each affiliate of the Purchaser,
                  and each of the following parties participating in a Securitization
                  Transaction; each sponsor and issuing entity; each Person responsible
                  for
                  the preparation, execution or filing of any report required to
                  be filed
                  with the Commission with respect to such Securitization Transaction,
                  or
                  for execution of a certification pursuant to Rule 13a-14(d) or
                  Rule
                  15d-14(d) under the Exchange Act with respect to such Securitization
                  Transaction; each broker dealer acting as underwriter, placement
                  agent or
                  initial purchaser, each Person who controls any of such parties
                  or the
                  Depositor (within the meaning of Section 15 of the Securities Act
                  and
                  Section 20 of the Exchange Act); and the respective present and
                  former
                  directors, officers, employees and agents of each of the foregoing
                  and of
                  the Depositor, and shall hold each of them harmless from and against
                  any
                  losses, damages, penalties, fines, forfeitures, legal fees and
                  expenses
                  and related costs, judgments, and any other costs, fees and expenses
                  that
                  any of them may sustain arising out of or based
                  upon:

              

      

      

      (i)          
         (A) any
        untrue statement of a material fact contained or alleged to be contained
        in any
        information, report, certification, accountants’ letter or other material
        provided under Sections 9.01(c) and (e) by or on behalf of the Company, or
        provided under Sections 9.01(c) and (e) by or on behalf of any Subservicer,
        Subcontractor or Third-Party Originator (collectively, the “Company
        Information”), or (B) the omission or alleged omission to state in the Company
        Information a material fact required to be stated in the Company Information
        or
        necessary in order to make the statements therein, in the light of the
        circumstances under which they were made, not misleading; provided,
        by way of clarification, that
        clause (B) of this paragraph shall be construed solely by reference to the
        Company Information and not to any other information communicated in connection
        with a sale or purchase of securities, without regard to whether the Company
        Information or any portion thereof is presented together with or separately
        from
        such other information;

      

      
        	(ii)         
                 	
                any
                  failure by the Company, any Subservicer, any Subcontractor or any
                  Third-Party Originator to deliver any information, report, certification,
                  accountants’ letter or other material when and as required under Sections
                  9.01(c) and (e), including any failure by the Company to identify
                  any
                  Subcontractor “participating in the servicing function” within the meaning
                  of Item 1122 of Regulation AB; or

              

      

      

      
        	(iii)          	
                any
                  breach by the Company of a representation or warranty set forth
                  in Section
                  9.01(e)(iv)(A) or in a writing furnished pursuant to Section
                  9.01(e)(iv)(B) and made as of a date prior to the closing date
                  of the
                  related Securitization Transaction, to the extent that such breach
                  is not
                  cured by such closing date, or any breach by the Company of a
                  representation or warranty in a writing furnished pursuant to Section
                  9.01(e)(iv)(B) to the extent made as of a date subsequent to such
                  closing
                  date.

              

      

      

      In
        the
        case of any failure of performance described in sub-clause (ii) of this Section
        9.01(f), the Company shall promptly reimburse the Purchaser, any Depositor,
        as
        applicable, and each Person responsible for the preparation, execution or
        filing
        of any report required to be filed with the Commission with respect to such
        Securitization Transaction, or for execution of a certification pursuant
        to Rule
        13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
        Securitization Transaction, for all costs reasonably incurred by each such
        party
        in order to obtain the information, report, certification, accountants’ letter
        or other material not delivered as required by the Company, any Subservicer,
        any
        Subcontractor or any Third-Party Originator. 

      

      
        	 	
                (g)

              	
                the
                  Purchaser and each Person who controls the Purchaser shall indemnify
                  the
                  Company, each affiliate of the Company, each Person who controls
                  any of
                  such parties or the Company (within the meaning of Section 15 of
                  the
                  Securities Act and Section 20 of the Exchange Act) and the respective
                  present and former directors, officers, employees and agents of
                  each of
                  the foregoing and of the Company, and shall hold each of them harmless
                  from and against any losses, damages, penalties, fines, forfeitures,
                  legal
                  fees and expenses and related costs, judgments, and any other costs,
                  fees
                  and expenses that any of them may sustain arising out of or based
                  upon:

              

      

      

      (i)         
         (A) any
        untrue statement of a material fact contained or alleged to be contained
        in any
        offering materials related to a Securitization Transaction, including without
        limitation the registration statement, prospectus, prospectus supplement,
        any
        private placement memorandum, any offering circular, any computational
        materials, and any amendments or supplements to the foregoing (collectively,
        the
“Securitization Materials”) or (B) the omission or alleged omission to state in
        the Securitization Materials a material fact required to be stated in the
        Securitization Materials or necessary in order to make the statements therein,
        in the light of the circumstances under which they were made, not misleading,
        but only to the extent that such untrue statement or alleged untrue statement
        or
        omission or alleged omission is other than a statement or omission arising
        out
        of, resulting from, or based upon the Company Information.

      

      The
        Purchaser and the Company acknowledge and agree that the purpose of Section
        9.01(e) is to facilitate compliance by the Purchaser and any Depositor with
        the
        provisions of Regulation AB and related rules and regulations of the Commission.
        Neither the Purchaser nor any Depositor shall exercise its right to request
        delivery of information or other performance under these provisions other
        than
        in good faith, or for purposes other than compliance with the Securities
        Act,
        the Exchange Act and the rules and regulations of the Commission thereunder.
        The
        Company acknowledges that interpretations of the requirements of Regulation
        AB
        may change over time, whether due to interpretive guidance provided by the
        Commission or its staff, consensus among participants in the asset-backed
        securities markets, advice of counsel, or otherwise, and agrees to comply
        with
        requests made by the Purchaser or any Depositor in good faith for delivery
        of
        information under these provisions on the basis of evolving interpretations
        of
        Regulation AB. In connection with any Securitization Transaction, the Company
        shall cooperate fully with the Purchaser to deliver to the Purchaser (including
        any of its assignees or designees) and any Depositor, any and all statements,
        reports, certifications, records and any other information necessary in the
        good
        faith determination of the Purchaser or any Depositor to permit the Purchaser
        or
        such Depositor to comply with the provisions of Regulation AB, together with
        such disclosures relating to the Company, any Subservicer, any Third-Party
        Originator and the Mortgage Loans, or the servicing of the Mortgage Loans,
        reasonably believed by the Purchaser or any Depositor to be necessary in
        order
        to effect such compliance.

      

      In
        the
        event the Purchaser has elected to have the Company hold record title to
        the
        Mortgages, prior to the Reconstitution Date the Company shall prepare an
        Assignment of Mortgage in blank or to the trustee from the Company acceptable
        to
        the trustee for each Mortgage Loan that is part of the Whole Loan Transfers,
        Agency Transfer or Securitization Transactions. The Company shall pay all
        preparation and recording costs associated with the initial Assignment of
        Mortgage. The Company shall execute each Assignment of Mortgage, track such
        Assignments of Mortgage to ensure they have been recorded and deliver them
        as
        required by the trustee upon the Company's receipt thereof. Additionally,
        the
        Company shall prepare and execute, at the direction of the Purchaser, any
        note
        endorsements in connection with any and all seller/servicer agreements. If
        required at any time by a Rating Agency, Purchaser or successor purchaser
        in
        connection with any Whole Loan Transfer, Agency Sale or Securitization
        Transaction, the Company shall deliver such additional documents from its
        Retained Mortgage File within thirty (30) Business Days to the Custodian,
        successor purchaser or other designee of the Purchaser as said Rating Agency,
        Purchaser or successor purchaser may require.

      

      All
        Mortgage Loans (i) not sold or transferred pursuant to Whole Loan Transfers,
        Agency Transfer or Securitization Transactions or (ii) that are subject to
        a
        Securitization for which the related trust is terminated for any reason,
        shall
        remain subject to this Agreement and shall continue to be serviced in accordance
        with the terms of this Agreement and with respect thereto this Agreement
        shall
        remain in full force and effect.

       

      ARTICLE
        X

       

      DEFAULT

      

      Section
        10.01 Events
        of Default.

      

      Each
        of
        the following shall constitute an Event of Default on the part of the
        Company:

      

      
        	 	
                (i)

              	
                any
                  failure by the Company to remit to the Purchaser any payment required
                  to
                  be made under the terms of this Agreement which continues unremedied
                  for a
                  period of two Business Days after the date upon which written notice
                  of
                  such failure, requiring the same to be remedied, shall have been
                  given to
                  the Company by the Purchaser; or

              

      

      

      
        	 	
                (ii)

              	
                failure
                  by the Company duly to observe or perform in any material respect
                  any
                  other of the covenants or agreements on the part of the Company
                  set forth
                  in this Agreement or in the Custodial Agreement which continues
                  unremedied
                  for a period of 90 days after the date on which written notice
                  of such
                  failure, requiring the same to be remedied, shall have been given
                  to the
                  Company by the Purchaser or by the Custodian;
                  or

              

      

      

      
        	 	
                (iii)

              	
                failure
                  by the Company to maintain its license to do business in any jurisdiction
                  where the Mortgaged Property is located if such license is required;
                  or

              

      

      

      
        	 	
                (iv)

              	
                a
                  decree or order of a court or agency or supervisory authority having
                  jurisdiction for the appointment of a conservator or receiver or
                  liquidator in any insolvency, readjustment of debt, including bankruptcy,
                  marshaling of assets and liabilities or similar proceedings, or
                  for the
                  winding-up or liquidation of its affairs, shall have been entered
                  against
                  the Company and such degree or order shall have remained in force
                  undischarged or unstayed for a period of 60 days;
                  or

              

      

      

      
        	 	
                (v)

              	
                the
                  Company shall consent to the appointment of a conservator or receiver
                  or
                  liquidator in any insolvency, readjustment of debt, marshaling
                  of assets
                  and liabilities or similar proceedings of or relating to the Company
                  or of
                  or relating to all or substantially all of its property;
                  or

              

      

      

      
        	 	
                (vi)

              	
                the
                  Company shall admit in writing its inability to pay its debts generally
                  as
                  they become due, file a petition to take advantage of any applicable
                  insolvency, bankruptcy or reorganization statute, make an assignment
                  for
                  the benefit of its creditors, voluntarily suspend payment of its
                  obligations or cease its normal business operations; or
                  

              

      

      

      
        	 	
                (vii)

              	
                the
                  Company ceases to meet the qualifications of a Fannie Mae/Freddie
                  Mac
                  servicer; or

              

      

      

      
        	 	
                (viii)

              	
                the
                  Company attempts to assign its right to servicing compensation
                  hereunder
                  or to assign this Agreement or the servicing responsibilities hereunder
                  or
                  to delegate its duties hereunder or any portion thereof in violation
                  of
                  Section 8.04.

              

      

      

      In
        each
        and every such case, so long as an Event of Default shall not have been
        remedied, in addition to whatever rights the Purchaser may have at law or
        equity
        to damages, including injunctive relief and specific performance, the Purchaser,
        by notice in writing to the Company, may terminate all the rights and
        obligations of the Company under this Agreement and in and to the Mortgage
        Loans
        and the proceeds thereof.

      

      Upon
        receipt by the Company of such written notice, all authority and power of
        the
        Company under this Agreement, whether with respect to the Mortgage Loans
        or
        otherwise, shall pass to and be vested in the successor appointed pursuant
        to
        Section 12.01. Upon written request from any Purchaser, the Company shall
        prepare, execute and deliver to the successor entity designated by the Purchaser
        any and all documents and other instruments, place in such successor's
        possession all Servicing Files, and do or cause to be done all other acts
        or
        things necessary or appropriate to effect the purposes of such notice of
        termination, including but not limited to the transfer and endorsement or
        assignment of the Mortgage Loans and related documents, at the Company's
        sole
        expense. The Company shall cooperate with the Purchaser and such successor
        in
        effecting the termination of the Company's responsibilities and rights
        hereunder, including without limitation, the transfer to such successor for
        administration by it of all cash amounts which shall at the time be credited
        by
        the Company to the Custodial Account, Subsidy Account or Escrow Account or
        thereafter received with respect to the Mortgage Loans.

      

      Section
        10.02 Waiver
        of Defaults.

      

      By
        a
        written notice, the Purchaser may waive any default by the Company in the
        performance of its obligations hereunder and its consequences. Upon any waiver
        of a past default, such default shall cease to exist, and any Event of Default
        arising therefrom shall be deemed to have been remedied for every purpose
        of
        this Agreement. No such waiver shall extend to any subsequent or other default
        or impair any right consequent thereon except to the extent expressly so
        waived.

       

      ARTICLE
        XI

       

      TERMINATION

      

      Section
        11.01 Termination.

      

      This
        Agreement shall terminate upon either: (i) the later of the final payment
        or
        other liquidation (or any advance with respect thereto) of the last Mortgage
        Loan or the disposition of any REO Property with respect to the last Mortgage
        Loan and the remittance of all funds due hereunder; or (ii) mutual consent
        of
        the Company and the Purchaser in writing.

      

      Section
        11.02 Termination
        Without Cause.

      

      The
        Purchaser may terminate, at its sole option, any rights the Company may have
        hereunder, without cause as provided in this Section 11.02. Any such notice
        of
        termination shall be in writing and delivered to the Company by registered
        mail
        as provided in Section 12.05.

      

      The
        Company shall be entitled to receive, as such liquidated damages, upon the
        transfer of the servicing rights, an amount equal to: (i) 2.75% of the aggregate
        outstanding principal amount of the Mortgage Loans as of the termination
        date
        paid by the Purchaser to the Company with respect to all of the Mortgage
        Loans
        for which a servicing fee rate of .25% is paid per annum, (ii) 3.25% of the
        aggregate outstanding principal amount of the Mortgage Loans as of the
        termination date paid by the Purchaser to the Company with respect to all
        of the
        Mortgage Loans for which a servicing fee rate of .375% is paid per annum,
        and
        (iii) 3.75% of the aggregate outstanding principal amount of the Mortgage
        Loans
        as of the termination date paid by the Purchaser to the Company with respect
        to
        all of the Mortgage Loans for which a servicing fee rate of .44% or greater
        is
        paid per annum.

       

      ARTICLE
        XII

       

      MISCELLANEOUS
        PROVISIONS

      

      Section
        12.01 Successor
        to Company.

      

      Prior
        to
        termination of the Company's responsibilities and duties under this Agreement
        pursuant to Sections 8.04, 10.01, 11.01 (ii) or 11.02 the Purchaser shall,
        (i)
        succeed to and assume all of the Company's responsibilities, rights, duties
        and
        obligations under this Agreement, or (ii) appoint a successor having the
        characteristics set forth in Section 8.02 and which shall succeed to all
        rights
        and assume all of the responsibilities, duties and liabilities of the Company
        under this Agreement prior to the termination of Company's responsibilities,
        duties and liabilities under this Agreement. In connection with such appointment
        and assumption, the Purchaser may make such arrangements for the compensation
        of
        such successor out of payments on Mortgage Loans as it and such successor
        shall
        agree. In the event that the Company's duties, responsibilities and liabilities
        under this Agreement should be terminated pursuant to the aforementioned
        sections, the Company shall discharge such duties and responsibilities during
        the period from the date it acquires knowledge of such termination until
        the
        effective date thereof with the same degree of diligence and prudence which
        it
        is obligated to exercise under this Agreement, and shall take no action
        whatsoever that might impair or prejudice the rights or financial condition
        of
        its successor. The resignation or removal of the Company pursuant to the
        aforementioned sections shall not become effective until a successor shall
        be
        appointed pursuant to this Section 12.01 and shall in no event relieve the
        Company of the representations and warranties made pursuant to Sections 3.01
        and
        3.02 and the remedies available to the Purchaser under Section 3.03, it being
        understood and agreed that the provisions of such Sections 3.01, 3.02, 3.03
        and
        8.01 shall be applicable to the Company notwithstanding any such sale,
        assignment, resignation or termination of the Company, or the termination
        of
        this Agreement.

      

      Any
        successor appointed as provided herein shall execute, acknowledge and deliver
        to
        the Company and to the Purchaser an instrument accepting such appointment,
        wherein the successor shall make the representations and warranties set forth
        in
        Section 3.01, except for subsection (h) with respect to the sale of the Mortgage
        Loans and subsections (i) and (k) thereof, whereupon such successor shall
        become
        fully vested with all the rights, powers, duties, responsibilities, obligations
        and liabilities of the Company, with like effect as if originally named as
        a
        party to this Agreement. Any termination or resignation of the Company or
        termination of this Agreement pursuant to Section 8.04, 10.01, 11.01 or 11.02
        shall not affect any claims that any Purchaser may have against the Company
        arising out of the Company's actions or failure to act prior to any such
        termination or resignation.

      

      The
        Company shall deliver promptly to the successor servicer the funds in the
        Custodial Account, Subsidy Account and Escrow Account and all Servicing Files
        and related documents and statements held by it hereunder and the Company
        shall
        account for all funds and shall execute and deliver such instruments and
        do such
        other things as may reasonably be required to more fully and definitively
        vest
        in the successor all such rights, powers, duties, responsibilities, obligations
        and liabilities of the Company.

      

      Upon
        a
        successor's acceptance of appointment as such, the Company shall notify by
        mail
        the Purchaser of such appointment in accordance with the procedures set forth
        in
        Section 12.05.

      

      Section
        12.02 Amendment.

      

      This
        Agreement may be amended from time to time by written agreement signed by
        the
        Company and the Purchaser.

      

      Section
        12.03 Governing
        Law.

      

      This
        Agreement shall be construed in accordance with the laws of the State of
        New
        York and the obligations, rights and remedies of the parties hereunder shall
        be
        determined in accordance with such laws.

      

      Each
        of
        the Company and the Purchaser hereby knowingly, voluntarily and intentionally
        waives any and all rights it may have to a trial by jury in respect or any
        litigation based on, or arising out of, under, or in connection with, this
        Agreement, or any other documents and instruments executed in connection
        herewith, or any course of conduct, course of dealing, statements (whether
        oral
        or written), or actions of the Company or the Purchaser. This provision is
        a
        material inducement for the Purchaser to enter into this Agreement.

      

      Section
        12.04 Duration
        of Agreement.

      

      This
        Agreement shall continue in existence and effect until terminated as herein
        provided. This Agreement shall continue notwithstanding transfers of the
        Mortgage Loans by the Purchaser.

      

      Section
        12.05 Notices.

      

      All
        demands, notices and communications hereunder shall be in writing and shall
        be
        deemed to have been duly given if personally delivered at or mailed by
        registered mail, postage prepaid, addressed as follows:

      

      (i)           
         if
        to the
        Company with respect to servicing and investor reporting issues:

      

      Wells
        Fargo Bank, N.A.

      1
        Home
        Campus

      Des
        Moines, Iowa 50328-0001

      Attention:
        John B. Brown, MAC X2401-042

      

      If
        to the
        Company with respect to all other issues:

      

      Wells
        Fargo Bank, N.A.

      7430
        New
        Technology Way

      Frederick,
        MD 21703

      Attention:
        Structured Finance Manager, MAC X3906-012

      

      In
        each
        instance with a copy to:

       

      Wells
        Fargo Bank, N.A.

      1
        Home
        Campus

      Des
        Moines, Iowa 50328-0001

      Attention:
        General Counsel, MAC X2401-06T

      

      or
        such
        other address as may hereafter be furnished to the Purchaser in writing
 by
        the
        Company;

      

      (ii)         
         if
        to
        Purchaser:

       

      EMC
        Mortgage Corporation

      Mac
        Arthur Ridge II

      909
        Hidden Ridge Dr., Suite 200

      Irving,
        TX 75038

      Attention:
        Ralene Ruyle

      

      With
        a
        copy to:

      

      Bear
        Stearns Mortgage Capital Corp.

      383
        Madison Avenue

      New
        York,
        NY 10179

      Attention:
        Baron Silverstein

      

      Section
        12.06 Severability
        of Provisions.

      

      If
        any
        one or more of the covenants, agreements, provisions or terms of this Agreement
        shall be held invalid for any reason whatsoever, then such covenants,
        agreements, provisions or terms shall be deemed severable from the remaining
        covenants, agreements, provisions or terms of this Agreement and shall in
        no way
        affect the validity or enforceability of the other provisions of this
        Agreement.

      

      Section
        12.07 Relationship
        of Parties.

      

      Nothing
        herein contained shall be deemed or construed to create a partnership or
        joint
        venture between the parties hereto and the services of the Company shall
        be
        rendered as an independent contractor and not as agent for the
        Purchaser.

      

      Section
        12.08 Execution;
        Successors and Assigns.

      

      This
        Agreement may be executed in one or more counterparts and by the different
        parties hereto on separate counterparts, each of which, when so executed,
        shall
        be deemed to be an original; such counterparts, together, shall constitute
        one
        and the same agreement. Subject to Section 8.04, this Agreement shall inure
        to
        the benefit of and be binding upon the Company and the Purchaser and their
        respective successors and assigns.

      

      Section
        12.09 Recordation
        of Assignments of Mortgage.

      

      To
        the
        extent permitted by applicable law, each of the Assignments of Mortgage is
        subject to recordation in all appropriate public offices for real property
        records in all the counties or other comparable jurisdictions in which any
        or
        all of the Mortgaged Properties are situated, and in any other appropriate
        public recording office or elsewhere, such recordation to be effected at
        the
        Company's expense in the event recordation is either necessary under applicable
        law or requested by the Purchaser at its sole option.

      

      Section
        12.10 Assignment
        by Purchaser.

      

      The
        Purchaser shall have the right, without the consent of the Company but subject
        to the limit set forth in Section 2.02 hereof, to assign, in whole or in
        part,
        its interest under this Agreement with respect to some or all of the Mortgage
        Loans, and designate any person to exercise any rights of the Purchaser
        hereunder, by executing an Assignment, Assumption and Recognition Agreement
        substantially in the form attached as Exhibit G and the assignee or designee
        shall accede to the rights and obligations hereunder of the Purchaser with
        respect to such Mortgage Loans. All references to the Purchaser in this
        Agreement shall be deemed to include its assignee or designee.

      

      Section
        12.11 Solicitation
        of Mortgagor.

      

      Neither
        party shall, after the related Closing Date, take any action to solicit the
        refinancing of any Mortgage Loan. It is understood and agreed that neither
        (i)
        promotions undertaken by either party or any affiliate of either party which
        are
        directed to the general public at large, including, without limitation, mass
        mailings based upon commercially acquired mailing lists, newspaper, radio,
        television advertisements nor (ii) serving the refinancing needs of a Mortgagor
        who, without solicitation, contacts either party in connection with the
        refinance of such Mortgage or Mortgage Loan, shall constitute solicitation
        under
        this Section.

      

      

      [Intentionally
        Blank - Next Page Signature Page]

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

      

        
          	
                  EMC
                    MORTGAGE CORPORATION

                	 	
                  WELLS
                    FARGO BANK, N.A.

                
	
                  Purchaser

                	 	
                  Company

                
	 	 	 	 	 
	
                  By:

                	 	 	
                  By:
                    

                	 
	 	 	 	 	 
	
                  Name:
                    

                	 	 	
                  Name:
                    

                	 
	 	 	 	 	 
	
                  Title:

                	 	 	
                  Title:
                    

                	 

 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  STATE
                    OF

                	 	
                  )

                
	 	 	
                  )
                    ss:

                
	
                  COUNTY
                    OF

                	 	
                  )

                

        

      

      
 

      On
        the
        _____ day of _______________, 20___ before me, a Notary Public in and for
        said
        State, personally appeared      ,
        known
        to me to be     
        of Wells
        Fargo Bank, N.A., the national banking association that executed the within
        instrument and also known to me to be the person who executed it on behalf
        of
        said bank, and acknowledged to me that such bank executed the within
        instrument.

      

      IN
        WITNESS WHEREOF, I have hereunto set my hand affixed my office seal the day
        and
        year in this certificate first above written.

      

      

      
        	 	 	 
	 	Notary Public	 
	 	 	 
	 	My Commission expires
                _____________________	 

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        

          
            	
                    STATE
                      OF

                  	 	
                    )

                  
	 	 	
                    )
                      ss:

                  
	
                    COUNTY
                      OF

                  	 	
                    )

                  

          

        

        
 

      

      On
        the
        _____ day of _______________, 20___ before me, a Notary Public in and for
        said
        State, personally appeared _____________________________________, known to
        me to
        be the ______________________________ of EMC Mortgage Corporation, the
        corporation that executed the within instrument and also known to me to be
        the
        person who executed it on behalf of said corporation, and acknowledged to
        me
        that such corporation executed the within instrument.

      

      IN
        WITNESS WHEREOF, I have hereunto set my hand affixed my office seal the day
        and
        year in this certificate first above written.

      
        

        
          	 	 	 
	 	Notary Public	 
	 	 	 
	 	My Commission expires
                  _____________________	 

        

         

      

        

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        A

      

      FORM
        OF
        ASSIGNMENT AND CONVEYANCE AGREEMENT

       

      On
        this
        _____ day of __________, 20___, Wells Fargo Bank, N.A. (the "Seller")
        as the
        Seller under that certain Amended and Restated Master Mortgage Loan Purchase
        Agreement, ("Purchase Agreement") and as the Company under that certain Amended
        and Restated Master Seller's Warranties and Servicing Agreement (the "Servicing
        Agreement") each dated as of _______________, 20___, (collectively, the
        "Agreements")
        does
        hereby sell, transfer, assign, set over and convey to EMC Mortgage Corporation
        as the Purchaser (the "Purchaser")
        under
        the Purchase Agreement, and Purchaser hereby accepts from Seller, without
        recourse, but subject to the terms of the Agreements, all right, title and
        interest of, in and to the Mortgage Loans listed on the Mortgage Loan Schedule
        attached hereto as Exhibit
        A,
        together with the Custodial Mortgage Files and Retained Mortgage Files and
        all
        rights and obligations arising under the documents contained therein. Pursuant
        to Section 2.03 of the Servicing Agreement, the Seller has delivered to the
        Custodian the documents for each Mortgage Loan to be purchased. The Servicing
        Files retained by the Seller pursuant to Section 2.01 of the Servicing Agreement
        shall be appropriately marked to clearly reflect the sale of the related
        Mortgage Loans to the Purchaser. 

       

      Capitalized
        terms used herein and not otherwise defined shall have the meanings set forth
        in
        the Agreements. 

      
        

          
            	
                    EMC
                      MORTGAGE CORPORATION

                  	 	
                    WELLS
                      FARGO BANK, N.A.

                  
	
                    Purchaser

                  	 	
                    Company

                  
	 	 	 	 	 
	
                    By:

                  	 	 	
                    By:
                      

                  	 
	 	 	 	 	 
	
                    Name:
                      

                  	 	 	
                    Name:
                      

                  	 
	 	 	 	 	 
	
                    Title:

                  	 	 	
                    Title:
                      

                  	 

 

        

      

           

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      EXHIBIT
        B

      

      CUSTODIAL
        AGREEMENT

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        C

      

      CONTENTS
        OF EACH RETAINED MORTGAGE FILE, 

      SERVICING
        FILE AND CUSTODIAL MORTGAGE FILE

      

      With
        respect to each Mortgage Loan, the Retained Mortgage File and Custodial Mortgage
        File shall include each of the following items, which shall be available
        for
        inspection by the Purchaser and any prospective Purchaser, and which shall
        be
        retained by the Company in the Retained Mortgage File or Servicing File or
        delivered to the Custodian pursuant to Sections 2.01 and 2.03 of the Seller's
        Warranties and the Servicing Agreement to which this Exhibit is attached
        (the
        "Agreement"):

      

      
        	 	
                1.

              	
                The
                  original Mortgage Note bearing all intervening endorsements, endorsed
                  "Pay
                  to the order of  
                  without recourse" and signed in the name of the Company by an authorized
                  officer (in the event that the Mortgage Loan was acquired by the
                  Company
                  in a merger, the signature must be in the following form: "[Company],
                  successor by merger to [name of predecessor]"; and in the event
                  that the
                  Mortgage Loan was acquired or originated by the Company while doing
                  business under another name, the signature must be in the following
                  form:
                  "[Company], formerly know as [previous
                  name]").

              

      

      

      
        	 	
                2.

              	
                The
                  original of any guarantee executed in connection with the Mortgage
                  Note
                  (if any).

              

      

      

      
        	 	
                3.

              	
                The
                  original Mortgage, with evidence of recording thereon or a certified
                  true
                  and correct copy of the Mortgage sent for recordation. If in connection
                  with any Mortgage Loan, the Company cannot deliver or cause to
                  be
                  delivered the original Mortgage with evidence of recording thereon
                  on or
                  prior to the related Closing Date because of a delay caused by
                  the public
                  recording office where such Mortgage has been delivered for recordation
                  or
                  because such Mortgage has been lost or because such public recording
                  office retains the original recorded Mortgage, the Company shall
                  deliver
                  or cause to be delivered to the Custodian, a photocopy of such
                  Mortgage,
                  together with (i) in the case of a delay caused by the public recording
                  office, an Officer's Certificate of the Company stating that such
                  Mortgage
                  has been dispatched to the appropriate public recording office
                  for
                  recordation and that the original recorded Mortgage or a copy of
                  such
                  Mortgage certified by such public recording office to be a true
                  and
                  complete copy of the original recorded Mortgage will be promptly
                  delivered
                  to the Custodian upon receipt thereof by the Company; or (ii) in
                  the case
                  of a Mortgage where a public recording office retains the original
                  recorded Mortgage or in the case where a Mortgage is lost after
                  recordation in a public recording office, a copy of such Mortgage
                  certified by such public recording office or by the title insurance
                  company that issued the title policy to be a true and complete
                  copy of the
                  original recorded Mortgage.

              

      

      

      Further,
        with respect to MERS Mortgage Loans, (a) the Mortgage names MERS as the
        Mortgagee and (b) the requirements set forth in the Electronic Tracking
        Agreement have been satisfied, with a conformed recorded copy to follow as
        soon
        as the same is received by the Company.

      

      
        	 	
                4.

              	
                the
                  originals or certified true copies of any document sent for recordation
                  of
                  all assumption, modification, consolidation or extension agreements,
                  with
                  evidence of recording thereon.

              

      

      

      
        	 	
                5.

              	
                The
                  original Assignment of Mortgage for each Mortgage Loan, in form
                  and
                  substance acceptable for recording (except for the insertion of
                  the name
                  of the assignee and recording information). The Assignment of Mortgage
                  must be duly recorded only if recordation is either necessary under
                  applicable law or commonly required by private institutional mortgage
                  investors in the area where the Mortgaged Property is located or
                  on
                  direction of the Purchaser as provided in the Custodial Agreement.
                  If the
                  Assignment of Mortgage is to be recorded, the Mortgage shall be
                  assigned
                  to the Purchaser. If the Assignment of Mortgage is not to be recorded,
                  the
                  Assignment of Mortgage shall be delivered in blank. If the Mortgage
                  Loan
                  was acquired by the Company in a merger, the Assignment of Mortgage
                  must
                  be made by "[Company], successor by merger to [name of predecessor]."
                  If
                  the Mortgage Loan was acquired or originated by the Company while
                  doing
                  business under another name, the Assignment of Mortgage must be
                  by
                  "[Company], formerly know as [previous name]."

              

      

      

      
        	 	
                6.

              	
                Originals
                  or certified true copies of documents sent for recordation of all
                  intervening assignments of the Mortgage with evidence of recording
                  thereon, or if any such intervening assignment has not been returned
                  from
                  the applicable recording office or has been lost or if such public
                  recording office retains the original recorded assignments of mortgage,
                  the Company shall deliver or cause to be delivered to the Custodian,
                  a
                  photocopy of such intervening assignment, together with (i) in
                  the case of
                  a delay caused by the public recording office, an Officer's Certificate
                  of
                  the Company stating that such intervening assignment of mortgage
                  has been
                  dispatched to the appropriate public recording office for recordation
                  and
                  that such original recorded intervening assignment of mortgage
                  or a copy
                  of such intervening assignment of mortgage certified by the appropriate
                  public recording office or by the title insurance company that
                  issued the
                  title policy to be a true and complete copy of the original recorded
                  intervening assignment of mortgage will be promptly delivered to
                  the
                  Custodian upon receipt thereof by the Company; or (ii) in the case
                  of an
                  intervening assignment where a public recording office retains
                  the
                  original recorded intervening assignment or in the case where an
                  intervening assignment is lost after recordation in a public recording
                  office, a copy of such intervening assignment certified by such
                  public
                  recording office to be a true and complete copy of the original
                  recorded
                  intervening assignment.

              

      

      

      
        	 	
                7.

              	
                The
                  electronic form of PMI Policy as identified by certificate
                  number.

              

      

      

      
        	 	
                8.

              	
                The
                  original mortgagee policy of title insurance or other evidence
                  of title
                  such as a copy of the title commitment or copy of the preliminary
                  title
                  commitment.

              

      

      

      
        	 	
                9.

              	
                Any
                  security agreement, chattel mortgage or equivalent executed in
                  connection
                  with the Mortgage.

              

        	 	 	 

        	 	10.	Original power of attorney, if
                applicable.

      

       

      
        	 	
                11.

              	
                For
                  each Cooperative Loan, the original or a seller certified true
                  copy of the
                  following:

              

      

       

      The
        original Pledge Agreement entered into by the Mortgagor with respect to such
        Cooperative Loan;

       

      UCC-3
        assignment in blank (or equivalent instrument), sufficient under the laws
        of the
        jurisdiction where the related Cooperative Apartment is located to reflect
        of
        record the sale and assignment of the Cooperative Loan to the
        Purchaser;

       

      Original
        assignment of Pledge Agreement in blank showing a complete chain of assignment
        from the originator of the related Cooperative Loan to the Company;

       

      Original
        Form UCC-1 and any continuation statements with evidence of filing thereon
        with
        respect to such Cooperative Loan;

       

      Cooperative
        Shares with a Stock Certificate in blank attached; 

       

      Original
        Proprietary Lease;

       

      Original
        Assignment of Proprietary Lease, in blank, and all intervening assignments
        thereof;

       

      Original
        recognition agreement of the interests of the mortgagee with respect to the
        Cooperative Loan by the Cooperative, the stock of which was pledged by the
        related Mortgagor to the originator of such Cooperative Loan; and

       

      Originals
        of any assumption, consolidation or modification agreements relating to any
        of
        the items specified above.

      

      With
        respect to each Mortgage Loan, the Servicing File shall include each of the
        following items to the extent in the possession of the Company or in the
        possession of the Company’s agent(s):

      

      
        	 	
                12.

              	
                The
                  original hazard insurance policy and, if required by law, flood
                  insurance
                  policy, in accordance with Section 4.10 of the
                  Agreement.

              

      

      

      
        	 	
                13.

              	
                Residential
                  loan application.

              

      

      

      
        	 	
                14.

              	
                Mortgage
                  Loan closing statement.

              

      

      

      
        	 	
                15.

              	
                Verification
                  of employment and income, unless originated under the Company's
                  Limited
                  Documentation program, Fannie Mae Timesaver
                  Plus.

              

      

      

      
        	 	
                16.

              	
                Verification
                  of acceptable evidence of source and amount of down
                  payment.

              

      

      

      
        	 	
                17.

              	
                Credit
                  report on the Mortgagor.

              

      

      

      
        	 	
                18.

              	
                Residential
                  appraisal report.

              

      

      

      
        	 	
                19.

              	
                Photograph
                  of the Mortgaged Property.

              

      

      

      
        	 	
                20.

              	
                Survey
                  of the Mortgage property, if required by the title company or applicable
                  law.

              

      

      

      
        	 	
                21.

              	
                Copy
                  of each instrument necessary to complete identification of any
                  exception
                  set forth in the exception schedule in the title policy, i.e. map
                  or plat,
                  restrictions, easements, sewer agreements, home association declarations,
                  etc.

              

      

      

      
        	 	
                22.

              	
                All
                  required disclosure statements.

              

      

      

      
        	 	
                23.

              	
                If
                  available, termite report, structural engineer's report, water
                  potability
                  and septic certification.

              

      

      

      
        	 	
                24.

              	
                Sales
                  contract, if applicable.

              

      

      

      
        	 	
                25.

              	
                Evidence
                  of payment of taxes and insurance premiums, insurance claim files,
                  correspondence, current and historical computerized data files,
                  and all
                  other processing, underwriting and closing papers and records which
                  are
                  customarily contained in a mortgage loan file and which are required
                  to
                  document the Mortgage Loan or to service the Mortgage
                  Loan.

              

      

      

      
        	 	
                26.

              	
                Amortization
                  schedule, if available.

              

      

      

      
        	 	
                27.

              	
                Payment
                  history for any Mortgage Loan that has been closed for more than
                  90
                  days.

              

      

       

      In
        the
        event an Officer's Certificate of the Company is delivered to the Custodian
        because of a delay caused by the public recording office in returning any
        recorded document, the Company shall deliver to the Custodian, within 240
        days
        of the related Closing Date, an Officer's Certificate which shall (i) identify
        the recorded document, (ii) state that the recorded document has not been
        delivered to the Custodian due solely to a delay caused by the public recording
        office, (iii) state the amount of time generally required by the applicable
        recording office to record and return a document submitted for recordation,
        and
        (iv) specify the date the applicable recorded document will be delivered
        to the
        Custodian. The Company shall be required to deliver to the Custodian the
        applicable recorded document by the date specified in (iv) above. An extension
        of the date specified in (iv) above may be requested from the Purchaser,
        which
        consent shall not be unreasonably withheld. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        D

      

      

      SERVICING
        CRITERIA TO BE ADDRESSED

      IN
        ASSESSMENT OF COMPLIANCE

      

      

      
        	
                Reg
                  AB Reference

              	
                Servicing
                  Criteria

              	
                Applicable
                  Servicing Criteria

              	
                Inapplicable
                  Servicing Criteria

              
	 	
                General
                  Servicing Considerations

              	 	 
	
                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements.

              	
                 

              	
                 

              
	
                1122(d)(1)(ii)

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities.

              	
                 

              	
                 

              
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the mortgage loans are maintained. 

              	
                 

              	
                 

              
	
                1122(d)(1)(iv)

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements. 

              	
                 

              	 
	 	
                Cash
                  Collection and Administration

              	 	 
	
                1122(d)(2)(i)

              	
                Payments
                  on mortgage loans are deposited into the appropriate custodial
                  bank
                  accounts and related bank clearing accounts no more than two business
                  days
                  following receipt, or such other number of days specified in the
                  transaction agreements. 

              	
                 

              	
                 

              
	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel. 

              	
                 

              	
                 

              
	
                1122(d)(2)(iii)

              	
                Advances
                  of funds or guarantees regarding collections, cash flows or distributions,
                  and any interest or other fees charged for such advances, are made,
                  reviewed and approved as specified in the transaction agreements.
                  

              	
                 

              	
                 

              
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of overcollateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements. 

              	
                 

              	
                 

              
	
                1122(d)(2)(v)

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institution” with respect to
                  a foreign financial institution means a foreign financial institution
                  that
                  meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                  Act.
                  

              	
                 

              	
                 

              
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized access.
                  

              	
                 

              	
                 

              
	
                1122(d)(2)(vii)
                  

              	
                Reconciliations
                  are prepared on a monthly basis for all asset-backed securities
                  related
                  bank accounts, including custodial accounts and related bank clearing
                  accounts. These reconciliations are (A) mathematically accurate;
                  (B)
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction agreements;
                  (C)
                  reviewed and approved by someone other than the person who prepared
                  the
                  reconciliation; and (D) contain explanations for reconciling items.
                  These
                  reconciling items are resolved within 90 calendar days of their
                  original
                  identification, or such other number of days specified in the transaction
                  agreements. 

              	 	 
	 	
                Investor
                  Remittances and Reporting

              	 	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of mortgage loans serviced by the Servicer.
                  

              	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Reg
                  AB Reference

              	
                Servicing
                  Criteria

              	
                Applicable
                  Servicing Criteria

              	
                Inapplicable
                  Servicing Criteria

              
	 	
                Pool
                  Asset Administration (cont’d)

              	 	 
	
                1122(d)(3)(ii)

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements. 

              	
                 

              	
                 

              
	
                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  Servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements. 

              	
                 

              	
                 

              
	
                1122(d)(3)(iv)

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank statements.
                  

              	 	 
	 	
                Pool
                  Asset Administration

              	 	 
	
                1122(d)(4)(i)
                  

              	
                Collateral
                  or security on mortgage loans is maintained as required by the
                  transaction
                  agreements or related mortgage loan documents. 

              	
                 

              	
                 

              
	
                1122(d)(4)(ii)

              	
                Mortgage
                  loan and related documents are safeguarded as required by the transaction
                  agreements 

              	
                 

              	
                 

              
	
                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements. 

              	
                 

              	
                 

              
	
                1122(d)(4)(iv)

              	
                Payments
                  on mortgage loans, including any payoffs, made in accordance with
                  the
                  related mortgage loan documents are posted to the Servicer’s obligor
                  records maintained no more than two business days after receipt,
                  or such
                  other number of days specified in the transaction agreements, and
                  allocated to principal, interest or other items (e.g., escrow)
                  in
                  accordance with the related mortgage loan documents. 

              	
                 

              	
                 

              
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the mortgage loans agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal balance.
                  

              	
                 

              	
                 

              
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor's mortgage loans
                  (e.g.,
                  loan modifications or re-agings) are made, reviewed and approved
                  by
                  authorized personnel in accordance with the transaction agreements
                  and
                  related pool asset documents. 

              	
                 

              	
                 

              
	
                1122(d)(4)(vii)

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements. 

              	
                 

              	
                 

              
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a mortgage
                  loan is delinquent in accordance with the transaction agreements.
                  Such
                  records are maintained on at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent mortgage loans including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or unemployment).
                  

              	
                 

              	
                 

              
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for mortgage loans with variable
                  rates are computed based on the related mortgage loan documents.
                  

              	
                 

              	
                 

              
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s mortgage loan
                  documents, on at least an annual basis, or such other period specified
                  in
                  the transaction agreements; (B) interest on such funds is paid,
                  or
                  credited, to obligors in accordance with applicable mortgage loan
                  documents and state laws; and (C) such funds are returned to the
                  obligor
                  within 30 calendar days of full repayment of the related mortgage
                  loans,
                  or such other number of days specified in the transaction agreements.
                  

              	
                 

              	
                 

              
	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements. 

              	
                 

              	
                 

              
	
                1122(d)(4)(xii)

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the Servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission. 

              	
                 

              	
                 

              
	
                1122(d)(4)(xiii)

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the servicer, or such other number of days
                  specified in the transaction agreements. 

              	
                 

              	
                 

              
	
                1122(d)(4)(xiv)
                  

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements. 

              	
                 

              	
                 

              
	
                1122(d)(4)(xv)

              	
                Any
                  external enhancement or other support, identified in Item 1114(a)(1)
                  through (3) or Item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements. 

              	 	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        E

      

      FORM
        OF
        SARBANES CERTIFICATION

      

      
        	 	
                Re:

              	
                The
                  [ ] agreement dated as of [ ], 200[ ] (the “Agreement”), among [IDENTIFY
                  PARTIES]

              

      

      

      I,
        ________________________________, the _______________________ of [Name of
        Servicer], certify to [the Owner], [the Depositor], and the [Master Servicer]
        [Securities Administrator] [Trustee], and their officers, with the knowledge
        and
        intent that they will rely upon this certification, that:

      

      (1) I
        have
        reviewed the servicer compliance statement of the Servicer provided in
        accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the
        report on assessment of the Servicer’s compliance with the servicing criteria
        set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided
        in accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act
        of
        1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Servicing Assessment”), the registered public accounting firm’s attestation
        report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
        Act and Section 1122(b) of Regulation AB (the “Attestation Report”), and all
        servicing reports, officer’s certificates and other information relating to the
        servicing of the Mortgage Loans by the Servicer during 200[ ] that were
        delivered by the Servicer to the [Depositor] [Master Servicer] [Securities
        Administrator] [Trustee] pursuant to the Agreement (collectively, the “Servicer
        Servicing Information”);

      

      (2) Based
        on
        my knowledge, the Servicer Servicing Information, taken as a whole, does
        not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Servicer Servicing Information; 

      

      (3) Based
        on
        my knowledge, all of the Servicer Servicing Information required to be provided
        by the Servicer under the Agreement has been provided to the [Depositor]
        [Master
        Servicer] [Securities Administrator] [Trustee];

      

      (4) I
        am
        responsible for reviewing the activities performed by the Servicer under
        the
        Agreement, and based on my knowledge and the compliance review conducted
        in
        preparing the Compliance Statement and except as disclosed in the Compliance
        Statement, the Servicing Assessment or the Attestation Report, the Servicer
        has
        fulfilled its obligations under the Agreement; and

      

      (5)  The
        Compliance Statement, the Servicing Assessment and the Attestation Report
        required to be provided by the Servicer pursuant to the Agreement have been
        provided to the [Depositor] [Master Servicer]. Any material instances of
        noncompliance described in such reports have been disclosed to the [Depositor]
        [Master Servicer]. Any material instance of noncompliance with the Servicing
        Criteria has been disclosed in such reports.

       

      Date:

      

      By:_____________________________    

      Name:___________________________

      Title:_____________________________

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        F

       

      FORM
        OF
        SARBANES-OXLEY BACK-UP CERTIFICATION

      

      I,
        ______________________, Vice President of Wells Fargo Bank, N.A. (the
        "Servicer"), certify to __________________, and its officers, directors,
        agents
        and affiliates (the "Sarbanes Certifying Party"), and with the knowledge
        and
        intent that they will rely upon this certification, that:

      

      
        	 	
                (i)

              	
                Based
                  on my knowledge, the information relating to the Mortgage Loans
                  and the
                  servicing thereof submitted by the Servicer to the Sarbanes Certifying
                  Party which is used in connection with preparation of the reports
                  on Form
                  8-K and the annual report on Form 10-K filed with the Securities
                  and
                  Exchange Commission with respect to the Securitization, taken as
                  a whole,
                  does not contain any untrue statement of a material fact or omit
                  to state
                  a material fact necessary to make the statements made, in light
                  of the
                  circumstances under which such statements were made, not misleading
                  as of
                  the date of this certification;

              

      

      

      
        	 	
                (ii)

              	
                The
                  servicing information required to be provided to the Sarbanes Certifying
                  Party by the Servicer under the relevant servicing agreement has
                  been
                  provided to the Sarbanes Certifying
                  Party;

              

      

      

      
        	 	
                (iii)
                  

              	
                I
                  am responsible for reviewing the activities performed by the Servicer
                  under the relevant servicing agreement and based upon the review
                  required
                  by the relevant servicing agreement, and except as disclosed in
                  the Annual
                  Statement of Compliance, the Annual Independent Public Accountant's
                  Servicing Report and all servicing reports, officer's certificates
                  and
                  other information relating to the servicing of the Mortgage Loans
                  submitted to the Sarbanes Certifying Party, the Servicer has, as
                  of the
                  date of this certification fulfilled its obligations under the
                  relevant
                  servicing agreement; and

              

      

      

      
        	(iv)       
                  	
                I
                  have disclosed to the Sarbanes Certifying Party all significant
                  deficiencies relating to the Servicer's compliance with the minimum
                  servicing standards in accordance with a review conducted in compliance
                  with the Uniform Single Attestation Program for Mortgage Bankers
                  or
                  similar standard as set forth in the relevant servicing agreement.
                  

              

      

      

      
        	 	
                (v)
                  

              	
                The
                  Servicer shall indemnify and hold harmless the Sarbanes Certifying
                  Party
                  and its officers, directors, agents and affiliates from and against
                  any
                  losses, damages, penalties, fines, forfeitures, reasonable legal
                  fees and
                  related costs, judgments and other costs and expenses arising out
                  of or
                  based upon a breach by the Servicer or any of its officers, directors,
                  agents or affiliates of its obligations under this Certification
                  or the
                  negligence, bad faith or willful misconduct of the Servicer in
                  connection
                  therewith. If the indemnification provided for herein is unavailable
                  or
                  insufficient to hold harmless the Sarbanes Certifying Party, then
                  the
                  Servicer agrees that it shall contribute to the amount paid or
                  payable by
                  the Sarbanes Certifying Party as a result of the losses, claims,
                  damages
                  or liabilities of the Sarbanes Certifying Party in such proportion
                  as is
                  appropriate to reflect the relative fault of the Sarbanes Certifying
                  Party
                  on the one hand and the Servicer on the other in connection with
                  a breach
                  of the Servicer's obligations under this Certification or the Servicer's
                  negligence, bad faith or willful misconduct in connection
                  therewith.

              

      

      

      IN
        WITNESS WHEREOF, I have hereunto signed my name and affixed the seal of the
        Servicer.

      

      Dated:                  
               By:

      Name:

      Title:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        G

      

      ASSIGNMENT,
        ASSUMPTION AND RECOGNITION AGREEMENT

      

      

      ____________,
        20__

      

      

      ASSIGNMENT,
        ASSUMPTION AND RECOGNITION AGREEMENT, dated ___________________, 20____ between
        _________________, a _________________ corporation having an office at
        _________________ ("Assignor") and _________________, having an office at
        _________________ ("Assignee"):

      

      For
        and
        in consideration of the sum of one dollar ($1.00) and other valuable
        consideration the receipt and sufficiency of which are hereby acknowledge,
        and
        of the mutual covenants herein contained, the parties hereto hereby agree
        as
        follows:

      

      1. The
        Assignor hereby grants, transfers and assigns to Assignee all of the right,
        title and interest of Assignor, as Purchaser, in, to and under that certain
        Seller's Warranties and Servicing Agreement, (the "Seller's Warranties and
        Servicing Agreement"), dated as of _________________, by and between
        _________________ (the "Purchaser"), and _________________ (the "Company"),
        and
        the Mortgage Loans delivered thereunder by the Company to the Assignor, and
        that
        certain Custodial Agreement, (the "Custodial Agreement"), dated as of
        _________________, by and among the Company, the Purchaser and _________________
        (the "Custodian").

      

      2. The
        Assignor warrants and represents to, and covenants with, the Assignee
        that:

      

      a. The
        Assignor is the lawful owner of the Mortgage Loans with the full right to
        transfer the Mortgage Loans free from any and all claims and encumbrances
        whatsoever;

      

      b. The
        Assignor has not received notice of, and has no knowledge of, any offsets,
        counterclaims or other defenses available to the Company with respect to
        the
        Seller's Warranties and Servicing Agreement or the Mortgage Loans;

      

      c. The
        Assignor has not waived or agreed to any waiver under, or agreed to any
        amendment or other modification of, the Seller's Warranties and Servicing
        Agreement, the Custodial Agreement or the Mortgage Loans, including without
        limitation the transfer of the servicing obligations under the Seller's
        Warranties and Servicing Agreement. The Assignor has no knowledge of, and
        has
        not received notice of, any waivers under or amendments or other modifications
        of, or assignments of rights or obligations under, the Seller's Warranties
        and
        Servicing Agreement or the Mortgage Loans; and

      

      d. Neither
        the Assignor nor anyone acting on its behalf has offered, transferred, pledged,
        sold or otherwise disposed of the Mortgage Loans, any interest in the Mortgage
        Loans or any other similar security to, or solicited any offer to buy or
        accept
        a transfer, pledge or other disposition of the Mortgage Loans, any interest
        in
        the Mortgage Loans or any other similar security from, or otherwise approached
        or negotiated with respect to the Mortgage Loans, any interest in the Mortgage
        Loans or any other similar security with, any person in any manner, or made
        any
        general solicitation by means of general advertising or in any other manner,
        or
        taken any other action which would constitute a distribution of the Mortgage
        Loans under the Securities Act or which would render the disposition of the
        Mortgage Loans a violation of Section 5 of the 33 Act or require registration
        pursuant thereto.

      

      3. That
        Assignee warrants and represent to, and covenants with, the Assignor and
        the
        Company pursuant to Section 12.10 of the Seller's Warranties and Servicing
        Agreement that:

      

      a. The
        Assignee agrees to be bound, as Purchaser, by all of the terms, covenants
        and
        conditions of the Seller's Warranties and Servicing Agreement, the Mortgage
        Loans and the Custodial Agreement, and from and after the date hereof, the
        Assignee assumes for the benefit of each of the Company and the Assignor
        all of
        the Assignor's obligations as purchaser thereunder;

      

      b. The
        Assignee understands that the Mortgage Loans have not been registered under
        the
        33 Act or the securities laws of any state;

      

      c. The
        purchase price being paid by the Assignee for the Mortgage Loans are in excess
        of $250,000.00 and will be paid by cash remittance of the full purchase price
        within 60 days of the sale;

      

      d. The
        Assignee is acquiring the Mortgage Loans for investment for its own account
        only
        and not for any other person. In this connection, neither the Assignee nor
        any
        person authorized to act therefor has offered to Mortgage Loans by means
        of any
        general advertising or general solicitation within the meaning of Rule 502(c)
        of
        US Securities and Exchange Commission Regulation D, promulgated under the
        Securities Act;

      

      e. The
        Assignee considers itself a substantial sophisticated institutional investor
        having such knowledge and experience in financial and business matters that
        it
        is capable of evaluating the merits and risks of investment in the Mortgage
        Loans;

      

      f. The
        Assignee has been furnished with all information regarding the Mortgage Loans
        that it has requested from the Assignor or the Company;

      

      g. Neither
        the Assignee nor anyone acting on its behalf has offered, transferred, pledged,
        sold or otherwise disposed of the Mortgage Loans, any interest in the Mortgage
        Loans or any other similar security to, or solicited any offer to buy or
        accept
        a transfer, pledge or other disposition of the Mortgage Loans, any interest
        in
        the Mortgage Loans or any other similar security from, or otherwise approached
        or negotiated with respect to the Mortgage Loans, any interest in the Mortgage
        Loans or any other similar security with, any person in any manner which
        would
        constitute a distribution of the Mortgage Loans under the 33 Act or which
        would
        render the disposition of the Mortgage Loans a violation of Section 5 of
        the 33
        Act or require registration pursuant thereto, nor will it act, nor has it
        authorized or will it authorize any person to act, in such manner with respect
        to the Mortgage Loans; and

      

      h. Either
        (1) the Assignee is not an employee benefit plan ("Plan") within the meaning
        of
        section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
        ("ERISA") or a plan (also "Plan") within the meaning of section 4975(e)(1)
        of
        the Internal Revenue Code of 1986 ("Code"), and the Assignee is not directly
        or
        indirectly purchasing the Mortgage Loans on behalf of, investment manager
        of, as
        named fiduciary of, as Trustee of, or with assets of, a Plan; or (2) the
        Assignee's purchase of the Mortgage Loans will not result in a prohibited
        transaction under section 406 of ERISA or section 4975 of the Code.

      

      i. The
        Assignee's address for purposes of all notices and correspondence related
        to the
        Mortgage Loans and the Seller's Warranties and Servicing Agreements
        is:

       

      
        	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Attention: _________________	 

      

      

      The
        Assignee's wire transfer instructions for purposes of all remittances and
        payments related to the Mortgage Loans and the Seller's Warranties and Servicing
        Agreement is:

       

      
        
          	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Attention: _________________	 

        

         

      

      4. From
        and
        after the date hereof, the Company shall note the transfer of the Mortgage
        Loans
        to the Assignee in its books and records, the Company shall recognize the
        Assignee as the owner of the Mortgage Loans and the Company shall service
        the
        Mortgage Loans for the benefit of the Assignee pursuant to the Seller’s
        Warranties and Servicing Agreement, the terms of which are incorporated herein
        by reference. It is the intention of the Assignor, the Company and the Assignee
        that the Seller’s Warranties and Servicing Agreement shall be binding upon and
        inure to the benefit of the Company and the Assignee and their respective
        successors and assigns.

      

      [Signatures
        Follow]

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      IN
        WITNESS WHEREOF, the parties have caused this Assignment and Assumption to
        be
        executed by their duly authorized officers as of the date first above
        written.

       

      
        
          
            	 	 	 
	
                    Assignor

                  	 	 	
                    Assignee

                  	 
	 	 	 	 	 
	
                    By:
                      

                  	 	 	
                    By:
                      

                  	 
	 	 	 	 	 
	
                    Name:
                      

                  	 	 	
                    Name:
                      

                  	 
	 	 	 	 	 
	
                    Its:
                      

                  	 	 	
                    Its:
                      

                  	 
	 	 	 	 	 
	
                    Tax
                      Payer Identification No.:

                  	 	
                    Tax
                      Payer Identification No.:

                  
	 	 	 

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        H

      

      ELECTRONIC
        DATA FILE

      

        
          	 	
                  (1)

                	
                  the
                    street address of the Mortgaged Property including the city,
                    state, county
                    and zip code;

                
	 	 	 
	 	
                  (2)

                	
                  a
                    code indicating whether the Mortgaged Property is a single family
                    residence, a 2-4 family dwelling, a PUD, a cooperative, a townhouse,
                    manufactured housing or a unit in a condominium
                    project;

                
	 	 	 
	 	
                  (3)

                	
                  the
                    Mortgage Interest Rate as of the Cut-off Date;

                
	 	 	 
	 	
                  (4)

                	
                  the
                    current Monthly Payment;

                
	 	 	 
	 	
                  (5)

                	
                  loan
                    term, number of months;

                
	 	 	 
	 	
                  (6)

                	
                  the
                    stated maturity date;

                
	 	 	 
	 	
                  (7)

                	
                  the
                    Stated Principal Balance of the Mortgage Loan as of the close
                    of business
                    on the Cut-off Date, after deduction of payments of principal
                    due on or
                    before the Cut-off Date;

                
	 	 	 
	 	
                  (8)

                	
                  the
                    Loan-to-Value Ratio;

                
	 	 	 
	 	
                  (9)

                	
                  a
                    code indicating whether the Mortgage Loan is an Interest Only
                    Mortgage
                    Loan;

                
	 	 	 
	 	
                  (10)

                	
                  a
                    code indicating whether the Mortgage Loan is a temporary buydown
                    (Y or
                    N);

                
	 	 	 
	 	
                  (11)

                	
                  the
                    Servicing Fee Rate;

                
	 	 	 
	 	
                  (12)

                	
                  a
                    code indicating whether the Mortgage Loan is covered by lender-paid
                    mortgage insurance (Y or N);

                
	 	 	 
	 	
                  (13)

                	
                  a
                    code indicating whether the Mortgage Loan is a Time$aver® Mortgage Loan (Y
                    or N);

                
	 	 	 
	 	
                  (14)

                	
                  the
                    Mortgagor's first and last name;

                
	 	 	 
	 	
                  (15)

                	
                  a
                    code indicating whether the Mortgaged Property is owner-occupied;
                    

                
	 	 	 
	 	
                  (16)

                	
                  the
                    remaining months to maturity from the Cut-off Date, based on
                    the original
                    amortization schedule; 

                
	 	 	 
	 	
                  (17)

                	
                  the
                    date on which the first Monthly Payment was due on the Mortgage
                    Loan;
                    

                
	 	 	 
	 	
                  (18)

                	
                  the
                    last Due Date on which a Monthly Payment was actually applied
                    to the
                    actual principal balance; 

                
	 	 	 
	 	
                  (19)

                	
                  the
                    original principal amount of the Mortgage Loan; 

                
	 	 	 
	 	
                  (20)

                	
                  a
                    code indicating the purpose of the loan (i.e., purchase, financing,
                    rate/term refinancing, cash-out refinancing); 

                
	 	 	 
	 	
                  (21)

                	
                  the
                    Mortgage Interest Rate at origination; 

                
	 	 	 
	 	
                  (22)

                	
                  the
                    date on which the first Monthly Payment was due on the Mortgage
                    Loan;
                    

                
	 	 	 
	 	
                  (23)

                	
                  a
                    code indicating the documentation style (i.e., full (providing
                    two years
                    employment verification - 2 years W-2’s and current pay stub or 2 years
                    1040’s for self employed borrowers), alternative or
                    reduced);

                
	 	 	 
	 	
                  (24)

                	
                  a
                    code indicating if the Mortgage Loan is subject to a PMI
                    Policy;

                
	 	 	 
	 	
                  (25)

                	
                  the
                    Appraised Value of the Mortgage Property;

                
	 	 	 
	 	
                  (26)

                	
                  the
                    sale price of the Mortgaged Property, if applicable;

                
	 	 	 
	 	
                  (27)

                	
                  the
                    Mortgagor’s Underwriting FICO Score;

                
	 	 	 
	 	
                  (28)

                	
                  term
                    of prepayment penalty in years;

                
	 	 	 
	 	
                  (29)

                	
                  a
                    code indicating the product type;

                
	 	 	 
	 	
                  (30)

                	
                  a
                    code indicating the credit grade of the Mortgage Loan;

                
	 	 	 
	 	
                  (31)

                	
                  the
                    unpaid balance of the Mortgage Loan as of the close of business
                    on the
                    Cut-off Date, after deduction of all payments of
                    principal;

                
	 	 	 
	 	
                  (32)

                	
                  the
                    Note date of the Mortgage Loan;

                
	 	 	 
	 	
                  (33)

                	
                  the
                    mortgage insurance certificate number and percentage of coverage,
                    if
                    applicable;

                
	 	 	 
	 	
                  (34)

                	
                  the
                    Mortgagor’s date of birth;

                
	 	 	 
	 	
                  (35)

                	
                  the
                    MIN Number for each Mortgage Loan, if applicable;

                
	 	 	 
	 	
                  (36)

                	
                  employer
                    name;

                
	 	 	 
	 	
                  (37)

                	
                  subsidy
                    program code;

                
	 	 	 
	 	
                  (38)

                	
                  servicer
                    name;

                
	 	 	 
	 	
                  (39)

                	
                  the
                    combined Loan-to-Value Ratio;

                
	 	 	 
	 	
                  (40)

                	
                  the
                    total Loan-to-Value Ratio;

                
	 	 	 
	 	
                  (41)

                	
                  whether
                    the Mortgage Loan is convertible (Y or N);

                
	 	 	 
	 	
                  (42)

                	
                  a
                    code indicating whether the Mortgage Loan is a relocation loan
                    (Y or
                    N);

                
	 	 	 
	 	
                  (43)

                	
                  a
                    code indicating whether the Mortgage Loan is a leasehold loan
                    (Y or
                    N);

                
	 	 	 
	 	
                  (44)

                	
                  a
                    code indicating whether the Mortgage Loan is an Alt A loan (Y
                    or
                    N);

                
	 	 	 
	 	
                  (45)

                	
                  a
                    code indicating whether the Mortgage Loan is a no ratio loan
                    (Y or N);
                    

                
	 	 	 
	 	
                  (46)

                	
                  a
                    code indicating whether the Mortgage Loan is a Pledged Asset
                    Mortgage Loan
                    (Y or N);

                
	 	 	 
	 	
                  (47)

                	
                  effective
                    LTV percentage for Pledged Asset Mortgage Loans;

                
	 	 	 
	 	
                  (48)

                	
                  citizenship
                    type code;

                
	 	 	 
	 	
                  (49)

                	
                  a
                    code indicating whether the Mortgage Loan is a conforming or
                    non-conforming loan, based on the original loan
                    balance;

                
	 	 	 
	 	
                  (50)

                	
                  the
                    name of the client for which the Mortgage Loan was
                    originated;

                
	 	 	 
	 	
                  (51)

                	
                  the
                    program code;

                
	 	 	 
	 	
                  (52)

                	
                  the
                    loan sub doc code;

                
	 	 	 
	 	
                  (53)

                	
                  the
                    remaining interest-only term for Interest Only Mortgage
                    Loans;

                
	 	 	 
	 	
                  The
                    Company shall provide the following

                
	 	
                  For
                    the Home Mortgage Disclosure Act (HMDA):

                
	 	 	 
	 	
                  (54)

                	
                  the
                    Mortgagor’s and co-Mortgagor’s (if applicable)
                    ethnicity;

                
	 	 	 
	 	
                  (55)

                	
                  the
                    Mortgagor’s and co-Mortgagor’s (if applicable) race;

                
	 	 	 
	 	
                  (56)

                	
                  lien
                    status;

                
	 	 	 
	 	
                  (57)

                	
                  for
                    cash-out refinance loans, the cash purpose;

                
	 	 	 
	 	
                  (58)

                	
                  the
                    Mortgagor’s and co-Mortgagor’s (if applicable) gender;

                
	 	 	 
	 	
                  (59)

                	
                  the
                    Mortgagor’s and co-Mortgagor’s (if applicable) social security
                    numbers;

                
	 	 	 
	 	
                  (60)

                	
                  the
                    number of units for the property;

                
	 	 	 
	 	
                  (61)

                	
                  the
                    year in which the property was built;

                
	 	 	 
	 	
                  (62)

                	
                  the
                    qualifying monthly income of the Mortgagor;

                
	 	 	 
	 	
                  (63)

                	
                  the
                    number of bedrooms contained in the property;

                
	 	 	 
	 	
                  (64)

                	
                  a
                    code indicating first time buyer (Y or N);

                
	 	 	 
	 	
                  (65)

                	
                  the
                    total rental income, if any;

                
	 	 	 
	 	
                  The
                    Seller shall provide the following

                
	 	
                  for
                    the adjustable rate Mortgage Loans (if applicable):

                
	 	 	 
	 	
                  (66)

                	
                  the
                    maximum Mortgage Interest Rate under the terms of the Mortgage
                    Note;

                
	 	 	 
	 	
                  (67)

                	
                  the
                    Periodic Interest Rate Cap;

                
	 	 	 
	 	
                  (68)

                	
                  the
                    Index;

                
	 	 	 
	 	
                  (69)

                	
                  the
                    next Adjustment Date;

                
	 	 	 
	 	
                  (70)

                	
                  the
                    Gross Margin; and

                
	 	 	 
	 	
                  (71)

                	
                  the
                    lifetime interest rate
                    cap.

                

        

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      MASTER
        MORTGAGE LOAN PURCHASE AGREEMENT

      

      

      This
        is
        an Amended and Restated Master Mortgage Loan Purchase Agreement (the
        "Agreement"), dated as of November 1, 2004 by and between EMC Mortgage
        Corporation, having an office at 909 Hidden Ridge Drive, Suite 200, Irving,
        Texas 75038 (the "Purchaser") and Wells Fargo Bank, N.A., having an office
        at 1
        Home Campus, Des Moines, Iowa 50328-0001 (the "Seller").

      

      W I T N E
60;S S E T H

      

      WHEREAS,
        the Seller agrees to sell, and the Purchaser agrees to purchase, from time
        to
        time certain conventional residential mortgage loans (the "Mortgage Loans")
        on a
        servicing retained basis as described herein:

      

      WHEREAS,
        the Mortgage Loans shall be delivered as pools of whole loans (each a “Loan
        Package”) on various dates as provided herein (each a “Closing Date”);
        and

      

      WHEREAS,
        the parties intend hereby to set forth the terms and conditions upon which
        the
        proposed Transactions will be effected.

      

      NOW
        THEREFORE, in consideration of the promises and the mutual agreements set
        forth
        herein, the parties hereto agree as follows:

      

      SECTION
        1. 
        All
        capitalized terms not otherwise defined herein have the respective meanings
        set
        forth in the Amended and Restated Master Seller's Warranties and Servicing
        Agreement, dated as of the date herewith (the“Master Seller's Warranties and
        Servicing Agreement"). 

      

      SECTION
        2. Agreement
        to Purchase.
        The
        Seller agrees to sell, and the Purchaser agrees to purchase from time to
        time,
        Mortgage Loans having an aggregate principal balance on the applicable related
        Cut-off Date in an amount as set forth in the related Commitment Letters
        or in
        such other amount as agreed by the Purchaser and the Seller as evidenced
        by the
        actual aggregate principal balance of the Mortgage Loans in the related Loan
        Package accepted by the Purchaser on the related Closing Date. The Mortgage
        Loans will be delivered pursuant to the Master Seller's Warranties and Servicing
        Agreement.

      

      SECTION
        3.  Mortgage
        Schedules.
        The
        Seller will provide the Purchaser with certain information constituting a
        listing of the Mortgage Loans to be purchased under this Agreement for each
        Transaction (the "Mortgage Loan Schedule"). Each Mortgage Loan Schedule shall
        conform to the definition of "Mortgage Loan Schedule" under the Master Seller's
        Warranties and Servicing Agreement.

      

      SECTION
        4.  Purchase
        Price.
        The
        purchase price for each Loan Package (the "Purchase Price") shall be the
        percentage of par as stated in the related Commitment Letter, multiplied
        by the
        aggregate principal balance, as of the related Cut-off Date, of the Mortgage
        Loans listed in the related Loan Package, after application of scheduled
        payments of principal for such related Loan Package due on or before the
        related
        Cut-off Date whether or not collected. The purchase price for a Loan Package
        may
        be adjusted as stated in the related Commitment Letter.

      

      In
        addition to the Purchase Price, the Purchaser shall pay to the Seller, at
        closing, accrued interest on the initial principal amount of the Mortgage
        Loans
        at the weighted average Mortgage Loan Remittance Rate for each Loan Package
        from
        the related Cut-off Date through the day prior to the related Closing Date,
        inclusive.

      

      With
        respect to each Loan Package, the Purchaser shall be entitled to (1) all
        scheduled principal due after the related Cut-off Date, (2) all other recoveries
        of principal collected after the related Cut-off Date (provided, however,
        that
        all scheduled payments of principal due on or before the related Cut-off
        Date
        and collected by the Seller after the related Cut-off Date shall belong to
        the
        Seller), and (3) all payments of interest on the Mortgage Loans at the Mortgage
        Loan Remittance Rate (minus that portion of any such payment which is allocable
        to the period prior to the related Cut-off Date). The principal balance of
        each
        Mortgage Loan as of the related Cut-off Date is determined after application
        of
        payments of principal due on or before the related Cut-off Date whether or
        not
        collected. Therefore, payments of scheduled principal and interest prepaid
        for a
        due date beyond the related Cut-off Date shall not be applied to the principal
        balance as of the related Cut-off Date. Such prepaid amounts (minus interest
        at
        the Servicing Fee Rate) shall be the property of the Purchaser. The Seller
        shall
        deposit any such prepaid amounts into the Custodial Account, which account
        is
        established for the benefit of the Purchaser for subsequent remittance by
        the
        Seller to the Purchaser. 

      

      SECTION
        5.  Examination
        of Mortgage Files.
        Prior to
        each Closing Date, the Seller shall (a) deliver to the Purchaser in escrow,
        for
        examination, the Mortgage File for each Mortgage Loan, including a copy of
        the
        Assignment of Mortgage, pertaining to each Mortgage Loan, or (b) make the
        Mortgage Files available to the Purchaser for examination at the Seller's
        offices or such other location as shall otherwise be agreed upon by the
        Purchaser and the Seller. Such examination may be made by the Purchaser or
        by
        any prospective purchaser of the Mortgage Loans from the Purchaser, at any
        time
        before or after such related Closing Date, upon prior reasonable notice to
        the
        Seller. The fact that the Purchaser or any prospective purchaser of the Mortgage
        Loans has conducted or has failed to conduct any partial or complete examination
        of the Mortgage Files shall not affect the Purchaser's (or any of its
        successor's) rights to demand repurchase, substitution or other relief as
        provided under the Master Seller's Warranties and Servicing
        Agreement.

      

      Prior
        to
        Seller’s receipt of the Purchase Price, the Purchaser shall cause the Custodian
        to act as bailee for the sole and exclusive benefit of the Seller pursuant
        to
        the Custodial Agreement and act only in accordance with Seller’s instructions.
        Upon the Seller’s receipt of the Purchase Price, the Seller shall provide
        notification to the Custodian to release ownership of the Mortgage Loan
        Documents contained in the Custodial Mortgage File. Such notification shall
        be
        in a form of a written notice by facsimile or other electronic media, with
        a
        copy sent to the Purchaser. Subsequent to such release, such Mortgage Loan
        Documents shall be retained by the Custodian for the benefit of the Purchaser.
        All Mortgage Loan Documents related to Mortgage Loans not purchased by the
        Purchaser on the Closing Date, shall be maintained by the Custodian for the
        benefit of the Seller and shall be returned to the Seller within two (2)
        Business Days after the Closing Date.

      

      SECTION
        6.  Representations,
        Warranties and Agreements of Seller.
        The
        Seller agrees and acknowledges that it shall, as a condition to the consummation
        of the transactions contemplated hereby, make the representations and warranties
        specified in Section 3.01 and 3.02 of the Master Seller's Warranties and
        Servicing Agreement, as of each related Closing Date. The meaning of the
        term
        "Agreement" as used in Sections 3.01 and 3.02 of the Master Seller's Warranties
        and Servicing Agreement shall include this Agreement. The Seller, without
        conceding that the Mortgage Loans are securities, hereby makes the following
        additional representations, warranties and agreements which shall be deemed
        to
        have been made as of the related Closing Date:

      

      a) neither
        the Seller nor anyone acting on its behalf has offered, transferred, pledged,
        sold or otherwise disposed of any Mortgage Loans, any interest in any Mortgage
        Loans or any other similar security to, or solicited any offer to buy or
        accept
        a transfer, pledge or other disposition of any Mortgage Loans, any interest
        in
        any Mortgage Loans or any other similar security from, or otherwise approached
        or negotiated with respect to any Mortgage Loans, any interest in any Mortgage
        Loans or any other similar security with, any person in any manner, or made
        any
        general solicitation by means of general advertising or in any other manner,
        or
        taken any other action which would constitute a distribution of the Mortgage
        Loans under the Securities Act or which would render the disposition of any
        Mortgage Loans a violation of Section 5 of the Securities Act or require
        registration pursuant thereto, nor will it act, nor has it authorized or
        will it
        authorize any person to act, in such manner with respect to the Mortgage
        Loans;
        and

      

      b) the
        Seller has not dealt with any broker or agent or anyone else who might be
        entitled to a fee or commission in connection with this transaction other
        than
        the Purchaser.

      

      SECTION
        7.  Representation,
        Warranties and Agreement of Purchaser.
        The
        Purchaser, without conceding that the Mortgage Loans are securities, hereby
        makes the following representations, warranties and agreements, which shall
        have
        been deemed to have been made as of the related Closing Date.

      

      a) the
        Purchaser understands that the Mortgage Loans have not been registered under
        the
        Securities Act or the securities laws of any state;

      

      b) the
        Purchaser is acquiring the Mortgage Loans for its own account only and not
        for
        any other person;

      

      c) the
        Purchaser considers itself a substantial, sophisticated institutional investor
        having such knowledge and experience in financial and business matters that
        it
        is capable of evaluating the merits and risks of investment in the Mortgage
        Loans;

      

      d) the
        Purchaser has been furnished with all information regarding the Mortgage
        Loans
        which it has requested from the Seller or the Company; and

      

      e) neither
        the Purchaser nor anyone acting on its behalf offered, transferred, pledged,
        sold or otherwise disposed of any Mortgage Loan, any interest in any Mortgage
        Loan or any other similar security to, or solicited any offer to buy or accept
        a
        transfer, pledge or other disposition of any Mortgage Loan, any interest
        in any
        Mortgage Loan or any other similar security from, or otherwise approached
        or
        negotiated with respect to any Mortgage Loan, any interest in any Mortgage
        Loan
        or any other similar security with, any person in any manner, or made any
        general solicitation by means of general advertising or in any other manner,
        or
        taken any other action which would constitute a distribution of the Mortgage
        Loans under the Securities Act or which would render the disposition of any
        Mortgage Loan a violation of Section 5 of the Securities Act or require
        registration pursuant thereto, nor will it act, nor has it authorized or
        will it
        authorize any person to act, in such manner with respect to the Mortgage
        Loans.

      

      SECTION
        8.  Closing.
        The
        closing for the purchase and sale of each Loan Package shall take place on
        the
        related Closing Date. At the Purchaser's option, the Closing shall be either:
        by
        telephone, confirmed by letter or wire as the parties shall agree; or conducted
        in person, at such place as the parties shall agree.

      

      The
        closing shall be subject to each of the following conditions:

      

      a) all
        of
        the representations and warranties of the Seller under this Agreement and
        under
        the Master Seller's Warranties and Servicing Agreement shall be true and
        correct
        as of such related Closing Date and no event shall have occurred which, with
        notice or the passage of time, would constitute a default under this Agreement
        or an Event of Default under the Master Seller's Warranties and Servicing
        Agreement;

      

      b) the
        Purchaser shall have received, or the Purchaser's attorneys shall have received
        in escrow, 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 and released to the Custodian under the Master
        Seller's Warranties and Servicing Agreement all documents required pursuant
        to
        the related Custodial Agreement, and

      

      d) all
        other
        terms and conditions of this Agreement shall have been complied
        with.

      

      Subject
        to the foregoing conditions, the Purchaser shall pay to the Seller on such
        related Closing Date the applicable Purchase Price, plus accrued interest
        pursuant to Section 4 of this Agreement, by wire transfer of immediately
        available funds to the account designated by the Seller.

      

      SECTION
        9.  Closing
        Documents.
        With
        respect to the Mortgage Loans, the Closing Documents shall consist of the
        following documents:

      

      On
        the
        initial Closing Date:

      

      
        	 	
                1.

              	
                the
                  Master Seller's Warranties and Servicing Agreement, in three
                  counterparts;

              

      

      

      
        	 	
                2.

              	
                this
                  Agreement in two counterparts;

              

      

      

      
        	 	
                3.

              	
                the
                  Custodial Agreement, dated as November 30, 1999, by and between
                  EMC
                  Mortgage Corporation as Owner, and Wells Fargo Bank, N.A. (formerly
                  Wells
                  Fargo Bank Minnesota, N.A.) attached as an exhibit to the Master
                  Seller's
                  Warranties and Servicing Agreement;

              

      

      

      
        	 	
                4.

              	
                the
                  Mortgage Loan Schedule for the related Loan Package, one copy to
                  be
                  attached to each counterpart of the Master Seller's Warranties
                  and
                  Servicing Agreement, to each counterpart of this Agreement, and
                  to each
                  counterpart of the Custodial Agreement, as the Mortgage Loan Schedule
                  thereto;

              

      

      

      
        	 	
                5.

              	
                a
                  Receipt and Certification, as required under the Custodial
                  Agreement;

              

        	 	 	 

        	 	6.	
                an
                  Opinion of Counsel of the Seller, in the form of Exhibit 1 hereto;
                  and

              

        	 	 	 

        	 	7.	
                an
                  Assignment and Conveyance Agreement for the related Mortgage
                  Loans.

              

      

       

      On
        each
        subsequent Closing Date, the following documents:

      
        

        
          	 	
                  1.

                	
                  the
                    Mortgage Loan Schedule for the related Loan
                    Package;

                

          	 	 	 

          	 	2. 	
                  an
                    Assignment and Conveyance Agreement for the related Mortgage
                    Loans;
                    and

                

          	 	 	 

          	 	3. 	
                  a
                    Receipt and Certification, as required under the Custodial
                    Agreement.

                

        

         

      

      SECTION
        10.  Costs.
        The
        Purchaser shall pay any commissions due its salesmen, the legal fees and
        expenses of its attorneys and the costs and expenses associated with the
        Custodian. The Seller shall be responsible for reasonable costs and expenses
        associated with any preparation of the initial assignments of mortgage. All
        other costs and expenses incurred in connection with the transfer and delivery
        of the Mortgage Loans, including fees for title policy endorsements and
        continuations and the Seller's attorney fees, shall be paid by the
        Seller.

      

      SECTION
        11.  Servicing
        The
        Mortgage Loans shall be serviced by the Seller in accordance with the terms
        of
        the Master Seller's Warranties and Servicing Agreement. The Seller shall
        be
        entitled to servicing fees calculated as provided therein, at the Servicing
        Fee
        Rate.

      

      SECTION
        12.  Financial
        Statements.
        The
        Seller understands that in connection with the Purchaser's marketing of the
        Mortgage Loans, the Purchaser shall make available to prospective purchasers
        a
        Consolidated Statement of Operations of the Seller for the most recently
        completed two fiscal years respecting which such a statement is available,
        as
        well as a Consolidated Statement of Condition at the end of the last two
        (2)
        fiscal years covered by such Consolidated Statement of Operations. The Purchaser
        shall also make available any comparable interim statements to the extent
        any
        such statements have been prepared by the seller in a format intended or
        otherwise suitable for the public at large. The Seller, if it has not already
        done so, agrees to furnish promptly to the Purchaser copies of the statements
        specified above. The Seller shall also make available information on its
        servicing performance with respect to loans in its own portfolio and loans
        serviced for others (if any), including foreclosure and delinquency
        ratios.

      

      The
        Seller also agrees to allow access to a knowledgeable (as shall be determined
        by
        the Seller) financial or accounting officer for the purpose of answering
        questions asked by any prospective purchaser regarding recent developments
        affecting the Seller or the financial statements of the Seller.

      

      SECTION
        13.  Mandatory
        Delivery.
        The sale
        and delivery on each Closing Date of the related Mortgage Loans described
        on the
        respective Mortgage Loan Schedules is mandatory, it being specifically
        understood and agreed that each Mortgage Loan must be unique and identifiable
        on
        such related 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 (including damages to prospective purchasers of the Mortgage
        Loans) in the event of the Seller's failure to deliver the Mortgage Loans
        on or
        before such related Closing Date. 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.

      

      SECTION
        14.  Notices.
        All
        demands, notices and communications hereunder shall be in writing and shall
        be
        deemed to have been duly given if mailed, by registered or certified mail,
        return receipt requested, or, if by other means, when received by the other
        party at the address shown on the first page hereof, or such other address
        as
        may hereafter be furnished to the other party by like notice. Any such demand,
        notice of communication hereunder shall be deemed to have been received on
        the
        date delivered to or received at the premises of the addressee (as evidenced,
        in
        the case of registered or certified mail, by the date noted on the return
        receipt).

      

      SECTION
        15.  Severability
        Clause.
        Any
        part, provision, representation or warranty of this Agreement which is
        prohibited or which is held to be void or unenforceable shall be ineffective
        to
        the extent of such prohibition or unenforceability without invalidating the
        remaining provisions hereof. 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 be ineffective, as to such jurisdiction,
        to the extent of such prohibition or unenforceability without invalidating
        the
        remaining provisions hereof, and any such prohibition or unenforceability
        in any
        jurisdiction as to any Mortgage Loan shall not invalidate or render
        unenforceable such provision in any other jurisdiction. 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. If the invalidity
        of any
        part, provision, representation or warranty of this Agreement shall deprive
        any
        party of the economic benefit intended to be conferred by this Agreement,
        the
        parties shall negotiate, in good-faith, to develop a structure the economic
        effect of which is as close as possible to the economic effect of this Agreement
        without regard to such invalidity.

      

      SECTION
        16.  Counterparts.
        This
        Agreement may be executed simultaneously in any number of counterparts. Each
        counterpart shall be deemed to be an original, and all such counterparts
        shall
        constitute one and the same instrument.

      

      SECTION
        17.  Place
        of Delivery and Governing Law.
        This
        Agreement shall be deemed in effect when a fully executed counterpart thereof
        is
        received by the Purchaser in the State of New York and shall be deemed to
        have
        been made in State of New York. The Agreement shall be construed in accordance
        with the laws of the State of New York and the obligations, rights and remedies
        of the parties hereunder shall be determined in accordance with the laws
        of the
        State of New York, except to the extent preempted by Federal Law.

      

      Each
        of
        the Seller and the Purchaser hereby knowingly, voluntarily and intentionally
        waives any and all rights it may have to a trial by jury in respect of any
        litigation based on, or arising out of, under, or in connection with, this
        Agreement, or any other documents and instruments executed in connection
        herewith, or any course of conduct, course of dealing, statements (whether
        oral
        or written), or actions of the Seller or the Purchaser. This provision is
        a
        material inducement for the Purchaser to enter into this Agreement.

      

      SECTION
        18.  Further
        Agreements.
        The
        Purchaser and the Seller each agree to execute and deliver to the other such
        additional documents, instruments or agreements as may be necessary or
        appropriate to effectuate the purposes of this Agreement.

      

      Without
        limiting the generality of the foregoing, the Seller shall reasonably cooperate
        with the Purchaser in connection with the initial resales of the Mortgage
        Loans
        by the Purchaser. In that connection, the Seller shall provide to the Purchaser:
        (i) any and all information and appropriate verification of information,
        whether
        through letters of its auditors and counsel or otherwise, as the Purchaser
        shall
        reasonably request, and (ii) such additional representations, warranties,
        covenants, opinions of counsel, letters from auditors and certificates of
        public
        officials or officers of the Seller as are reasonably believed necessary
        by the
        Purchaser in connection with such resales. The requirement of the Seller
        pursuant to (ii) above shall terminate on the related Closing Date, except
        as
        provided pursuant to Article IX of the Master Seller’s Warranties and Servicing
        Agreement. Prior to incurring any out-of-pocket expenses pursuant to this
        paragraph, the Seller shall notify the Purchaser in writing of the estimated
        amount of such expense. The Purchaser shall reimburse the Seller for any
        such
        expense following its receipt of appropriate details thereof.

      

      SECTION
        19.  Intention
        of the Parties.
        It is
        the intention of the parties that the Purchaser is purchasing, and the Seller
        is
        selling, an undivided 100% ownership interest in the Mortgage Loans and not
        a
        debt instrument of the Seller or another security. Accordingly, the parties
        hereto each intend to treat the transaction for Federal income tax purposes
        as a
        sale by the Seller, and a purchase by the Purchaser, of the Mortgage Loans.
        The
        Purchaser shall have the right to review the Mortgage Loans and the related
        Mortgage Loan Files to determine the characteristics of the Mortgage Loans
        which
        shall affect the Federal income tax consequences of owning the Mortgage Loans
        and the Seller shall cooperate with all reasonable requests made by the
        Purchaser in the course of such review.

      

      SECTION
        20.  Successors
        and Assigns; Assignment of Purchase Agreement.
        This
        Agreement shall bind and inure to the benefit of and be enforceable by the
        Seller and the Purchaser and the respective successors and assigns of the
        Seller
        and the Purchaser. This Agreement shall not be assigned, pledged or hypothecated
        by the Seller to a third party without the consent of the
        Purchaser.

      

      SECTION
        21. Waivers;
        Other Agreements.
        No term
        or provision of this Agreement may be waived or modified unless such waiver
        or
        modification is in writing and signed by the party against whom such waiver
        or
        modification is sought to be enforced.

      

      SECTION
        22. Exhibits.
        The
        exhibits to this Agreement are hereby incorporated and made a part hereof
        and
        are an integral part of this Agreement.

      

      SECTION
        23. General
        Interpretive Principles.
        For
        purposes of this Agreement, except as otherwise expressly provided or unless
        the
        context otherwise requires:

      

      a) the
        terms
        defined in this Agreement have the meanings assigned to them in this Agreement
        and include the plural as well as the singular, and the use of any gender
        herein
        shall be deemed to include the other gender;

      

      b) accounting
        terms not otherwise defined herein have the meanings assigned to them in
        accordance with generally accepted accounting principles;

      

      c) references
        herein to "Articles", "Sections", "Subsections", "Paragraphs", and other
        subdivisions without reference to a document are to designated Articles,
        Sections, Subsections, Paragraphs and other subdivisions of this
        Agreement;

      

      d) a
        reference to a Subsection without further reference to a Section is a reference
        to such Subsection as contained in the same Section in which the reference
        appears, and this rule shall also apply to Paragraphs and other
        subdivisions;

      

      e) the
        words
        "herein", "hereof", "hereunder" and other words of similar import refer to
        this
        Agreement as a whole and not to any particular provision; and

      

      f) the
        term
        "include" or "including" shall mean without limitation by reason of
        enumeration.

      

      SECTION
        24. Reproduction
        of Documents.
        This
        Agreement and all documents relating thereto, including, without limitation,
        (a)
        consents, waivers and modifications which may hereafter be executed, (b)
        documents received by any party at the closing, and (c) financial statements,
        certificates and other information previously or hereafter furnished, may
        be
        reproduced by any photographic, photostatic, microfilm, micro-card, miniature
        photographic or other similar process. The parties agree that any such
        reproduction shall be admissible in evidence as the original itself in any
        judicial or administrative proceeding, whether or not the original is in
        existence and whether or not such reproduction was made by a party in the
        regular course of business, and that any enlargement, facsimile or further
        reproduction of such reproduction shall likewise be admissible in
        evidence.

       

      [Signatures
        Follow]

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

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

       

      
        	 	 	 
	 	
                EMC
                  MORTGAGE CORPORATION

                (Purchaser)

              
	 
 	 
 	 
 
	
              	By:  	 
	 	Name:   	
                

              
	 	Title: 	
              

      

      
         

        
          	 	 	 
	 	
                  
                    WELLS
                      FARGO BANK, N.A.

                    (Seller)

                  

                
	 
 	 
 	 
 
	
                	By:  	 
	 	Name:   	
                  

                
	 	Title: 	
                

        

         

      

          

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

      

       

      EXHIBIT
        1

      

      FORM
        OF
        OPINION OF COUNSEL

      @

      @

      @

      @

      

      Re: Mortgage
        Loan Sale by Wells Fargo Bank, N.A. (the “Company”) to EMC Mortgage Corporation
        (the “Purchaser”) of first lien mortgage loans (the “Mortgage Loans”) pursuant
        to that certain Amended and Restated Master Seller’s Warranties and Servicing
        Agreement and Amended and Restated Master Mortgage Loan Purchase Agreement
        by
        and between the Company and the Purchaser, dated as of November 1,
        2005.

      

      Dear
        Sir/Madam:

      

      I
        am @ of
        Wells Fargo Bank, N.A. and have acted as counsel to Wells Fargo Bank, N.A.
        (the
“Company”), with respect to certain matters in connection with the sale by the
        Company of Mortgage Loans pursuant to that certain Amended and Restated Master
        Seller’s Warranties and Servicing Agreement and Amended and Restated Master
        Mortgage Loan Purchase Agreement by and between the Company and EMC Mortgage
        Corporation (the “Purchaser”), dated as of November 1, 2005, (the “Agreements”),
        which sale is in the form of whole Mortgage Loans. Capitalized terms not
        otherwise defined herein have the meanings set forth in the Amended and Restated
        Master Seller’s Warranties and Servicing Agreement.

      

      I
        have
        examined the following documents:

      
        

        
          	
                  1.

                	
                  
                    the
                      Amended and Restated Master Seller’s Warranties and Servicing
                      Agreement;

                  

                

          	 	 

          	2.	
                  the
                    Amended and Restated Master Mortgage Loan Purchase
                    Agreement;

                

          	 	 

          	3.	
                  the
                    Custodial Agreement;

                

          	 	 

          	4.	
                  the
                    form of endorsement of the Mortgage Notes;
                    and

                

          	 	 

          	5.	
                  such
                    other documents, records and papers as I have deemed necessary
                    and
                    relevant as a basis for this
                    opinion.

                

        

         

      

      To
        the
        extent I have deemed necessary and proper, I have relied upon the
        representations and warranties of the Company contained in the Agreements.
        I
        have assumed the authenticity of all documents submitted to me as originals,
        the
        genuineness of all signatures, the legal capacity of natural persons and
        the
        conformity to the originals of all documents.

      

      Based
        upon the foregoing, it is my opinion that;

      

      
        	
                1.

              	
                The
                  Company is a national banking association duly organized, validly
                  existing
                  and in good standing under the laws of the United States.
                  

              

      

      

      
        	
                2.

              	
                The
                  Company has the power to engage in the transactions contemplated
                  by the
                  Agreements, the Custodial Agreement and all requisite power, authority
                  and
                  legal right to execute and deliver the Agreements, the Custodial
                  Agreement
                  and the Mortgage Loans, and to perform and observe the terms and
                  conditions of such instruments.

              

      

      

      
        	
                3.

              	
                Each
                  person who, as an officer or attorney-in-fact of the Company, signed
                  (a)
                  the Agreements, each dated as of November 1, 2005, by and between
                  the
                  Company and the Purchaser, and (b) any other document delivered
                  prior
                  hereto or on the date hereof in connection with the sale and servicing
                  of
                  the Mortgage Loans in accordance with the Agreements was, at the
                  respective times of such signing and delivery, and is, as of the
                  date
                  hereof, duly elected or appointed, qualified and acting as such
                  officer or
                  attorney-in-fact, and the signatures of such persons appearing
                  on such
                  documents are their genuine
                  signatures.

              

      

      

      
        	
                4.

              	
                Each
                  of the Agreements, the Custodial Agreement, and the Mortgage Loans,
                  has
                  been duly authorized, executed and delivered by the Company and
                  is a
                  legal, valid and binding agreement enforceable in accordance with
                  its
                  terms, subject to the effect of insolvency, liquidation, convervatorship
                  and other similar laws administered by the Federal Deposit Insurance
                  Corporation affecting the enforcement of contract obligations of
                  insured
                  banks and subject to the application of the rules of equity, including
                  those respecting the availability of specific performance, none
                  of which
                  will materially interfere with the realization of the benefits
                  provided
                  thereunder or with the Purchaser’s ownership of the Mortgage
                  Loans.

              

      

      

      
        	
                5.

              	
                The
                  Company has been duly authorized to allow any of its officers to
                  execute
                  any and all documents by original signature in order to complete
                  the
                  transactions contemplated by the Agreements and the Custodial Agreement,
                  and by original or facsimile signature in order to execute the
                  endorsements to the Mortgage Notes and the assignments of the Mortgages,
                  and the original or facsimile signature of the officer at the Company
                  executing the endorsements to the Mortgage Notes and the assignments
                  of
                  the Mortgages represents the legal and valid signature of said
                  officer of
                  the Company.

              

      

      

      
        	
                6.

              	
                Either
                  (i) no consent, approval, authorization or order of any court or
                  governmental agency or body is required for the execution, delivery
                  and
                  performance by the Company of or compliance by the Company with
                  the
                  Agreements, the Custodial Agreement or the sale and delivery of
                  the
                  Mortgage Loans or the consummation of the transactions contemplated
                  by the
                  Agreements, and the Custodial Agreement; or (ii) any required consent,
                  approval, authorization or order has been obtained by the Company.
                  

              

      

      

      
        	
                7.

              	
                Neither
                  the consummation of the transactions contemplated by, nor the fulfillment
                  of the terms of the Agreements and the Custodial Agreement, will
                  conflict
                  with or results in or will result in a breach of or constitutes
                  or will
                  constitute a default under the charter or by-laws of the Company,
                  the
                  terms of any indenture or other agreement or instrument to which
                  the
                  Company is a party or by which it is bound or to which it is subject,
                  or
                  violates any statute or order, rule, regulations, writ, injunction
                  or
                  decree of any court, governmental authority or regulatory body
                  to which
                  the Company is subject or by which it is
                  bound.

              

      

      

      
        	
                8.

              	
                There
                  is no action, suit, proceeding or investigation pending or, to
                  the best of
                  my knowledge, threatened against the Company which, in my opinion,
                  either
                  in any one instance or in the aggregate, may result in any material
                  adverse change in the business, operations, financial condition,
                  properties or assets of the Company or in any material impairment
                  of the
                  right or ability of the Company to carry on its business substantially
                  as
                  now conducted or in any material liability on the part of the Company
                  or
                  which would draw into question the validity of the Agreements,
                  and the
                  Custodial Agreement, or of any action taken or to be taken in connection
                  with the transactions contemplated thereby, or which would be likely
                  to
                  impair materially the ability of the Company to perform under the
                  terms of
                  the Agreements and the Custodial
                  Agreement.

              

      

      

      
        	
                9.

              	
                For
                  purposes of the foregoing, I have not regarded any legal or governmental
                  actions, investigations or proceedings to be "threatened" unless
                  the
                  potential litigant or governmental authority has manifested to
                  the legal
                  department of the Company or an employee of the Company responsible
                  for
                  the receipt of process a present intention to initiate such proceedings;
                  nor have I regarded any legal or governmental actions, investigations
                  or
                  proceedings as including those that are conducted by state or federal
                  authorities in connection with their routine regulatory activities.
                  The
                  sale of each Mortgage Note and Mortgage as and in the manner contemplated
                  by the Agreements is sufficient fully to transfer all right, title
                  and
                  interest of the Company thereto as noteholder and mortgagee, apart
                  from
                  the rights to service the Mortgage Loans pursuant to the
                  Agreements.

              

      

      

      
        	
                10.

              	
                The
                  form of endorsement that is to be used with respect to the Mortgage
                  Loans
                  is legally valid and sufficient to duly endorse the Mortgage Notes
                  to the
                  Purchaser. Upon the completion of the endorsement of the Mortgage
                  Notes
                  and the completion of the assignments of the Mortgages, and the
                  recording
                  thereof, the endorsement of the Mortgage Notes, the delivery to
                  the
                  Custodian of the completed assignments of the Mortgages, and the
                  delivery
                  of the original endorsed Mortgage Notes to the Custodian would
                  be
                  sufficient to permit the entity to which such Mortgage Note is
                  initially
                  endorsed at the Purchaser’s direction, and to whom such assignment of
                  Mortgages is initially assigned at the Purchaser’s direction, to avail
                  itself of all protection available under applicable law against
                  the claims
                  of any present or future creditors of the Company, and would be
                  sufficient
                  to prevent any other sale, transfer, assignment, pledge or hypothecation
                  of the Mortgages and the Mortgage Notes by the Company from being
                  enforceable.

              

      

      

      This
        opinion is given to you for your sole benefit, and no other person or entity
        is
        entitled to rely hereon except that the purchaser or purchasers to which
        you
        initially and directly resell the Mortgage Loans may rely on this opinion
        as if
        it were addressed to them as of its date.

      

      Sincerely,

      @

      @

      

      @/@

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

    EXHIBIT
      J-1

    

    CHEVY
      CHASE ASSIGNMENT AGREEMENT

    

    

      ASSIGNMENT
        AND ASSUMPTION AGREEMENT

       

      THIS
        ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Assignment and Assumption Agreement”),
        dated November 30, 2006, among EMC Mortgage Corporation, a Delaware corporation
        (the “Assignor”), U.S. Bank National Association, not
        individually but solely as trustee for the holders of Prime Mortgage Trust,
        Mortgage Pass-Through Certificates, Series 2006-2 (the “Assignee”) and Chevy
        Chase Bank, F.S.B. (the “Company”).

       

      For
        and
        in consideration of the sum of TEN DOLLARS ($10.00) and other valuable
        consideration the receipt and sufficiency of which hereby are acknowledged,
        and
        of the mutual covenants herein contained, the parties hereto hereby agree
        as
        follows:

       

      1.  Defined
        terms used in this Assignment and Assumption Agreement and not otherwise
        defined
        herein shall have the meaning set forth in the Pooling and Servicing Agreement,
        dated as of November
        1, 2006, among Structured Asset Mortgage Investments II Inc. (“SAMI II”), the
        Assignor and the Assignee. 

       

      2.  The
        Assignor hereby grants, transfers and assigns to the Assignee all of the
        right,
        title and interest of the Assignor, as purchaser, in, to and under (a) those
        certain Mortgage Loans listed on Exhibit A attached hereto (the “Mortgage
        Loans”), (b) that certain Purchase, Warranties and Servicing Agreement, dated as
        of July 1, 2001, as amended by Amendment No. 1, dated as of January 13, 2003,
        and Amendment No. 2, dated as of January 31, 2006, by and between the Assignor
        and the Company with respect to the Mortgage Loans (as amended, the “PWS
        Agreement”) and (c) that certain term sheet dated as of February 22, 2006 (the
“Term Sheet”), by and between the Assignor and the Company. Notwithstanding
        anything to the contrary contained herein, the Assignor specifically reserves
        and does not assign to the Assignee any right, title and interest in, to
        or
        under the representations and warranties contained in Section 3.01 and Section
        3.02 of the PWS Agreement and in the Term Sheet, and the Assignor is retaining
        the right to enforce the representations and warranties set forth in those
        sections against the Company.

       

      The
        Assignor specifically reserves and does not assign to the Assignee hereunder
        any
        and all right, title and interest in, to and under and all obligations of
        the
        Assignor with respect to any mortgage loans subject to the PWS Agreement
        and the
        Term Sheet which are not the Mortgage Loans set forth on Exhibit A attached
        hereto and are not the subject of this Assignment and Assumption
        Agreement.

       

      3.  The
        Assignor warrants and represents to, and covenants with, the Assignee
        that:

       

      a.  The
        Assignor is the lawful owner of the Mortgage Loans with the full right to
        transfer the Mortgage Loans free from any and all claims and encumbrances
        whatsoever;

       

      b.  The
        Assignor has not received notice of, and has no knowledge of, any offsets,
        counterclaims or other defenses available to the Company with respect to
        the PWS
        Agreement, the Term Sheet or the Mortgage Loans;

       

      c.  The
        Assignor has not waived or agreed to any waiver under, or agreed to any
        amendment or other modification of, the PWS Agreement, the Term Sheet or
        the
        Mortgage Loans, including without limitation the transfer of the servicing
        obligations under the PWS Agreement. The Assignor has no knowledge of, and
        has
        not received notice of, any waivers under or amendments or other modifications
        of, or assignments of rights or obligations under or defaults under, the
        PWS
        Agreement, the Term Sheet or the Mortgage Loans; and

       

      d.  Neither
        the Assignor nor anyone acting on its behalf has offered, transferred, pledged,
        sold or otherwise disposed of the Mortgage Loans, any interest in the Mortgage
        Loans or any other similar security to, or solicited any offer to buy or
        accept
        a transfer, pledge or other disposition of the Mortgage Loans, any interest
        in
        the Mortgage Loans or any other similar security from, or otherwise approached
        or negotiated with respect to the Mortgage Loans, any interest in the Mortgage
        Loans or any other similar security with, any person in any manner, or made
        by
        general solicitation, by means of general advertising or in any other manner,
        or
        taken any other action which would constitute a distribution of the Mortgage
        Loans under the Securities Act of 1933 (the “1933 Act”) or which would render
        the disposition of the Mortgage Loans a violation of Section 5 of the 1933
        Act
        or require registration pursuant thereto.

       

      4.  The
        Assignee warrants and represents to, and covenants with, the Assignor and
        the
        Company that:

       

      a.  The
        Assignee is duly organized, validly existing and in good standing under the
        laws
        of the jurisdiction of its organization, and has all requisite power and
        authority to hold the Mortgage Loans on behalf of the holders of the Prime
        Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2;

       

      b.  The
        Assignee has full corporate power and authority to execute, deliver and perform
        under this Assignment and Assumption Agreement, and to consummate the
        transactions set forth herein. The execution, delivery and performance of
        the
        Assignee of this Assignment and Assumption Agreement, and the consummation
        by it
        of the transactions contemplated hereby, have been duly authorized by all
        necessary corporate action of the Assignee. This Assignment and Assumption
        Agreement has been duly executed and delivered by the Assignee and constitutes
        the valid and legally binding obligation of the Assignee enforceable against
        the
        Assignee in accordance with its respective terms;

       

      c.  To
        the
        best of the Assignee’s knowledge, no material consent, approval, order or
        authorization of, or declaration, filing or registration with, any governmental
        entity is required to be obtained or made by the Assignee in connection with
        the
        execution, delivery or performance by the Assignee of this Assignment and
        Assumption Agreement, or the consummation by it of the transactions contemplated
        hereby;

       

      d.  
        The
        Assignee assumes all of the rights of the Purchaser under the PWS Agreement
        with
        respect to the Mortgage Loans other than the right to enforce the obligations
        of
        the Company under the PWS Agreement.

       

      5.  The
        Company warrants and represents to, and covenants with, the Assignor and
        the
        Assignee as of the date hereof:

       

      a.  Attached
        hereto as Exhibit B are true and accurate copies of the PWS Agreement and
        the
        relevant Term Sheet, which agreements are in full force and effect as of
        the
        date hereof and the provisions of which have not been waived, amended or
        modified in any respect, nor has any notice of termination been given
        thereunder;

       

      b.  The
        Company is a federally chartered savings bank duly organized, validly existing
        and in good standing under the laws of the United States, and has all requisite
        power and authority to service the Mortgage Loans and otherwise to perform
        its
        obligations under the PWS Agreement and the Term Sheet;

       

      c.  The
        Company has full corporate power and authority to execute, deliver and perform
        its obligations under this Assignment and Assumption Agreement, and to
        consummate the transactions set forth herein. The consummation of the
        transactions contemplated by this Assignment and Assumption Agreement is
        in the
        ordinary course of the Company’s business and will not conflict with, or result
        in a breach of, any of the terms, conditions or provisions of the Company’s
        charter or by-laws or any legal restriction, or any material agreement or
        instrument to which the Company is now a party or by which it is bound, or
        result in the violation of any law, rule, regulation, order, judgment or
        decree
        to which the Company or its property is subject. The execution, delivery
        and
        performance by the Company of this Assignment and Assumption Agreement and
        the
        consummation by it of the transactions contemplated hereby, have been duly
        authorized by all necessary action on part of the Company. This Assignment
        and
        Assumption Agreement has been duly executed and delivered by the Company,
        and,
        upon the due authorization, execution and delivery by the Assignor and the
        Assignee, will constitute the valid and legally binding obligation of the
        Company, enforceable against the Company in accordance with its terms except
        as
        enforceability may be limited by bankruptcy, reorganization, insolvency,
        moratorium or other similar laws now or hereafter in effect relating to
        creditors’ rights generally, and by general principles of equity regardless of
        whether enforceability is considered in a proceeding in equity or at
        law;

       

      d.  No
        consent, approval, order or authorization of, or declaration, filing or
        registration with, any governmental entity is required to be obtained or
        made by
        the Company in connection with the execution, delivery or performance by
        the
        Company of this Assignment and Assumption Agreement, or the consummation
        by it
        of the transactions contemplated hereby; and

       

      e.  The
        Company shall establish a Custodial Account and an Escrow Account under the
        PWS
        Agreement in favor of the Assignee with respect to the Mortgage Loans separate
        from the Custodial Account and Escrow Account previously established under
        the
        PWS Agreement in favor of the Assignor.

       

      6.  The
        Company warrants and represents to, and covenants with, the Assignor and
        SAMI II
        as of the date hereof:

       

      a.  The
        Company is not aware and has not received notice that any default, early
        amortization or other performance triggering event has occurred as to any
        other
        securitization due to any act or failure to act of the Company;

       

      b.  No
        material noncompliance with the applicable servicing criteria with respect
        to
        other securitizations of residential mortgage loans involving the Company
        as
        servicer has been disclosed or reported by the Company;

       

      c.  The
        Company has not been terminated as servicer in a residential mortgage loan
        securitization, either due to a servicing default or to application of a
        servicing performance test or trigger;

       

      d.  No
        material changes to the Company’s policies or procedures with respect to the
        servicing function it will perform under the PWS Agreement and this Assignment
        and Assumption Agreement for mortgage loans of a type similar to the Mortgage
        Loans have occurred during the three-year period immediately preceding the
        date
        hereof;

       

      e.  There
        are
        no aspects of the Company’s financial condition that could have a material
        adverse effect on the performance by the Company of its servicing obligations
        under the PWS Agreement and this Assignment and Assumption
        Agreement;

       

      f.  There
        are
        no material legal or governmental proceedings pending (or known to be
        contemplated) against the Company, any Subservicer or any third-party
        originator; and

       

      g.  There
        are
        no affiliations, relationships or transactions relating to the Company or
        any
        Subservicer with respect to this Securitization Transaction and any party
        thereto of a type described in Item 1119 of Regulation AB.

       

      Notwithstanding
        anything to the contrary in the Agreement, the Company shall (or shall cause
        any
        Subservicer and Third-Party Originator to), provided that the Company (and
        each
        Subservicer and Third-Party Originator, as the case may be) meets the disclosure
        requirements of Items 1117 and 1119 of Regulation AB, as the case may be,
        for
        such disclosure period (i) immediately notify the Assignor and SAMI II in
        writing of (A) legal proceedings pending against the Company, or proceedings
        known to be contemplated by governmental authorities against the Company
        which
        in the judgment of the Company would be, in each case, reasonably expected
        to be
        material to purchasers of securities backed by the Mortgage Loans, (B) any
        known
        affiliations or relationships of the type described in Item 1119(b) of
        Regulation AB that develop following the date hereof between the Company
        and any
        of the above listed parties or other parties identified in writing by the
        Assignor or SAMI II with respect to the Securitization Transaction and (ii)
        provide to the Assignor and SAMI II a description of such proceedings,
        affiliations or relationships.

       

      Each
        such
        notice/update should be sent to the Assignor by e-mail to
        regABnotifications@bear.com. Additionally, all such notifications, other
        than
        those pursuant to (i)(A) above, should be sent to:

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067-3884

      Attention:
        Michelle Viner

      Facsimile:
        (214) 626-4889

      

      With
        a
        copy to:

      

      Bear,
        Stearns & Co. Inc.

      383
        Madison Avenue, 3rd Floor

      New
        York,
        NY 10179

      Attention:
        Global Credit Administration

      Facsimile:
        (212) 272-6564

      

      Notifications
        pursuant to (i)(A) above should be sent to: 

      

      EMC
        Mortgage Corporation 

      2780
        Lake
        Vista Drive

      Lewisville,
        Texas 75067 

      Attention:
        General Counsel

      Telecopier
        No.: (469) 759-4714

      

      With
        copies to:

      

      Bear,
        Stearns & Co. Inc.

      383
        Madison Avenue, 3rd Floor

      New
        York,
        NY 10179

      Attention:
        Global Credit Administration

      Facsimile:
        (212) 272-6564

      

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067-3884

      Attention:
        Michelle Viner

      Facsimile:
        (214) 626-4889

      

      Recognition
        of Assignee

       

      7.  From
        and
        after the date hereof, the Company shall recognize the Assignee as owner
        of the
        Mortgage Loans, and acknowledges that the Mortgage Loans will be part of
        a
        REMIC, and will service the Mortgage Loans in accordance with the PWS Agreement.
        It is the intention of the Assignor, the Company and the Assignee that this
        Assignment and Assumption Agreement shall be binding upon and for the benefit
        of
        the respective successors and assigns of the parties hereto. Neither the
        Company
        nor the Assignor shall amend or agree to amend, modify, waive, or otherwise
        alter any of the terms or provisions of the PWS Agreement which amendment,
        modification, waiver or other alteration would in any way affect the Mortgage
        Loans without the prior written consent of the Assignee.

       

      The
        Company shall prepare for and deliver to the Assignee and the Master Servicer
        a
        statement with respect to each mortgaged property acquired through foreclosure
        or deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan
        (“REO Property”) that has been rented showing the aggregate rental income
        received and all expenses incurred in connection with the management and
        maintenance of such REO Property at such times as is necessary to enable
        the
        Assignee to comply with the reporting requirements of the REMIC provisions
        of
        the Code. The net monthly rental income, if any, from such REO Property shall
        be
        deposited in the related collection account no later than the close of business
        on each determination date. The Company shall perform, or cause to be performed,
        the tax reporting and withholding related to foreclosures, abandonments and
        cancellation of indebtedness income as specified by Sections 1445, 6050J
        and
        6050P of the Code by preparing and filing such tax and information returns,
        as
        may be required. In the event that Prime Mortgage Trust, Mortgage Pass-Through
        Certificates, Series 2006-2 acquires any REO Property as aforesaid or otherwise
        in connection with a default or default becoming reasonably foreseeable on
        an
        Mortgage Loan, the Company shall cause such REO Property to be disposed prior
        to
        three years after its acquisition by Prime Mortgage Trust, Mortgage Pass-Through
        Certificates, Series 2006-2 or, at the expense of Prime Mortgage Trust, Mortgage
        Pass-Through Certificates, Series 2006-2, request more than 60 days prior
        to the
        day on which such three-year period would otherwise expire, an extension
        of the
        three-year grace period unless the Assignee shall have been supplied with
        an
        opinion of counsel addressed to the Assignee rendered by nationally recognized
        tax counsel specializing in such matters (such opinion not to be an expense
        of
        the Assignee) to the effect that the holding by Prime Mortgage Trust, Mortgage
        Pass-Through Certificates, Series 2006-2 of such REO Property subsequent
        to such
        three-year period will not result in the imposition of taxes on “prohibited
        transactions” of any REMIC as defined in Section 860F of the Code or cause any
        REMIC to fail to qualify as a REMIC, in which case Prime Mortgage Trust,
        Mortgage Pass-Through Certificates, Series 2006-2 may continue to hold such
        REO
        Property (subject to any conditions contained in such opinion of counsel).
        Notwithstanding any other provision of the Servicing Agreement, no REO Property
        acquired by Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series
        2006-2 shall be rented (or allowed to continue to be rented) or otherwise
        used
        for the production of income by or on behalf of Prime Mortgage Trust, Mortgage
        Pass-Through Certificates, Series 2006-2 in such a manner or pursuant to
        any
        terms that would (i) cause such REO Property to fail to qualify as “foreclosure
        property” within the meaning of Section 860G(a)(8) of the Code or (ii) subject
        any REMIC to the imposition of any federal, state or local income taxes on
        the
        income earned from such REO Property under Section 860G(c) of the Code or
        otherwise, unless the Company has agreed to indemnify and hold harmless Prime
        Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2 with respect
        to the imposition of any such taxes.

       

      Pursuant
        to Section 11.18 of the PWS Agreement, the Company hereby acknowledges that
        the
        representations and warranties set forth in Section 3.01 of the PWS Agreement
        with respect to the Company and Section 3.02 of the PWS Agreement and in
        the
        Term Sheet with respect to the Mortgage Loans are being made by the Company
        as
        of November 30, 2006. The Assignor retains the right to enforce the
        representations and warranties set forth in Section 3.02 of the PWS Agreement
        and in the Term Sheet against the Company.

       

      8.  Notwithstanding
        any term hereof to the contrary, the execution and delivery of this Assignment
        and Assumption Agreement by the Assignee is solely in its capacity as trustee
        for Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2
        and
        not individually, and any recourse against the Assignee in respect of any
        obligations it may have under or pursuant to the terms of this Assignment
        and
        Assumption Agreement shall be limited solely to the assets it may hold as
        trustee of Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series
        2006-2.

       

      The
        Company shall indemnify and hold harmless the Assignor, each affiliate of
        the
        Assignor, SAMI II, the Assignee, Bear, Stearns & Co. Inc. (the
“Underwriter”) and each affiliate of the Underwriter, each Person (including,
        but not limited to, the Master Servicer) responsible for the preparation,
        execution or filing of any report required to be filed with the Commission,
        or
        for execution of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d)
        under the Exchange Act, each Person who controls the Assignor, SAMI II, the
        Assignee or the Underwriter (within the meaning of Section 15 of the Securities
        Act and Section 20 of the Exchange Act); and the respective present and former
        directors, officers, employees, agents and affiliates of each of the foregoing
        (each, an “Indemnified Party”), and shall hold each of them harmless from and
        against any claims, losses, damages, penalties, fines, forfeitures, legal
        fees
        and expenses and related costs, judgments, and any other costs, fees and
        expenses that any of them may sustain arising out of or based upon: 

       

      
        	(i)  
                  	
                (A)any
                  untrue statement of a material fact contained or alleged to be
                  contained
                  in any information, report, certification, data, accountants’ letter or
                  other material provided under Sections 6.04, 6.07, 11.18 or 11.19
                  of the
                  PWS Agreement by the Company or by another third-party at the direction
                  of
                  the Company, or provided under Sections 6.04, 6.07, 11.18 or 11.19
                  of the
                  PWS Agreement by or at the direction of any Subservicer, Subcontractor
                  or
                  Third-Party Originator (collectively, the “Company Information”), or (B)
                  the omission or alleged omission to state in the Company Information
                  a
                  material fact required to be stated in the Company Information
                  or
                  necessary in order to make the statements therein, in the light
                  of the
                  circumstances under which they were made, not misleading; provided,
                  by way of clarification, that
                  clause (B) of this paragraph shall be construed solely by reference
                  to the
                  Company Information and not to any other information communicated
                  in
                  connection with a sale or purchase of securities, without regard
                  to
                  whether the Company Information or any portion thereof is presented
                  together with or separately from such other
                  information;

              

      

       

      
        	(ii)  
                 	
                any
                  breach by the Company of its obligations under Sections 6.04, 6.07,
                  11.18
                  or 11.19 of PWS Agreement, including particularly any failure by
                  the
                  Company, any Subservicer, any Subcontractor or any Third-Party
                  Originator
                  to deliver any information, report, certification, accountants’ letter or
                  other material when and as required under Sections 6.04, 6.07,
                  11.18 or
                  11.19 of the PWS Agreement, including any failure by the Company
                  to
                  identify any Subcontractor “participating in the servicing function”
                  within the meaning of Item 1122 of Regulation AB;
                  

              

      

       

      
        	(iii) 
                  	
                any
                  breach by the Company of a representation or warranty set forth
                  in Section
                  3.01 of the PWS Agreement or in a writing furnished pursuant to
                  Section
                  3.01 of the PWS Agreement and made as of a date prior to the date
                  hereof,
                  to the extent that such breach is not cured by the date hereof,
                  or any
                  breach by the Company of a representation or warranty in a writing
                  furnished pursuant to Section 3.01 of the PWS Agreement to the
                  extent made
                  as of a date subsequent to the date hereof;
                  or

              

      

       

      
        	(iv) 
                  	
                the
                  negligence, bad faith or willful misconduct of the Company in connection
                  with its performance under Sections 6.04, 6.07, 11.18 or 11.19
                  of the PWS
                  Agreement.

              

      

       

      For
        purposes of clarification with respect to the indemnification given above,
        the
        Company shall only be required to indemnify the Indemnified Parties with
        respect
        to Regulation AB Losses that any Indemnified Party incurs when such Regulation
        AB Losses arise out of or are based upon clauses (i), (ii), (iii) and (iv)
        above
        and only with respect to the Mortgage Loans; provided, that the indemnification
        provided under Section 11.18 of the PWS Agreement shall be the only
        indemnification with respect to Regulation AB Losses; provided, further,
        that if
        the loan performance information is not provided to the Company pursuant
        to the
        PWS Agreement, the Company shall have no obligation to indemnify any Indemnified
        Party for regulation AB Losses arising from the Company’s failure to provide
        Static Pool Information.

       

      If
        the
        indemnification provided for herein is unavailable or insufficient to hold
        harmless an Indemnified Party, then the Company agrees that it shall contribute
        to the amount paid or payable by such Indemnified Party as a result of any
        claims, losses, damages or liabilities incurred by such Indemnified Party
        in
        such proportion as is appropriate to reflect the relative fault of such
        Indemnified Party on the one hand and the Company on the other.

       

      In
        the
        case of any failure of performance described in Section 11.18 of the PWS
        Agreement, the Company shall promptly reimburse the Assignor, SAMI II and
        each
        Person responsible for the preparation, execution or filing of any report
        required to be filed with the Commission, or for execution of a certification
        pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act, for
        all
        costs reasonably incurred by each such party in order to obtain the information,
        report, certification, accountants’ letter or other material not delivered as
        required by the Company, any Subservicer, any Subcontractor or any Third-Party
        Originator. This indemnification shall survive the termination of this Agreement
        or the termination of any party to this Agreement.

       

      Modification
        of the PWS Agreement

       

      9.  The
        Assignor and the Company hereby amend the PWS Agreement as follows:

       

      (a)    
         The
        following definitions shall be added to Article I of the PWS
        Agreement: 

       

      Assignee:
        U.S.
        Bank National Association, as trustee for the holders of Prime Mortgage Trust,
        Pass-Through Certificates, Series 2006-2.

       

      Master
        Servicer:
        With
        respect to any Securitization Transaction, the “master servicer,” if any,
        identified in the related transaction documents and as identified in writing
        to
        the Company as the master servicer for such Securitization
        Transaction.

       

      Prepayment
        Period:
        The
        month preceding the month in which the related Remittance Date
        occurs.

       

      REMIC:
        A “real
        estate mortgage investment conduit” as defined in Section 860D of the
        Code.

       

      REMIC
        Provisions:
        The
        provisions of the federal income tax law relating to REMICs, which appear
        at
        Sections 860A through 860G of the Code, and related provisions and regulations
        promulgated thereunder, as the foregoing may be in effect from time to
        time.

       

      SAMI
        II:
        Structured Asset Mortgage Investments II Inc.

       

      Trustee:
        U.S.
        Bank National Association.

       

      (b)         
         The
        definition of Business Day is deleted in its entirety and replaced with the
        following:

       

      Business
        Day:
        Any day
        other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the States
        of
        New York, Maryland or Minnesota, or (iii) a day on which banks in the States
        of
        New York, Maryland or Minnesota are authorized or obligated by law or executive
        order to be closed.

       

      (c)         
         [reserved]
        

       

      (d)         
         The
        following are added as the last three paragraphs of Section 4.01 of the PWS
        Agreement:

       

      “Notwithstanding
        anything to the contrary contained herein, the Company shall not permit any
        modification with respect to any Mortgage Loan without permission of the
        Master
        Servicer.

       

      Notwithstanding
        anything to the contrary contained herein, any REO Property shall be disposed
        of
        by the Company before the close of the third taxable year following the taxable
        year in which the related Mortgage Loan became an REO Property, unless the
        Company is otherwise directed by the Master Servicer.

       

      The
        Company shall comply with any written instructions, to the extent the Company
        is
        able to reasonably comply, received from the Master Servicer or the Assignor
        pertaining to the servicing of the Mortgage Loans and the acquisition, holding
        or disposition of any REO Property to ensure the continued qualification
        of each
        REMIC as a REMIC in accordance with the REMIC Provisions.”

       

      (e)         
         The
        first
        sentence of Subsection (c) of the definition of “Eligible Account” is deleted in
        its entirety and replaced with the following: 

       

      “(c)
        in a
        separate non-trust account (which is not fully insured by FDIC or other
        insurance) in an Eligible Institution.”

       

      (f)          
         The
        following is added to the last sentence of the definition of “Eligible
        Institution”:

       

      “;
        provided that Chevy Chase Bank, F.S.B. shall cease to be an Eligible Institution
        in the event that either its short-term or long-term debt rating is reduced
        below the rating in effect on April 1, 2006.”

       

      (g)         
         Subsection
        3.02(nn) is deleted in its entirety and replaced with the
        following:

       

      “(nn) The
        Mortgagor has not notified the Company, and the Company does not have any
        knowledge of any relief requested or allowed to the Mortgagor under the
        Servicemembers Civil Relief Act;”

       

      (h)         
         The
        following is added to the end of Subsection 4.05(iii):

       

      “provided,
        however, the Company must provide documentation to the Master Servicer
        supporting Servicing Advances related to Liquidation Proceeds prior to
        withdrawing such amounts from the Custodial Account;”

       

      (i)            Article
        V
        of the PWS Agreement is hereby amended effective as of the date hereof by
        deleting the second sentence in the second to last paragraph of Section 5.02
        in
        its entirety and replacing it with the following:

       

      “The
        Company shall also provide a monthly report, in the form of Exhibit E hereto,
        or
        such other form as is mutually acceptable to the Company, the Purchaser and
        any
        Master Servicer, Exhibit F with respect to defaulted mortgage loans, Exhibit
        N
        with respect to realized losses and gains, Exhibit O with respect to modified
        mortgage loans, Exhibit P with respect to claims submitted and Exhibit Q
        with
        respect to loss severity, with each such report.”

       

      (j)          
          Exhibit
        E
        of the PWS Agreement is deleted in its entirety and replaced with the following
        or such other format as mutually agreed upon between the Company and the
        Master
        Servicer:

       

      EXHIBIT
        E

       

      REMITTANCE
        OVERVIEW REPORT

       

      
        	
                Field

              	
                Field
                  Description

              
	
                Deal
                  Name

              	
                VARCHAR
                  (15)

              
	
                Master
                  Servicer Loan Number

              	
                NUMERIC
                  (9,0)

              
	
                Current
                  Investor Category

              	
                VARCHAR
                  (5)

              
	
                Original
                  Investor Category

              	
                VARCHAR
                  (5)

              
	
                Servicer
                  Loan Number

              	
                VARCHAR
                  (15)

              
	
                Cutoff
                  Date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Loan
                  Next Due Date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Gross
                  Interest Rate

              	
                NUMERIC
                  (7,7)

              
	
                Net
                  Interest Rate

              	
                NUMERIC
                  (7,7)

              
	
                Pending
                  Interest Rate

              	
                NUMERIC
                  (7,7)

              
	
                Servicing
                  Fee Rate

              	
                NUMERIC
                  (7,7)

              
	
                MI
                  Rate

              	
                NUMERIC
                  (7,7)

              
	
                Scheduled
                  P&I Amount (P & I Constant)

              	
                NUMERIC
                  (12,2)

              
	
                ARM
                  Index

              	
                NUMERIC
                  (7,7)

              
	
                Pending
                  ARM Index

              	
                NUMERIC
                  (7,7)

              
	
                Beginning
                  Scheduled Principal Balance

              	
                NUMERIC
                  (12,2)

              
	
                Actual
                  Principal Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Actual
                  Principal Curtailment Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Curtailment
                  Adjustment Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Liquidation
                  Principal Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Principal
                  Not Advanced (stop advance loans only)

              	
                NUMERIC
                  (12,2)

              
	
                Scheduled
                  Gross Interest

              	
                NUMERIC
                  (12,2)

              
	
                Actual
                  Interest Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Scheduled
                  Service Fee Amount

              	
                NUMERIC
                  (12,2)

              
	
                Soldiers
                  and Sailors Variance

              	
                NUMERIC
                  (12,2)

              
	
                Net
                  Interest Not Advanced

              	
                NUMERIC
                  (12,2)

              
	
                Prepayment
                  Penalty Remitted

              	
                NUMERIC
                  (12,2)

              
	
                PMI
                  Premium Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Additional
                  Fees Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Ending
                  Scheduled Balance

              	
                NUMERIC
                  (12,2)

              
	
                Actual
                  Amount Remitted Total (each loan)

              	
                NUMERIC
                  (12,2)

              
	
                Beginning
                  Actual Balance

              	
                NUMERIC
                  (12,2)

              
	
                Actual
                  Principal Collected

              	
                NUMERIC
                  (12,2)

              
	
                Actual
                  Curtailments Collected

              	
                NUMERIC
                  (12,2)

              
	
                Curtailment
                  Adjustment Collected

              	
                NUMERIC
                  (12,2)

              
	
                Gross
                  Interest Collected

              	
                NUMERIC
                  (12,2)

              
	
                Net
                  Interest Collected

              	
                NUMERIC
                  (12,2)

              
	
                Service
                  Fee Collected

              	
                NUMERIC
                  (12,2)

              
	
                Actual
                  Ending Principal Balance

              	
                NUMERIC
                  (12,2)

              
	
                Liquidation
                  Date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Liquidation
                  Type

              	
                VARCHAR
                  (1)

              
	
                Gross
                  Liquidation Proceeds

              	
                NUMERIC
                  (12,2)

              
	
                Liquidation
                  Expenses

              	
                NUMERIC
                  (12,2)

              
	
                Principal
                  and Interest Advanced Balance

              	
                NUMERIC
                  (12,2)

              
	
                Delinquent
                  Service Fee

              	
                NUMERIC
                  (12,2)

              
	
                Calculated
                  Loss to Trust

              	
                NUMERIC
                  (12,2)

              
	
                Net
                  Interest Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Collected
                  Interest Not Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Ending
                  Advance Balance

              	
                NUMERIC
                  (12,2)

              
	
                Soldiers
                  and Sailors Flag

              	
                VARCHAR
                  (1)

              
	
                Soldiers
                  and Sailors Old Rate

              	
                NUMERIC
                  (7,7)

              
	
                Soldiers
                  and Sailors Old P & I

              	
                NUMERIC
                  (12,2)

              
	
                Modified
                  Date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Stop
                  Advance Flag

              	
                 

              
	
                Stop
                  Advance Date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                BPO
                  Value

              	
                NUMERIC
                  (12,2)

              
	
                Cash
                  Flow Group

              	
                VARCHAR
                  (2)

              
	
                MSP
                  Principal Balance

              	
                NUMERIC
                  (12,2)

              
	
                Debt
                  Forgiven / Charged Off

              	
                NUMERIC
                  (12,2)

              
	
                Mortgagor
                  PITI Payment

              	
                NUMERIC
                  (12,2)

              
	
                Bankruptcy
                  Status

              	
                VARCHAR
                  (2)

              
	
                Foreclosure
                  Status

              	
                VARCHAR
                  (2)

              
	
                Modification
                  Status

              	
                 

              
	
                Interest
                  Only Loan

              	
                VARCHAR
                  (2)

              
	
                Escrowed
                  Loan

              	
                VARCHAR
                  (2)

              
	
                Monthly
                  Escrow Deposit

              	
                NUMERIC
                  (12,2)

              
	
                Escrow
                  Balance

              	
                NUMERIC
                  (12,2)

              
	
                Escrow
                  Advance Balance

              	
                NUMERIC
                  (12,2)

              
	
                Restricted
                  Escrow Balance

              	
                NUMERIC
                  (12,2)

              
	
                Mortgagor
                  Recoverable Corporate Expense Balance

              	
                NUMERIC
                  (12,2)

              
	
                Non-Recoverable
                  Corporate Expense Balance

              	
                NUMERIC
                  (12,2)

              
	
                HUD
                  235 Loan Status

              	
                VARCHAR
                  (2)

              
	
                HUD
                  235 Balance

              	
                NUMERIC
                  (12,2)

              
	
                Late
                  Charge Balance

              	
                NUMERIC
                  (12,2)

              
	
                Buydown
                  Loan Status

              	
                VARCHAR
                  (2)

              
	
                Monthly
                  Buydown Amount

              	
                NUMERIC
                  (12,2)

              
	
                Monthly
                  Buydown Funds Balance

              	
                NUMERIC
                  (12,2)

              
	
                Prepayment
                  Penalty Amount Waived

              	
                NUMERIC
                  (12,2)

              
	
                Prepayment
                  Penalty Waived Reason Code

              	
                VARCHAR
                  (3)

              
	
                Material
                  Breach Status

              	
                VARCHAR
                  (3)

              
	
                Material
                  Breach Code

              	
                VARCHAR
                  (3)

              
	
                Prefunding
                  Date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                3rd
                  Party Recoverable Expenses

              	
                NUMERIC
                  (12,2)

              

      

      

       

      REMITTANCE
        SUMMARY REPORT

       

      
        	
                Field

              	
                Field
                  Description

              
	
                Deal

              	
                VARCHAR
                  (15)

              
	
                Investor
                  

              	
                VARCHAR
                  (5)

              
	
                Category

              	
                VARCHAR
                  (5)

              
	
                Principal
                  Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Curtailments
                  Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Curtailment
                  Adjustments Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Liquidation
                  Proceeds Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Principal
                  Not Advanced (stop advance loans only)

              	
                NUMERIC
                  (15,2)

              
	
                Principal
                  Amounts Called/Collapsed

              	
                NUMERIC
                  (15,2)

              
	
                Total
                  Principal Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Interest
                  Remitted

              	
                NUMERIC
                  (15,2)

              
	
                PMI
                  Premiums Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Soldiers
                  and Sailors Difference

              	
                NUMERIC
                  (15,2)

              
	
                Net
                  Interest Not Advanced

              	
                NUMERIC
                  (15,2)

              
	
                Non
                  Comp Interest Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Prepayment
                  Penalties Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Total
                  Interest Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Arrearage
                  Amount Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Aggregate
                  Loss to Trust 

                Total
                  Manual Adjustments

              	
                NUMERIC
                  (15,2)

              
	
                Debt
                  Forgiven/ Charged Off

              	
                NUMERIC
                  (15,2)

              
	
                Additional
                  Fees Collected

              	
                NUMERIC
                  (15,2)

              
	
                Total
                  Remittance

              	
                NUMERIC
                  (15,2)

              

      

      

       

      (k) Exhibit
        F
        of the PWS Agreement is deleted in its entirety and replaced with the following
        or such other format as mutually agreed upon between the Company and the
        Master
        Servicer:

       

      EXHIBIT
        F

       

      DELINQUENCY
        SUMMARY REPORT

       

      
        	
                Field

              	
                Field
                  Description

              
	
                Servicer
                  Investor Number

              	
                VARCHAR
                  (5)

              
	
                Mortgage
                  Group

              	
                VARCHAR
                  (1)

              
	
                Performance
                  type (Current, 30 days, 60 days, 90+ days, Foreclosure, Bankruptcy
                  or
                  PIF)

              	
                VARCHAR
                  (6)

              
	
                Count
                  of Loans

              	
                NUMERIC
                  (10,0)

              
	
                Percent
                  of Investor Number

              	
                NUMERIC
                  (7,7)

              
	
                Deal
                  UPB

              	
                NUMERIC
                  (14,2)

              
	
                Percent
                  of Deal UPB

              	
                NUMERIC
                  (7,7)

              
	
                Arrears
                  Balance

              	
                NUMERIC
                  (14,2)

              
	
                Percent
                  of Arrears Balance

              	
                NUMERIC
                  (7,7)

              
	
                Foreclosure
                  Quick Sale

              	
                NUMERIC
                  (12,2)

              
	
                REO
                  Book Value

              	
                NUMERIC
                  (12,2)

              

      

      

       

      DEFAULT
        DETAIL REPORT

       

      
        	
                Field

              	
                Field
                  Description

              
	
                Servicer
                  loan number 

              	
                VARCHAR
                  (15)

              
	
                SBO
                  loan number

              	
                VARCHAR
                  (9)

              
	
                Zip
                  Code

              	
                VARCHAR
                  (5)

              
	
                Original
                  loan amount

              	
                NUMERIC
                  (12,2)

              
	
                Original
                  value amount

              	
                NUMERIC
                  (12,2)

              
	
                Origination
                  date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Loan
                  type

              	
                VARCHAR
                  (2)

              
	
                Actual
                  due date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Current
                  loan amount

              	
                NUMERIC
                  (12,2) 

              
	
                Corporate
                  expense balance

              	
                NUMERIC
                  (12,2)

              
	
                Escrow
                  balance/advance balance

              	
                NUMERIC
                  (12,2)

              
	
                Suspense
                  balance

              	
                NUMERIC
                  (12,2)

              
	
                Restricted
                  escrow balance

              	
                NUMERIC
                  (12,2)

              
	
                Current
                  Value date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Current
                  value amount

              	
                NUMERIC
                  (12,2)

              
	
                Current
                  value source

              	
                VARCHAR
                  (15)

              
	
                VA
                  LGC/ FHA Case number

              	
                VARCHAR
                  (15)

              
	
                %
                  of MI coverage 

              	
                NUMERIC
                  (7,7)

              
	
                MI
                  certificate number

              	
                VARCHAR
                  (15)

              
	
                LPMI
                  Cost 

              	
                NUMERIC
                  (7,7)

              
	
                Occupancy
                  status 

              	
                VARCHAR
                  (1)

              
	
                First
                  vacancy date 

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Property
                  condition

              	
                VARCHAR
                  (2)

              
	
                Property
                  type

              	
                VARCHAR
                  (2)

              
	
                Delinquency
                  flag

              	
                VARCHAR
                  (2)

              
	
                Reason
                  for default

              	
                VARCHAR
                  (2)

              
	
                FNMA
                  action code

              	
                VARCHAR
                  (3)

              
	
                FNMA
                  delinquency reason code

              	
                VARCHAR
                  (3)

              
	
                Loss
                  mit flag

              	
                VARCHAR
                  (2)

              
	
                Loss
                  mit type

              	
                VARCHAR
                  (2)

              
	
                Loss
                  mit approval date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Loss
                  mit removal date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Repay
                  first due date 

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Repay
                  next due date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Repay
                  plan broken/reinstated/closed date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Repay
                  plan created date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Foreclosure
                  flag

              	
                VARCHAR
                  (2)

              
	
                Foreclosure
                  attorney referral date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Actual
                  first legal date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Date
                  FC sale scheduled

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Foreclosure
                  actual sale date 

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Actual
                  redemption end date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Actual
                  eviction complete date 

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Actual
                  eviction start date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Bankruptcy
                  flag

              	
                VARCHAR
                  (2)

              
	
                Actual
                  bankruptcy start date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Bankruptcy
                  chapter 

              	
                VARCHAR
                  (2)

              
	
                Bankruptcy
                  Case Number

              	
                VARCHAR
                  (15)

              
	
                Post
                  petition due date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Actual
                  discharge date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Date
                  relief/dismissal granted

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Actual
                  MI claim filed date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Actual
                  MI claim amount filed

              	
                NUMERIC
                  (12,2)

              
	
                MI
                  claim amount paid

              	
                NUMERIC
                  (12,2)

              
	
                MI
                  claim funds received date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Title
                  approval letter received date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Title
                  package HUD/VA date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                FHA
                  27011A transmitted date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                FHA
                  Part A funds received date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                FHA
                  27011 B transmitted date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                FHA
                  Part B funds received date 

              	
                DATE
                  (MM/DD/YYYY)

              
	
                VA
                  NOE submitted date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                VA
                  first funds received amount

              	
                NUMERIC
                  (12,2)

              
	
                VA
                  first funds received date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                VA
                  claim funds received date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                VA
                  claim submitted date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                VA
                  claims funds received amount

              	
                NUMERIC
                  (12,2)

              
	
                REO
                  flag

              	
                VARCHAR
                  (2)

              
	
                REO
                  repaired value

              	
                NUMERIC
                  (12,2)

              
	
                REO
                  value (as is)

              	
                NUMERIC
                  (12,2)

              
	
                REO
                  value date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                REO
                  value source

              	
                VARCHAR
                  (15)

              
	
                REO
                  original list date 

              	
                DATE
                  (MM/DD/YYYY)

              
	
                REO
                  original list price

              	
                NUMERIC
                  (12,2)

              
	
                REO
                  list price adjustment amount

              	
                NUMERIC
                  (12,2)

              
	
                REO
                  list price adjustment date 

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Date
                  REO offer received

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Date
                  REO offer accepted

              	
                DATE
                  (MM/DD/YYYY)

              
	
                REO
                  scheduled close date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                REO
                  actual closing date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                REO
                  sales price

              	
                NUMERIC
                  (12,2)

              
	
                REO
                  net sales proceeds

              	
                NUMERIC
                  (12,2)

              
	
                Estimated
                  loss

              	
                NUMERIC
                  (12,2)

              

      

      

       

      (l) Exhibit
        M
        of the PWS Agreement is deleted in its entirety and replaced with the
        following:

       

      EXHIBIT
        M

       

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

       

      The
        assessment of compliance to be delivered by [the Company] [Name of Subservicer]
        shall address, at a minimum, the criteria identified as below as “Applicable
        Servicing Criteria”:

       

      
        	
                Servicing
                  Criteria 

              	
                Applicable
                  Servicing Criteria

              
	
                Reference

              	
                Criteria

              	
                 

              
	
                 

              	
                General
                  Servicing Considerations

              	
                 

              
	
                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements.

              	
                x

              
	
                1122(d)(1)(ii)

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities.

              	
                x

              
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the mortgage loans are maintained.

              	
                 

              
	
                1122(d)(1)(iv)

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements.

              	
                x

              
	
                 

              	
                Cash
                  Collection and Administration

              	 
	
                1122(d)(2)(i)

              	
                Payments
                  on mortgage loans are deposited into the appropriate custodial
                  bank
                  accounts and related bank clearing accounts no more than two business
                  days
                  following receipt, or such other number of days specified in the
                  transaction agreements.

              	
                x

              
	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel.

              	
                x

              
	
                1122(d)(2)(iii)

              	
                Advances
                  of funds or guarantees regarding collections, cash flows or distributions,
                  and any interest or other fees charged for such advances, are made,
                  reviewed and approved as specified in the transaction
                  agreements.

              	
                x

              
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of overcollateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements.

              	
                x

              
	
                1122(d)(2)(v)

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institution” with respect to
                  a foreign financial institution means a foreign financial institution
                  that
                  meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                  Act.

              	
                x

              
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized
                  access.

              	
                x

              
	
                1122(d)(2)(vii)

              	
                Reconciliations
                  are prepared on a monthly basis for all asset-backed securities
                  related
                  bank accounts, including custodial accounts and related bank clearing
                  accounts. These reconciliations are (A) mathematically accurate;
                  (B)
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction agreements;
                  (C)
                  reviewed and approved by someone other than the person who prepared
                  the
                  reconciliation; and (D) contain explanations for reconciling items.
                  These
                  reconciling items are resolved within 90 calendar days of their
                  original
                  identification, or such other number of days specified in the transaction
                  agreements.

              	
                x

              
	
                 

              	
                Investor
                  Remittances and Reporting

              	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of mortgage loans serviced by the
                  Servicer.

              	
                x

              
	
                1122(d)(3)(ii)

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements.

              	
                x

              
	
                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  Servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements.

              	
                x

              
	
                1122(d)(3)(iv)

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank
                  statements.

              	
                x

              
	
                 

              	
                Pool
                  Asset Administration

              	 
	
                1122(d)(4)(i)

              	
                Collateral
                  or security on mortgage loans is maintained as required by the
                  transaction
                  agreements or related mortgage loan documents.

              	
                x

              
	
                1122(d)(4)(ii)

              	
                Mortgage
                  loan and related documents are safeguarded as required by the transaction
                  agreements

              	
                x

              
	
                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements.

              	
                x

              
	
                1122(d)(4)(iv)

              	
                Payments
                  on mortgage loans, including any payoffs, made in accordance with
                  the
                  related mortgage loan documents are posted to the Servicer’s obligor
                  records maintained no more than two business days after receipt,
                  or such
                  other number of days specified in the transaction agreements, and
                  allocated to principal, interest or other items (e.g., escrow)
                  in
                  accordance with the related mortgage loan documents.

              	
                x

              
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the mortgage loans agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal
                  balance.

              	
                x

              
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor's mortgage loans
                  (e.g.,
                  loan modifications or re-agings) are made, reviewed and approved
                  by
                  authorized personnel in accordance with the transaction agreements
                  and
                  related pool asset documents.

              	
                x

              
	
                1122(d)(4)(vii)

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements.

              	
                x

              
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a mortgage
                  loan is delinquent in accordance with the transaction agreements.
                  Such
                  records are maintained on at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent mortgage loans including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or
                  unemployment).

              	
                x

              
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for mortgage loans with variable
                  rates are computed based on the related mortgage loan
                  documents.

              	
                x

              
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s mortgage loan
                  documents, on at least an annual basis, or such other period specified
                  in
                  the transaction agreements; (B) interest on such funds is paid,
                  or
                  credited, to obligors in accordance with applicable mortgage loan
                  documents and state laws; and (C) such funds are returned to the
                  obligor
                  within 30 calendar days of full repayment of the related mortgage
                  loans,
                  or such other number of days specified in the transaction
                  agreements.

              	
                x

              
	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements.

              	
                x

              
	
                1122(d)(4)(xii)

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission.

              	
                x

              
	
                1122(d)(4)(xiii)

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the servicer, or such other number of days
                  specified in the transaction agreements.

              	
                x

              
	
                1122(d)(4)(xiv)

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements.

              	
                x

              
	
                1122(d)(4)(xv)

              	
                Any
                  external enhancement or other support, identified in Item 1114(a)(1)
                  through (3) or Item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements.

              	
                 

              
	
                 

              	
                 

              	
                 

              

      

      

       

      
        	 	
                (m)

              	
                The
                  PWS Agreement is amended by adding the following
                  or
                  such other format as mutually agreed upon between the Company and
                  the
                  Master Servicer:

              

      

       

      EXHIBIT
        O

       

      MODIFIED
        LOANS REPORT

       

      
        	
                Field

                Description

              	
                Field
                  

                Description

              
	
                Loan

              	
                VARCHAR
                  (15)

              
	
                Investor

              	
                VARCHAR
                  (5)

              
	
                Original
                  Category

              	
                VARCHAR
                  (5)

              
	
                Current
                  Category

              	
                VARCHAR
                  (5)

              
	
                Stop
                  Adv Flag

              	
                VARCHAR
                  (3)

              
	
                Modified
                  Due Date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Mod
                  Loan Curtailment

              	
                NUMERIC
                  (15,2)

              
	
                Mod
                  Loan Curt Adjustment

              	
                NUMERIC
                  (15,2) 

              
	
                Principal
                  Advanced Capped

              	
                NUMERIC
                  (15,2) 

              
	
                Net
                  Interest Advanced Capped

              	
                NUMERIC
                  (15,2)

              
	
                Service
                  Fee Advanced Capped

              	
                NUMERIC
                  (15,2)

              
	
                Third
                  Party Bal Capped

              	
                NUMERIC
                  (15,2)

              
	
                Amount
                  of Other Capped

              	
                NUMERIC
                  (15,2)

              
	
                Borrower
                  Interest Contribution

              	
                NUMERIC
                  (15,2)

              
	
                Borrower
                  Fee Code Arrearage Contribution

              	
                NUMERIC
                  (15,2)

              
	
                Borrower
                  Principal Contribution

              	
                NUMERIC
                  (15,2)

              
	
                Amt
                  Forgiven

              	
                NUMERIC
                  (15,2)

              
	
                Beg
                  Delq Prin Bal

              	
                NUMERIC
                  (15,2)

              
	
                Beg
                  Delq Int Bal

              	
                NUMERIC
                  (15,2)

              
	
                Beg
                  Pre Prin Bal

              	
                NUMERIC
                  (15,2)

              
	
                Beg
                  Pre Int Bal

              	
                NUMERIC
                  (15,2)

              
	
                Excess
                  Int Adjust

              	
                NUMERIC
                  (15,2)

              
	
                Excess
                  Interest on Mod

              	
                NUMERIC
                  (15,2)

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 	
                (n)

              	
                The
                  PWS Agreement is amended by adding the following or such other
                  format as
                  mutually agreed upon between the Company and the Master
                  Servicer:

              

      

       

      EXHIBIT
        P

       

      CLAIMS
        SUBMITTED REPORT

       

      
        	
                Field

              	
                Field
                  Description

              
	
                Servicer
                  Investor Number

              	
                VARCHAR
                  (5)

              
	
                Servicer
                  Investor Category

              	
                VARCHAR
                  (5)

              
	
                Loan
                  Number

              	
                VARCHAR
                  (15)

              
	
                Mortgage
                  Group

              	
                VARCHAR
                  (1)

              
	
                Liquidation
                  Type

              	
                VARCHAR
                  (1)

              
	
                Escrow
                  Balance or Advance Balance

              	
                NUMERIC
                  (12,2)

              
	
                Corporate
                  Expense Balance

              	
                NUMERIC
                  (12,2)

              
	
                Restricted
                  Escrow Balance

              	
                NUMERIC
                  (12,2)

              
	
                Replacement
                  Reserve Balance

              	
                NUMERIC
                  (12,2)

              
	
                Suspense
                  Balance

              	
                NUMERIC
                  (12,2)

              
	
                Third
                  Party Expense Balance

              	
                NUMERIC
                  (12,2)

              
	
                Charge
                  Off Amount

              	
                NUMERIC
                  (12,2)

              
	
                Side
                  Note Collections

              	
                NUMERIC
                  (12,2) 

              
	
                Claim
                  Amount Submitted

              	
                NUMERIC
                  (12,2)

              

      

      

       

      
        	 	
                (o)

              	
                The
                  PWS Agreement is amended by adding the following or such other
                  format as
                  mutually agreed upon between the Company and the Master
                  Servicer:

              

      

       

      EXHIBIT
        Q

      

      LOSS
        SEVERITY REPORT

       

      
        	
                Field

              	
                Field
                  Description

              
	
                Month
                  End

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Deal
                  Name

              	
                VARCHAR
                  (15)

              
	
                Servicer
                  Investor Number 

              	
                VARCHAR
                  (5)

              
	
                Servicer
                  Investor Category

              	
                VARCHAR
                  (5)

              
	
                Mortgage
                  Group

              	
                VARCHAR
                  (1)

              
	
                Loan
                  Number

              	
                VARCHAR
                  (15)

              
	
                Liquidation
                  Type

              	
                VARCHAR
                  (1)

              
	
                Loan
                  Due Date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                PIF
                  Date

              	
                DATE
                  (MM/DD/YYYY)

              
	
                Gross
                  Interest Rate

              	
                NUMERIC
                  (7,7)

              
	
                Net
                  Interest Rate

              	
                NUMERIC
                  (7,7)

              
	
                Service
                  Fee Rate

              	
                NUMERIC
                  (7,7)

              
	
                P
                  & I Constant

              	
                NUMERIC
                  (12,2)

              
	
                Scheduled
                  Beginning Balance

              	
                NUMERIC
                  (12,2)

              
	
                Arrearage
                  Balance

              	
                NUMERIC
                  (12,2)

              
	
                Total
                  Legal and Other Expenses

              	
                NUMERIC
                  (12,2)

              
	
                Scheduled
                  Advanced Interest

              	
                NUMERIC
                  (12,2)

              
	
                Scheduled
                  Liquidated Amount

              	
                NUMERIC
                  (12,2)

              
	
                Gross
                  Liquidation Proceeds

              	
                NUMERIC
                  (12,2)

              
	
                P
                  & I Advance Balance

              	
                NUMERIC
                  (12,2)

              
	
                Delinquent
                  Service Fee

              	
                NUMERIC
                  (12,2)

              
	
                Net
                  Liquidation Proceeds

              	
                NUMERIC
                  (12,2)

              
	
                Scheduled
                  Net Interest

              	
                NUMERIC
                  (12,2)

              
	
                Net
                  Liquidated Funds Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Total
                  Loss (Gain) Amount

              	
                NUMERIC
                  (12,2)

              
	
                Total
                  Loss (Gain) to Trust

              	
                NUMERIC
                  (12,2)

              
	
                Total
                  Loss (Gain) to Servicer

              	
                NUMERIC
                  (12,2)

              
	
                Total
                  Loss Severity %

              	
                NUMERIC
                  (7,7)

              
	
                Total
                  Loss Severity % to Trust

              	
                NUMERIC
                  (7,7)

              
	
                Total
                  Liquidated Remitted

              	
                NUMERIC
                  (12,2)

              
	
                Claim
                  on Trust Loss

              	
                NUMERIC
                  (12,2)

              
	
                Claim
                  on Servicer Loss

              	
                NUMERIC
                  (12,2)

              
	
                Total
                  Claim Amount

              	
                NUMERIC
                  (12,2)

              

      

      

       

       

      [NAME
        OF
        COMPANY] [NAME OF SUBSERVICER]

       

      Date: _________________________

       

      By: _________________________

      Name:
        

      Title:
        

       

      10.    
          The
        Company hereby acknowledges that EMC Mortgage Corporation has been appointed
        as
        the master servicer (the “Master Servicer”) of the Mortgage Loans pursuant to
        the Pooling and Servicing Agreement, dated as of November 1, 2006, among
        SAMI
        II, the Assignor, as seller and master servicer and the Assignee, and that
        the
        Master Servicer has the right to enforce all obligations of the Company under
        the PWS Agreement with respect to the servicing of the Mortgage Loans. The
        Company shall make all distributions under the PWS Agreement to the Master
        Servicer by wire transfer of immediately available funds to: 

       

      EMC
        Master Servicing Remittances

      Bank:
        Chase Bank of Texas

      Branch:
        Irving, Texas

      Account
        Name: EMC Mortgage Corporation

      ABA
        #
        113000609

      ACCOUNT
        #
        000000709377717

      Reference: M/S
        Remittance November 1, 2006 Remit for Chevy Chase Bank, F.S.B.

      Attention:
        LSBO Group-MS

       

      The
        Company shall deliver all reports required to be delivered under the PWS
        Agreement to the Master Servicer at:

       

      EMC
        Mortgage Corporation

      780
        Lake
        Vista Drive

      Lewisville,
        Texas 75067

      Attention:
        Michelle Viner

      Facsimile:
        (214) 626-4889

      

      11.       
          Notices:

      

      The
        Assignor’s address for purposes of all notices and correspondence related to the
        Mortgage Loans and this Assignment and Assumption Agreement is:

       

      EMC
        Mortgage Corporation

      780
        Lake
        Vista Drive

      Lewisville,
        Texas 75067

      Attention:
        Michelle Viner

      Facsimile:
        (214) 626-4889

      

      With
        a
        copy to:

       

      Bear,
        Stearns & Co. Inc.

      383
        Madison Avenue

      New
        York,
        New York 10179

      Attention:
        Robert Durden

      

       

      The
        Assignee’s address for purposes of all notices and correspondence related to the
        Mortgage Loans and this Assignment and Assumption Agreement is:

       

      U.S.
        Bank
        National Association,
        as
        Trustee

      One
        Federal Street, 3rd Floor

      Boston,
        MA 02110

      Attention:
        Corporate Trust Services, PRIME 2006-2
        

      Telecopier
        No.: (617) 603-6638

       

      The
        Company’s address for purposes of all notices and correspondence related to the
        Mortgage Loans and this Assignment and Assumption Agreement is:

       

      Chevy
        Chase Bank, F.S.B.

      7501
        Wisconsin Avenue, 6th
        Floor

      Bethesda,
        Maryland 20814

      Attention:
        Amy Westland

       

      With
        a
        copy to:

       

      Sandra
        S.
        Barker, Esq.

      Chief
        Mortgage Counsel

      7501
        Wisconsin Avenue, 13th
        Floor

      Bethesda,
        Maryland 20814

      

      Miscellaneous:

       

      12. Each
        party will pay any commissions it has incurred and the Assignor shall pay
        the
        fees of its attorneys and the reasonable fees of the attorneys of the Assignee
        and the Company in connection with the negotiations for, documenting of and
        closing of the transactions contemplated by this Assignment and Assumption
        Agreement. 

       

      13. The
        Servicing Fee Rate shall be a rate per annum equal to 25 basis
        points.

       

      14. This
        Assignment and Assumption Agreement shall be construed in accordance with
        the
        laws of the State of New York (other than Section 5-1401 of the New York
        General
        Obligations Law), without regard to conflicts of law principles, and the
        obligations, rights and remedies of the parties hereunder shall be determined
        in
        accordance with such laws.

       

      15.
         No
        term
        or provision of this Assignment and Assumption Agreement may be waived or
        modified unless such waiver or modification is in writing and signed by the
        party against whom such waiver or modification is sought to be
        enforced.

       

      16. This
        Assignment and Assumption Agreement shall inure to the benefit of the successors
        and assigns of the parties hereto. Any entity into which the Assignor, the
        Assignee or the Company may be merged or consolidated shall, without the
        requirement for any further writing, be deemed the Assignor, the Assignee
        or the
        Company, respectively, hereunder.

       

      17. This
        Assignment and Assumption Agreement shall survive the conveyance of the Mortgage
        Loans, the assignment of the PWS Agreement and the Term Sheet to the extent
        of
        the Mortgage Loans by Assignor to Assignee and the termination of the PWS
        Agreement and Term Sheet.

       

      18. This
        Assignment and Assumption Agreement may be executed simultaneously in any
        number
        of counterparts. Each counterpart shall be deemed to be an original and all
        such
        counterparts shall constitute one and the same instrument.

       

      19. In
        the
        event that any provision of this Assignment and Assumption Agreement conflicts
        with any provision of the PWS Agreement and Term Sheet with respect to the
        Mortgage Loans, the terms of this Assignment and Assumption Agreement shall
        control.

       

      20. Any
        new
        loan number assigned to a Mortgage Loan by the Assignee shall be provided
        to the
        Company at the following address: Chevy Chase Bank, F.S.B., 6151 Chevy Chase
        Drive, Laurel, MD 20707, Attention: Vicki Parry. In addition, if the Assignee
        has changed its document custodian from the previous custodian, such new
        custodian’s name, address and contact information shall be provided to the
        Company at the aforementioned address.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, the parties have caused this Assignment and Assumption
        Agreement to be executed by their duly authorized officers as of the date
        first
        above written.

       

      
        	 	 	
                 

              
	 	
                U.S.
                  BANK NATIONAL ASSOCIATION, not individually but solely as
                  Trustee

              
	 
 	 
 	 
 
	 	By:  	
              
	 	Name:  	
                

              
	 	Title:	
                
 
	 	 	
                

              

      

       

      
        
          	 	 	
                   

                
	 	
                  
                    EMC
                      MORTGAGE CORPORATION,

                    as
                      Company

                  

                
	 
 	 
 	 
 
	 	By:  	
                
	 	Name:  	
                  

                
	 	Title:	
                  

                
	 	 	
                  

                

        

         

      

      
        
          	 	 	
                   

                
	 	
                  
                    CHEVY
                      CHASE BANK, F.S.B.

                  

                
	 
 	 
 	 
 
	 	By:  	
                
	 	Name:  	
                  

                
	 	Title:	
                  
 
	 	 	
                  

                

        

         

      

      Acknowledged
        and Agreed

      
        
          
            	 	
                     

                  	 
	
                    
                      
                        EMC
                          MORTGAGE CORPORATION,

                        as
                          Master Servicer

                      

                    

                  	 
	 
 	 
 	 
	By:  	
                  	 
	Name:  	
                    

                  	 
	Title:	
                    
 	 
	 	
                    

                  	 

          

           

          
            
              
                
                  	 	
                           

                        	 
	
                          
                            
                              
                                STRUCTURED
                                  ASSET MORTGAGE INVESTMENTS II INC. 

                              

                            

                          

                        	 
	 
 	 
 	 
	By:  	
                        	 
	Name:  	
                          
  
Baron
                          Silverstein 	 
	Title:	
                          
  
Vice
                          President	 
	 	
                          

                        	 

                

                 

              

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        A:

       

      Mortgage
        Loans

       

      
        	
                Loan
                  Sequence Number

              	
                Seller
                  Loan Number

              	
                Loan
                  Number

              	
                Scheduled
                  Balance

              
	
                16015803

              	
                535104996

              	
                14815500

              	
                677021.80

              
	
                16015807

              	
                535107205

              	
                14815542

              	
                504337.77

              
	
                16015810

              	
                535108104

              	
                14815575

              	
                436000.00

              
	
                16015821

              	
                535113476

              	
                14815682

              	
                484310.50

              
	
                16015822

              	
                535113898

              	
                14815690

              	
                607423.17

              
	
                16015833

              	
                535119036

              	
                14815807

              	
                547613.64

              
	
                16015843

              	
                535121263

              	
                14815906

              	
                432369.56

              
	
                16015863

              	
                585037930

              	
                14816102

              	
                935576.59

              
	
                16015865

              	
                585040512

              	
                14816128

              	
                665987.04

              
	
                16015870

              	
                585049117

              	
                14816169

              	
                465203.64

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        B:

       

      PWS
        Agreement and Term Sheet

       

      [Provided
        upon request]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
 

    EXHIBIT
      J-2

    

    EMC
      ASSIGNMENT AGREEMENT

     

     

    

      ASSIGNMENT,
        ASSUMPTION AND RECOGNITION AGREEMENT

       

      This
        Assignment, Assumption and Recognition Agreement (the “AAR Agreement”) is made
        and entered into as of November 30, 2006 (the “Closing Date”), among Structured
        Asset Mortgage Investments II Inc. (the “Assignor”), U.S. Bank National
        Association,
        not
        individually but solely as trustee for the holders of Prime Mortgage Trust,
        Mortgage Pass-Through Certificates, Series 2006-2 (the “Assignee”) and EMC
        Mortgage Corporation (the “Company”).

      

      Whereas,
        the Assignor and the Company entered into that certain Servicing Agreement,
        dated as of November 1, 2006 (the “Servicing Agreement”), pursuant to which the
        Company agreed to service certain mortgage loans (the “Mortgage Loans”) on
        behalf of the Assignor. 

      

      In
        consideration of the mutual promises and agreements contained herein, and
        for
        other good and valuable consideration, the receipt and sufficiency of which
        are
        hereby acknowledged, the parties hereto agree that the Mortgage Loans listed
        on
Attachment
        1
        annexed
        hereto (the “Assigned Loans”) shall be subject to the terms of this AAR
        Agreement. Any capitalized term used and not otherwise defined herein shall
        have
        the meaning assigned to such term in the Servicing Agreement.

      

      Assignment
        and Assumption

       

      1.  Except
        as
        expressly provided for herein, the Assignor hereby grants, transfers and
        assigns
        to the Assignee all of its right, title and interest as in, to and under
        the
        Assigned Loans, and as they relate to the Assigned Loans, the Servicing
        Agreement. Notwithstanding anything to the contrary contained herein, the
        Assignor is not assigning to the Assignee any of its right, title and interest
        in, to and under the Servicing Agreement with respect to any other mortgage
        loan
        other than the Assigned Loans. Except as is otherwise expressly provided
        herein,
        the Assignor makes no representations, warranties or covenants to the Assignee
        and the Assignee acknowledges that the Assignor has no obligations to the
        Assignee under the terms of the Servicing Agreement or otherwise relating
        to the
        transaction contemplated herein (including, but not limited to, any obligation
        to indemnify the Assignee). 

       

      The
        Assignor acknowledges and agrees that upon execution of this AAR Agreement,
        with
        respect to the Assigned Loans, the Assignee shall become the “Owner” under the
        Servicing Agreement, and all representations, warranties and covenants by
        the
“Servicer” to the “Owner” under the Servicing Agreement including, but not
        limited to, the rights to receive indemnification, shall accrue to the Assignee
        by virtue of this AAR Agreement.

       

      Representations,
        Warranties and Covenants

       

      2.  The
        Assignor warrants and represents to, and covenants with, the Assignee and
        the
        Company as of the date hereof that:

       

      
        	a.  	
                Attached
                  hereto as Attachment
                  2
                  is
                  a true and correct copy of the Servicing Agreement, which Servicing
                  Agreement is in full force and effect as of the date hereof and
                  the
                  provisions of which have not been waived, amended or modified in
                  any
                  respect, nor has any notice of termination been given
                  thereunder;

              

      

       

      
        	b.  	
                The
                  Assignor was the lawful owner of the Assigned Loans with full right
                  to
                  transfer the Assigned Loans and any and all of its interests, rights
                  and
                  obligations under the Servicing Agreement they relate to the Assigned
                  Loans, free and clear from any and all claims and encumbrances;
                  and upon
                  the transfer of the Assigned Loans to the Assignee as contemplated
                  herein,
                  the Assignee shall have good title to each and every Assigned Loan,
                  as
                  well as any and all of the Assignee’s interests, rights and obligations
                  under the Servicing Agreement as they relate to the Assigned Loans,
                  free
                  and clear of any and all liens, claims and
                  encumbrances;

              

      

       

      
        	c.  	
                There
                  are no offsets, counterclaims or other defenses available to the
                  Company
                  with respect to the Servicing
                  Agreement;

              

      

       

      
        	d.  	
                The
                  Assignor has no knowledge of, and has not received notice of, any
                  waivers
                  under, or any modification of, any Assigned
                  Loan;

              

      

       

      
        	e.  	
                The
                  Assignor is duly organized, validly existing and in good standing
                  under
                  the laws of the jurisdiction of its incorporation, and has all
                  requisite
                  power and authority to acquire, own and sell the Assigned
                  Loans;

              

      

       

      
        	f.  	
                The
                  Assignor has full corporate power and authority to execute, deliver
                  and
                  perform its obligations under this AAR Agreement, and to consummate
                  the
                  transactions set forth herein. The consummation of the transactions
                  contemplated by this AAR Agreement is in the ordinary course of
                  the
                  Assignor’s business and will not conflict with, or result in a breach of,
                  any of the terms, conditions or provisions of the Assignor’s charter or
                  by-laws or any legal restriction, or any material agreement or
                  instrument
                  to which the Assignor is now a party or by which it is bound, or
                  result in
                  the violation of any law, rule, regulation, order, judgment or
                  decree to
                  which the Assignor or its property is subject. The execution, delivery
                  and
                  performance by the Assignor of this AAR Agreement and the consummation
                  by
                  it of the transactions contemplated hereby, have been duly authorized
                  by
                  all necessary corporate action on part of the Assignor. This AAR
                  Agreement
                  has been duly executed and delivered by the Assignor and, upon
                  the due
                  authorization, execution and delivery by the Assignee and the parties
                  hereto, will constitute the valid and legally binding obligation
                  of the
                  Assignor enforceable against the Assignor in accordance with its
                  terms
                  except as enforceability may be limited by bankruptcy, reorganization,
                  insolvency, moratorium or other similar laws now or hereafter in
                  effect
                  relating to creditors’ rights generally, and by general principles of
                  equity regardless of whether enforceability is considered in a
                  proceeding
                  in equity or at law; 

              

      

       

      
        	g.  	
                No
                  consent, approval, order or authorization of, or declaration, filing
                  or
                  registration with, any governmental entity is required to be obtained
                  or
                  made by the Assignor in connection with the execution, delivery
                  or
                  performance by the Assignor of this AAR Agreement, or the consummation
                  by
                  it of the transactions contemplated hereby. Neither the Assignor
                  nor
                  anyone acting on its behalf has offered, transferred, pledged,
                  sold or
                  otherwise disposed of the Assigned Loans or any interest in the
                  Assigned
                  Loans, or solicited any offer to buy or accept a transfer, pledge
                  or other
                  disposition of the Assigned Loans, or any interest in the Assigned
                  Loans
                  or otherwise approached or negotiated with respect to the Assigned
                  Loans,
                  or any interest in the Assigned Loans with any Person in any manner,
                  or
                  made any general solicitation by means of general advertising or
                  in any
                  other manner, or taken any other action which would constitute
                  a
                  distribution of the Assigned Loans under the Securities Act of
                  1933, as
                  amended (the “1933 Act”)
                  or
                  which would render the disposition of the Assigned Loans a violation
                  of
                  Section 5 of the 1933 Act or require registration pursuant thereto;
                  and

              

      

       

        
        h. There
        is
        no action, suit, proceeding, investigation or litigation pending or, to the
        Assignor's knowledge, threatened, which either in any instance or in the
        aggregate, if determined adversely to the Assignor, would adversely affect
        the
        Assignor's execution or delivery of, or the enforceability of, this AAR
        Agreement, or the Assignor's ability to perform its obligations under this
        AAR
        Agreement.

       

      3.  The
        Assignee warrants and represents to, and covenants with, the Assignor and
        the
        Company as of the date hereof that:

       

      
        	a.  	
                The
                  Assignee is duly organized, validly existing and in good standing
                  under
                  the laws of the jurisdiction of its organization and has all requisite
                  power and authority to hold the Assigned Loans as trustee on behalf
                  of the
                  holders of Prime Mortgage Trust, Mortgage Pass-Through Certificates,
                  Series 2006-2;

              

      

       

      
        	b.  	
                The
                  Assignee has full corporate power and authority to execute, deliver
                  and
                  perform its obligations under this AAR Agreement, and to consummate
                  the
                  transactions set forth herein. The consummation of the transactions
                  contemplated by this AAR Agreement is in the ordinary course of
                  the
                  Assignee’s business and will not conflict with, or result in a breach of,
                  any of the terms, conditions or provisions of the Assignee’s charter or
                  by-laws or any legal restriction, or any material agreement or
                  instrument
                  to which the Assignee is now a party or by which it is bound, or
                  result in
                  the violation of any law, rule, regulation, order, judgment or
                  decree to
                  which the Assignee or its property is subject. The execution, delivery
                  and
                  performance by the Assignee of this AAR Agreement and the consummation
                  by
                  it of the transactions contemplated hereby, have been duly authorized
                  by
                  all necessary corporate action on part of the Assignee. This AAR
                  Agreement
                  has been duly executed and delivered by the Assignee and, upon
                  the due
                  authorization, execution and delivery by the Assignor and the parties
                  hereto, will constitute the valid and legally binding obligation
                  of the
                  Assignee enforceable against the Assignee in accordance with its
                  terms
                  except as enforceability may be limited by bankruptcy, reorganization,
                  insolvency, moratorium or other similar laws now or hereafter in
                  effect
                  relating to creditors’ rights generally, and by general principles of
                  equity regardless of whether enforceability is considered in a
                  proceeding
                  in equity or at law;

              

      

       

      
        	c.  	
                No
                  consent, approval, order or authorization of, or declaration, filing
                  or
                  registration with, any governmental entity is required to be obtained
                  or
                  made by the Assignee in connection with the execution, delivery
                  or
                  performance by the Assignee of this AAR Agreement, or the consummation
                  by
                  it of the transactions contemplated hereby;

              

      

       

        
        d. There
        is
        no action, suit, proceeding, investigation or litigation pending or, to the
        Assignee's knowledge, threatened, which either in any instance or in the
        aggregate, if determined adversely to the Assignee, would adversely affect
        the
        Assignee's execution or delivery of, or the enforceability of, this AAR
        Agreement, or the Assignee's ability to perform its obligations under this
        AAR
        Agreement; and

       

        
        e. The
        Assignee assumes for the benefit of each of Assignor and Company all of the
        Assignor’s rights as “Owner” under the Servicing Agreement but solely with
        respect to the Assigned Loans.

       

      4.  Company
        warrants and represents to, and covenants with, the Assignee and the Assignor,
        as of the date hereof, that:

       

      
        	a.  	
                Attached
                  hereto as Attachment
                  2
                  is
                  a true and accurate copy of the Servicing Agreement, which agreement
                  is in
                  full force and effect as of the date hereof and the provisions
                  of which
                  have not been waived, amended or modified in any respect, nor has
                  any
                  notice of termination been given
                  thereunder;

              

      

       

      
        	b.  	
                The
                  Company is duly organized, validly existing and in good standing
                  under the
                  laws of the jurisdiction of its incorporation, and has all requisite
                  power
                  and authority to service the Assigned Loans and otherwise to perform
                  its
                  obligations under the Servicing
                  Agreement;

              

      

       

      
        	c.  	
                The
                  Company has full corporate power and authority to execute, deliver
                  and
                  perform its obligations under this AAR Agreement, and to consummate
                  the
                  transactions set forth herein. The consummation of the transactions
                  contemplated by this AAR Agreement is in the ordinary course of
                  the
                  Company’s business and will not conflict with, or result in a breach of,
                  any of the terms, conditions or provisions of the Company’s charter or
                  by-laws or any legal restriction, or any material agreement or
                  instrument
                  to which the Company is now a party or by which it is bound, or
                  result in
                  the violation of any law, rule, regulation, order, judgment or
                  decree to
                  which the Company or its property is subject. The execution, delivery
                  and
                  performance by the Company of this AAR Agreement and the consummation
                  by
                  it of the transactions contemplated hereby, have been duly authorized
                  by
                  all necessary corporate action on part of the Company. This AAR
                  Agreement
                  has been duly executed and delivered by the Company, and, upon
                  the due
                  authorization, execution and delivery by the Assignor and the Assignee,
                  will constitute the valid and legally binding obligation of the
                  Company,
                  enforceable against the Company in accordance with its terms except
                  as
                  enforceability may be limited by bankruptcy, reorganization, insolvency,
                  moratorium or other similar laws now or hereafter in effect relating
                  to
                  creditors’ rights generally, and by general principles of equity
                  regardless of whether enforceability is considered in a proceeding
                  in
                  equity or at law;

              

      

       

      
        	d.  	
                No
                  consent, approval, order or authorization of, or declaration, filing
                  or
                  registration with, any governmental entity is required to be obtained
                  or
                  made by the Company in connection with the execution, delivery
                  or
                  performance by the Company of this AAR Agreement, or the consummation
                  by
                  it of the transactions contemplated hereby;

              

      

       

      
        	e.  	
                The
                  Company shall establish a Custodial Account and an Escrow Account
                  under
                  the Servicing Agreement in favor of the Assignee with respect to
                  the
                  Assigned Loans separate from the Custodial Account and Escrow Account
                  previously established under the Servicing Agreement in favor of
                  the
                  Assignor; 

              

      

       

      
        	f.  	
                Pursuant
                  to Section 10.02 of the Servicing Agreement, the Company hereby
                  restates
                  the representations and warranties set forth in Article III of
                  the
                  Servicing Agreement with respect to the Company and/or the Assigned
                  Loans;
                  and

              

      

       

        
        g. Neither
        this AAR Agreement nor any certification, statement, report or other agreement,
        document or instrument furnished or to be furnished by the Company pursuant
        to
        this AAR Agreement contains or will contain any materially untrue statement
        of
        fact or omits or will omit to state a fact necessary to make the statements
        contained therein not misleading.

       

      5.  The
        Company warrants and represents to, and covenants with the Assignor as of
        the
        date hereof:

       

      (a)  The
        Company is not aware and has not received notice that any default, early
        amortization or other performance triggering event has occurred as to any
        other
        securitization due to any act or failure to act of the Company;

       

      (b)  No
        material noncompliance with the applicable servicing criteria with respect
        to
        other securitizations of residential mortgage loans involving the Company
        as
        servicer has been disclosed or reported by the Company;

       

      (c)  The
        Company has not been terminated as servicer in a residential mortgage loan
        securitization, either due to a servicing default or to application of a
        servicing performance test or trigger;

       

      (d)  No
        material changes to the Company’s policies or procedures with respect to the
        servicing function it will perform under the Servicing Agreement and this
        AAR
        Agreement for mortgage loans of a type similar to the Assigned Loans have
        occurred during the three-year period immediately preceding the date
        hereof;

       

      (e)  There
        are
        no aspects of the Company’s financial condition that could have a material
        adverse effect on the performance by the Company of its servicing obligations
        under the Servicing Agreement and this AAR Agreement;

       

      (f)  There
        are
        no material legal or governmental proceedings pending (or known to be
        contemplated) against the Company, any Subservicer or any third-party
        originator; and

       

      (g)  There
        are
        no affiliations, relationships or transactions relating to the Company or
        any
        Subservicer with respect to this Securitization Transaction and any party
        thereto of a type described in Item 1119 of Regulation AB.

       

      Notwithstanding
        anything to the contrary in the Agreement, the Company shall (or shall cause
        any
        Third-Party Originator to) (i) immediately notify the Assignor and SAMI II
        in
        writing of (A) legal proceedings pending against the Company, or proceedings
        known to be contemplated by governmental authorities against the Company
        which
        in the judgment of the Company would be, in each case, material to purchasers
        of
        securities backed by the Assigned Loans, (B) any affiliations or relationships
        of the type described in Item 1119(b) of Regulation AB that develop following
        the date hereof between the Company and any of the above listed parties or
        other
        parties identified in writing by the Assignor or SAMI II with respect to
        the
        Securitization Transaction and (ii) provide to the Assignor and SAMI II a
        description of such proceedings, affiliations or relationships

       

      6.  The
        Assignor hereby agrees to indemnify and hold the Assignee (and its successors
        and assigns) harmless against any and all claims, losses, penalties, fines,
        forfeitures, legal fees and related costs, judgments, and any other costs,
        fees
        and expenses that the Assignee (and its successors and assigns) may sustain
        in
        any way related to any breach of the representations or warranties of the
        Assignor set forth in this AAR Agreement or the breach of any covenant or
        condition contained herein.

       

      Recognition
        of Assignee

       

      7.  From
        and after the date hereof, the Company shall recognize the Assignee as owner
        of
        the Assigned Loans, and acknowledges that the Assigned Loans will be part
        of a
        REMIC, and will service the Assigned Loans in accordance with the Servicing
        Agreement but in no event in a manner that would (i) cause any REMIC to fail
        to
        qualify as a REMIC or (ii) result in the imposition of a tax upon any REMIC
        (including but not limited to the tax on prohibited transactions as defined
        in
        Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set
        forth
        in Section 860G(d) of the Code). It is the intention of the Assignor, the
        Company and the Assignee that this AAR Agreement shall be binding upon and
        for
        the benefit of the respective successors and assigns of the parties hereto.
        Neither the Company nor the Assignor shall amend or agree to amend, modify,
        waiver, or otherwise alter any of the terms or provisions of the Servicing
        Agreement which amendment, modification, waiver or other alteration would
        in any
        way affect the Assigned Loans without the prior written consent of the
        Assignee.

       

      8.  The
        Company shall prepare for and deliver to the Assignee and EMC Mortgage
        Corporation, as master servicer (in such capacity, the “Master Servicer”) a
        statement with respect to each mortgaged property acquired through foreclosure
        or deed-in-lieu of foreclosure in connection with a defaulted Assigned Loan
        (“REO Property”) that has been rented showing the aggregate rental income
        received and all expenses incurred in connection with the management and
        maintenance of such REO Property at such times as is necessary to enable
        the
        Assignee to comply with the reporting requirements of the REMIC provisions
        of
        the Code. The net monthly rental income, if any, from such REO Property shall
        be
        deposited in the related collection account no later than the close of business
        on each determination date. The Company shall perform, or cause to be performed,
        the tax reporting and withholding related to foreclosures, abandonments and
        cancellation of indebtedness income as specified by Sections 1445, 6050J
        and
        6050P of the Code by preparing and filing such tax and information returns,
        as
        may be required. In the event that Prime Mortgage Trust, Mortgage Pass-Through
        Certificates, Series 2006-2 acquires any REO Property as aforesaid or otherwise
        in connection with a default or default becoming reasonably foreseeable on
        an
        Assigned Loan, the Company shall cause such REO Property to be disposed prior
        to
        three years after its acquisition by Prime Mortgage Trust, Mortgage Pass-Through
        Certificates, Series 2006-2 or, at the expense of Prime Mortgage Trust, Mortgage
        Pass-Through Certificates, Series 2006-2, request more than 60 days prior
        to the
        day on which such three-year period would otherwise expire, an extension
        of the
        three-year grace period unless the Assignee shall have been supplied with
        an
        opinion of counsel addressed to the Assignee rendered by nationally recognized
        tax counsel specializing in such matters (such opinion not to be an expense
        of
        the Assignee) to the effect that the holding by Prime Mortgage Trust, Mortgage
        Pass-Through Certificates, Series 2006-2 of such REO Property subsequent
        to such
        three-year period will not result in the imposition of taxes on “prohibited
        transactions” of any REMIC as defined in Section 860F of the Code or cause any
        REMIC to fail to qualify as a REMIC, in which case Prime Mortgage Trust,
        Mortgage Pass-Through Certificates, Series 2006-2 may continue to hold such
        REO
        Property (subject to any conditions contained in such opinion of counsel).
        Notwithstanding any other provision of the Servicing Agreement, no REO Property
        acquired by Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series
        2006-2 shall be rented (or allowed to continue to be rented) or otherwise
        used
        for the production of income by or on behalf of Prime Mortgage Trust, Mortgage
        Pass-Through Certificates, Series 2006-2 in such a manner or pursuant to
        any
        terms that would (i) cause such REO Property to fail to qualify as “foreclosure
        property” within the meaning of Section 860G(a)(8) of the Code or (ii) subject
        any REMIC to the imposition of any federal, state or local income taxes on
        the
        income earned from such REO Property under Section 860G(c) of the Code or
        otherwise, unless the Company has agreed to indemnify and hold harmless Prime
        Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2 with respect
        to the imposition of any such taxes.

       

      9.  Notwithstanding
        any term hereof to the contrary, the execution and delivery of this AAR
        Agreement by the Assignee is solely in its capacity as trustee for Prime
        Mortgage Trust,
        Mortgage Pass-Through Certificates, Series 2006-2 and not individually, and
        any
        recourse against the Assignee in respect of any obligations it may have under
        or
        pursuant to the terms of this AAR Agreement shall be limited solely to the
        assets it may hold as trustee of Prime Mortgage Trust, Mortgage Pass-Through
        Certificates, Series 2006-2.

       

      Miscellaneous

       

      10.  All
        demands, notices and communications related to the Assigned Loans, the Servicing
        Agreement and this AAR Agreement shall be in writing and shall be deemed
        to have
        been duly given if personally delivered at or mailed by registered mail,
        postage
        prepaid, as follows:

       

      
        	a.  	
                In
                  the case of the Company,

              

      

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067-3884

      Attention:
        Michelle Viner

      Facsimile:
        (214)
        626-4889

       

      
        	b.  	
                In
                  the case of the Assignor,

              

      

      Structured
        Asset Mortgage Investments II Inc.

      383
        Madison Avenue, 

      New
        York,
        New York 10179

      Attention:
        Robert Durden

      Telecopier
        No.: (212) 272-5591

      

      
        	c.  	
                In
                  the case of the Assignee,

              

      

      U.S.
        Bank
        National Association,

      as
        Trustee

      One
        Federal Street, 3rd
        Floor

      Boston,
        Massachusetts 02110

      Attention:
        Corporate Trust Services, PRIME 2006-2

      Telecopier
        No.: (617) 603-6638

      

      11.  The
        Company hereby acknowledges that EMC Mortgage Corporation has been appointed
        as
        the master servicer of the Assigned Loans pursuant to the Pooling and Servicing
        Agreement, dated as of November 1, 2006, among the Assignor, the Assignee
        and
        the Company, as seller and master servicer, and therefor has the right to
        enforce all obligations of the Company, as they relate to the Assigned Loans,
        under the Servicing Agreement. Such right will include, without limitation,
        the
        right to terminate the Company under the Servicing Agreement upon the occurrence
        of an event of default thereunder, the right to receive all remittances required
        to be made by the Company under the Servicing Agreement, the right to receive
        all monthly reports and other data required to be delivered by the Company
        under
        the Servicing Agreement, the right to examine the books and records of the
        Company, indemnification rights, and the right to exercise certain rights
        of
        consent and approval relating to actions taken by the Company. The Company
        shall
        make all distributions under the Servicing Agreement, as they relate to the
        Assigned Loans, to the Master Servicer by wire transfer of immediately available
        funds to:

       

      EMC
        Master Servicing Remittances

      Bank:
        Chase Bank of Texas

      Branch:
        Irving, Texas

      Account
        Name: EMC Mortgage Corporation

      ABA
        #
        113000609

      ACCOUNT
        #
        000000709377717

      Reference:
        M/S Remittance November 1, 2006 Remit for EMC Mortgage Corporation

      Attention:
        LSBO Group-MS

      

      and
        the
        Company shall deliver all reports required to be delivered under the Servicing
        Agreement, as they relate to the Assigned Loans, to the Assignee at the address
        set forth in Section 10 herein and to the Master Servicer at:

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067-3884

      Attention:
        Michelle Viner

      Facsimile:
        (214)
        626-4889

       

      12.  THIS
        AAR
        AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
        NEW
        YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES, AND THE OBLIGATIONS,
        RIGHTS
        AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
        SUCH LAWS.

       

      13.  No
        term
        or provision of this AAR Agreement may be waived or modified unless such
        waiver
        or modification is in writing and signed by the party against whom such waiver
        or modification is sought to be enforced.

       

      14.  This
        AAR
        Agreement shall inure to the benefit of the successors and assigns of the
        parties hereto. Any entity into which the Assignor, the Assignee or the Company
        may be merged or consolidated shall, without the requirement for any further
        writing, be deemed the Assignor, the Assignee or the Company, respectively,
        hereunder.

       

      15.  This
        AAR
        Agreement shall survive the conveyance of the Assigned Loans, the assignments
        of
        the Servicing Agreement to the extent of the Assigned Loans by the Assignor
        to
        the Assignee and the termination of the Servicing Agreement.

       

      16.  This
        AAR
        Agreement may be executed simultaneously in any number of counterparts. Each
        counterpart shall be deemed to be an original and all such counterparts shall
        constitute one and the same instrument.

       

      17.  In
        the
        event that any provision of this AAR Agreement conflicts with any provision
        of
        the Servicing Agreement with respect to the Assigned Loans, the terms of
        this
        AAR Agreement shall control.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have executed this AAR Agreement on the
        date
        first above written.

       

      
        	
                STRUCTURED
                  ASSET MORTGAGE

                INVESTMENTS
                  II INC.,

                the
                  Assignor

              	 	
                U.S.
                  BANK NATIONAL ASSOCIATION, not individually but solely as trustee
                  for the
                  holders of Prime Mortgage Trust, Mortgage Pass-Through Certificates,
                  Series 2006-2,

                the
                  Assignee

              
	 	 	 	 	 
	 	 	 	 	 
	
                By:

              	 	 	
                By:

              	 
	
                Name:

              	
                Baron
                  Silverstein

              	 	
                Name:

              	 
	
                Title:

              	
                Vice
                  President

              	 	
                Title:

              	 
	 	 	 
	 	 	 
	
                EMC
                  MORTGAGE CORPORATION,

                the
                  Company

              	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                By:

              	 	 	 	 
	
                Name:

              	 	 	 	 
	
                Title:

              	 	 	 	 
	 	 	 
	 	 	 
	
                Acknowledged
                  and Agreed:

                 

                EMC
                  MORTGAGE CORPORATION,

                the
                  Master Servicer

              	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                By:

              	 	 	 	 
	
                Name:

              	 	 	 	 
	
                Title:

              	 	 	 	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Attachment
        I

      

      Assigned
        Loans

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Attachment
        II

      

      Servicing
        Agreement

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      J-3

    

    WELLS
      FARGO ASSIGNMENT AGREEMENT

    

    

      ASSIGNMENT,
        ASSUMPTION AND RECOGNITION AGREEMENT

       

      THIS
        ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT (the “Assignment
        and Assumption Agreement”), dated as of November 30, 2006, among EMC Mortgage
        Corporation, a Delaware corporation (the “Assignor”), U.S. Bank National
        Association, not individually but solely as trustee for the holders of Prime
        Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2 (the
“Assignee”) and Wells Fargo Bank, N.A. (the “Company”).

       

      Whereas
        the Assignor purchased certain mortgage loans listed on Exhibit A attached
        hereto (the “Mortgage Loans”) from the Company pursuant to that certain (i)
        Master Mortgage Loan Purchase Agreement dated as of October 1, 2004, by and
        between the Company and the Assignor, (ii) Amended and Restated Master Seller’s
        Warranties and Servicing Agreement dated as of November 1, 2005 (the “Warranties
        and Servicing Agreement” or the “Agreement”), (iii) Assignment
        and Conveyance Agreement (WFHM 2005-W34) dated as of June 29, 2005 between
        the
        Company and the Assignor (the “June Assignment and Conveyance Agreement”) and
        (iv) Assignment and Conveyance Agreement (WFHM 2006-W81) dated as of October
        24,
        2006 between the Company and the Assignor (the “October Assignment and
        Conveyance Agreement” and together with the June Assignment and Conveyance
        Agreement, the “Assignment and Conveyance Agreements”); 

       

      Whereas
        the Assignor and the Company entered into that certain Warranties and Servicing
        Agreement pursuant to which the Company agrees to service the Mortgage
        Loans.

       

      In
        consideration of the mutual promises and agreements contained herein, and
        for
        other good and valuable consideration, the receipt and sufficiency of which
        are
        hereby acknowledged, the parties hereto agree that the Mortgage Loans now
        serviced by the Company for the Assignor and its successors and assigns pursuant
        to the Warranties and Servicing Agreement shall be subject to the terms of
        this
        Assignment and Assumption Agreement. Capitalized terms used herein but not
        otherwise defined shall have the meanings assigned to them in the Warranties
        and
        Servicing Agreement.

       

      Assignment
        and Assumption

       

      1.  Except
        as expressly provided for herein, the Assignor hereby grants, transfers and
        assigns to the Assignee all of its right, title and interest in, to and under
        (a)
        the
        Mortgage Loans and (b) the Warranties and Servicing Agreement with respect
        to
        the Mortgage Loans; provided, however, that the Assignor is not assigning
        to the
        Assignee any of its right, title and interest, to and under the Warranties
        and
        Servicing Agreement with respect to any mortgage loan other than the Mortgage
        Loans listed on Exhibit
        A.
        Notwithstanding anything to the contrary contained herein, the Assignor
        specifically reserves and does not assign to the Assignee any right, title
        and
        interest in, to or under the representations and warranties contained in
        Section
        3.01 and Section 3.02 of the Warranties and Servicing Agreement, and any
        obligation of the Company to cure, repurchase or substitute for a mortgage
        loan,
        and to indemnify the Assignor with respect to a breach of such representations
        and warranties pursuant to Section 3.03 of the Warranties and Servicing
        Agreement, and the Assignor is retaining the right to enforce the
        representations and warranties and the obligations of the Company set forth
        in
        those sections against the Company. Except as is otherwise expressly provided
        herein, the Assignor makes no representations, warranties or covenants to
        the
        Assignee and the Assignee acknowledges that the Assignor has no obligations
        to
        the Assignee under the terms of the Warranties and Servicing Agreement or
        otherwise relating to the transaction contemplated herein (including, but
        not
        limited to, any obligation to indemnify the Assignee).

       

      Representations
        Warranties and Covenants

       

      2.  The
        Assignor warrants and represents to, and covenants with, the Assignee that
        as of
        the date hereof:

       

      
        	(a)  	
                Attached
                  hereto as Exhibit
                  B
                  are true and accurate copies of the Warranties and Servicing Agreement
                  and
                  the Assignment and Conveyance Agreements, which agreements are
                  in full
                  force and effect as of the date hereof and the provisions of which
                  have
                  not been waived, further amended or modified in any respect, nor
                  has any
                  notice of termination been given
                  thereunder;

              

      

       

      
        	(b)  	
                The
                  Assignor is the lawful owner of the Mortgage Loans with full right
                  to
                  transfer the Mortgage Loans and any and all of its interests, rights
                  and
                  obligations under the Warranties and Servicing Agreement as they
                  relate to
                  the Mortgage Loans, free and clear from any and all claims and
                  encumbrances; and upon the transfer of the Mortgage Loans to the
                  Assignee
                  as contemplated herein, the Assignee shall have good title to each
                  and
                  every Mortgage Loan, as well as any and all of the Assignee’s interests,
                  rights and obligations under the Warranties and Servicing Agreement
                  as
                  they relate to the Mortgage Loans, free and clear of any and all
                  liens,
                  claims and encumbrances;

              

      

       

      
        	(c)  	
                There
                  are no offsets, counterclaims or other defenses available to the
                  Company
                  with respect to the Mortgage Loans or the Warranties and Servicing
                  Agreement;

              

      

       

      
        	(d)  	
                The
                  Assignor has no knowledge of, and has not received notice of, any
                  waivers
                  under, or any modification of, any Mortgage
                  Loan;

              

      

       

      
        	(e)  	
                The
                  Assignor is duly organized, validly existing and in good standing
                  under
                  the laws of the jurisdiction of its incorporation, and has all
                  requisite
                  power and authority to acquire, own and sell the Mortgage
                  Loans;

              

      

       

      
        	(f)  	
                The
                  Assignor has full corporate power and authority to execute, deliver
                  and
                  perform its obligations under this Assignment and Assumption Agreement,
                  and to consummate the transactions set forth herein. The consummation
                  of
                  the transactions contemplated by this Assignment and Assumption
                  Agreement
                  is in the ordinary course of the Assignor’s business and will not conflict
                  with, or result in a breach of, any of the terms, conditions or
                  provisions
                  of the Assignor’s charter or by-laws or any legal restriction, or any
                  material agreement or instrument to which the Assignor is now a
                  party or
                  by which it is bound, or result in the violation of any law, rule,
                  regulation, order, judgment or decree to which Assignor or its
                  property is
                  subject. The execution, delivery and performance by the Assignor
                  of this
                  Assignment and Assumption Agreement and the consummation by it
                  of the
                  transactions contemplated hereby, have been duly authorized by
                  all
                  necessary corporate action on part of the Assignor. This Assignment
                  and
                  Assumption Agreement has been duly executed and delivered by the
                  Assignor
                  and, upon the due authorization, execution and delivery by the
                  Assignee
                  and the Company, will constitute the valid and legally binding
                  obligation
                  of the Assignor enforceable against the Assignor in accordance
                  with its
                  terms except as enforceability may be limited by bankruptcy,
                  reorganization, insolvency, moratorium or other similar laws now
                  or
                  hereafter in effect relating to creditors’ rights generally, and by
                  general principles of equity regardless of whether enforceability
                  is
                  considered in a proceeding in equity or at
                  law;

              

      

       

      
        	(g)  	
                No
                  consent, approval, order or authorization of, or declaration, filing
                  or
                  registration with, any governmental entity is required to be obtained
                  or
                  made by the Assignor in connection with the execution, delivery
                  or
                  performance by the Assignor of this Assignment and Assumption Agreement,
                  or the consummation by it of the transactions contemplated hereby.
                  Neither
                  the Assignor nor anyone acting on its behalf has offered, transferred,
                  pledged, sold or otherwise disposed of the Mortgage Loans or any
                  interest
                  in the Mortgage Loans, or solicited any offer to buy or accept
                  a transfer,
                  pledge or other disposition of the Mortgage Loans, or any interest
                  in the
                  Mortgage Loans or otherwise approached or negotiated with respect
                  to the
                  Mortgage Loans, or any interest in the Mortgage Loans with any
                  Person in
                  any manner, or made any general solicitation by means of general
                  advertising or in any other manner, or taken any other action which
                  would
                  constitute a distribution of the Mortgage Loans under the Securities
                  Act
                  of 1933, as amended (the “1933 Act”)
                  or
                  which would render the disposition of the Mortgage Loans a violation
                  of
                  Section 5 of the 1933 Act or require registration pursuant thereto;
                  and
                  

              

      

       

      
        	(h)  	
                The
                  Assignor has received from the Company, and has delivered to the
                  Assignee,
                  all documents required to be delivered to the Assignor by the Company
                  prior to the date hereof pursuant to the Warranties and Servicing
                  Agreement with respect to the Mortgage Loans and has not received,
                  and has
                  not requested from the Company, any additional documents.
                  

              

      

       

      3.  The
        Assignee
        warrants and represents to, and covenants with, the Assignor and the Company
        as
        of the date hereof:

       

      
        	(a)  	
                The
                  Assignee
                  is duly organized, validly existing and in good standing under
                  the laws of
                  the jurisdiction of its organization and has all requisite power
                  and
                  authority to hold the Mortgage Loans on behalf of the holders of
                  Prime
                  Mortgage Trust, Mortgage Pass-Through Certificates, Series
                  2006-2;

              

      

       

      
        	(b)  	
                The
                  Assignee has full corporate power and authority to execute, deliver
                  and
                  perform under this Assignment and Assumption Agreement, and to
                  consummate
                  the transactions set forth herein. The consummation of the transactions
                  contemplated by this Assignment and Assumption Agreement is in
                  the
                  ordinary course of the Assignee’s business and will not conflict with, or
                  result in a breach of, any of the terms, conditions or provisions
                  of the
                  Assignee’s charter or by-laws or any legal restriction, or any material
                  agreement or instrument to which the Assignee is now a party or
                  by which
                  it is bound, or result in the violation of any law, rule, regulation,
                  order, judgment or decree to which the Assignee or its property
                  is
                  subject. The execution, delivery and performance by the Assignee
                  of this
                  Assignment and Assumption Agreement and the consummation by it
                  of the
                  transactions contemplated hereby, have been duly authorized by
                  all
                  necessary corporate action on part of the Assignee. This Assignment
                  and
                  Assumption Agreement has been duly executed and delivered by the
                  Assignee
                  and, upon the due authorization, execution and delivery by the
                  Assignor
                  and the Company, will constitute the valid and legally binding
                  obligation
                  of the Assignee enforceable against the Assignee in accordance
                  with its
                  terms except as enforceability may be limited by bankruptcy,
                  reorganization, insolvency, moratorium or other similar laws now
                  or
                  hereafter in effect relating to creditors’ rights generally, and by
                  general principles of equity regardless of whether enforceability
                  is
                  considered in a proceeding in equity or at
                  law;

              

      

       

      
        	(c)  	
                No
                  consent, approval, order or authorization of, or declaration, filing
                  or
                  registration with, any governmental entity is required to be obtained
                  or
                  made by the Assignee in connection with the execution, delivery
                  or
                  performance by the Assignee of this Assignment and Assumption Agreement,
                  or the consummation by it of the transactions contemplated hereby;
                  and

              

      

       

      
        	(d)  	
                The
                  Assignee assumes all of the rights of the Purchaser under the Warranties
                  and Servicing Agreement with respect to the Mortgage Loans other
                  than the
                  right to enforce the obligations of the Company under the Warranties
                  and
                  Servicing Agreement.

              

      

       

      4.  The
        Company
        warrants and represents to, and covenants with, the Assignor and the Assignee
        as
        of the date hereof:

       

      
        	(a)  	
                Attached
                  hereto as Exhibit
                  B
                  are true and accurate copies of the Warranties and Servicing Agreement
                  and
                  the Assignment and Conveyance Agreements, which agreements are
                  in full
                  force and effect as of the date hereof and the provisions of which
                  have
                  not been waived, further amended or modified in any respect, nor
                  has any
                  notice of termination been given
                  thereunder;

              

      

       

      
        	(b)  	
                The
                  Company is a national banking association duly organized, validly
                  existing
                  and in good standing under the laws of the United States, and has
                  all
                  requisite power and authority to service the Mortgage Loans and
                  otherwise
                  to perform its obligations under the Warranties and Servicing
                  Agreement;

              

      

       

      
        	(c)  	
                The
                  Company has full power and authority to execute, deliver and perform
                  its
                  obligations under this Assignment and Assumption Agreement, and
                  to
                  consummate the transactions set forth herein. The consummation
                  of the
                  transactions contemplated by this Assignment and Assumption Agreement
                  is
                  in the ordinary course of the Company’s business and will not conflict
                  with, or result in a breach of, any of the terms, conditions or
                  provisions
                  of the Company’s charter or by-laws or any legal restriction, or any
                  material agreement or instrument to which the Company is now a
                  party or by
                  which it is bound, or result in the violation of any law, rule,
                  regulation, order, judgment or decree to which the Company or its
                  property
                  is subject. The execution, delivery and performance by the Company
                  of this
                  Assignment and Assumption Agreement and the consummation by it
                  of the
                  transactions contemplated hereby, have been duly authorized by
                  all
                  necessary action on part of the Company. This Assignment and Assumption
                  Agreement has been duly executed and delivered by the Company,
                  and, upon
                  the due authorization, execution and delivery by Assignor and Assignee,
                  will constitute the valid and legally binding obligation of Company,
                  enforceable against the Company in accordance with its terms except
                  as
                  enforceability may be limited by the effect of insolvency, liquidation,
                  conservatorship and other similar laws administered by the Federal
                  Deposit
                  Insurance Corporation affecting the enforcement of contract obligations
                  of
                  insured banks and subject to the application of the rules of
                  equity;

              

      

       

      
        	(d)  	
                No
                  consent, approval, order or authorization of, or declaration, filing
                  or
                  registration with, any governmental entity is required to be obtained
                  or
                  made by the Company in connection with the execution, delivery
                  or
                  performance by the Company of this Assignment and Assumption Agreement,
                  or
                  the consummation by it of the transactions contemplated hereby;
                  

              

      

       

      
        	(e)  	
                The
                  Company shall establish a Custodial Account and an Escrow Account
                  under
                  the Warranties and Servicing Agreement in favor of the Assignee
                  with
                  respect to the Mortgage Loans separate from the Custodial Account
                  and
                  Escrow Account previously established under the Warranties and
                  Servicing
                  Agreement in favor of the Assignor;
                  and

              

      

       

      
        	(f)  	
                Pursuant
                  to Section 9.01 of the Warranties and Servicing Agreement, the
                  Company
                  hereby restates the representations and warranties set forth in
                  Section
                  3.01 of the Warranties and Servicing Agreement with respect to
                  the Company
                  as of the date hereof as amended by Section 10.

              

      

       

      5.  The
        Company warrants and represents to, and covenants with, the Assignor and
        Structured Asset Mortgage Investments II Inc. (“SAMI II”) as of the date
        hereof:

       

      
        	(a)  	
                The
                  Company is not aware and has not received notice that any default,
                  early
                  amortization or other performance triggering event has occurred
                  as to any
                  other securitization due to any act or failure to act of the
                  Company;

              

      

       

      
        	(b)  	
                No
                  material noncompliance with the applicable servicing criteria with
                  respect
                  to other securitizations of residential mortgage loans involving
                  the
                  Company as servicer has been disclosed or reported by the
                  Company;

              

      

       

      
        	(c)  	
                The
                  Company has not been terminated as servicer in a residential mortgage
                  loan
                  securitization, either due to a servicing default or to application
                  of a
                  servicing performance test or
                  trigger;

              

      

       

      
        	(d)  	
                No
                  material changes to the Company’s policies or procedures with respect to
                  the servicing function it will perform under the Warranties and
                  Servicing
                  Agreement and this Assignment and Assumption Agreement for mortgage
                  loans
                  of a type similar to the Mortgage Loans have occurred during the
                  three-year period immediately preceding the date
                  hereof;

              

      

       

      
        	(e)  	
                There
                  are no aspects of the Company’s financial condition that could have a
                  material adverse effect on the performance by the Company of its
                  servicing
                  obligations under the Warranties and Servicing Agreement and this
                  Assignment and Assumption
                  Agreement;

              

      

       

      
        	(f)  	
                There
                  are no material legal or governmental proceedings pending (or known
                  to be
                  contemplated) against the Company, any Subservicer or any third-party
                  originator; and

              

      

       

      
        	(g)  	
                There
                  are no affiliations, relationships or transactions relating to
                  the Company
                  or any Subservicer with respect to this Securitization Transaction
                  and any
                  party thereto of a type described in Item 1119 of Regulation
                  AB.

              

      

       

      6.  The
        Assignor
        hereby agrees to indemnify and hold the Assignee (and its successors and
        assigns) harmless against any and all claims, losses, penalties, fines,
        forfeitures, legal fees and related costs, judgments, and any other costs,
        fees
        and expenses that Assignee (and its successors and assigns) may sustain in
        any
        way related to any breach of the representations or warranties of the Assignor
        set forth in this Assignment and Assumption Agreement or the breach of any
        covenant or condition contained herein.

       

      7.  The
        Company hereby acknowledges that EMC Mortgage Corporation and any successor
        thereto (the “Master Servicer”), has been appointed as master servicer of the
        Mortgage Loans pursuant to the Pooling and Servicing Agreement dated as of
        November 1, 2006 the “Pooling and Servicing Agreement”), among SAMI II, the
        Assignor, as seller and Master Servicer and the Assignee, and therefore has
        the
        right to enforce all obligations of the Company under the Warranties and
        Servicing Agreement. Such right will include, without limitation, the right
        to
        receive all remittances required to be made by the Company under the Warranties
        and Servicing Agreement, the right to receive all monthly reports and other
        data
        required to be delivered by the Company under the Warranties and Servicing
        Agreement, the right to examine the books and records of the Company,
        indemnification rights, and the right to exercise certain rights of consent
        and
        approval relating to actions taken by the Company. The Company hereby
        acknowledges that the Master Servicer shall be obligated to notify the Assignee
        in accordance with the Pooling and Servicing Agreement upon the discovery
        of an
        event of default by the Company of its obligations under the Warranties and
        Servicing Agreement and the Assignee shall have the right to terminate the
        Company as servicer under the Warranties and Servicing Agreement upon the
        occurrence of such an event of default.

       

      8.  Notwithstanding
        any term hereof to the contrary, the execution and delivery of this Assignment
        and Assumption Agreement by the Assignee is solely in its capacity as trustee
        for Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2
        and
        not individually, and any recourse against the Assignee in respect of any
        obligations it may have under or pursuant to the terms of this Assignment
        and
        Assumption Agreement shall be limited solely to the assets it may hold as
        trustee of Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series
        2006-2.

       

      Recognition
        of Assignee

       

      9.  From
        and after the date hereof,
        the
        Company shall recognize the Assignee as owner of the Mortgage Loans and will
        service the Mortgage Loans for the Assignee as if the Assignee and the Company
        had entered into a separate servicing agreement for the servicing of the
        Mortgage Loans in the form of the Warranties and Servicing Agreement (as
        modified herein), the terms of which are incorporated herein by reference.
        Notwithstanding anything to the contrary contained herein or in the Warranties
        and Servicing Agreement, the Company acknowledges that the Mortgage Loans
        will
        be part of a REMIC and hereby agrees that in no event will it service the
        Mortgage Loans in a manner that would (i) cause any REMIC to fail to qualify
        as
        a REMIC or (ii) result in the imposition of a tax upon any REMIC (including
        but
        not limited to the tax on prohibited transactions as defined in Section
        860F(a)(2) of the Code and the tax on contributions to a REMIC set forth
        in
        Section 860G(d) of the Code). It is the intention of the Assignor, the Company
        and the Assignee that this Assignment and Assumption Agreement shall be binding
        upon and for the benefit of the respective successors and assigns of the
        parties
        hereto. Neither the Company nor the Assignor shall amend or agree to amend,
        modify, waive, or otherwise alter any of the terms or provisions of the
        Warranties and Servicing Agreement which amendment, modification, waiver
        or
        other alteration would in any way affect the Mortgage Loans without the prior
        written consent of the Assignee.

       

      The
        Company shall prepare for and deliver to the Master Servicer for the benefit
        of
        the Assignee a statement with respect to each mortgaged property acquired
        through foreclosure or deed-in-lieu of foreclosure in connection with a
        defaulted Mortgage
        Loan (“REO
        Property”) that has been rented showing the aggregate rental income received and
        all expenses incurred in connection with the management and maintenance of
        such
        REO Property at such times as is necessary to enable the Assignee to comply
        with
        the reporting requirements of the REMIC provisions of the Code. The net monthly
        rental income, if any, from such REO Property shall be deposited in the related
        collection account no later than the close of business on each determination
        date. The Company shall perform, or cause to be performed, the tax reporting
        and
        withholding related to foreclosures, abandonments and cancellation of
        indebtedness income as specified by Sections 1445, 6050J and 6050P of the
        Code
        by preparing and filing such tax and information returns, as may be required.
        In
        the event that Prime
        Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2 acquires
        any
        REO Property as aforesaid or otherwise in connection with a default or default
        becoming reasonably foreseeable on an Mortgage Loan, the Company shall cause
        such REO Property to be disposed prior to three (3) years after its acquisition
        by Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2
        or,
        at the expense of Prime Mortgage Trust, Mortgage Pass-Through Certificates,
        Series 2006-2, request more than sixty (60) days prior to the day on which
        such
        three-year period would otherwise expire, an extension of the three-year
        grace
        period unless the Assignee shall have been supplied with an opinion of counsel
        addressed to the Assignee rendered by nationally recognized tax counsel
        specializing in such matters (such opinion not to be an expense of the Assignee)
        to the effect that the holding by Prime Mortgage Trust, Mortgage Pass-Through
        Certificates, Series 2006-2 of such REO Property subsequent to such three-year
        period will not result in the imposition of taxes on “prohibited transactions”
of any REMIC as defined in Section 860F of the Code or cause any REMIC to
        fail
        to qualify as a REMIC, in which case Prime Mortgage Trust, Mortgage Pass-Through
        Certificates, Series 2006-2 may continue to hold such REO Property (subject
        to
        any conditions contained in such opinion of counsel). Notwithstanding any
        other
        provision of the Servicing Agreement, no REO Property acquired by Prime Mortgage
        Trust, Mortgage Pass-Through Certificates, Series 2006-2 shall be rented
        (or
        allowed to continue to be rented) or otherwise used for the production of
        income
        by or on behalf of Prime Mortgage Trust, Mortgage Pass-Through Certificates,
        Series 2006-2 in such a manner or pursuant to any terms that would (i) cause
        such REO Property to fail to qualify as “foreclosure property” within the
        meaning of Section 860G(a)(8) of the Code or (ii) subject any REMIC to the
        imposition of any federal, state or local income taxes on the income earned
        from
        such REO Property under Section 860G(c) of the Code or otherwise, unless
        the
        Company has agreed to indemnify and hold harmless Prime Mortgage Trust, Mortgage
        Pass-Through Certificates, Series 2006-2 with respect to the imposition of
        any
        such taxes.

       

      Modification
        of the
        Warranties and
        Servicing Agreement

       

      10.  The
        Company and the
        Assignor hereby amend the Warranties
        and Servicing
        Agreement as follows:

       

      
        	(a)  	
                The
                  following definitions shall be added to Article I of the Warranties
                  and Servicing
                  Agreement: 

              

      

       

      Assignee:
        U.S.
        Bank National Association, as trustee for the holders of Prime Mortgage Trust,
        Mortgage Pass-Through Certificates, Series 2006-2.

       

      Master
        Servicer:
        With
        respect to any Securitization Transaction, the “master servicer,” if any,
        identified in the related transaction documents.

       

      Nonrecoverable
        Advance:
        Any
        advance previously made by the Company pursuant to Section 5.03 or any Servicing
        Advance which, in the good faith judgment of the Company, may not be ultimately
        recoverable by the Company from Liquidation Proceeds or otherwise. The
        determination by the Company that it has made a Nonrecoverable Advance shall
        be
        evidenced by an Officer’s Certificate of the Company delivered to the Purchaser
        and the Master Servicer and detailing the reasons for such
        determination.

       

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

       

      Trustee:
        U.S.
        Bank National Association.

       

      
        	(b)  	
                The
                  definition of Servicing Fee Rate in Article I of
                  the Warranties and Servicing Agreement is deleted in its entirety
                  and
                  replaced with the following:

              

      

       

      Servicing
        Fee Rate:
        A per
        annum rate equal to 0.25%. 

       

      
        	(c)  	
                The
                  definition of Principal Prepayment in Article I of the Warranties
                  and
                  Servicing Agreement is deleted in its entirety and replaced with
                  the
                  following:

              

      

       

      Principal
        Prepayment:
        Any
        payment or other recovery of principal on a Mortgage Loan which is received
        in
        advance of its scheduled Due Date, and which is not accompanied by an amount
        of
        interest representing scheduled interest due on any date or dates in any
        month
        or months subsequent to the month of prepayment.

       

      
        	(d)  	
                The
                  definition of Remittance Date in Article I of the Warranties and
                  Servicing
                  Agreement is deleted in its entirety and replaced with the
                  following:

              

      

       

      Remittance
        Date:
        The
        18th calendar day (or if such 18th calendar day is not a Business Day, then
        the
        preceding Business Day) of any month.

       

      
        	(e)  	
                The
                  definition of “Qualified Depository” in the Warranties and Servicing
                  Agreement shall be modified by deleting the word “A-1” and replacing it
                  with the word “A-1+”.

              

      

       

      
        	(f)  	
                Article
                  III of the Agreement is hereby amended effective as of the date
                  hereof as
                  follows:

              

      

       

      
        	(1)  	
                Section
                  3.01(b) is amended by replacing the “,” after the word “loans” in the
                  third line, with a “.”, and deleting the remainder of the
                  sentence.

              

      

       

      
        	(2)  	
                Section
                  3.01(c) is amended by deleting, “the sale of the Mortgage Loans to the
                  Purchaser”.

              

      

       

      
        	(3)  	
                Section
                  3.01(f) is amended by adding a “.” after, “The Company is solvent.” And
                  deleting the remainder of the
                  paragraph.

              

      

       

      
        	(4)  	
                Section
                  3.01(h) is amended by deleting, “or the sale of the Mortgage Loans as
                  evidenced by the consummation of the transactions contemplated
                  by this
                  Agreement.

              

      

       

      
        	(5)  	
                Section
                  3.01(i) is deleted in its entirety.

              

      

       

      
        	(6)  	
                Section
                  3.01(k) is deleted in its entirety.

              

      

       

      
        	(7)  	
                by
                  deleting Section 3.01(l) in its entirety and replacing it with
                  the
                  following:

              

      

       

      (1)  No
        Material Change. 

       

      There
        has been no material adverse change in the servicing policies and procedures,
        business, operations, financial condition or assets of the Company since
        the
        date of the Company’s most recent financial statements that would have a
        material adverse effect on its ability to perform its obligations under this
        Agreement;

       

      
        	(8)  	
                Section
                  3.01(m) is deleted in its entirety.

              

      

       

      
        	(g)  	
                Article
                  IV of the Agreement is hereby amended effective as of the date
                  hereof by
                  adding “, other than Servicing Advances,” after “future advances” in the
                  second paragraph of Section 4.01.

              

      

       

      
        	(h)  	
                Article
                  IV of the Agreement is hereby amended effective as of the date
                  hereof by
                  deleting “the Company shall notify the Purchaser in writing of the
                  Company’s intention to do so, and the Company shall not commence
                  foreclosure proceedings if the Purchaser objects to such action
                  within
                  three (3) Business Days of receiving such notice” in first paragraph of
                  Section 4.02.

              

      

       

      
        	(i)  	
                Article
                  IV of the Agreement is hereby amended effective as of the date
                  hereof by
                  adding the following as the last paragraph of Section
                  4.02:

              

      

       

      The
        Company shall fully reimburse itself, from the Custodial Account, for Servicing
        Advances and Monthly Advances related to Liquidation Proceeds on the Remittance
        Date after such Servicing Advances and Monthly Advances are approved; provided,
        however, the Company must provide documentation in the form of Exhibit K
        hereto
        to the Master Servicer seeking approval within ninety (90) days of final
        liquidation of a Mortgage Loan. The Master Servicer shall provide such approval
        or denial to the Company no later than thirty (30) days after receipt of
        such
        claim; provided, however, such claim must be complete with all supporting
        documentation. The Company’s obligation to make such Servicing Advances and
        Monthly Advances as to any Mortgage Loan shall continue through the final
        liquidation of the Mortgaged Property, unless the Company deems such advance
        nonrecoverable and submits an officer’s certificate in accordance with Section
        5.03.

       

      
        	(j)  	
                Article
                  IV of the Agreement is hereby amended effective as of the date
                  hereof by
                  adding the following
                  paragraph to Section 4.03:

              

      

       

      The
        Company shall not waive any Prepayment Charge unless: (i) the enforceability
        thereof shall have been limited by bankruptcy, insolvency, moratorium,
        receivership and other similar laws relating to creditors’ rights generally,
        (ii) the enforcement thereof is illegal, or any local, state or federal agency
        has threatened legal action if the prepayment penalty is enforced, (iii)
        the
        mortgage debt has been accelerated in connection with a foreclosure or other
        involuntary
        payment or (iv) such waiver is standard and customary in servicing similar
        Mortgage Loans and relates to a default or a reasonably foreseeable default
        and
        would, in the reasonable judgment of the Company, maximize recovery of total
        proceeds taking into account the value of such Prepayment Charge and the
        related
        Mortgage Loan. If a Prepayment Charge is waived, but does not meet the standards
        described above, then the Company is required to pay the amount of such waived
        Prepayment Charge by remitting such amount to the Purchaser by the Remittance
        Date.

       

      With
        respect to any Mortgage Loan that contains a provision permitting imposition
        of
        a premium upon a prepayment prior to maturity, such prepayment penalty shall
        not
        be imposed in any instance where the mortgage loan is accelerated or paid
        off in
        connection with the workout of a delinquent mortgage or due to the borrower’s
        default, notwithstanding that the terms of the mortgage loan or state or
        federal
        law might permit the imposition of such penalty.

       

      
        	(k)  	
                Article
                  IV
                  of the Agreement is hereby amended by replacing the second paragraph
                  of
                  Section 4.04 with the following:

              

      

       

      The
        Company shall deposit in a mortgage clearing account on a daily basis, and
        in
        the Custodial Account within (2) Business Days after the Company’s receipt of
        such funds, and retain therein, the following collections received by the
        Company and payments made by the Company after the related Cut-off Date,
        other
        than payments of principal and interest due on or before the related Cut-off
        Date, or received by the Company prior to the related Cut-off Date but allocable
        to a period subsequent thereto:

       

      
        	(l)  	
                Article
                  IV of the Agreement is hereby amended effective as of the date
                  hereof by
                  deleting “Liquidation Proceeds,” after “limited to related” in Subsection
                  4.05(iii).

              

      

       

      
        	(m)  	
                The
                  following is added as Subsection 4.05(x) of the Warranties
                  and
                  Servicing Agreement:

              

      

       

      “(x)
        to
        reimburse itself for any Nonrecoverable Advances upon prior approval from
        the
        Master Servicer. The Master Servicer shall provide such approval or denial
        to
        the Company no later than thirty (30) days after receipt of such claim;
        provided, however, such claim must be complete with all supporting
        documentation.”

       

      
        	(n)  	
                Article
                  IV
                  of
                  the Agreement is hereby amended by replacing the second paragraph
                  of
                  Section 4.06 with the following:

              

      

       

      The
        Company shall deposit in a mortgage clearing account on a daily basis, and
        in
        the Escrow Account or Accounts within two (2) Business Days after the Company’s
        receipt of such funds, and retain therein:

       

      
        	(o)  	
                Article
                  IV of the Agreement is hereby amended by replacing Section 4.25
                  with the
                  following:

              

      

       

      The
        Company shall not hire or otherwise utilize the services of any Subservicer
        to
        fulfill any of the obligations of the Company as servicer under this Agreement
        or any Reconstitution Agreement unless the Company complies with the provisions
        of paragraph (a) of this Section 4.25. The Company shall not hire or otherwise
        utilize the services of any Subcontractor, and shall not permit any Subservicer
        to hire or otherwise utilize the services of any Subcontractor, to fulfill
        any
        of the obligations of the Company as servicer under this Agreement or any
        Reconstitution Agreement unless the Company complies with the provisions
        of
        paragraph (b) of this Section 4.25.

       

      (a) It
        shall
        not be necessary for the Company to seek the consent of the Purchaser,
any
        Master
        Servicer or any Depositor to the utilization of any Subservicer. The Company
        shall cause any Subservicer used by the Company (or by any Subservicer) for
        the
        benefit of the Purchaser and any Depositor to comply with the provisions
        of this
        Section 4.25 and with Sections 6.04, 6.06, 9.01(e)(iii), 9.01(e)(v),
        9.01(e)(vi), 9.01(e)(vii), 9.01(e)(viii) and 9.01(f) of this Agreement to
        the
        same extent as if such Subservicer were the Company, and to provide the
        information required with respect to such Subservicer under Section 9.01(e)(iv)
        of this Agreement. The Company shall be responsible for obtaining from each
        Subservicer and delivering to the Purchaser and any Depositor any servicer
        compliance statement required to be delivered by such Subservicer under Section
        6.04 and any assessment of compliance and attestation required to be delivered
        by such Subservicer under Section 6.06 and any certification required to
        be
        delivered to the Person that will be responsible for signing the Sarbanes
        Certification under Section 6.06 as and when required to be
        delivered.

       

      (b) It
        shall
        not be necessary for the Company to seek the consent of the Purchaser, any
        Master Servicer or any Depositor to the utilization of any Subcontractor.
        The
        Company shall promptly upon request provide to the Purchaser, any Master
        Servicer and any Depositor (or any designee of the Depositor, such as an
        administrator) a written description (in form and substance satisfactory
        to the
        Purchaser, such Depositor and such Master Servicer) of the role and function
        of
        each Subcontractor utilized by the Company or any Subservicer, specifying
        (i)
        the identity of each such Subcontractor, (ii) which (if any) of such
        Subcontractors are “participating in the servicing function” within the meaning
        of Item 1122 of Regulation AB, and (iii) which elements of the Servicing
        Criteria will be addressed in assessments of compliance provided by each
        Subcontractor identified pursuant to clause (ii) of this paragraph.

       

      As
        a
        condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB, the Company shall cause any such Subcontractor used by the
        Company (or by any Subservicer) for the benefit of the Purchaser and any
        Depositor to comply with the provisions of Sections 6.06 and 9.01(f) of this
        Agreement to the same extent as if such Subcontractor were the Company. The
        Company shall be responsible for obtaining from each Subcontractor and
        delivering to the Purchaser and any Depositor any assessment of compliance
        and
        attestation and the other certifications required to be delivered by such
        Subservicer and such Subcontractor under Section 6.06, in each case as and
        when
        required to be delivered.

       

      
        	(p)  	
                Article
                  V of the Agreement is hereby amended effective as of the date hereof
                  by
                  deleting Section 5.02 in its entirety and replacing it with the
                  following:

              

      

       

      Section
        5.02 Statements
        to the Purchaser.

       

      No
        later
        than the tenth (10th) calendar day, the Company shall furnish to the Master
        Servicer an electronic file containing the data specified in Exhibit I and
        Exhibit J, which data shall reflect information as to the period ending on
        the
        last day of the preceding month, Exhibit K and Exhibit L with respect to
        defaulted mortgage loans, Exhibit M with respect to realized losses and gains,
        Exhibit N with respect to modified mortgage loans and Exhibit O with respect
        to
        claims submitted, with each such report

       

      
        	(q)  	
                Section
                  5.03 (Monthly Advances by the Company) is hereby amended by adding
                  as the
                  last sentence of the paragraph:

              

      

       

      “The
        Company shall not have an obligation to advance amounts in respect to shortfalls
        in excess of what is required under the Servicemembers Civil Relief Act or
        similar state and local laws for all applicable Mortgage Loans.”

      

      
        	(r)  	
                Section
                  6.02 (Satisfaction of Mortgages and Release of Mortgage Loan Documents)
                  is
                  hereby amended by adding “(other than as a result of a modification of the
                  Mortgage pursuant to this Agreement or a liquidation of the Mortgaged
                  Property pursuant to the terms of this Agreement)” after “secured by the
                  Mortgage” in the second paragraph.

              

      

       

      
        	(s)  	
                Section
                  6.04 (Annual Statements as to Compliance) is hereby amended as
                  follows:

              

      

       

      
        	(1)  	
                delete
                  paragraph (i) in its entirety;

              

      

       

      
        	(2)  	
                delete
                  the reference to “(ii)” at the beginning of the section paragraph;
                  

              

      

       

      
        	(3)  	
                delete
                  the references to “the Purchaser and any Depositor” and replace each with
                  “the Master Servicer”; and

              

      

       

      
        	(4)  	
                add
                  the following paragraph to the end of the section:
                  

              

      

       

      “In
        the event the Company or any subservicer or subcontractor engaged by it is
        terminated, assigns its rights and obligations under, or resigns pursuant
        to the
        terms of this Agreement, or any other applicable agreement in the case of
        a
        subservicer or subcontractor, as the case may be, such party shall provide
        an
        Annual Statement of Compliance pursuant to this Section 6.04 or to the related
        section of such other applicable agreement, as the case may be, as to the
        performance of its obligations with respect to the period of time it was
        subject
        to this Agreement or any other applicable agreement, as the case may be,
        notwithstanding any such termination, assignment or resignation.” 

       

      
        	(t)  	
                Section
                  6.05 (Annual Independent Public Accountants’ Servicing Report) is deleted
                  in its entirety.

              

      

       

      
        	(u)  	
                Section
                  6.06 (Report on Assessment of Compliance and Attestation) is hereby
                  amended by replacing the references to “the Purchaser and any Depositor”
                  with “the Master Servicer”, “the Purchaser and such Depositor” with “the
                  Master Servicer”, “Section 425(b)” with “Section 4.25(b)” and “paragraphs
                  (a) and (b)” with “paragraphs (i) and
                  (ii)”.

              

      

       

      
        	(v)  	
                Section
                  6.06 is hereby amended by adding the following paragraph at the
                  end of the
                  section:

              

      

       

      “In
        the event the Company or any subservicer or subcontractor engaged by it is
        terminated, assigns its rights and obligations under, or resigns pursuant
        to,
        the terms of this Agreement, or any other applicable agreement in the case
        of a
        subservicer or subcontractor, as the case may be, such party shall provide
        an
        Assessment of Compliance and cause to be provided an Attestation Report pursuant
        to this Section 6.06 or to the related section of such other applicable
        agreement, as the case may be, notwithstanding any such termination, assignment
        or resignation.”

       

      
        	(w)  	
                Section
                  6.07(i) is hereby amended by replacing the reference to “Section
                  9.01(e)(iv)(A)” with “Section 9.01(e)(vi)(A)”, “Section 9.01(e)(iv)(B)”
                  with “Section 9.01(e)(vi)(B)” and deleting the reference to “Section
                  6.05”.

              

      

       

      
        	(x)  	
                Section
                  6.07(ii) is hereby amended by replacing the references to “Purchaser or
                  Depositor” with “Purchaser, any Master Servicer or any Depositor”,
                  “Subcontract” with “Subcontractor” and deleting the reference to “Section
                  6.05”.

              

      

       

      
        	(y)  	
                The
                  following are added as the second, third and fourth paragraphs
                  of Section
                  6.09 of the Warranties and Servicing
                  Agreement:

              

      

       

      “Notwithstanding
        anything in this Agreement to the contrary, the Company (a) shall not permit
        any
        modification with respect to any Mortgage Loan that would change the Mortgage
        Interest Rate and (b) shall not (unless the Mortgagor is in default with
        respect
        to the Mortgage Loan or such default is, in the judgment of the Company,
        reasonably foreseeable) make or permit any modification, waiver or amendment
        of
        any term of any Mortgage Loan that would both effect an exchange or reissuance
        of such Mortgage Loan under Section 1001 of the Code (or Treasury regulations
        promulgated thereunder).

       

      Prior
        to
        taking any action with respect to the Mortgage Loans which is not contemplated
        under the terms of this Agreement, the Company will obtain an Opinion of
        Counsel
        reasonably acceptable to the Trustee with respect to whether such action
        could
        result in the imposition of a tax upon the REMIC (including but not limited
        to
        the tax on prohibited transactions as defined in Section 860F(a)(2) of the
        Code
        and the tax on contributions to a REMIC set forth in Section 860G(d) of the
        Code) (either such event, an “Adverse REMIC Event”), and the Company shall not
        take any such action or cause the Trust Fund to take any such action as to
        which
        it has been advised that an Adverse REMIC Event could occur.

       

      The
        Company shall not permit the creation of any “interests” (within the meaning of
        Section 860G of the Code) in the REMIC. The Company shall not enter into
        any
        arrangement by which the REMIC will receive a fee or other compensation for
        services nor permit the REMIC to receive any income from assets other than
        “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
        investments” as defined in Section 860G(a)(5) of the Code.”

       

      
        	(z)  	
                Article
                  IX
                  of
                  the Warranties
                  and Servicing
                  Agreement is hereby amended effective as of the date hereof by
                  deleting in
                  its entirety Section 9.01(d).

              

      

       

      
        	(aa)  	
                Article
                  IX of the Warranties
                  and Servicing
                  Agreement is hereby amended effective as of the date hereof by
                  replacing
                  Section 9.01(e)(iv) with the
                  following:

              

      

       

      (iv) For
        the
        purpose of satisfying the reporting obligation under the Exchange Act with
        respect to any class of asset-backed securities, the Company shall (or shall
        cause each Subservicer to) (1) provide prompt notice to the Purchaser, any
        Master Servicer and any Depositor in writing of (A) any material litigation
        or
        governmental proceedings involving the Company or any Subservicer, (B) any
        affiliations or relationships that develop following the closing date of
        a
        Securitization Transaction between the Company or any Subservicer and any
        of the
        parties specified in Section 9.01(e)(iii)(J) (and any other parties identified
        in writing by the requesting party) with respect to such Securitization
        Transaction, (C) any Event of Default under the terms of this Agreement or
        any
        Reconstitution Agreement, (D) any merger, consolidation or sale of substantially
        all of the assets of the Company, and (E) the Company’s entry into an agreement
        with a Subservicer to perform or assist in the performance of any of the
        Company’s obligations under this Agreement or any Reconstitution Agreement, and
        (2) provide to the Purchaser and any Depositor a description of such
        proceedings, affiliations or relationships.

       

      Each
        such
        notice/update pursuant to this Section 9.01(e)(iv) should be sent by e-mail
        to
        regABnotifications@bear.com. Additionally, all notifications pursuant to
        this
        Section 9.01(e)(iv), other than those pursuant to Section 9.01(e)(iv)(A),
        should
        be sent to:

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067-3884

      Attention:
        Michelle Viner

      Facsimile:
        (214) 626-4889

      

      With
        a
        copy to:

       

      Bear,
        Stearns & Co. Inc.

      383
        Madison Avenue, 3rd Floor

      New,
        York, NY 10179

      Attention:
        Global Credit Administration

      Facsimile:
        (212) 272-6564

       

      Notifications
        pursuant to Section 9.01(e)(iv)(A) should be sent to: 

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        Texas 75067

      Attention:
        General Counsel

      Facsimile:
        (469) 759-4714

      

      With
        copies to:

       

      Bear,
        Stearns & Co. Inc.

      383
        Madison Avenue, 3rd Floor

      New,
        York, NY 10179

      Attention:
        Global Credit Administration

      Facsimile:
        (212) 272-6564

      

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067-3884

      Attention:
        Michelle Viner

      Facsimile:
        (214)
        626-4889

      

       

      
        	(bb)  	
                Section
                  9.01(e)(v) of the Warranties and Servicing Agreement is hereby
                  amended
                  effective as of the date hereof, by replacing the references to
“the
                  Purchaser and any Depositor” with “the Purchaser, the Master Servicer and
                  any Depositor” and “the Purchaser and such Depositor” with “the Purchaser,
                  the Master Servicer and such
                  Depositor”.

              

      

       

      
        	(cc)  	
                The
                  third paragraph of Section 9.01 of
                  the Warranties and Servicing Agreement is hereby amended effective
                  as of
                  the date hereof by replacing such section with the
                  following:

              

      

       

      The
        Purchaser and the Company acknowledge and agree that the purpose of Section
        9.01(e)
        is to
        facilitate compliance by the Purchaser and any Depositor with the provisions
        of
        Regulation AB and related rules and regulations of the Commission. Although
        Regulation AB is applicable by its terms only to offerings of asset-backed
        securities that are registered under the Securities Act, the Company
        acknowledges that investors in privately offered securities may require that
        the
        Purchaser or any Depositor provide comparable disclosure in unregistered
        offerings. References in this Agreement to compliance with Regulation AB
        include
        provision of comparable disclosure in private offerings. 

       

      Neither
        the Purchaser, the Master Servicer nor any Depositor shall exercise its right
        to
        request delivery of information or other performance under these provisions
        other than in good faith, or for purposes other than compliance with the
        Securities Act, the Exchange Act and the rules and regulations of the Commission
        thereunder (or the provision in a private offering of disclosure comparable
        to
        that required under the Securities Act). The Company acknowledges that
        interpretations of the requirements of Regulation AB may change over time,
        whether due to interpretive guidance provided by the Commission or its staff,
        consensus among participants in the asset-backed securities markets, advice
        of
        counsel, or otherwise, and agrees to comply with requests made by the Purchaser,
        the Master Servicer or any Depositor in good faith for delivery of information
        under these provisions on the basis of evolving interpretations of Regulation
        AB. In connection with any Securitization Transaction, the Company shall
        cooperate fully with the Purchaser and any Master Servicer to deliver to
        the
        Purchaser (including any of its assignees or designees), any Master Servicer
        and
        any Depositor, any and all statements, reports, certifications, records and
        any
        other information necessary in the good faith determination of the Purchaser,
        the Master Servicer or any Depositor to permit the Purchaser, such Master
        Servicer or such Depositor to comply with the provisions of Regulation AB,
        together with such disclosures relating to the Company, any Subservicer,
        any
        Third-Party Originator and the Mortgage Loans, or the servicing of the Mortgage
        Loans, reasonably believed by the Purchaser or any Depositor to be necessary
        in
        order to effect such compliance.

       

      The
        Purchaser (including any of its assignees or designees) shall cooperate with
        the
        Company by providing timely notice of requests for information under these
        provisions and by reasonably limiting such requests to information required,
        in
        the Purchaser’s reasonable judgment, to comply with Regulation AB.

       

      
        	(dd)  	
                Section
                  9.01(e)(vii) of the Warranties and Servicing Agreement is hereby
                  amended
                  effective as of the date hereof by replacing such section with
                  the
                  following: 

              

      

       

      (vii)
        In addition to such information as the Company, as servicer, is obligated
        to
        provide pursuant to other provisions of this Agreement, not later than ten
        (10)
        days prior to the deadline for the filing of any distribution report on Form
        10-D in respect of any Securitization Transaction that includes any of the
        Mortgage Loans serviced by the Company or any Subservicer, the Company or
        such
        Subservicer, as applicable, shall, to the extent the Company or such Subservicer
        has knowledge, provide to the party responsible for filing such report
        (including, if applicable, the Master Servicer) notice of the occurrence
        of any
        of the following events along with all information, data, and materials related
        thereto as may be required to be included in the related distribution report
        on
        Form 10-D (as specified in the provisions of Regulation AB referenced
        below):

       

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

       

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

       

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

       

      
        	(ee)  	
                Article
                  IX of the Agreement is hereby amended effective as of the date
                  hereof by
                  inserting the following new Section 9.01(e)(viii) as
                  follows:

              

      

       

      (viii)
        The Company shall provide to the Purchaser, any Master Servicer and any
        Depositor, evidence of the authorization
        of the person signing any certification or statement, copies or other evidence
        of Fidelity Bond Insurance and Errors and Omission Insurance policy, financial
        information and reports, and such other information related to the Company
        or
        any Subservicer or the Company or such Subservicer’s performance
        hereunder.

       

      
        	(ff)  	
                Article
                  IX
                  of
                  the Agreement is hereby amended effective as of the date hereof
                  by
                  inserting the following after Section 9.01(e)(iii)(H) in its entirety
                  as
                  follows:

              

      

       

      (I) a
        description of any material legal or governmental proceedings pending (or
        known
        to be contemplated) against the Servicer; and

       

      (J) a
        description of any affiliation or relationship between the Servicer and any
        of
        the following parties to a Securitization Transaction, as such parties are
        identified to the Servicer by the Purchaser or any Depositor in writing in
        advance of such Securitization Transaction:

       

      
        	
                (1)

              	
                the
                  sponsor;

              
	
                (2)

              	
                the
                  depositor;

              
	
                (3)

              	
                the
                  issuing entity;

              
	
                (4)

              	
                any
                  servicer;

              
	
                (5)

              	
                any
                  trustee;

              
	
                (6)

              	
                any
                  originator;

              
	
                (7)

              	
                any
                  significant obligor;

              
	
                (8)

              	
                any
                  enhancement or support provider; and

              
	
                (9)

              	
                any
                  other material transaction party.

              

      

       

      
        	(gg)  	
                Article
                  IX of this Agreement is hereby amended by replacing Section 9.01(f)
                  with
                  the following:

              

      

       

      
        	 	
                (f)

              	
                the
                  Company shall indemnify the Purchaser, each affiliate of the Purchaser,
                  and each of the following parties participating in a Securitization
                  Transaction; each sponsor and issuing entity; each Person (including,
                  but not limited to, any Master Servicer, if applicable) responsible
                  for
                  the preparation, execution or filing of any report required to
                  be filed
                  with the Commission with respect to such Securitization Transaction,
                  or
                  for execution of a certification pursuant to Rule 13a-14(d) or
                  Rule
                  15d-14(d) under the Exchange Act with respect to such Securitization
                  Transaction; each broker dealer acting as underwriter, placement
                  agent or
                  initial purchaser, each Person who controls any of such parties
                  or the
                  Depositor (within the meaning of Section 15 of the Securities Act
                  and
                  Section 20 of the Exchange Act); and the respective present and
                  former
                  directors, officers, employees, agents and affiliates of each of
                  the
                  foregoing and of the Depositor (each, an “Indemnified Party”), and shall
                  hold each of them harmless from and against any claims, losses,
                  damages,
                  penalties, fines, forfeitures, legal fees and expenses and related
                  costs,
                  judgments, and any other costs, fees and expenses that any of them
                  may
                  sustain arising out of or based
                  upon:

              

      

       

       
        (i) (A) any
        untrue statement of a material fact contained or alleged to be contained
        in any
        information, report, certification, data, accountants’ letter or other material
        provided under Sections 4.25,
        5.02, 6.04, 6.06 or
        9.01(c) or (e) by or on behalf of the Company, or provided under Sections
        9.01(c) or (e) by or on behalf of any Subservicer, Subcontractor or Third-Party
        Originator (collectively, the “Company Information”), or (B) the omission or
        alleged omission to state in the Company Information a material fact required
        to
        be stated in the Company Information or necessary in order to make the
        statements therein, in the light of the circumstances under which they were
        made, not misleading; provided,
        by way of clarification, that
        clause (B) of this paragraph shall be construed solely by reference to the
        Company Information and not to any other information communicated in connection
        with a sale or purchase of securities, without regard to whether the Company
        Information or any portion thereof is presented together with or separately
        from
        such other information;

       

      
        	(ii)  	
                any
                  breach by the Company of its obligations under this Section 9.01(f),
                  including any failure by the Company, any Subservicer, any Subcontractor
                  or any Third-Party Originator to deliver any information, report,
                  certification, accountants’ letter or other material when and as required
                  under Sections 4.25, 5.02, 6.04, 6.06 or 9.01(c) or (e), including
                  any
                  failure by the Company to identify any Subcontractor “participating in the
                  servicing function” within the meaning of Item 1122 of Regulation AB;
                  

              

      

      

      
        	(iii)  	
                any
                  breach by the Company of a representation or warranty set forth
                  in Section
                  9.01(e)(vi)(A) or in a writing furnished pursuant to Section
                  9.01(e)(vi)(B) and made as of a date prior to the closing date
                  of the
                  related Securitization Transaction, to the extent that such breach
                  is not
                  cured by such closing date, or any breach by the Company of a
                  representation or warranty in a writing furnished pursuant to Section
                  9.01(e)(vi)(B) to the extent made as of a date subsequent to such
                  closing
                  date; or

              

      

      

      
        	(iv)  	
                the
                  negligence, bad faith or willful misconduct of the Company in connection
                  with its performance under Sections 4.25, 6.04, 6.06, 6.07 or
                  9.01.

              

      

      

      If
        the
        indemnification provided for herein is unavailable or insufficient to hold
        harmless an Indemnified Party, then the Company agrees that it shall contribute
        to the amount paid or payable by such Indemnified Party as a result of any
        claims, losses, damages or liabilities incurred by such Indemnified Party
        ins
        such proportion as is appropriate to reflect the relative fault of such
        Indemnified Party on the one hand and the Company on the other.

      

      In
        the
        case of any failure of performance described in sub-clause (ii) of this Section
        9.01(f), the Company shall promptly reimburse the Purchaser, any Depositor,
        as
        applicable, and each Person responsible for the preparation, execution or
        filing
        of any report required to be filed with the Commission with respect to such
        Securitization Transaction, or for execution of a certification pursuant
        to Rule
        13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
        Securitization Transaction, for all costs reasonably incurred by each such
        party
        in order to obtain the information, report, certification, accountants’ letter
        or other material not delivered as required by the Company, any Subservicer,
        any
        Subcontractor or any Third-Party Originator. 

      

      This
        indemnification shall survive the termination of this Agreement or the
        termination of any party to this Agreement.

       

      
        	(hh)  	
                Article
                  X of the Agreement is hereby amended effective as of the date hereof
                  by
                  replacing the reference to “Custodial Agreement” in Section 10.01(ii) with
                  “Custodial Agreement (if no specific grace period or notification
                  requirement is applicable
                  therein)”.

              

      

       

      
        	(ii)  	
                Article
                  X of the Agreement is hereby amended effective as of the date hereof
                  by
                  replacing the last paragraph of Section 10.01 with the following
                  paragraph
                  (new next underlined):

              

      

       

      Upon
        receipt by the Company of such written notice, all authority and power of
        the
        Company under this Agreement, whether with respect to the Mortgage Loans
        or
        otherwise, shall pass to and be vested in the successor appointed pursuant
        to
        Section 12.01. Upon written request from any Purchaser, the Company shall
        prepare, execute and deliver to the successor entity designated by the Purchaser
        any and all documents and other instruments, place in such successor's
        possession all Servicing Files, and do or cause to be done all other acts
        or
        things necessary or appropriate to effect the termination
        of the Company as servicer and the transfer of servicing of the Mortgage
        Loans
        to a successor servicer,
        including but not limited to the transfer and endorsement or assignment of
        the
        Mortgage Loans and related documents, at the Company's sole expense. The
        Company
        shall cooperate with the Purchaser and such successor in effecting the
        termination of the Company's responsibilities and rights hereunder, including
        without limitation, the transfer to such successor for administration by
        it of
        all cash amounts which shall at the time be credited by the Company to the
        Custodial Account, Subsidy Account or Escrow Account or thereafter received
        with
        respect to the Mortgage Loans. The
        provisions of this paragraph shall not limit whatever rights the Purchaser
        or
        any Depositor may have under other provisions of this Agreement and/or any
        applicable Reconstitution Agreement or otherwise, whether in equity or at
        law,
        such as an action for damages, specific performance or injunctive
        relief.

       

      
        	(jj)  	
                The
                  first sentence of Section 12.03 of the Warranties
                  and Servicing Agreement is deleted in its entirety and replaced
                  with the
                  following:

              

      

       

      Section
        12.03  Governing
        Law.

       

      This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of New York without giving effect to principles of conflicts of laws
        (other than Section 5-1401 of the New York General Obligations Law) and except
        to the extent preempted by Federal law and the obligations, rights and remedies
        of the parties hereunder shall be determined in accordance with such
        laws.

       

      
        	(kk)  	
                A
                  new Section 12.12 (Third Party Beneficiary) is hereby added to
                  the
                  Warranties and Servicing Agreement.

              

      

       

      Section
        12.12 Third
        Party Beneficiary.

       

      For
        Purposes of this Agreement, each Master Servicer shall be considered a third
        party beneficiary to this Agreement, entitled to all the rights and benefits
        hereof as if it were a direct party to this Agreement.

       

      
        	(ll)  	
                Exhibit
                  D of the Warranties
                  and Servicing
                  Agreement is hereby amended as of the date hereof by deleting in
                  its
                  entirety and inserting a new Exhibit D, a copy of which is annexed
                  hereto
                  as Exhibit J.

              

      

       

      
        	(mm)  	
                The
                  Warranties
                  and Servicing
                  Agreement is hereby amended as of the date hereof by inserting
                  a new
                  Exhibit I, a copy of which is annexed hereto as Exhibit
                  C.

              

      

       

      
        	(nn)  	
                The
                  Warranties
                  and Servicing
                  Agreement is hereby amended as of the date hereof by inserting
                  a new
                  Exhibit J, a copy of which is annexed hereto as Exhibit
                  D.

              

      

       

      
        	(oo)  	
                The
                  Warranties
                  and Servicing
                  Agreement is hereby amended as of the date hereof by inserting
                  a new
                  Exhibit K, a copy of which is annexed hereto as Exhibit
                  E.

              

      

       

      
        	(pp)  	
                The
                  Warranties
                  and Servicing
                  Agreement is hereby amended as of the date hereof by inserting
                  a new
                  Exhibit L, a copy of which is annexed hereto as Exhibit
                  F.

              

      

       

      
        	(qq)  	
                The
                  Warranties and Servicing Agreement is hereby amended as of the
                  date hereof
                  by inserting a new Exhibit M, a copy of which is annexed hereto
                  as Exhibit
                  G, or such other format as mutually agreed upon between the Company
                  and
                  the Master Servicer.

              

      

       

      
        	(rr)  	
                The
                  Warranties and Servicing Agreement is hereby amended as of the
                  date hereof
                  by inserting a new Exhibit N, a copy of which is annexed hereto
                  as Exhibit
                  H.

              

      

       

      
        	(ss)  	
                The
                  Warranties and Servicing Agreement is hereby amended as of the
                  date hereof
                  by inserting a new Exhibit O, a copy of which is annexed hereto
                  as Exhibit
                  I.

              

      

       

      11.  A
        copy of all assessments, attestations, reports and certificates required
        to be
        delivered by the Servicer under this Assignment and Assumption Agreement
        and the
        Agreement shall be delivered to the Master Servicer by the date(s) specified
        herein or therein, and where such documents are required to be addressed
        to any
        party, such addresses shall include the Master Servicer and the Master Servicer
        shall be entitled to rely on such documents.

       

      12.  Distributions
        shall be made by wire transfer of immediately available funds to: 

       

      EMC
        Master Servicing Remittances

      Bank:
        Chase Bank of Texas

      Branch:
        Irving, Texas

      Account
        Name: EMC Mortgage Corporation

      ABA
        # 113000609

      ACCOUNT
        # 000000709377717

      Reference:
        M/S Remittance November 1, 2006 Remit for Wells Fargo Bank, N.A.

      Attention:
        LSBO Group-MS

      

      and
        the
        Company shall deliver all reports required to be delivered under the Warranties
        and Servicing Agreement to the Master Servicer at:

       

      EMC
        Mortgage Corporation 

      2780
        Lake
        Vista Drive

      Lewisville,
        Texas 75067 

      Attention:
        Michelle Viner

       

      Facsimile:
        (214)
        626-4889

       

      13.  Notices:

       

      The
        Assignor’s
        address for purposes of all notices and correspondence related to the Mortgage
        Loans and this Assignment and Assumption Agreement is:

       

      EMC
        Mortgage Corporation 

      2780
        Lake
        Vista Drive

      Lewisville,
        Texas 75067 

      Attention:
        Michelle Viner

      Facsimile:
        (214) 626-4889

       

      With
        a
        copy to:

       

      Bear
        Stearns & Co. Inc. 

      383
        Madison Avenue

      New
        York,
        New York 10179

      Attention:
        Robert Durden

       

      The
        Assignee’s
        address for purposes of all notices and correspondence related to the Mortgage
        Loans and this Assignment and Assumption Agreement is:

       

      U.S.
        Bank National Association,

      as
        trustee

      One
        Federal Street, 3rd
        Floor

      Boston,
        MA 02110

      Attention:
        Corporate Trust Services

      PRIME
        2006-2

      Telecopy:
        (617) 603-6413

       

      The
        Company’s
        address for purposes of all notices and correspondence related to the Mortgage
        Loans and this Assignment and Assumption Agreement is:

       

      Wells
        Fargo Bank, N.A.

      1
        Home
        Campus

      MAC
        X2302-033

      Des
        Moines, Iowa 50328-0001 

      Attention:
        John B. Brown

       

      With
        a
        copy to: 

       

      Wells
        Fargo Bank, N.A.

      1
        Home
        Campus

      Des
        Moines, Iowa 50328-0001

      Attention:
        General Counsel - MAC X2401-06T

       

      Miscellaneous:

       

      14.  Each
        party will pay any commissions it has incurred and the Assignor shall pay
        the
        fees of its attorneys and the reasonable fees of the attorneys of the Assignee
        and the Company in connection with the negotiations for, documenting of and
        closing of the transactions contemplated by this Assignment and Assumption
        Agreement.

       

      15.  This
        Assignment and Assumption Agreement shall be construed in accordance with
        the
        laws of the State of New York, including
        Sections 5-1401 and 5-1402 of the New General Obligations Law, but otherwise
        without regard to conflicts of law principles, and the obligations, rights
        and
        remedies of the parties hereunder shall be determined in accordance with
        such
        laws.

       

      16.  No
        term
        or provision of this Assignment and Assumption Agreement may be waived or
        modified unless such waiver or modification is in writing and signed by the
        party against whom such waiver or modification is sought to be
        enforced.

       

      17.  This
        Assignment and Assumption Agreement shall inure to the benefit of the successors
        and assigns of the parties hereto. Any entity into which the Assignor, the
        Assignee or the Company may be merged or consolidated shall, without the
        requirement for any further writing, be deemed the Assignor, the Assignee
        or the
        Company, respectively, hereunder.

       

      18.  This
        Assignment and Assumption Agreement shall survive the conveyance of the Mortgage
        Loans and the assignment of the Warranties and Servicing Agreement to the
        extent
        of the Mortgage Loans by the Assignor to the Assignee and the termination
        of the
        Warranties and Servicing Agreement.

       

      19.  This
        Assignment and Assumption Agreement may be executed simultaneously in any
        number
        of counterparts. Each counterpart shall be deemed to be an original and all
        such
        counterparts shall constitute one and the same instrument.

       

      20.  In
        the
        event that any provision of this Assignment and Assumption Agreement conflicts
        with any provision of the Warranties and Servicing Agreement with respect
        to the
        Mortgage Loans, the terms of this Assignment and Assumption Agreement shall
        control.

       

      21.  Any
        new
        loan number assigned to a Mortgage Loan by the Assignee shall be provided
        to the
        Company at the following address: Wells Fargo Bank, N.A., 1 Home Campus,
        MAC
        X2302-033, Des Moines, Iowa 50328-0001 Attention: John B. Brown. In addition,
        if
        Assignee has changed its document custodian from the previous custodian,
        such
        new custodian’s name, address and contact information shall be provided to the
        Company at the aforementioned address.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, the parties have caused this Assignment and Assumption
        Agreement to be executed by their duly authorized officers as of the date
        first
        above written.

       

      
        	
                U.S.
                  BANK NATIONAL ASSOCIATION,
                  not individually but solely as trustee for the holders of Prime
                  Mortgage
                  Trust, Mortgage Pass-Through Certificates, Series
                  2006-2

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 
	 
	
                EMC
                  MORTGAGE CORPORATION

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 
	 
	
                WELLS
                  FARGO BANK, N.A.,

                as
                  Company

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      Acknowledged
        and Agreed

       

      
        	
                EMC
                  MORTGAGE CORPORATION,

                as
                  Master Servicer

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 
	 
	
                STRUCTURED
                  ASSET MORTGAGE INVESTMENTS II INC. 

              
	 	 
	
                By:

              	 
	
                Name:

              	Baron
                Silverstein
	
                Title:

              	Vice
                President

      

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        A

       

      Mortgage
        Loans

       

      

       

      [Provided
        upon request]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        B

       

      Amended
        and Restated Master Seller’s Warranties and Servicing Agreement dated as of
        November 1, 2005, between Wells Fargo and EMC.

       

      [Provided
        upon request]

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        C

       

      EXHIBIT
        I
        to the Warranties and Servicing Agreement

       

      REMITTANCE
        OVERVIEW REPORT

       

      
        	
                 

              	
                 

              	
                 

              
	
                FIELD

              	
                FIELD

              	
                FIELD

              
	
                #

              	
                NAME

              	
                DEFINITION

              
	 	 	 
	 	 	 
	
                Current
                  Monthly Remit File reported by Investor Services to Master Servicers
&
                  Investors:

              
	 	 	 
	
                1

              	
                S50YDATE

              	
                Cutoff
                  Date

              
	
                2

              	
                CLIENT

              	
                WF
                  Client Number

              
	
                3

              	
                INVNUM

              	
                WF
                  Investor Number

              
	
                4

              	
                CATNUM

              	
                WF
                  Category Number

              
	
                5

              	
                POOLNUM

              	
                Pool
                  Number

              
	
                6

              	
                LOANNUMBER

              	
                WF
                  Loan Number

              
	
                7

              	
                INVLNNO

              	
                Investor
                  Loan Number

              
	
                8

              	
                SCHPRIN

              	
                Scheduled
                  Principal Payment

              
	
                9

              	
                SCHNETINT

              	
                Scheduled
                  Net Interest Amount

              
	
                10

              	
                CURTDATE

              	
                Curtailment
                  Date

              
	
                11

              	
                CURTCOL

              	
                Total
                  Curtailment Amount

              
	
                12

              	
                CURTADJ

              	
                Total
                  Curtailment Int Adjustment Amount

              
	
                13

              	
                CURTREMIT

              	
                Total
                  Curtailment Remittance Amount

              
	
                14

              	
                INTRATE

              	
                Interest
                  Rate

              
	
                15

              	
                SFRATE

              	
                Service
                  Fee Rate

              
	
                16

              	
                YIELD

              	
                Pass
                  Through Rate

              
	
                17

              	
                PANDI

              	
                Principal
                  and Interest Payment

              
	
                18

              	
                BEGSCHPB

              	
                Beginning
                  Scheduled Balance

              
	
                19

              	
                ENDSCHPB

              	
                Ending
                  Scheduled Balance

              
	
                20

              	
                BEGPB

              	
                Beginning
                  Principal Balance

              
	
                21

              	
                ENDPB

              	
                Ending
                  Principal Balance

              
	
                22

              	
                DUEDATE

              	
                Due
                  Date

              
	
                23

              	
                PRINCOL

              	
                Principal
                  Collected

              
	
                24

              	
                INTCOL

              	
                Interest
                  Collected

              
	
                25

              	
                SFCOL

              	
                Service
                  Fee Collected

              
	
                26

              	
                BUYDOWN

              	
                Buydown
                  Amount

              
	
                27

              	
                SCHREMIT

              	
                Schedule
                  Principal and Net Interest Remittance Amount

              
	
                28

              	
                TYPE

              	
                Populated
                  if "ARM" loan

              
	
                29

              	
                PIFDATEPAID

              	
                Payoff
                  Date

              
	
                30

              	
                PIFPRINPAID

              	
                Payoff
                  Principal Paid

              
	
                31

              	
                PIFNETINTPAID

              	
                Payoff
                  Net Interest Paid

              
	
                32

              	
                PIFPENALTYINTPAID

              	
                Payoff
                  Prepayment Penalty Paid

              
	
                33

              	
                PIFREMIT

              	
                Total
                  Payoff Remittance Amount

              
	
                34

              	
                PENDING

              	
                Pending
                  Transfer Flag

              
	
                35

              	
                MESSAGE

              	
                Messages

              
	
                36

              	
                SORTABLELOANNUMBER

              	
                Loan
                  Number

              
	
                37

              	
                NOTES

              	
                Loan
                  Notes from Reporter

              
	
                38

              	
                PRINDIFF

              	
                Loan
                  Sale Difference

              
	
                39

              	
                PRINADJ

              	
                Loan
                  Sale Difference Interest Adjustment

              
	 	 	 
	
                Additional
                  Fields to be added as a result of REG AB (per
                  CTS):

              
	 	 	 
	
                40

              	
                SSCRAREMIT

              	
                Soldiers
                  and Sailors Remittance Amount

              
	
                41

              	
                CLAIMSREMIT

              	
                Claims
                  Remittance Amount

              
	
                42

              	
                MISCREMIT

              	
                Miscellaneous
                  Remittance Amount

              
	
                43

              	
                TOTALREMIT

              	
                Total
                  Remittance Amount

              
	
                44

              	
                PPPAMOUNT

              	
                Prepayment
                  Penalty Calculated Amount

              
	
                45

              	
                PPPWAIVED

              	
                Prepayment
                  Penalty Waived Amount

              
	
                46

              	
                PPPPAIDBYBORROWER

              	
                Prepayment
                  Penalty Paid by the Borrower

              
	
                47

              	
                PPPPAIDBYSERVICER

              	
                Prepayment
                  Penalty Paid by the Servicer

              
	
                48

              	
                MODEFFDATE

              	
                Modification
                  Effective Date

              
	
                49

              	
                MODTYPE

              	
                Modification
                  Type (See Mod Type tab)

              
	
                50

              	
                ACTIONCODE

              	
                Action
                  Code (See Action Code Tab - Just 63 & 65)

              
	
                51

              	
                ACTUALDUEDATE

              	
                Actual
                  loan due date

              
	
                52

              	
                ACTUALPRINBAL

              	
                Actual
                  Loan Principal Balance

              
	 	 	 
	 	
                Calculation:

              	
                 

              
	 	
                TotalRemit
                  = Remit + PIFRemit + CurtRemit + SSCRARemit + ClaimsRemit +
                  MiscRemit

              

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        D

       

      EXHIBIT
        J
        to the Warranties and Servicing Agreement

       

      REMITTANCE
        SUMMARY REPORT

       

      
        	
                Field

              	
                Field
                  Description

              
	
                Deal

              	
                VARCHAR
                  (15)

              
	
                Investor
                  

              	
                VARCHAR
                  (5)

              
	
                Category

              	
                VARCHAR
                  (5)

              
	
                Principal
                  Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Curtailments
                  Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Curtailment
                  Adjustments Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Liquidation
                  Proceeds Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Principal
                  Not Advanced (stop advance loans only)

              	
                NUMERIC
                  (15,2)

              
	
                Principal
                  Amounts Called/Collapsed

              	
                NUMERIC
                  (15,2)

              
	
                Total
                  Principal Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Interest
                  Remitted

              	
                NUMERIC
                  (15,2)

              
	
                PMI
                  Premiums Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Soldiers
                  and Sailors Difference

              	
                NUMERIC
                  (15,2)

              
	
                Net
                  Interest Not Advanced

              	
                NUMERIC
                  (15,2)

              
	
                Non
                  Comp Interest Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Prepayment
                  Penalties Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Total
                  Interest Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Arrearage
                  Amount Remitted

              	
                NUMERIC
                  (15,2)

              
	
                Aggregate
                  Loss to Trust 

                Total
                  Manual Adjustments

              	
                NUMERIC
                  (15,2)

              
	
                Debt
                  Forgiven/ Charged Off

              	
                NUMERIC
                  (15,2)

              
	
                Additional
                  Fees Collected

              	
                NUMERIC
                  (15,2)

              
	
                Total
                  Remittance

              	
                NUMERIC
                  (15,2)

              

      

      

       

      

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        E

       

      EXHIBIT
        K
        to the Warranties and Servicing Agreement

       

      STANDARD
        FILE LAYOUT - DELINQUENCY SUMMARY REPORT

       

      

       

      
        	
                Field

              	
                Field
                  Description

              
	
                Servicer
                  Investor Number

              	
                VARCHAR
                  (5)

              
	
                Mortgage
                  Group

              	
                VARCHAR
                  (1)

              
	
                Performance
                  type (Current, 30 days, 60 days, 90+ days, Foreclosure, Bankruptcy
                  or
                  PIF)

              	
                VARCHAR
                  (6)

              
	
                Count
                  of Loans

              	
                NUMERIC
                  (10,0)

              
	
                Percent
                  of Investor Number

              	
                NUMERIC
                  (7,7)

              
	
                Deal
                  UPB

              	
                NUMERIC
                  (14,2)

              
	
                Percent
                  of Deal UPB

              	
                NUMERIC
                  (7,7)

              
	
                Arrears
                  Balance

              	
                NUMERIC
                  (14,2)

              
	
                Percent
                  of Arrears Balance

              	
                NUMERIC
                  (7,7)

              
	
                Foreclosure
                  Quick Sale

              	
                NUMERIC
                  (12,2)

              
	
                REO
                  Book Value

              	
                NUMERIC
                  (12,2)

              

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        F

       

      EXHIBIT
        L
        to the Warranties and Servicing Agreement

       

      STANDARD
        FILE LAYOUT - DEFAULT DETAIL REPORT

       

      
        	
                WF
                  Client ID

              
	
                WF
                  Loan Number

              
	
                MAN

              
	
                Bankrupt_Status

              
	
                Delq_Paymt_Count

              
	
                %
                  of MI Coverage

              
	
                Actual
                  MI Claim Filed Date

              
	
                Actual
                  Bankruptcy Start Date

              
	
                Actual
                  MI Claim Amount Filed

              
	
                Actual
                  Discharge Date

              
	
                Actual
                  Due Date

              
	
                Actual
                  Eviction Complete Date

              
	
                Actual
                  Eviciton Start Date

              
	
                Actual
                  First Legal Date

              
	
                Actual
                  Redemption End Date

              
	
                Bankruptcy
                  Chapter

              
	
                Bankruptcy
                  Flag

              
	
                Bankruptcy
                  Case Number

              
	
                MI
                  Claim Amount Paid

              
	
                MI
                  Claim Funds Received Date

              
	
                Current
                  Loan Amount

              
	
                Date
                  FC Sale Scheduled

              
	
                Date
                  Relief_Dismissal Granted

              
	
                Date
                  REO Offer Accepted

              
	
                Date
                  REO Offer Received

              
	
                Delinquency
                  Value

              
	
                Delinquency
                  Value Source

              
	
                Delinquency
                  Value Date

              
	
                Delinquency
                  Flag

              
	
                Foreclosure
                  Flag

              
	
                Corporate
                  Expense Balance

              
	
                Foreclosure
                  Attorney Referral Date

              
	
                Foreclosure
                  valuation amount

              
	
                Foreclosure
                  Valuation Date

              
	
                Foreclosure
                  Valuation Source

              
	
                FHA
                  27011A Transmitted Date

              
	
                FHA
                  27011B Transmitted Date

              
	
                VA
                  LGC_FHA Case Number

              
	
                FHA
                  Part A Funds Received Date

              
	
                Foreclosure
                  Actual Sale Date

              
	
                Servicer
                  Loan Number

              
	
                Loan
                  Type

              
	
                Loss
                  Mit Approval Date

              
	
                Loss
                  Mit Flag

              
	
                Loss
                  Mit Removal Date

              
	
                Loss
                  Mit Type

              
	
                Loss
                  Mit Value

              
	
                Loss
                  Mit Value Date

              
	
                Loss
                  Mit Value Source

              
	
                MI
                  Certificate Number

              
	
                LPMI
                  Cost

              
	
                Occupancy
                  Status

              
	
                First
                  Time Vacancy_Occupancy Status Date

              
	
                Original
                  Loan Amount

              
	
                Original
                  Value Amount

              
	
                Origination
                  Date

              
	
                FHA
                  Part B Funds Received Date

              
	
                Post
                  Petition Due Date

              
	
                Property
                  Condition

              
	
                Property
                  Type

              
	
                Reason
                  for Default

              
	
                REO
                  Repaired Value

              
	
                REO
                  List Price Adjustment Amount

              
	
                REO
                  List Price Adjustment Date

              
	
                REO
                  Value As Is

              
	
                REO
                  Actual Closing Date

              
	
                REO
                  Flag

              
	
                REO
                  Original List Date

              
	
                REO
                  Original List Price

              
	
                REO
                  Net Sales Proceeds

              
	
                REO
                  Sales Price

              
	
                REO
                  Scheduled Close Date

              
	
                REO
                  Value Date

              
	
                REO
                  Value Source

              
	
                Repay
                  First Due Date

              
	
                Repay
                  Next Due Date

              
	
                Repay
                  plan broken/reinstated/closed date

              
	
                Repay
                  Plan Created Date

              
	
                SBO
                  Loan Number

              
	
                Escrow
                  Balance/advance balance

              
	
                Title
                  approval letter received date

              
	
                Title
                  Package HUD/VA Date

              
	
                VA
                  Claim Funds Received Date

              
	
                VA
                  claim Submitted Date

              
	
                VA
                  First Funds Received Amount

              
	
                VA
                  First Funds Received Date

              
	
                VA
                  NOE Submitted Date

              
	
                Zip
                  Code

              
	
                FNMA
                  Delinquency status code

              
	
                FNMA
                  Delinquency Reason Code

              
	
                Suspense
                  Balance

              
	
                Restricted
                  Escrow Balance

              
	
                Investor
                  Number

              
	
                Acq_Date

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        G

       

      EXHIBIT
        M
        to the Warranties and Servicing Agreement

       

      The
        Company shall provide the Master Servicer with this Exhibit in the format
        below
        or such other format as mutually agreed upon between the Company and the
        Master
        Servicer.

       

      EMC
        MASTER SERVICING CALCULATION OF GAIN/LOSS ON DELINQUENT LOAN
        WORKSHEET

       

      Date:                
        _________________________________________    

       

       

      
        	
                Prepared
                  By

              	
                Phone
                  Number

              	
                Email
                  Address

              
	 	 	 

      

       

       

      
        	
                Servicer
                  Loan Number

              	
                Servicer
                  Address

              	
                EMC
                  Loan Number

              
	 	 	 

      

       

       

      
        	
                Borrower
                  Name

              	
                Property
                  Address

              
	
                 

                 

                 

              	 

      

       

       

      
        	
                Liquidation
                  Type

              	
                REO

              	
                Third
                  Party

              	
                Short
                  Sale

              	
                Charge
                  off

              	
                Deed
                  In Lieu

              
	 	 	 	 	 	 

      

       

       

      
        	
                Has
                  this loan been previously modified?

              	
                Yes

              	
                No

              
	
                Has
                  this loan been crammed down in a bankruptcy?

              	
                Yes

              	
                No

              

      

       

      If
“Yes”,
        provide amount _______________________________

       

       

      Liquidation
        and Acquisition Expenses:

       

       Amounts
        requiring Amortization Schedule for backup:

      

       

      
        	
                Actual
                  Unpaid Principal Balance of Mortgage Loan

              	 
	
                Interest
                  Accrued at Net Rate Less Servicing Fees

              	 
	
                Accrued
                  Servicing Fees

              	 

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

       

      Amounts
        requiring Additional backup:

       

       

      
        	
                Attorney’s
                  Fees

              	
                Corporate
                  advance history defining amounts paid, reimbursed, payee and reason
                  codes

              	 
	
                Attorney’s
                  Costs

              	
                Corporate
                  advance history defining amounts paid, reimbursed, payee and reason
                  codes

              	 
	
                Taxes

              	
                Payment
                  history showing disbursements

              	 
	
                Property
                  Maintenance

              	
                Corporate
                  advance history defining amounts paid, reimbursed, payee and reason
                  codes

              	 
	
                Property
                  Inspection

              	
                Corporate
                  advance history defining amounts paid, reimbursed, payee and reason
                  codes

              	 
	
                PMI/Hazard
                  Insurance Premiums

              	
                Payment
                  history showing disbursements

              	 
	
                Utility
                  Expenses

              	
                Payment
                  history showing disbursements

              	 
	
                Appraisal/BPO
                  Expenses

              	
                Corporate
                  advance history defining amounts paid, reimbursed, payee and reason
                  codes

              	 
	
                HOA
                  Dues

              	
                Payment
                  history showing disbursements

              	 
	
                Cash
                  For Keys

              	
                Corporate
                  advance history defining amounts paid, reimbursed, payee and reason
                  codes

              	 
	
                Miscellaneous
                  (itemized)

              	
                Requires
                  Itemization and supporting detail

              	 
	
                Total
                  Expenses

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

              	 

      

       

      Credits
        to Loan:

       

      
        	
                Escrow
                  Balance/Advance

              	
                Payment
                  history showing disbursements and ending balance

              	 
	
                Rental
                  Receipts

              	
                Payment
                  history showing application of funds to loan

              	 
	
                Hazard
                  Claim Proceeds

              	
                Payment
                  history showing credit to account

              	 
	
                PMI
                  Funds

              	
                EOB
                  document

              	 
	
                Government
                  Insurance Funds (Part A Funds)

              	
                EOB
                  document

              	 
	
                REO
                  Proceeds

              	
                HUD
                  1 Settlement Statement

              	 
	
                Government
                  Insurance Funds (Part B Funds)

              	
                EOB
                  document

              	 
	
                Pool
                  Insurance Proceeds

              	
                Payment
                  history showing credit to account

              	 
	
                Other
                  Credits (itemized)

              	
                Payment
                  history showing credit to account

              	 
	
                Total
                  Credits

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

              	 

      

       

      Total
        Realized Loss (or Amount of Gain)   $________________ 

       

      NOTE:
        Do not combine or net remit items. All expenses and credits should be documented
        individually. Claim packages are due by the fifth business day of the month
        following receipt of liquidation proceeds. Late claims may result in delayed
        claim payment. The Servicer is responsible to remit all funds pending loss
        approval and /or resolution of any disputed items. 

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        H

       

      EXHIBIT
        N
        to the Warranties and Servicing Agreement

       

      MODIFIED
        LOANS REPORT

       

      
        	
                Servicer
                  Loan Number

              	
                SBO
                  Number

              	
                Modification
                  Date 

              	
                Modification
                  Reason

              	
                New
                  effective Interest Rate Date

              	
                New
                  effective Modified Payment amount date

              	
                Modification
                  Effective date

              	
                Modified
                  Balance

              	
                New
                  Effective Modified Interest Rate

              	
                New
                  Effective Modified Payment Amount

              	
                Modified
                  Maturity Date

              	
                Capitalized
                  Interest

              	
                New
                  Modified Servicer Service Fee Rate 

              	
                New
                  Modified Investor Serivce Fee Rate

              	
                Fixed
                  Service Fee Rate 

              	
                Convert
                  to Fixed Rate Loan 

              	
                Modify
                  to Fixed Rate Characteristics

              	
                Total
                  Amount Capitalized

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        I

       

      EXHIBIT
        O
        to the Warranties and Servicing Agreement

       

      CLAIMS
        SUBMITTED REPORT

       

      
        	
                Client

              	
                Loan
                  Number

              	
                Inv_Loan_Number

              	
                Mortgagor
                  Name

              	
                Inv
                  Id

              	
                Inv
                  Name

              	
                Claim
                  type

              	
                F/C
                  Sale Held

              	
                Prop
                  Sold To 3rd
                  Pty

              	
                Ratified

              	
                Rcv
                  3rd
                  Party Sale $

              	
                Eviction
                  Rq To Atty

              	
                Tenants
                  Vacated

              	
                Part
                  A Submit

              	
                Partial
                  Funds Rec’d

              	
                Title
                  Pkg To Hud

              	
                Title
                  Aprvl

              	
                Part
                  B-E Submit

              	
                Final
                  Funds Rec’d

              	
                Claim
                  To Inv

              	
                Remittance
                  Letter

              	
                Report
                  Date

              	
                Aged
                  Days

              	
                WFHM
                  Status

              	
                WFHM
                  Comment

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              

      

      

       

      

       

      
        	
                EMC
                  Claims Pending Payment

              
	
                Total
                  Claims Filed

              	
                200

              
	
                 

              	
                0-29

              	
                18

              
	
                 

              	
                30-59

              	
                176

              
	
                 

              	
                60-89

              	
                5

              
	
                 

              	
                90
                  +_

              	
                1

              

      

      

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        J

       

      EXHIBIT
        D
        to the Warranties and Servicing Agreement

       

       

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

       

       

      The
        assessment of compliance to be delivered by [the Servicer] [Name of Subservicer]
        shall address, at a minimum, the criteria identified as below as “Applicable
        Servicing Criteria”:

       

       

      
        	
                Servicing
                  Criteria 

              	
                Applicable
                  Servicing Criteria

              
	
                Reference

              	
                Criteria

              	
                 

              
	
                 

              	
                General
                  Servicing Considerations

              	
                 

              
	
                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements.

              	
                X

              
	
                1122(d)(1)(ii)

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities.

              	
                X

              
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the mortgage loans are maintained.

              	 
	
                1122(d)(1)(iv)

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements.

              	
                X

              
	
                 

              	
                Cash
                  Collection and Administration

              	 
	
                1122(d)(2)(i)

              	
                Payments
                  on mortgage loans are deposited into the appropriate custodial
                  bank
                  accounts and related bank clearing accounts no more than two business
                  days
                  following receipt, or such other number of days specified in the
                  transaction agreements.

              	
                X

              
	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel.

              	
                X

              
	
                1122(d)(2)(iii)

              	
                Advances
                  of funds or guarantees regarding collections, cash flows or distributions,
                  and any interest or other fees charged for such advances, are made,
                  reviewed and approved as specified in the transaction
                  agreements.

              	
                X

              
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of overcollateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements.

              	
                X

              
	
                1122(d)(2)(v)

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institution” with respect to
                  a foreign financial institution means a foreign financial institution
                  that
                  meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                  Act.

              	
                X

              
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized
                  access.

              	
                X

              
	
                1122(d)(2)(vii)

              	
                Reconciliations
                  are prepared on a monthly basis for all asset-backed securities
                  related
                  bank accounts, including custodial accounts and related bank clearing
                  accounts. These reconciliations are (A) mathematically accurate;
                  (B)
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction agreements;
                  (C)
                  reviewed and approved by someone other than the person who prepared
                  the
                  reconciliation; and (D) contain explanations for reconciling items.
                  These
                  reconciling items are resolved within 90 calendar days of their
                  original
                  identification, or such other number of days specified in the transaction
                  agreements.

              	
                X

              
	
                 

              	
                Investor
                  Remittances and Reporting

              	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of mortgage loans serviced by the
                  Servicer.

              	
                X

              
	
                1122(d)(3)(ii)

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements.

              	
                X

              
	
                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  Servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements.

              	
                X

              
	
                1122(d)(3)(iv)

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank
                  statements.

              	
                X

              
	 	 	 
	
                 

              	
                Pool
                  Asset Administration

              	 
	
                1122(d)(4)(i)

              	
                Collateral
                  or security on mortgage loans is maintained as required by the
                  transaction
                  agreements or related mortgage loan documents.

              	
                X

              
	
                1122(d)(4)(ii)

              	
                Mortgage
                  loan and related documents are safeguarded as required by the transaction
                  agreements

              	
                X

              
	
                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements.

              	
                X

              
	
                1122(d)(4)(iv)

              	
                Payments
                  on mortgage loans, including any payoffs, made in accordance with
                  the
                  related mortgage loan documents are posted to the Servicer’s obligor
                  records maintained no more than two business days after receipt,
                  or such
                  other number of days specified in the transaction agreements, and
                  allocated to principal, interest or other items (e.g., escrow)
                  in
                  accordance with the related mortgage loan documents.

              	
                X

              
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the mortgage loans agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal
                  balance.

              	
                X

              
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor's mortgage loans
                  (e.g.,
                  loan modifications or re-agings) are made, reviewed and approved
                  by
                  authorized personnel in accordance with the transaction agreements
                  and
                  related pool asset documents.

              	
                X

              
	
                1122(d)(4)(vii)

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements.

              	
                X

              
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a mortgage
                  loan is delinquent in accordance with the transaction agreements.
                  Such
                  records are maintained on at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent mortgage loans including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or
                  unemployment).

              	
                X

              
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for mortgage loans with variable
                  rates are computed based on the related mortgage loan
                  documents.

              	
                X

              
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s mortgage loan
                  documents, on at least an annual basis, or such other period specified
                  in
                  the transaction agreements; (B) interest on such funds is paid,
                  or
                  credited, to obligors in accordance with applicable mortgage loan
                  documents and state laws; and (C) such funds are returned to the
                  obligor
                  within 30 calendar days of full repayment of the related mortgage
                  loans,
                  or such other number of days specified in the transaction
                  agreements.

              	
                X

              
	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements.

              	
                X

              
	
                1122(d)(4)(xii)

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission.

              	
                X

              
	
                1122(d)(4)(xiii)

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the servicer, or such other number of days
                  specified in the transaction agreements.

              	
                X

              
	
                1122(d)(4)(xiv)

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements.

              	
                X

              
	
                1122(d)(4)(xv)

              	
                Any
                  external enhancement or other support, identified in Item 1114(a)(1)
                  through (3) or Item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements.

              	 

      

      
 

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      K

    

    FORM
      OF
      BACK-UP CERTIFICATION TO FORM 10-K CERTIFICATE

    

     

    The
      [              
 ] agreement dated as of
      [            
 ],
      200[ ]
      (the “Agreement”), among [IDENTIFY PARTIES]

     

    I,
      ________________________________, the _______________________ of [NAME OF
      COMPANY], certify to [the Depositor] and the [Master Servicer] [Trustee], and
      their officers, with the knowledge and intent that they will rely upon this
      certification, that:

     

    (1) I
      have
      reviewed the servicer compliance statement of the Company provided in accordance
      with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
      assessment of the Company’s compliance with the servicing criteria set forth in
      Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance
      with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended
      (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing
      Assessment”), the registered public accounting firm’s attestation report
      provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act
      and
      Section 1122(b) of Regulation AB (the “Attestation
      Report”), and all servicing reports, officer’s certificates and other
      information relating to the servicing of the Mortgage Loans by the Company
      during 200[ ] that were delivered by the Company to the Depositor and the
      Trustee pursuant to the Agreement (collectively, the “Company Servicing
      Information”);

     

    (2) Based
      on
      my knowledge, the Company Servicing Information, taken as a whole, does not
      contain any untrue statement of a material fact or omit to state a material
      fact
      necessary to make the statements made, in light of the circumstances under
      which
      such statements were made, not misleading with respect to the period of time
      covered by the Company Servicing Information;

     

    (3) Based
      on
      my knowledge, all of the Company Servicing Information required to be provided
      by the Company under the Agreement has been provided to the Depositor and the
      Trustee;

     

    (4) I
      am
      responsible for reviewing the activities performed by the Company as servicer
      under the Agreement, and based on my knowledge and the compliance review
      conducted in preparing the Compliance Statement and except as disclosed in
      the
      Compliance Statement, the Servicing Assessment or the Attestation Report, the
      Company has fulfilled its obligations under the Agreement in all material
      respects; and

     

    (5) The
      Compliance Statement required to be delivered by the Company pursuant to the
      Agreement, and the Servicing Assessment and Attestation Report required to
      be
      provided by the Company and by any subservicer or subcontractor pursuant to
      the
      Agreement, have been provided to the Depositor and the Trustee. Any material
      instances of noncompliance described in such reports have been disclosed to
      the
      Depositor and the Trustee. Any material instance of noncompliance with the
      Servicing Criteria has been disclosed in such reports.

    

     

    Date: _________________________

     

    By:
      ___________________________________

    Name:
       ________________________________
      

    Title:
       _________________________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    

    EXHIBIT
      L

     

    SERVICING
      CRITERIA TO BE ADDRESSED

    IN
      ASSESSMENT OF COMPLIANCE

     

    Definitions

    Primary
      Servicer - transaction party having borrower contact

    Master
      Servicer - aggregator of pool assets

    Trustee
      -
      waterfall calculator; fiduciary of the transaction

    Back-up
      Servicer - named in the transaction (in the event a Back up Servicer becomes
      the
      Primary Servicer, follow Primary Servicer obligations)

    Custodian
      - safe keeper of pool assets

    

    Note:
      The
      definitions above describe the essential function that the party performs,
      rather than the party’s title.

     

    Where
      there are multiple checks for criteria the attesting party will identify in
      their management assertion that they are attesting only to the portion of the
      distribution chain they are responsible for in the related transaction
      agreements.

     

    Key: X
      - obligation

     

    
      	
              Reg
                AB Reference

            	
               Servicing
                Criteria

            	
               Primary
                Servicer                
                Master
                Servicer

            	
              Trustee

            	
              Custodian

            

    

     

     
General
      Servicing
      Considerations

     

    
      	
              1122(d)(1)(i)

            	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements.

            	
              X

            	
              X

            	
              X

            	 
	
              1122(d)(1)(ii)

            	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities.

            	
              X

            	
              X

            	 	 
	
              1122(d)(1)(iii)

            	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the Pool Assets are maintained. 

            	 	 	 	 
	
              1122(d)(1)(iv)

            	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements. 

            	
              X

            	
              X

            	 	 
	 	
              Cash
                Collection and Administration

            	 	 	 	 
	
              1122(d)(2)(i)

            	
              Payments
                on pool assets are deposited into the appropriate custodial bank
                accounts
                and related bank clearing accounts no more than two business days
                following receipt, or such other number of days specified in the
                transaction agreements. 

              [This
                Agreement states that payments will be deposited within two business
                days
                after “receipt and
                identification”.
                ]

            	
              X

            	
              X

            	
              X

            	 
	
              1122(d)(2)(ii)

            	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel. 

            	
              X

            	
              X

            	
              X

            	 
	
              1122(d)(2)(iii)

            	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances, are made,
                reviewed and approved as specified in the transaction agreements.
                

            	
              X

            	
              X

            	
              X
                

              (to
                the extent an advance is made)

            	 
	
              1122(d)(2)(iv)

            	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of over collateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements. 

            	
              X

            	
              X

            	
              X

            	 
	
              1122(d)(2)(v)

            	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institution” with respect to
                a foreign financial institution means a foreign financial institution
                that
                meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                Act.
                

            	
              X

            	
              X

            	
              X

            	 
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized access.
                

            	
              X

            	 	 	 
	
              1122(d)(2)(vii)
                

            	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within 30 calendar days after the bank statement cutoff
                date, or
                such other number of days specified in the transaction agreements;
                (C)
                reviewed and approved by someone other than the person who prepared
                the
                reconciliation; and (D) contain explanations for reconciling items.
                These
                reconciling items are resolved within 90 calendar days of their original
                identification, or such other number of days specified in the transaction
                agreements. 

              [This
                Agreement states that reconciliations will be prepared within 45
                calendar days after the bank statement cut-off date.]

            	
              X

            	
              X

            	
              X

            	 
	 	
              Investor
                Remittances and Reporting

            	 	 	 	 
	
              1122(d)(3)(i)

            	
              Reports
                to investors, including those to be filed with the Commission, are
                maintained in accordance with the transaction agreements and applicable
                Commission requirements. Specifically, such reports (A) are prepared
                in
                accordance with timeframes and other terms set forth in the transaction
                agreements; (B) provide information calculated in accordance with
                the
                terms specified in the transaction agreements; (C) are filed with
                the
                Commission as required by its rules and regulations; and (D) agree
                with
                investors’ or the trustee’s records as to the total unpaid principal
                balance and number of Pool Assets serviced by the Servicer.
                

            	
              X

            	
              X

            	
              X

            	 
	
              1122(d)(3)(ii)

            	
              Amounts
                due to investors are allocated and remitted in accordance with timeframes,
                distribution priority and other terms set forth in the transaction
                agreements. 

            	
              X

            	
              X

            	
              X

            	 
	
              1122(d)(3)(iii)

            	
              Disbursements
                made to an investor are posted within two business days to the Servicer’s
                investor records, or such other number of days specified in the
                transaction agreements. 

            	
              X

            	
              X

            	
              X

            	 
	
              1122(d)(3)(iv)

            	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank statements.
                

            	
              X

            	
              X

            	
              X

            	 
	 	
              Pool
                Asset Administration

            	 	 	 	 
	
              1122(d)(4)(i)
                

            	
              Collateral
                or security on pool assets is maintained as required by the transaction
                agreements or related pool asset documents. 

            	
              X

            	 	 	
              X

            
	
              1122(d)(4)(ii)

            	
              Pool
                assets and related documents are safeguarded as required by the
                transaction agreements 

            	
              X

            	 	 	
              X

            
	
              1122(d)(4)(iii)

            	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements. 

            	
              X

            	 	
              X

            	 
	
              1122(d)(4)(iv)

            	
              Payments
                on pool assets, including any payoffs, made in accordance with the
                related
                pool asset documents are posted to the Servicer’s obligor records
                maintained no more than two business days after receipt, or such
                other
                number of days specified in the transaction agreements, and allocated
                to
                principal, interest or other items (e.g., escrow) in accordance with
                the
                related pool asset documents. 

            	
              X

            	 	 	 
	
              1122(d)(4)(v)

            	
              The
                Servicer’s records regarding the pool assets agree with the Servicer’s
                records with respect to an obligor’s unpaid principal balance.
                

            	
              X

            	 	 	 
	
              1122(d)(4)(vi)

            	
              Changes
                with respect to the terms or status of an obligor's pool assets (e.g.,
                loan modifications or re-agings) are made, reviewed and approved
                by
                authorized personnel in accordance with the transaction agreements
                and
                related pool asset documents. 

            	
              X

            	
              X

            	 	 
	
              1122(d)(4)(vii)

            	
              Loss
                mitigation or recovery actions (e.g., forbearance plans, modifications
                and
                deeds in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                agreements. 

            	
              X

            	
              X

            	 	 
	
              1122(d)(4)(viii)

            	
              Records
                documenting collection efforts are maintained during the period a
                pool
                asset is delinquent in accordance with the transaction agreements.
                Such
                records are maintained on at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent pool assets including, for example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or unemployment).
                

            	
              X

            	 	 	 
	
              1122(d)(4)(ix)

            	
              Adjustments
                to interest rates or rates of return for pool assets with variable
                rates
                are computed based on the related pool asset documents. 

            	
              X

            	 	 	 
	
              1122(d)(4)(x)

            	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s pool asset documents,
                on at least an annual basis, or such other period specified in the
                transaction agreements; (B) interest on such funds is paid, or credited,
                to obligors in accordance with applicable pool asset documents and
                state
                laws; and (C) such funds are returned to the obligor within 30 calendar
                days of full repayment of the related pool assets, or such other
                number of
                days specified in the transaction agreements. 

            	
              X

            	 	 	 
	
              1122(d)(4)(xi)

            	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements. 

            	
              X

            	 	 	 
	
              1122(d)(4)(xii)

            	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the Servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission. 

            	
              X

            	 	 	 
	
              1122(d)(4)(xiii)

            	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements. 

            	
              X

            	 	 	 
	
              1122(d)(4)(xiv)
                

            	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements. 

            	
              X

            	
              X

            	 	 
	
              1122(d)(4)(xv)

            	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements. In this transaction there is no external
                enhancement or other support.

            	
              X

            	 	
              X

            	 

    

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      M

     

    FORM
      10-D, FORM 8-K AND FORM 10-K

    REPORTING
      RESPONSIBILITY

     

    As
      to
      each item described below, the entity indicated as the Responsible Party shall
      be primarily responsible for reporting the information to the party identified
      as responsible for preparing the Securities Exchange Act Reports pursuant to
      Section 4.18 of the Pooling and Servicing Agreement. 

     

    Under
      Item 1 of Form 10-D: a) items marked “Monthly Statements to Certificateholders”
are required to be included in the periodic Distribution Date statement under
      Section 6.06, provided by the Trustee based on information received from the
      party providing such information; and b) items marked “Form 10-D report” are
      required to be in the Form 10-D report but not the Monthly Statements to
      Certificateholders, provided by the party indicated. Information under all
      other
      Items of Form 10-D is to be included in the Form 10-D report. All such
      information and any other Items on Form 8-K and Form 10-D set forth in this
      Exhibit shall be sent to the Trustee and the Depositor.

     

    
      	
              Form

            	
              Item

            	
              Description

            	
              Servicers

            	
              Master
                Servicer

            	
              Trustee

            	
              Custodian

            	
              Depositor

            	
              Sponsor

            
	
              10-D

            	
              Must
                be filed within 15 days of the distribution date for the asset-backed
                securities.

            	 	 	 
	
              1

            	
              Distribution
                and Pool Performance Information

            	 	 	 	 	 	 
	
              Item
                1121(a) - Distribution and Pool Performance
                Information

            	 	 	 	 	 	 
	
              (1)
                Any applicable record dates, accrual dates, determination dates for
                calculating distributions and actual distribution dates for the
                distribution period.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (2)
                Cash flows received and the sources thereof for distributions, fees
                and
                expenses.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (3)
                Calculated amounts and distribution of the flow of funds for the
                period
                itemized by type and priority of payment, including:

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (i)
                Fees or expenses accrued and paid, with an identification of the
                general
                purpose of such fees and the party receiving such fees or
                expenses.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (ii)
                Payments accrued or paid with respect to enhancement or other support
                identified in Item 1114 of Regulation AB (such as insurance premiums
                or
                other enhancement maintenance fees), with an identification of the
                general
                purpose of such payments and the party receiving such
                payments.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (iii)
                Principal, interest and other distributions accrued and paid on the
                asset-backed securities by type and by class or series and any principal
                or interest shortfalls or carryovers.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (iv)
                The amount of excess cash flow or excess spread and the disposition
                of
                excess cash flow.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (4)
                Beginning and ending principal balances of the asset-backed
                securities.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (5)
                Interest rates applicable to the pool assets and the asset-backed
                securities, as applicable. Consider providing interest rate information
                for pool assets in appropriate distributional groups or incremental
                ranges.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (6)
                Beginning and ending balances of transaction accounts, such as reserve
                accounts, and material account activity during the period.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (7)
                Any amounts drawn on any credit enhancement or other support identified
                in
                Item 1114 of Regulation AB, as applicable, and the amount of coverage
                remaining under any such enhancement, if known and
                applicable.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (8)
                Number and amount of pool assets at the beginning and ending of each
                period, and updated pool composition information, such as weighted
                average
                coupon, weighted average remaining term, pool factors and prepayment
                amounts.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	
              Updated
                pool composition information fields to be as specified by Depositor
                from
                time to time

            	 
	
              (9)
                Delinquency and loss information for the period.

            	
              X

            	
              X

            	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              In
                addition, describe any material changes to the information specified
                in
                Item 1100(b)(5) of Regulation AB regarding the pool assets.
                (methodology)

            	
              X

            	 	 	 	 	 
	
              (10)
                Information on the amount, terms and general purpose of any advances
                made
                or reimbursed during the period, including the general use of funds
                advanced and the general source of funds for
                reimbursements.

            	
              X

            	
              X

            	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (11)
                Any material modifications, extensions or waivers to pool asset terms,
                fees, penalties or payments during the distribution period or that
                have
                cumulatively become material over time.

            	
              X

            	
              X

            	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (12)
                Material breaches of pool asset representations or warranties or
                transaction covenants.

            	
              X

            	
              X

            	
              X

               

              (if
                agreed upon by the parties)

            	 	
              X

            	 
	
              (13)
                Information on ratio, coverage or other tests used for determining
                any
                early amortization, liquidation or other performance trigger and
                whether
                the trigger was met.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (14)
                Information regarding any new issuance of asset-backed securities
                backed
                by the same asset pool, 

            	 	 	 	 	
              X

            	 
	
              information
                regarding any pool asset changes (other than in connection with a
                pool
                asset converting into cash in accordance with its terms), such as
                additions or removals in connection with a prefunding or revolving
                period
                and pool asset substitutions and repurchases (and purchase rates,
                if
                applicable), and cash flows available for future purchases, such
                as the
                balances of any prefunding or revolving accounts, if
                applicable.

            	
              X

            	
              X

            	
              X

            	 	
              X

            	 
	
              Disclose
                any material changes in the solicitation, credit-granting, underwriting,
                origination, acquisition or pool selection criteria or procedures,
                as
                applicable, used to originate, acquire or select the new pool
                assets.

            	 	 	 	 	
              X

            	
              X

            
	
              Item
                1121(b) - Pre-Funding or Revolving Period Information

               

              Updated
                pool information as required under Item 1121(b).

            	 	 	 	 	
              X

            	 
	
              2

            	
              Legal
                Proceedings

            	 	 	 	 	 	 
	
              Item
                1117 - Legal proceedings pending against the following entities,
                or their
                respective property, that is material to Certificateholders, including
                proceedings known to be contemplated by governmental
                authorities:

            	 	 	 	 	 	 
	
              Sponsor
                (Seller)

            	 	 	 	 	 	
              X

            
	
              Depositor

            	 	 	 	 	
              X

            	 
	
              Trustee

            	 	 	
              X

            	 	 	 
	
              Issuing
                entity

            	 	 	 	 	
              X

            	 
	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	
              X

            	
              X

            	 	 	 	 
	
              Originator
                of 20% or more of pool assets as of the Cut-off Date

            	 	 	 	 	
              X

            	 
	
              Custodian

            	 	 	 	
              X

            	 	 
	
              3

            	
              Sales
                of Securities and Use of Proceeds

            	 	 	 	 	 	 
	
              Information
                from Item 2(a) of Part II of Form 10-Q:

               

              With
                respect to any sale of securities by the sponsor, depositor or issuing
                entity, that are backed by the same asset pool or are otherwise issued
                by
                the issuing entity, whether or not registered, provide the sales
                and use
                of proceeds information in Item 701 of Regulation S-K. Pricing information
                can be omitted if securities were not registered.

            	 	 	 	 	
              X

            	 
	
              4

            	
              Defaults
                Upon Senior Securities

            	 	 	 	 	 	 
	
              Information
                from Item 3 of Part II of Form 10-Q:

               

              Report
                the occurrence of any Event of Default (after expiration of any grace
                period and provision of any required notice)

            	 	 	
              X

            	 	 	 
	
              5

            	
              Submission
                of Matters to a Vote of Security Holders

            	 	 	 	 	 	 
	
              Information
                from Item 4 of Part II of Form 10-Q

            	 	 	
              X

            	 	 	 
	
              6

            	
              Significant
                Obligors of Pool Assets

            	 	 	 	 	 	 
	
              Item
                1112(b) - Significant
                Obligor Financial Information*

            	 	 	 	 	
              X

            	 
	
              *This
                information need only be reported on the Form 10-D for the distribution
                period in which updated information is required pursuant to the
                Item.

            	 	 	 	 	 	 
	
              7

            	
              Significant
                Enhancement Provider Information

            	 	 	 	 	 	 
	
              Item
                1114(b)(2) - Credit Enhancement Provider Financial
                Information*

            	 	 	 	 	 	 
	
              Determining
                applicable disclosure threshold

            	 	 	
              X

            	 	
              X

            	 
	
              Obtain
                required financial information or effecting incorporation by
                reference

            	 	 	
              X

            	 	
              X

            	 
	
              Item
                1115(b) - Derivative Counterparty Financial
                Information*

            	 	 	 	 	 	 
	
              Determining
                current maximum probable exposure

            	 	 	 	 	
              X

            	 
	
              Determining
                current significance percentage. In this transaction there is no
                current
                significance percentage.

            	 	 	
              X

            	 	 	 
	
              Notify
                derivative counterparty of significance percentage and request required
                financial information. In this transaction there is no current
                significance percentage.

            	 	 	
              X

            	 	 	 
	
              Obtain
                required financial information or effecting incorporation by
                reference

            	 	 	 	 	
              X

            	 
	
              *This
                information need only be reported on the Form 10-D for the distribution
                period in which updated information is required pursuant to the
                Items.

            	 	 	 	 	 	 
	
              8

            	
              Other
                Information

            	 	 	 	 	 	 
	
              Disclose
                any information required to be reported on Form 8-K during the period
                covered by the Form 10-D but not reported

            
	
              9

            	
              Exhibits

            	 	 	 	 	 	 
	
              Distribution
                report

            	 	 	
              X

            	 	 	 
	
              Exhibits
                required by Item 601 of Regulation S-K, such as material
                agreements

            	 	 	 	 	
              X

            	 
	
              8-K

            	
              Must
                be filed within four business days of an event reportable on Form
                8-K.

            	 	 	 
	
              1.01

            	
              Entry
                into a Material Definitive Agreement

            	 	 	 	 	 	 
	
              Disclosure
                is required regarding entry into or amendment of any definitive agreement
                that is material to the securitization, even if depositor is not
                a party.
                

               

              Examples:
                servicing agreement, custodial agreement.

               

              Note:
                disclosure not required as to definitive agreements that are fully
                disclosed in the prospectus

            	
              X

            	
              X

            	
              X 

            	 	
              X 

            	
              X

            
	
              1.02

            	
              Termination
                of a Material Definitive Agreement

            	
              X

            	
              X

            	
              X 

            	 	
              X

            	
              X 

            
	
              Disclosure
                is required regarding termination of any definitive agreement that
                is
                material to the securitization (other than expiration in accordance
                with
                its terms), even if depositor is not a party. 

               

               

              Examples:
                servicing agreement, custodial agreement.

            	 	 	 	 	 	 
	
              1.03

            	
              Bankruptcy
                or Receivership

            	 	 	 	 	 	 
	
              Disclosure
                is required regarding the bankruptcy or receivership, if known to
                the
                Master Servicer, with respect to any of the following: 

               

              Sponsor
                (Seller), Depositor, Master Servicer, affiliated Servicer, other
                Servicer
                servicing 20% or more of pool assets at time of report, other material
                servicers, Certificate Administrator, Trustee, significant obligor,
                credit
                enhancer (10% or more), derivatives counterparty,
                Custodian

            	
              X

            	
              X

            	
              X 

            	
              X

            	
              X 

            	
              X

            
	
              2.04

            	
              Triggering
                Events that Accelerate or Increase a Direct Financial Obligation
                or an
                Obligation under an Off-Balance Sheet Arrangement

            	 	 	 	 	 	 
	
              Includes
                an early amortization, performance trigger or other event, including
                event
                of default, that would materially alter the payment priority/distribution
                of cash flows/amortization schedule.

               

              Disclosure
                will be made of events other than waterfall triggers which are disclosed
                in the Monthly Statement to Certificateholders

            	 	
              X

            	
              X

            	 	 	 
	
              3.03

            	
              Material
                Modification to Rights of Security Holders

            	 	 	 	 	 	 
	
              Disclosure
                is required of any material modification to documents defining the
                rights
                of Certificateholders, including the Pooling and Servicing
                Agreement

            	 	 	
              X

            	 	
              X

            	 
	
              5.03

            	
              Amendments
                to Articles of Incorporation or Bylaws; Change in Fiscal
                Year

            	 	 	 	 	 	 
	
              Disclosure
                is required of any amendment “to the governing documents of the issuing
                entity”

            	 	 	 	 	
              X

            	 
	
              5.06

            	
              Change
                in Shell Company Status

            	 	 	 	 	 	 
	
              [Not
                applicable to ABS issuers]

            	 	 	 	 	
              X

            	 
	
              6.01

            	
              ABS
                Informational and Computational Material

            	 	 	 	 	 	 
	
              [Not
                included in reports to be filed under Section 3.18]

            	 	 	 	 	
              X

            	 
	
              6.02

            	
              Change
                of Servicer or Trustee

            	 	 	 	 	 	 
	
              Requires
                disclosure of any removal, replacement, substitution or addition
                of any
                master servicer, affiliated servicer, other servicer servicing 10%
                or more
                of pool assets at time of report, other material servicers, certificate
                administrator or trustee. 

            	
              X

            	
              X

            	
              X

            	 	
              X

            	 
	 	
              Reg
                AB disclosure about any new servicer is also required.

            	
              X

            	 	 	 	 	 
	
              Reg
                AB disclosure about any new trustee is also required.

            	 	 	
              X
                (to the extent of a new trustee)

            	 	 	 
	
              6.03

            	
              Change
                in Credit Enhancement or Other External Support [In this transaction
                there
                is no external enhancement or other support.]

            	 	 	 	 	 	 
	
              Covers
                termination of any enhancement in manner other than by its terms,
                the
                addition of an enhancement, or a material change in the enhancement
                provided. Applies to external credit enhancements as well as derivatives.
                

            	 	 	
              X

            	 	
              X

            	 
	 	
              Reg
                AB disclosure about any new enhancement provider is also
                required.

            	 	 	
              X

            	 	
              X

            	 
	
              6.04

            	
              Failure
                to Make a Required Distribution

            	 	 	
              X

            	 	 	 
	
              6.05

            	
              Securities
                Act Updating Disclosure

            	 	 	 	 	 	 
	
              If
                any material pool characteristic differs by 5% or more at the time
                of
                issuance of the securities from the description in the final prospectus,
                provide updated Reg AB disclosure about the actual asset
                pool.

            	 	 	 	 	
              X

            	
               

            
	
              If
                there are any new servicers or originators required to be disclosed
                under
                Regulation AB as a result of the foregoing, provide the information
                called
                for in Items 1108 and 1110 respectively.

            	 	 	 	 	
              X

            	 
	
              7.01

            	
              Regulation
                FD Disclosure

            	
              X

            	
              X

            	
              X

            	
              X

            	
              X

            	 
	
              8.01

            	
              Other
                Events

            	 	 	 	 	 	 
	
              Any
                event, with respect to which information is not otherwise called
                for in
                Form 8-K, that the registrant deems of importance to security
                holders.

            	 	 	 	 	
              X

            	 
	
              9.01

            	
              Financial
                Statements and Exhibits

            
	
              10-K

            	
              Must
                be filed within 90 days of the fiscal year end for the
                registrant.

            	 	 
	
              9B

            	
              Other
                Information

            	 	 	 	 	 
	 	 	
              Disclose
                any information required to be reported on Form 8-K during the fourth
                quarter covered by the Form 10-K but not reported

            
	 	
              15

            	
              Exhibits
                and Financial Statement Schedules

            	 	 	 	 	 	 
	
              Item
                1112(b) - Significant
                Obligor Financial Information

            	 	 	 	 	
              X

            	 
	
              Item
                1114(b)(2) - Credit Enhancement Provider Financial
                Information

            	 	 	 	 	 	 
	
              Determining
                applicable disclosure threshold

            	 	 	
              X

            	 	
              X

            	 
	
              Obtain
                required financial information or effecting incorporation by
                reference

            	 	 	
              X

            	 	
              X

            	 
	
              Item
                1115(b) - Derivative Counterparty Financial
                Information

            	 	 	 	 	 	 
	
              Determining
                current maximum probable exposure

            	 	 	 	 	
              X

            	 
	 	 	
              Determining
                current significance percentage. [In this transaction there is no
                current
                significance percentage.]

            	 	 	
              X

            	 	 	 
	
              Notify
                derivative counterparty of significance percentage and request required
                financial information. [In this transaction there is no current
                significance percentage.]

            	 	 	
              X

            	 	 	 
	
              Obtain
                required financial information or effecting incorporation by
                reference

            	 	 	 	 	
              X

            	 
	
              Item
                1117 - Legal proceedings pending against the following entities,
                or their
                respective property, that is material to Certificateholders, including
                proceedings known to be contemplated by governmental
                authorities:

            	 	 	 	 	 	 
	
              Sponsor
                (Seller)

            	 	 	 	 	 	
              X

            
	
              Depositor

            	 	 	 	 	
              X

            	 
	
              Trustee

            	 	 	
              X

            	 	 	 
	
              Issuing
                entity

            	 	 	 	 	
              X

            	 
	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	
              X

            	
              X

            	 	 	 	 
	
              Originator
                of 20% or more of pool assets as of the Cut-off Date

            	 	 	 	 	
              X

            	 
	
              Custodian

            	 	 	 	
              X

            	 	 
	
              Item
                1119 - Affiliations and relationships between the following entities,
                or
                their respective affiliates, that are material to
                Certificateholders:

            	 	 	 	 	 	 
	
              Sponsor
                (Seller)

            	 	 	 	 	 	
              X

            
	
              Depositor

            	 	 	 	 	
              X

            	 
	
              Trustee

            	 	 	
              X

            	 	 	 
	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	
              X

            	
              X

            	 	 	 	 
	
              Originator

            	 	 	 	 	
              X

            	 
	
              Custodian

            	 	 	 	
              X

            	 	 
	
              Credit
                Enhancer/Support Provider

            	 	 	 	 	
              X

            	 
	
              Significant
                Obligor

            	 	 	 	 	
              X

            	 
	
              Item
                1122 - Assessment of Compliance with Servicing
                Criteria

            	
              X

            	
              X

            	
              X

            	
              X

            	 	 
	
              Item
                1123 - Servicer Compliance Statement

            	
              X

            	
              X

            	 	 	 	 

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

     

    

    EXHIBIT
      N

     

    ADDITIONAL
      DISCLOSURE NOTIFICATION

    

    Structured
      Asset Mortgage Investment II Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

    Fax:
      (212) 272-2000

    E-Mail:
      regabnotification@bear.com

    

    U.S.
      Bank
      National Association as Trustee

    One
      Federal Street, 3rd
      Floor

    Boston,
      Massachusetts 02110

    Fax:
      (617) 603-663

    E-mail:
      notifications@fsir.com

     

    Attn:    
       Corporate
      Trust Services - Prime Mortgage Trust 2006-2-

    SEC
      REPORT PROCESSING

     

    RE:
      **Additional Form [ ] Disclosure**Required

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 3.18 of the Pooling and Servicing Agreement, dated
      as of
      November 1, 2006, among EMC Mortgage Corporation, as Seller and Master Servicer
      and U.S. Bank National Association as Trustee. The undersigned hereby notifies
      you that certain events have come to our attention that [will][may] need to
      be
      disclosed on Form [   ].

     

    Description
      of Additional Form [   ] Disclosure:

     

    List
      of
      Any Attachments hereto to be included in the Additional Form [   ]
      Disclosure:

     

    Any
      inquiries related to this notification should be directed to [   ],
      phone number: [   ]; email address: [   ].

     

    [NAME
      OF
      PARTY]

    as
      [role]

     

    By:
      ______________________________

    Name:

    Title:

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      O

     

    PLANNED
      PRINCIPAL SCHEDULES

     

    

      
        	
                Distribution
                  Date

              	
                Schedule
                  I

                Aggregate
                  Planned Principal Amount for Class I-A1-1 and Class I-A1-3
                  Certificates

              
	
                Initial

              	
                72,958,000.00

              
	
                December
                  25, 2006

              	
                72,958,000.00

              
	
                January
                  25, 2007

              	
                72,958,000.00

              
	
                February
                  25, 2007

              	
                72,958,000.00

              
	
                March
                  25, 2007

              	
                72,958,000.00

              
	
                April
                  25, 2007

              	
                72,958,000.00

              
	
                May
                  25, 2007

              	
                72,958,000.00

              
	
                June
                  25, 2007

              	
                72,958,000.00

              
	
                July
                  25, 2007

              	
                72,958,000.00

              
	
                August
                  25, 2007

              	
                72,958,000.00

              
	
                September
                  25, 2007

              	
                72,958,000.00

              
	
                October
                  25, 2007

              	
                72,958,000.00

              
	
                November
                  25, 2007

              	
                72,958,000.00

              
	
                December
                  25, 2007

              	
                72,958,000.00

              
	
                January
                  25, 2008

              	
                72,958,000.00

              
	
                February
                  25, 2008

              	
                72,958,000.00

              
	
                March
                  25, 2008

              	
                72,958,000.00

              
	
                April
                  25, 2008

              	
                72,958,000.00

              
	
                May
                  25, 2008

              	
                72,958,000.00

              
	
                June
                  25, 2008

              	
                72,958,000.00

              
	
                July
                  25, 2008

              	
                72,958,000.00

              
	
                August
                  25, 2008

              	
                72,958,000.00

              
	
                September
                  25, 2008

              	
                72,958,000.00

              
	
                October
                  25, 2008

              	
                72,958,000.00

              
	
                November
                  25, 2008

              	
                72,958,000.00

              
	
                December
                  25, 2008

              	
                72,958,000.00

              
	
                January
                  25, 2009

              	
                72,958,000.00

              
	
                February
                  25, 2009

              	
                72,958,000.00

              
	
                March
                  25, 2009

              	
                72,958,000.00

              
	
                April
                  25, 2009

              	
                72,958,000.00

              
	
                May
                  25, 2009

              	
                72,958,000.00

              
	
                June
                  25, 2009

              	
                72,958,000.00

              
	
                July
                  25, 2009

              	
                72,958,000.00

              
	
                August
                  25, 2009

              	
                72,958,000.00

              
	
                September
                  25, 2009

              	
                72,958,000.00

              
	
                October
                  25, 2009

              	
                72,958,000.00

              
	
                November
                  25, 2009

              	
                72,958,000.00

              
	
                December
                  25, 2009

              	
                71,945,386.87

              
	
                January
                  25, 2010

              	
                70,939,513.00

              
	
                February
                  25, 2010

              	
                69,940,334.95

              
	
                March
                  25, 2010

              	
                68,947,809.64

              
	
                April
                  25, 2010

              	
                67,961,894.22

              
	
                May
                  25, 2010

              	
                66,982,546.12

              
	
                June
                  25, 2010

              	
                66,009,723.07

              
	
                July
                  25, 2010

              	
                65,043,383.06

              
	
                August
                  25, 2010

              	
                64,080,307.72

              
	
                September
                  25, 2010

              	
                63,123,010.19

              
	
                October
                  25, 2010

              	
                62,172,106.01

              
	
                November
                  25, 2010

              	
                61,227,554.03

              
	
                December
                  25, 2010

              	
                60,289,313.37

              
	
                January
                  25, 2011

              	
                59,357,343.42

              
	
                February
                  25, 2011

              	
                58,431,603.82

              
	
                March
                  25, 2011

              	
                57,512,054.52

              
	
                April
                  25, 2011

              	
                56,598,655.67

              
	
                May
                  25, 2011

              	
                55,691,367.72

              
	
                June
                  25, 2011

              	
                54,790,151.37

              
	
                July
                  25, 2011

              	
                53,894,967.57

              
	
                August
                  25, 2011

              	
                53,005,777.55

              
	
                September
                  25, 2011

              	
                52,122,416.55

              
	
                October
                  25, 2011

              	
                51,243,770.08

              
	
                November
                  25, 2011

              	
                50,371,013.28

              
	
                December
                  25, 2011

              	
                49,516,734.42

              
	
                January
                  25, 2012

              	
                48,668,219.53

              
	
                February
                  25, 2012

              	
                47,825,431.18

              
	
                March
                  25, 2012

              	
                46,988,332.15

              
	
                April
                  25, 2012

              	
                46,156,885.49

              
	
                May
                  25, 2012

              	
                45,331,054.48

              
	
                June
                  25, 2012

              	
                44,510,802.64

              
	
                July
                  25, 2012

              	
                43,696,093.73

              
	
                August
                  25, 2012

              	
                42,886,891.73

              
	
                September
                  25, 2012

              	
                42,083,160.88

              
	
                October
                  25, 2012

              	
                41,284,865.63

              
	
                November
                  25, 2012

              	
                40,491,970.68

              
	
                December
                  25, 2012

              	
                39,708,500.77

              
	
                January
                  25, 2013

              	
                38,930,333.88

              
	
                February
                  25, 2013

              	
                38,157,435.47

              
	
                March
                  25, 2013

              	
                37,389,771.15

              
	
                April
                  25, 2013

              	
                36,627,306.82

              
	
                May
                  25, 2013

              	
                35,870,008.57

              
	
                June
                  25, 2013

              	
                35,117,842.71

              
	
                July
                  25, 2013

              	
                34,370,775.78

              
	
                August
                  25, 2013

              	
                33,628,774.55

              
	
                September
                  25, 2013

              	
                32,891,805.95

              
	
                October
                  25, 2013

              	
                32,159,837.20

              
	
                November
                  25, 2013

              	
                31,432,835.68

              
	
                December
                  25, 2013

              	
                30,718,532.55

              
	
                January
                  25, 2014

              	
                30,009,063.35

              
	
                February
                  25, 2014

              	
                29,304,396.37

              
	
                March
                  25, 2014

              	
                28,611,696.77

              
	
                April
                  25, 2014

              	
                27,932,408.30

              
	
                May
                  25, 2014

              	
                27,266,278.49

              
	
                June
                  25, 2014

              	
                26,613,059.51

              
	
                July
                  25, 2014

              	
                25,972,508.14

              
	
                August
                  25, 2014

              	
                25,344,385.65

              
	
                September
                  25, 2014

              	
                24,728,457.74

              
	
                October
                  25, 2014

              	
                24,124,494.42

              
	
                November
                  25, 2014

              	
                23,532,270.00

              
	
                December
                  25, 2014

              	
                22,968,444.18

              
	
                January
                  25, 2015

              	
                22,415,452.02

              
	
                February
                  25, 2015

              	
                21,873,089.39

              
	
                March
                  25, 2015

              	
                21,341,155.96

              
	
                April
                  25, 2015

              	
                20,819,455.13

              
	
                May
                  25, 2015

              	
                20,307,606.17

              
	
                June
                  25, 2015

              	
                19,805,613.59

              
	
                July
                  25, 2015

              	
                19,313,183.53

              
	
                August
                  25, 2015

              	
                18,830,244.87

              
	
                September
                  25, 2015

              	
                18,356,618.39

              
	
                October
                  25, 2015

              	
                17,892,128.20

              
	
                November
                  25, 2015

              	
                17,436,601.71

              
	
                December
                  25, 2015

              	
                17,003,680.01

              
	
                January
                  25, 2016

              	
                16,578,902.17

              
	
                February
                  25, 2016

              	
                16,162,117.42

              
	
                March
                  25, 2016

              	
                15,753,177.77

              
	
                April
                  25, 2016

              	
                15,351,798.96

              
	
                May
                  25, 2016

              	
                14,957,981.58

              
	
                June
                  25, 2016

              	
                14,571,585.53

              
	
                July
                  25, 2016

              	
                14,191,955.63

              
	
                August
                  25, 2016

              	
                13,817,016.49

              
	
                September
                  25, 2016

              	
                13,447,104.32

              
	
                October
                  25, 2016

              	
                13,082,868.28

              
	
                November
                  25, 2016

              	
                12,725,579.67

              
	
                December
                  25, 2016

              	
                12,375,108.73

              
	
                January
                  25, 2017

              	
                12,031,328.13

              
	
                February
                  25, 2017

              	
                11,694,112.83

              
	
                March
                  25, 2017

              	
                11,363,340.15

              
	
                April
                  25, 2017

              	
                11,038,889.65

              
	
                May
                  25, 2017

              	
                10,720,643.09

              
	
                June
                  25, 2017

              	
                10,408,484.44

              
	
                July
                  25, 2017

              	
                10,102,299.80

              
	
                August
                  25, 2017

              	
                 
                  9,801,977.37

              
	
                September
                  25, 2017

              	
                 
                  9,507,407.42

              
	
                October
                  25, 2017

              	
                 
                  9,218,482.22

              
	
                November
                  25, 2017

              	
                 
                  8,935,096.05

              
	
                December
                  25, 2017

              	
                 
                  8,657,145.15

              
	
                January
                  25, 2018

              	
                 
                  8,384,527.65

              
	
                February
                  25, 2018

              	
                 
                  8,117,143.59

              
	
                March
                  25, 2018

              	
                 
                  7,854,894.83

              
	
                April
                  25, 2018

              	
                 
                  7,597,685.05

              
	
                May
                  25, 2018

              	
                 
                  7,345,419.71

              
	
                June
                  25, 2018

              	
                 
                  7,098,006.03

              
	
                July
                  25, 2018

              	
                 
                  6,855,352.93

              
	
                August
                  25, 2018

              	
                 
                  6,617,371.03

              
	
                September
                  25, 2018

              	
                 
                  6,383,972.57

              
	
                October
                  25, 2018

              	
                 
                  6,155,071.45

              
	
                November
                  25, 2018

              	
                 
                  5,930,583.15

              
	
                December
                  25, 2018

              	
                 
                  5,710,424.69

              
	
                January
                  25, 2019

              	
                 
                  5,494,514.67

              
	
                February
                  25, 2019

              	
                 
                  5,282,773.15

              
	
                March
                  25, 2019

              	
                 
                  5,075,121.70

              
	
                April
                  25, 2019

              	
                 
                  4,871,483.35

              
	
                May
                  25, 2019

              	
                 
                  4,671,782.51

              
	
                June
                  25, 2019

              	
                 
                  4,475,945.05

              
	
                July
                  25, 2019

              	
                 
                  4,283,898.16

              
	
                August
                  25, 2019

              	
                 
                  4,095,570.42

              
	
                September
                  25, 2019

              	
                 
                  3,910,891.70

              
	
                October
                  25, 2019

              	
                 
                  3,729,793.19

              
	
                November
                  25, 2019

              	
                 
                  3,552,207.36

              
	
                December
                  25, 2019

              	
                 
                  3,378,067.92

              
	
                January
                  25, 2020

              	
                 
                  3,207,309.80

              
	
                February
                  25, 2020

              	
                 
                  3,039,869.18

              
	
                March
                  25, 2020

              	
                 
                  2,875,683.37

              
	
                April
                  25, 2020

              	
                 
                  2,714,690.87

              
	
                May
                  25, 2020

              	
                 
                  2,556,831.33

              
	
                June
                  25, 2020

              	
                 
                  2,402,045.50

              
	
                July
                  25, 2020

              	
                 
                  2,250,275.27

              
	
                August
                  25, 2020

              	
                 
                  2,101,463.54

              
	
                September
                  25, 2020

              	
                 
                  1,955,554.33

              
	
                October
                  25, 2020

              	
                 
                  1,812,492.70

              
	
                November
                  25, 2020

              	
                 
                  1,672,224.68

              
	
                December
                  25, 2020

              	
                 
                  1,534,697.36

              
	
                January
                  25, 2021

              	
                 
                  1,399,858.78

              
	
                February
                  25, 2021

              	
                 
                  1,267,657.97

              
	
                March
                  25, 2021

              	
                 
                  1,138,044.88

              
	
                April
                  25, 2021

              	
                 
                  1,010,970.41

              
	
                May
                  25, 2021

              	
                    
                  886,386.38

              
	
                June
                  25, 2021

              	
                    
                  764,245.50

              
	
                July
                  25, 2021

              	
                    
                  644,501.34

              
	
                August
                  25, 2021

              	
                    
                  526,884.60

              
	
                September
                  25, 2021

              	
                    
                  410,785.47

              
	
                October
                  25, 2021

              	
                    
                  296,266.30

              
	
                November
                  25, 2021

              	
                    
                  184,018.47

              
	
                December
                  25, 2021

              	
                      
                  73,998.55

              

      

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    EXHIBIT
      P

    

     

    FORM
      OF
      TRUSTEE LIMITED POWER OF ATTORNEY

    

    

    KNOW
      ALL
      MEN BY THESE PRESENTS, that U.S. Bank National Association, a national banking
      association, having a place of business at One Federal Street, 3rd Floor,
      Boston, Massachusetts 02110, not individually, but solely as Trustee (and in
      no
      personal or other representative capacity) under the Pooling and Servicing
      Agreement, dated as of November 1, 2006, by and among Structured Asset Mortgage
      Investments II Inc., the Trustee and EMC Mortgage Corporation (as amended,
      restated, supplemented or otherwise modified from time to time, the “Agreement”;
      capitalized terms not defined herein have the definitions assigned to such
      terms
      in the Agreement), relating to the Prime Mortgage Trust, Certificates, Series
      2006-2, hereby appoints _______________, in its capacity as a Servicer under
      the
      Agreement, as the Trustee’s true and lawful Special Attorney-in-Fact, in the
      Trustee’s name, place and stead and for the Trustee’s benefit, but only in its
      capacity as Trustee aforesaid, to perform all acts and execute all documents
      as
      may be customary, necessary and appropriate to effectuate the following
      enumerated transactions in respect of any mortgage, deed of trust, promissory
      note or real estate owned from time to time owned (beneficially or in title,
      whether the Trustee is named therein as mortgagee or beneficiary or has become
      mortgagee or beneficiary by virtue of endorsement, assignment or other
      conveyance) or held by or registered to the Trustee (directly or through
      custodians or nominees), or in respect of which the Trustee has a security
      interest or other lien, all as provided under the applicable Agreement and
      only
      to the extent the respective Trustee has an interest therein under the
      Agreement, and in respect of which the Servicer is acting as servicer pursuant
      to the Agreement (the “Mortgage Documents”).

    

    

    

    This
      appointment shall apply to the following enumerated transactions under the
      Agreement only:

    

    The
      modification or re-recording of any Mortgage Document for the purpose of
      correcting it to conform to the original intent of the parties thereto or to
      correct title errors discovered after title insurance was issued and where
      such
      modification or re-recording does not adversely affect the lien under the
      Mortgage Document as insured.

    

    2. The
      subordination of the lien under a Mortgage Document to an easement in favor
      of a
      public utility company or a state or federal agency or unit with powers of
      eminent domain including, without limitation, the execution of partial
      satisfactions/releases, partial reconveyances and the execution of requests
      to
      trustees to accomplish same.

    

    3. The
      conveyance of the properties subject to a Mortgage Document to the applicable
      mortgage insurer, or the closing of the title to the property to be acquired
      as
      real estate so owned, or conveyance of title to real estate so
      owned.

    

    4. The
      completion of loan assumption and modification agreements in respect of Mortgage
      Documents.

    

    5. The
      full
      or partial satisfaction/release of a Mortgage Document or full conveyance upon
      payment and discharge of all sums secured thereby, including, without
      limitation, cancellation of the related note.

    

    6. The
      assignment of any Mortgage Document, in connection with the repurchase of the
      mortgage loan secured and evidenced thereby.

    

    7. The
      full
      assignment of a Mortgage Document upon payment and discharge of all sums secured
      thereby in conjunction with the refinancing thereof, including, without
      limitation, the assignment of the related note.

    

    8. With
      respect to a Mortgage Document, the foreclosure, the taking of a deed in lieu
      of
      foreclosure, or the completion of judicial or non-judicial foreclosure or
      termination, cancellation or rescission of any such foreclosure, including,
      without limitation, any and all of the following acts:

    

    
      	a.         
                	
              the
                substitution of trustee(s) serving under a deed of trust, in accordance
                with state law and the deed of
                trust;

            

    

    

    b.          
       the
      preparation and issuance of statements of breach or
      non-performance;

    

    c.          
       the
      preparation and filing of notices of default and/or notices of
      sale;

    

    d.          
       the
      cancellation/rescission of notices of default and/or notices of
      sale;

    

    e.          
       the
      taking of a deed in lieu of foreclosure; and

    

    
      	 	
              f.

            	
              the
                preparation and execution of such other documents and performance
                of such
                other actions as may be necessary under the terms of the Mortgage
                Document
                or state law to expeditiously complete said transactions in paragraphs
                8(a) through 8(e), above.

            

    

    

    9. Demand,
      sue for, recover, collection and receive each and every sum of money, debt,
      account and interest (which now is, or hereafter shall become due and payable)
      belonging to or claimed by the Trustee under the Mortgage Documents, and to
      use
      or take any lawful means for recovery thereof by legal process or
      otherwise.

    

    10. Endorse
      on behalf of the Trustee all checks, drafts and/or negotiable instruments made
      payable to the Trustee in respect of the Mortgage Documents.

    

    The
      Trustee gives the Special Attorney-in-Fact full power and authority to execute
      such instruments and to do and perform all and every act and thing necessary
      and
      proper to carry into effect the power or powers granted by this Limited Power
      of
      Attorney, subject to the terms and conditions set forth in the Agreement
      including the standard of care applicable to servicers in the Agreement, and
      hereby does ratify and confirm what such Special Attorney-in-Fact shall lawfully
      do or cause to be done by authority hereof. 

    

    

    IN
      WITNESS WHEREOF, the Trustee has caused its corporate name to be hereto signed
      and affixed and these presents to be acknowledged by its duly elected and
      authorized officer this ___ day of ___ , 2006.

     

     

    U.S.
      Bank National Association, not individually, but solely as Trustee

     

    

    By:
      ________________________________

    
      	 	
              Name:

            	 

    

    
      	 	
              Title:

            	 

    

    

    WITNESS:                     
            WITNESS:

    

    _________________________________                
        ___________________________________

    Name:                
             Name: 

    Title:                  
             Title: 

    

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

    

    

    On
      ______________, 2006, before me, the undersigned, a Notary Public in and for
      said state, personally appeared __________________, personally known to me
      to be
      the person whose name is subscribed to the within instrument, and such person
      acknowledged to me that such person executed the within instrument in such
      person’s authorized capacity, and that by such signature on the within
      instrument the entity upon behalf of which such person acted executed the
      instrument.

    

    WITNESS
      my hand and official seal.

     

    

    ______________________________________

    Notary
      Public

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      Q

    FORM
      OF
      CERTIFICATION TO BE

    PROVIDED
      BY THE TRUSTEE TO DEPOSITOR

    

    Re: Structured
      Asset Mortgage Investments II Inc. Prime Mortgage Trust (the “Trust”),
      Certificates Series 2006-2, issued pursuant to the Pooling and Servicing
      Agreement, dated as of November 1, 2006, among Structured Asset Mortgage
      Investments II Inc, as Depositor, EMC Mortgage Corporation, as Seller and Master
      Servicer and U.S. Bank National Association as Trustee.

    

    The
      Trustee hereby certifies to the Depositor, and its officers, directors and
      affiliates, and with the knowledge and intent that they will rely upon this
      certification, that:

    

    (1) I
      have
      reviewed the annual report on Form 10-K for the fiscal year [____] (the “Annual
      Report”), and all reports on Form 10-D required to be filed in respect of period
      covered by the Annual Report (collectively with the Annual Report, the
“Reports”), of the Trust;

    

    (2) To
      my
      knowledge, (a) the Reports, taken as a whole, do not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make
      the statements made, in light of the circumstances under which such statements
      were made, not misleading with respect to the period covered by the Annual
      Report, and (b) the Trustee’s assessment of compliance and related attestation
      report referred to below, taken as a whole, do not contain any untrue statement
      of a material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were
      made, not misleading with respect to the period covered by such assessment
      of
      compliance and attestation report;

    

    (3) To
      my
      knowledge, the distribution information required to be provided by the Trustee
      under the Pooling and Servicing Agreement for inclusion in the Reports is
      included in the Reports;

    

    (4) I
      am
      responsible for reviewing the activities performed by the Trustee under the
      Pooling and Servicing Agreement, and based on my knowledge, and except as
      disclosed in the Reports, the Trustee has fulfilled its obligations under the
      Pooling and Servicing Agreement in all material respects; and

    

    (5) The
      report on assessment of compliance with servicing criteria applicable to the
      Trustee for asset-backed securities of the Trustee and each Subcontractor
      utilized by the Trustee and related attestation report on assessment of
      compliance with servicing criteria applicable to it required to be included
      in
      the Annual Report in accordance with Item 1122 of Regulation AB and Exchange
      Act
      Rules 13a-18 and 15d-18 has been included as an exhibit to the Annual Report.
      Any material instances of non-compliance are described in such report and have
      been disclosed in the Annual Report.

    

    In
      giving
      the certifications above, the Trustee has reasonably relied on information
      provided to it by the following unaffiliated parties: [names of servicer(s),
      master servicer, subservicer, depositor, trustee, custodian(s)]

    

    Date:________________________________

    

    _____________________________________

    [Signature]

    [Title]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    EXHIBIT
      R

    

     

    FORM
      OF
      THE MASTER SERVICER'S DATA LAYOUT REPORT

     

    Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2006-2

     

    

    
      	
              US
                BANK FIELDS

            	 	
              SBO
                FIELDS

            	 	
              SBO
                DESCRIPTION

            
	
              LOAN
                

            	 	
              LOAN_NUMBER

            	 	
              Loan
                number

            
	
              STOP_ADV_FLAG
                

            	 	
              ACTUAL_ACTUAL_OVERRIDE

            	 	
              Pertains
                to resold scheduled/actual and scheduled/scheduled pools. A code
                indicating if the specific loan should be remitted on an actual/actual
                basis. 

            
	
              RATE
                

            	 	
              LOAN_NOTE_RATE

            	 	
              Interest
                rate associated with the next payment due on the loan when the investor
                cutoff

            
	
              SF_RATE
                

            	 	
              LOAN_FEE_AMT

            	 	
              Fixed
                monthly fee due the strip holder.

            
	
              LPMI_RATE
                

            	 	
              MIRF_AMT

            	 	
              LPMI
                refund from MI companies (i.e. Radian, MGIC) for LPMI cancellations,
                recisions, rate errors, payments made on loans without at
                payoff

            
	
              BEG_SCHED
                

            	 	
              BEGINNING_SCHEDULED_BALANCE

            	 	
              The
                amortized balance on which interest is expected as of the beginning
                of the
                month.

            
	
              END_SCHED
                

            	 	
              ENDING_SCHEDULED_BALANCE

            	 	
              Ending
                scheduled balance. The balance on which interest should be earned
                next
                month.

            
	
              END_ACT
                

            	 	
              PARTICIPANT_BALANCE

            	 	
              Ending
                actual participant balance of the pool as of the cutoff
                date

            
	
              P&I

            	 	
              LOAN_PAYMENT_AMOUNT

            	 	
              Loan's
                payment constant at the time of record creation.

            
	
              GROSS_INT
                

            	 	
              SCHEDULED_INTEREST_AMOUNT

            	 	
              Scheduled
                gross interest for the remittance cycle

            
	
              SCHED_P
                

            	 	
              SCHEDULED_PRINCIPAL_AMOUNT

            	 	
              Scheduled
                principal for the remittance cycle

            
	
              CURTAIL
                

            	 	
              CURTAILMENT_AMOUNT

            	 	
              Calculated
                curtailment amount for the specified period of time.

            
	
              PREPAY
                

            	 	
              LIQUIDATION_PRINCIPAL

            	 	
              Amount
                of principal reported as payoff principal.

            
	
              PREPAY_DATE

            	 	
              LIQUIDATION_DATE

            	 	
              Liquidation
                date

            
	
              PREPAY_CODE
                PIF

            	 	
              LIQUIDATION_TYPE

            	 	
              A
                code indicating the reason for the liquidation. 

            
	
              NEXT_DUE
                

            	 	
              LOAN_DUE_DATE

            	 	
              Loan's
                due date when the investor cutoff

            
	
              STATUS
                

            	 	
              LOAN_STATUS

            	 	
              The
                status of the loan as of the cutoff date.

            
	
              BKCY_DATE
                

            	 	
              BANKRUPTCY_STATUS

            	 	
              Code
                which corresponds to the loan's bankruptcy status. See codes table
                for
                valid codes and their corresponding meaning.

            
	
              FCLS_DATE
                

            	 	
              FORECLOSURE_STATUS

            	 	
              Code
                which corresponds to the loan's foreclosure status. See codes table
                for
                valid codes and their corresponding meaning.

            
	
              REO_DATE
                

            	 	
              REO_STATUS

            	 	
              A
                code indicating if the loan was an REO when the investor
                cutoff.

              Y
                =
                yes

              N
                =
                no.

            
	
              DELINQ
                

            	 	
              MONTHS_DELINQUENT_24

            	 	
              0,1,30,60,90,120
                ( 1 = 1-29, 30 = 30-59, etc...)

            
	
              PPIS

            	 	
              Interest
                Shortfall

            	 	
              Interest
                shortfall adjustment

            
	
              RAIS
                

            	 	
              SSRA_AMT

            	 	
              Interest
                adjustments for Soldiers & Sailors Relief Act Loans

            
	
              PPP_Collected
                

            	 	
              ANCILLARY_FEE_AMOUNT

            	 	
              Amount
                of the fee (100%) paid by the borrower.

            
	
              REMIT

            	 	
              Total_Remittance_Amt

            	 	
              total
                remit for the loan

            
	
              ADV_P&I_CUR
                

            	 	
              Svc
                Prin Adv

            	 	
              Principal
                advance by servicer

            
	
              ADV_P&I_CUR
                

            	 	
              Svc
                Int Adv

            	 	
              Interest
                advance by servicer

            
	
              LIQUIDATION_FLAG
                

            	 	
              LIQUIDATION_FLAG
                

            	 	
              Loan
                statusexv10w1

 

Exhibit 10.1

CADENCE DESIGN SYSTEMS, INC.

EMPLOYMENT AGREEMENT

WITH JAMES MILLER

     THIS AGREEMENT (this “Agreement”) is made effective as of February 15, 2007
(the “Effective Date”), between CADENCE DESIGN SYSTEMS, INC., a Delaware corporation (the
“Company”), and JAMES MILLER (“Executive”).

     WHEREAS, Executive is currently employed by the Company as Executive Vice President,
Products and Technologies Organization; and

     WHEREAS, the Company and Executive wish to enter into a formal employment agreement on
the terms and conditions as set forth herein.

     NOW, THEREFORE, in consideration of the premises and of the covenants and agreements set
forth below, it is mutually agreed as follows:

1. TERM AND DUTIES.

     1.1. EFFECTIVE DATE. The Company hereby employs Executive and Executive hereby accepts
employment pursuant to the terms and provisions of this Agreement commencing on the Effective Date.
Executive has been employed and shall continue to be employed on an at-will basis, meaning that
either Executive or the Company may terminate Executive’s employment any time, with or without
Cause (as defined in Section 4.2 hereof), in the manner specified herein.

     1.2. SERVICES.

          (a) Executive shall continue to have the title of Executive Vice President, Products and
Technologies Organization. Executive’s duties will be assigned to Executive by the Company’s Chief
Executive Officer (“CEO”), or such other persons as may be specified by the CEO.

          (b) Executive shall be required to comply with all applicable company policies and
procedures, as such shall be adopted, modified or otherwise established by the Company from
time to time.

 

 

     1.3. SERVICES TO BE EXCLUSIVE. During his employment with the Company, Executive agrees
to devote his full productive time and best efforts to the performance of Executive’s duties
hereunder. Executive further agrees, as a condition to the performance by the Company of each and
all of its obligations hereunder, that so long as Executive is employed by the Company or receiving
compensation or any other consideration from the Company, he will not directly or indirectly render
services of any nature to, otherwise become employed by, serve on the board of directors of, or
otherwise participate or engage in any other business without the CEO’s prior written consent.
Nothing herein contained shall be deemed to preclude Executive from having outside personal
investments and involvement with appropriate community activities, or from devoting a reasonable
amount of time to such matters, provided that they shall in no manner interfere with or derogate
from Executive’s work for the Company.

     1.4. OFFICE. The Company shall maintain an office for Executive at the Company’s
corporate headquarters, which currently are located in San Jose, California.

2. COMPENSATION.

     The Company shall pay to Executive, and Executive shall accept as full consideration for the
Services, compensation consisting of the following:

BASE SALARY. The Company shall initially pay Executive a base salary of Four Hundred Thousand
Dollars ($400,000) per year (“Base Salary”), payable in installments in accordance with the
Company’s customary payroll practices, less such deductions and withholdings required by law or
authorized by Executive. The Board of Directors of the Company (the “Board”) or the Compensation
Committee of the Board (the “Compensation Committee”) shall review the amount of the Base Salary
from time to time, but no less frequently than annually.

     2.1. BONUS. Executive shall participate in the Company’s Senior Executive Bonus Plan or
its successor (the “Bonus Plan”) at an annual target bonus of 100% of Base Salary, or Four Hundred
Thousand Dollars ($400,000) (the “Target Bonus”) pursuant to the terms of such Bonus Plan (the
criteria for earning a bonus thereunder are set annually by the Compensation

 

 

Committee). The Board or the Compensation Committee shall review the amount of the Target
Bonus from time to time, but no less frequently than annually.

     2.2. EQUITY GRANTS. Executive has previously been granted stock options by the
Company which remain in full force and effect in accordance with the terms of the stock option
agreements documenting such grants. Executive shall be eligible to receive additional grants
of
either restricted stock or stock options or both as the Compensation Committee may determine
from time to time. All stock options shall be granted at one hundred percent (100%) of the
fair
market value of the Company’s common stock on the date of grant. Any awards shall vest in
accordance with the Company’s vesting policy for additional grants to executive officers of
the
Company in effect on the date of the grant by the Compensation Committee, and shall contain
such other terms and conditions as shall be set forth in the agreement documenting the grant.

     2.3. INDEMNIFICATION. In the event Executive is made, or threatened to be
made, a party to any legal action or proceeding, whether civil or criminal, by reason of the
fact
that Executive is or was a director or officer of the Company or serves or served any other
corporation or other person which is at least fifty percent (50%) or more owned by the Company
or controlled by the Company in any capacity at the Company’s request, Executive shall be
indemnified by the Company, and the Company shall pay Executive’s related expenses when and
as incurred, all to the fullest extent not prohibited by law, as more fully described in that
Indemnification Agreement between the Company and Executive dated as of February 8, 2005,
and attached hereto as Exhibit A.

3. EXPENSES AND BENEFITS.

     3.1. REASONABLE AND NECESSARY BUSINESS EXPENSES. In addition to the compensation
provided for in Section 2 hereof, the Company shall reimburse Executive for all reasonable,
customary and necessary expenses incurred in the performance of Executive’s duties hereunder.
Executive shall first account for such expenses by submitting a signed statement itemizing such
expenses prepared in accordance with the policy set by the Company for reimbursement of such
expenses. The amount, nature and extent of

 

 

reimbursement for such expenses shall always be subject to the control, supervision and direction
of the Chief Financial Officer, the CEO and the Board, or such other persons as may be specified
from time to time by the CEO.

     3.2. BENEFITS. During Executive’s full-time employment with the Company,
pursuant to this Agreement:

          (a) Executive shall be eligible to participate in the Company’s standard U.S.
health insurance, life insurance and disability insurance plans, as such plans may be modified
from time to time; and

          (b) Executive shall be eligible to participate in the Company’s qualified and
non-qualified retirement and other deferred compensation programs pursuant to their terms, as
such programs may be modified from time to time.

     3.3. SARBANES-OXLEY ACT LOAN PROHIBITION. To the extent that any
company benefit, program, practice, arrangement, or any term of this Agreement would or might
otherwise result in the Company’s extension of a credit arrangement to Executive not
permissible
under the Sarbanes-Oxley Act of 2002 (a “Loan”), the Company will use reasonable efforts to
provide Executive with a substitute for such Loan, which is lawful and of at least equal
value. If
this cannot be done, or if doing so would be significantly more expensive to the Company than
making a Loan, then the Company need not make or maintain a Loan or provide a substitute for
it.

4. TERMINATION OF EMPLOYMENT.

     4.1. GENERAL. Executive’s employment by the Company under this Agreement shall
terminate immediately upon delivery to Executive of written notice of termination by the Company,
upon the Company’s receipt of written notice of termination by Executive within thirty (30) days
before the specified effective date of such termination, or upon Executive’s death or Permanent
Disability (as defined in Section 4.4 hereof). In the event of such termination, except where
Executive is terminated for Cause (as defined in Section 4.2 hereof) or as the result of a
Permanent Disability or death, or where Executive voluntarily terminates his employment

 

 

other than a Constructive Termination (as defined in Section 4.3 hereof), and upon execution
by Executive at or about the effective date of such termination of the Executive Transition and
Release Agreement, in the form attached hereto as Exhibit B (the “Transition Agreement”), the
Company shall provide Executive with the benefits as set forth in the Transition Agreement.

     4.2. DEFINITION OF CAUSE. For purposes of this Agreement, “Cause” shall be
deemed to mean (1) Executive’s gross misconduct or fraud in the performance of his duties
under this Agreement; (2) Executive’s conviction or guilty plea or plea of nolo contendere
with
respect to any felony or act of moral turpitude; (3) Executive’s engaging in any material act
of
theft or material misappropriation of company property in connection with his employment;
(4) Executive’s material breach of this Agreement, after written notice delivered to Executive
of such breach and failure to cure such breach, if curable, within thirty (30) days following
delivery of such notice; (5) Executive’s material breach of the Proprietary Information
Agreement (as defined in Section 8 hereof); (6) Executive’s material failure/refusal to
perform
his assigned duties, and, where such failure/refusal is curable, if such failure/refusal is
not
cured within thirty (30) days following delivery of written notice thereof from the Company;
or (7) Executive’s material breach of the Company’s Code of Business Conduct as such code
may be revised from time to time.

     4.3. CONSTRUCTIVE TERMINATION. Notwithstanding anything in this
Section 4 to the contrary, Executive may, upon written notice to the Company, voluntarily end
his employment upon or within ninety (90) days following the occurrence of an event
constituting a Constructive Termination and be eligible to receive the benefits set forth in
the
Transition Agreement in exchange for executing and delivering that agreement in accordance
with Section 9.3 hereof. For purposes of this Agreement, “Constructive Termination” shall
mean:

          (a) a material adverse change, without Executive’s written consent, in Executive’s
authority, duties or title causing Executive’s position to be of materially less stature or
responsibility, after written notice delivered to the Company of such change and the

 

 

Company’s failure to cure such change, if curable, within thirty (30) days following delivery of
such notice;

          (b) any change, without Executive’s written consent, to Executive’s reporting
structure causing Executive to no longer report to the CEO of the Company, after written
notice
delivered to the Company of such change and the Company’s failure to cure such change, if
curable, within thirty (30) days following delivery of such notice;

          (c) a reduction, without Executive’s written consent, in Executive’s Base
Salary in effect on the Effective Date (or such higher level as may be in effect in the
future) by
more than ten percent (10%) or a reduction by more than ten percent (10%) in Executive’s
stated
Target Bonus in effect on the Effective Date (or such greater Target Bonus amount as may be in
effect in the future) under the Bonus Plan;

          (d) a relocation of Executive’s principal place of employment by more than
thirty (30) miles, unless Executive consents in writing to such relocation;

          (e) any material breach by the Company of any provision of this Agreement,
after written notice delivered to the Company of such breach and the Company’s failure to cure
such breach, if curable, within thirty (30) days following delivery of such notice;

          (f) any failure by the Company to obtain the written assumption of this
Agreement by any successor to the Company;

          (g) in the event Executive, prior to a Change in Control (as defined in Section
4.5 hereof), is identified as an executive officer of the Company for purposes of the rules
promulgated under Section 16 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) and following a Change in Control in which the Company or any successor
remains a publicly traded entity, Executive is not identified as an executive officer for
purposes
of Section 16 of the Exchange Act at any time within one (1) year after the Change in Control.

     4.4. PERMANENT DISABILITY. For purposes of this Agreement, “Permanent Disability” shall
mean any medically determinable physical or mental impairment that can reasonably be expected to
result in death or that has lasted or can reasonably be expected to

 

 

last for a continuous period of not less than twelve (12) months and that renders Executive
unable to perform effectively the Services pursuant to this Agreement.

     4.5. CHANGE IN CONTROL.

          (a) Should there occur a Change in Control (as defined below) and if within
ninety (90) days prior to, or thirteen (13) months following the Change in Control either (i)
Executive is terminated without Cause or (ii) Executive resigns his employment as a result of
an
event constituting a Constructive Termination, then, in exchange for signing the Transition
Agreement, Executive shall be entitled to all of the benefits set forth therein, except that
Section
4(a) of the Transition Agreement will be replaced by the following provision: “all outstanding
stock options granted and restricted stock issued by the Company to the Executive prior to the
Change in Control (as defined in Section 4.5 of Executive’s Employment Agreement) shall have
their vesting fully accelerated so as to be 100% vested as of the Effective Date of this
Agreement. This acceleration will have no effect on any other provisions of the plans
governing
the stock options and restricted stock.”

          (b) For purposes of this Section 4.5, a Change in Control shall be deemed to
occur upon the consummation of any one of the following events:

	 	(i)	 	any “person” (as such term is used in
sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act), directly or
indirectly, of securities of the Company representing more than fifty
percent (50%) of the total voting power represented by the Company’s
then outstanding voting securities;
	 
	 	(ii)	 	except pursuant to the exception
applicable to clause (iii) below, a change in the composition of the
Board occurring within a two-year period, as a result of which fewer
than a majority of the directors are Incumbent Directors (“Incumbent
Directors” means directors who either (i) are directors of the Company
as of the

 

 

	 	 	 	Effective Date, or (ii) are elected, or nominated for election, to the
Board with the affirmative votes of at least a majority of the Incumbent
Directors at the time of such election or nomination, but will not include
an individual whose election or nomination is in connection with an actual
or threatened proxy contest relating to the election of directors to the
Board);
	 
	 	(iii)	 	the consummation of a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation in which
the holders of the Company’s outstanding voting securities immediately prior
to such merger or consolidation receive, in exchange for their voting
securities of the Company in consummation of such merger or consolidation,
securities possessing at least fifty percent (50%) of the total voting power
represented by the outstanding voting securities of the surviving entity (or
parent thereof) immediately after such merger or consolidation; or
	 
	 	(iv)	 	the consummation of the sale or disposition by the Company of all
or substantially all the Company’s assets.

     4.6. TERMINATION FOR CAUSE, ON ACCOUNT OF DEATH, PERMANENT DISABILITY, OR VOLUNTARY
TERMINATION. In the event Executive’s employment is terminated for Cause, or on account of death or
Permanent Disability, or Executive voluntarily terminates his employment with the Company, then
Executive will be paid only (a) any earned but unpaid base salary and any outstanding expense
reimbursements submitted and approved pursuant to Section 3.1 hereof, and (b) other unpaid vested
amounts or benefits under Company compensation, incentive and benefit plans, in each case as of the
effective date of such termination.

 

 

5. EXCISE TAX.

     In the event that any benefits payable to Executive pursuant to the Transition Agreement
(“Termination Benefits”) (i) constitute “parachute payments” within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”), or any comparable successor provisions,
and (ii) but for this Section 5 would be subject to the excise tax imposed by Section 4999 of the
Code, or any comparable successor provisions (the “Excise Tax”), then Executive’s Termination
Benefits hereunder shall be either (a) provided to Executive in full, or (b) provided to Executive
as to such lesser extent which would result in no portion of such benefits being subject to the
Excise Tax, whichever of the foregoing amounts, when taking into account applicable federal, state,
local and foreign income and employment taxes, the Excise Tax, and any other applicable taxes,
results in the receipt by Executive, on an after-tax basis, of the greatest amount of benefits,
notwithstanding that all or some portion of such benefits may be taxable under the Excise Tax.
Unless the Company and Executive otherwise agree in writing, any determination required under this
Section 5 shall be made in writing in good faith by a nationally recognized accounting firm
selected by the Company (the “Accountants”). In the event of a reduction of benefits hereunder,
Executive shall be given the choice of which benefits to reduce. If Executive does not provide
written identification to the Company of which benefits he chooses to reduce within ten (10) days
after written notice of the Accountants’ determination, and Executive has not disputed the
Accountants’ determination, then the Company shall select the benefits to be reduced. For purposes
of making the calculations required by this Section 5, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith
interpretations concerning the application of the Code, and other applicable legal authority. The
Company and Executive shall furnish to the Accountants such information and documents as the
Accountants may reasonably request in order to make a determination under this Section 5. The
Company shall bear all costs the Accountants may reasonably incur in connection with any
calculations contemplated by this Section 5.

 

 

     If, notwithstanding any reduction described in this Section 5, the IRS determines that
Executive is liable for the Excise Tax as a result of the receipt of any Termination Benefits, then
Executive shall be obligated to pay back to the Company, within thirty (30) days after a final IRS
determination or in the event that Executive challenges the final IRS determination, a final
judicial determination, a portion of the Termination Benefits equal to the “Repayment Amount.” The
Repayment Amount shall be the smallest such amount, if any, as shall be required to be paid to the
Company so that Executive’s net after-tax proceeds with respect to the Termination Benefits (after
taking into account the payment of the Excise Tax and all other applicable taxes imposed on such
benefits) shall be maximized. The Repayment Amount shall be zero if a Repayment Amount of more than
zero would not result in Executive’s net after-tax proceeds with respect to the Termination
Benefits being maximized. If the Excise Tax is not eliminated pursuant to this paragraph, Executive
shall pay the Excise Tax.

     Notwithstanding any other provision of this Section 5, if (1) there is a reduction in the
payment of the Termination Benefits as described in this Section 5, (2) the IRS later determines
that Executive is liable for the Excise Tax, the payment of which would result in the maximization
of Executive’s net after-tax proceeds (calculated as if Executive’s benefits had not previously
been reduced), and (3) Executive pays the Excise Tax, then the Company shall pay to Executive those
Termination Benefits which were reduced pursuant to this subsection as soon as administratively
possible after Executive pays the Excise Tax so that Executive’s net after-tax proceeds with
respect to the payment of the Termination Benefits are maximized.

6. DISPUTE RESOLUTION.

          (a) Each of the parties expressly agrees that, to the extent permitted by applicable law
and to the extent that the enforceability of this Agreement is not thereby impaired, any and all
disputes, controversies or claims between Executive and the Company arising under this Agreement
(as opposed to the Transition Agreement), except those arising under Section 6(d) hereof or under
the Proprietary Information Agreement (as defined in Section 8 hereof), shall be determined
exclusively by final and binding arbitration before a single arbitrator in

 

 

accordance with the JAMS Arbitration Rules and Procedures, or successor rules then in effect,
and that judgment upon the award of the arbitrator may be rendered in any court of competent
jurisdiction. This includes, without limitation, any and all disputes, controversies, and/or claims
arising out of or concerning Executive’s employment by the Company or the termination of his
employment or this Agreement, and includes, without limitation, claims by Executive against
directors, officers or employees of the Company, whether arising under theories of liability or
damages based on contract, tort or statute, to the full extent permitted by law. As a material part
of this agreement to arbitrate claims, the parties expressly waive all rights to a jury trial in
court on all statutory or other claims. This Section 6 does not purport to limit either party’s
ability to recover any remedies provided for by statute, including attorneys’ fees.

     (b) The arbitration shall be held in the San Jose, California metropolitan area, and
shall be administered by JAMS or, in the event JAMS does not then conduct arbitration proceedings,
a similarly reputable arbitration administrator. Under such proceeding, the parties shall select a
mutually acceptable, neutral arbitrator from among the JAMS panel of arbitrators. Except as
provided herein, the Federal Arbitration Act shall govern the interpretation and enforcement of
such arbitration proceeding. The arbitrator shall apply the substantive law (and the law of
remedies, if applicable) of the State of California, or federal law, if California law is
preempted, and the arbitrator is without jurisdiction to apply any different substantive law. The
parties agree that they will be allowed to engage in adequate discovery, the scope of which will be
determined by the arbitrator, consistent with the nature of the claims in dispute. The arbitrator
shall have the authority to entertain a motion to dismiss and/or a motion for summary judgment by
any party and shall apply the standards governing such motions under the Federal Rules of Civil
Procedure. The arbitrator shall render an award that shall include a written statement of opinion
setting forth the arbitrator’s findings of fact and conclusions of law. Judgment upon the award may
be entered in any court having jurisdiction thereof. The parties intend this arbitration provision
to be valid, enforceable, irrevocable and construed as broadly as possible.

 

 

          (c) The Company shall be responsible for payment of the arbitrator’s fees as
well as all administrative fees associated with the arbitration. The parties shall be
responsible for
their own attorneys’ fees and costs (including expert fees and costs), except that if any
party
prevails on a statutory claim that entitles the prevailing party to reasonable attorneys’ fees
(with
or without expert fees) as part of the costs, the arbitrator may award reasonable attorneys’
fees
(with or without expert fees) to the prevailing party in accord with such statute.

          (d) The parties agree, however, that damages would be an inadequate remedy
for the Company in the event of a breach or threatened breach of Section 1.3 of this Agreement
or any provision of the Proprietary Information Agreement (as defined in Section 8 hereof). In
the event of any such breach or threatened breach, Cadence may, either with or without
pursuing any potential damage remedies, obtain from a court of competent jurisdiction, and
enforce, an injunction prohibiting Executive from violating Section 1.3 of this Agreement or
any provision of the Proprietary Information Agreement (as defined in Section 8 hereof) and
requiring Executive to comply with the terms of those agreements.

7. COOPERATION WITH THE COMPANY AFTER TERMINATION OF THE EMPLOYMENT PERIOD.

     Following his termination of full-time employment for any reason (other than death), Executive
shall cooperate with the Company in all matters relating to the winding up of his pending work on
behalf of the Company and the orderly transfer of any such pending work to other employees of the
Company as may be designated by the Company. Such cooperation shall be provided by Executive at
mutually-convenient times. Executive also agrees to participate as a witness in any litigation or
regulatory proceeding to which the Company is a party at the request of the Company upon delivery
to Executive of reasonable advance notice. With respect to the cooperation/participation described
in the preceding sentences, the Company will reimburse Executive for all reasonable expenses
incurred by Executive in the course of such cooperation/participation. Furthermore, Executive
agrees to return to the Company all property of the Company, including all hard and soft copies of
records, documents, materials and files

 

 

relating to confidential, proprietary or sensitive company information in his possession or
control, as well as all other company-owned property in his possession or control, at the time of
the termination of his full-time employment, except to the extent that retention of any of such
property is necessary or desirable or convenient in order to permit Executive to satisfy his
obligations under this Section 7 or under the Transition Agreement, after which time Executive
shall promptly return all such retained company property.

8. PROPRIETARY INFORMATION AGREEMENT.

     The Executive’s Employee Proprietary Information and Inventions Agreement was
executed on September 3, 2004, in the form attached hereto as Exhibit C (the “Proprietary
Information Agreement”).

9. GENERAL.

     9.1. WAIVER. Neither party shall, by mere lapse of time, without giving notice or
taking other action hereunder, be deemed to have waived any breach by the other party of any
of the provisions of this Agreement. Further, the waiver by either party of a particular
breach
of this Agreement by the other shall neither be construed as, nor constitute, a continuing
waiver of such breach or of other breaches of the same or any other provision of this
Agreement.

     9.2. SEVERABILITY. If for any reason a court of competent jurisdiction or
arbitrator finds any provision of this Agreement to be unenforceable, the provision shall be
deemed amended as necessary to conform to applicable laws or regulations, or if it cannot be
so
amended without materially altering the intention of the parties, the remainder of the
Agreement
shall continue in full force and effect as if the offending provision were not contained
herein.

     9.3. NOTICES. All notices and other communications required or permitted to be
given under this Agreement shall be in writing and shall be considered effective either (a)
upon
personal service or (b) upon delivery by facsimile and depositing such notice in the U.S.
Mail,
postage prepaid, return receipt requested and, if addressed to the Company, in care of the CEO
at the Company’s principal corporate address, and, if addressed to Executive, at his most
recent

 

 

address shown on the Company’s corporate records or at any other address which Executive may
specify in any appropriate notice to the Company, or (c) upon only depositing such notice in the
U.S. Mail as described in clause (b) of this paragraph.

     9.4. COUNTERPARTS. This Agreement may be executed by facsimile and in any
number of counterparts, each of which shall be deemed an original and all of which taken
together constitutes one and the same instrument and in making proof hereof it shall not be
necessary to produce or account for more than one such counterpart.

     9.5. ENTIRE AGREEMENT. The parties hereto acknowledge that each has read
this Agreement, understands it, and agrees to be bound by its terms. The parties further agree
that
this Agreement, the exhibits to this Agreement, any existing stock option agreements between
the parties, and the documents, plans and policies referred to in this Agreement (which are
hereby incorporated herein by reference) constitute the complete and exclusive statement of
the
agreement between the parties and supersedes all proposals (oral or written), understandings,
agreements, representations, conditions, covenants, and all other communications between the
parties relating to the subject matter hereof; provided, however, that the Proprietary
Information
Agreement signed by Executive on or about September 3, 2004, and Executive’s agreement,
made prior to the Effective Date of this Agreement, to abide by the Company’s policies,
including but not limited to the Company’s Employee Handbook, Sexual Harassment Policy and
Code of Business Conduct, remain in full force and effect and govern Executive’s conduct from
the date of execution of such agreements until the Effective Date of this Agreement.

     9.6. GOVERNING LAW. This Agreement shall be governed by the laws of the
State of California, without regard to its conflict of laws principles.

     9.7. ASSIGNMENT AND SUCCESSORS. The Company shall have the right to
assign its rights and obligations under this Agreement to an entity that, directly or
indirectly,
acquires all or substantially all of the assets of the Company. The rights and obligations of
the
Company under this Agreement shall inure to the benefit and shall be binding upon the
successors and assigns of the Company. Executive shall not have any right to assign his

 

 

obligations under this Agreement and shall only be entitled to assign his rights under this
Agreement upon his death, solely to the extent permitted by this Agreement, or as otherwise agreed
to by the Company.

     9.8. AMENDMENTS. This Agreement, and the terms and conditions of the matters
addressed in this Agreement, may only be amended in writing executed both by the Executive
and the CEO of the Company.

     9.9. TERMINATION AND SURVIVAL OF CERTAIN PROVISIONS. This
Agreement shall terminate upon the termination of Executive’s full-time employment for any
reason; provided, however, that the following provisions of this Agreement shall survive its
termination: Executive’s obligations under Section 7 hereof; the Company’s obligations to
provide compensation earned through the termination of the employment relationship under
Sections 2 and 3 hereof; the Company’s obligations and Executive’s obligations under Section 5
hereof; the Company’s obligations and Executive’s obligations enumerated in the Transition
Agreement, if applicable; the Company’s obligation to indemnify Executive pursuant to Section
2.4 hereof and the referenced Indemnification Agreement; the dispute resolution provisions of
Section 6 hereof; and, to the extent applicable, this Section 9.

     9.10. DEPARTMENT OF HOMELAND SECURITY VERIFICATION
REQUIREMENT. If Executive has not already done so, he will timely file all documents
required by the Department of Homeland Security to verify his identity and his lawful
employment in the United States. Notwithstanding any other provision of this Agreement, if
Executive fails to meet any such requirements promptly after receiving a written request
from the Company to do so, his employment will terminate immediately upon notice from
the Company and he will not be entitled to any compensation from the Company of any
type.

     9.11. HEADINGS. The headings of the several sections and paragraphs of this
Agreement are inserted solely for the convenience of reference and are not a part of and are
not
intended to govern, limit or aid in the construction of any term or provision hereof.

 

 

     9.12. TAXES AND OTHER WITHHOLDINGS. Notwithstanding any other provision of this Agreement,
the Company may withhold from amounts payable hereunder all federal, state, local and foreign taxes
and other amounts that are required to be withheld by applicable laws or regulations, and the
withholding of any amount shall be treated as payment thereof for purposes of determining whether
Executive has been paid amounts to which he is entitled.

     IN WITNESS WHEREOF, the parties have executed this Agreement on this 15th day of February
2007.

	 	 	 	 	 	 	 
	CADENCE DESIGN SYSTEMS, INC.	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Michael J. Fister
	 	/s/ James Miller	 	 
	 

	 	 
Michael J. Fister	 	 

James Miller
	 	 
	 
	 	 	 	 	 	 
	Title: President, Chief Executive Officer	 	 	 	 

 

 

EXHIBIT A

INDEMNITY AGREEMENT

 

 

INDEMNITY AGREEMENT

     This Indemnity Agreement (this “Agreement”), dated as of February 8, 2005, is made by and
between Cadence Design Systems, Inc., a Delaware corporation (the “Company”), and James S. Miller,
Jr., the Senior Vice President, Research and Development, of the Company (the
“Indemnitee”).

RECITALS

     A. The Company is aware that competent and experienced persons are increasingly
reluctant to serve as directors or officers of corporations unless they are protected by
comprehensive liability insurance or indemnification, due to increased exposure to litigation costs
and risks resulting from their service to such corporations, and due to the fact that the exposure
frequently bears no reasonable relationship to the compensation of such directors and officers;

     B. The statutes and judicial decisions regarding the duties of directors and officers
are often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such
directors
and officers with adequate, reliable knowledge of legal risks to which they are exposed or
information regarding the proper course of action to take;

     C. Plaintiffs often seek damages in such large amounts and the costs of litigation
may be so substantial (whether or not the case is meritorious), that the defense and/or
settlement
of such litigation is often beyond the personal resources of officers and directors;

     D. The Company believes that it is unfair for its directors and officers and the
directors and officers of its subsidiaries to assume the risk of large judgments and other
expenses
that may be incurred in cases in which the director or officer received no personal profit and
in
cases where the director or officer was not culpable;

     E. The Company recognizes that the issues in controversy in litigation against a
director or officer of a corporation such as the Company or a subsidiary of the Company are often
related to the knowledge, motives and intent of such director or officer, that the Indemnitee is
usually the only witness with knowledge of the essential facts and exculpating circumstances
regarding such matters and that the long period of time which usually elapses before the trial or
other disposition of such litigation often extends beyond the time that the director or officer can
reasonably recall such matters; and may extend beyond the normal time for retirement for such
director or officer with the result that the Indemnitee, after retirement or in the event of the
Indemnitee’s death, the Indemnitee’s spouse, heirs, executors or administrators, may be faced with
limited ability and undue hardship in maintaining an adequate defense, which may discourage such a
director or officer from serving in that position;

     F. Based upon their experience as business managers, the Board of Directors of the
Company (the “Board”) has concluded that, to retain and attract talented and experienced
individuals to serve as officers and directors of the Company and its subsidiaries and to

 

 

encourage such individuals to take the business risks necessary for the success of the
Company and its subsidiaries, it is necessary for the Company to contractually indemnify its
officers and directors and the officers and directors of its subsidiaries;

     G. The Company desires and has requested the Indemnitee to serve as a director
or officer of the Company and/or the subsidiaries of the Company; and

     H. The Indemnitee is willing to serve the Company and/or the subsidiaries of the
Company provided that the Indemnitee is furnished the indemnity provided for herein.

AGREEMENT

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as
follows:

     1. Definitions.

          (a) Covered Person. For purposes of this Agreement, a “covered person”
shall include the Indemnitee and any heir, executor, administrator or other legal
representative of
the Indemnitee following the Indemnitee’s death or incapacity.

          (b) Expenses. For purposes of this Agreement, “expenses” includes all direct
and indirect costs of any type or nature whatsoever (including, without limitation, all
attorneys’
fees and related disbursements and other out-of-pocket costs) actually and reasonably incurred
by the Indemnitee in connection with either the investigation, defense or appeal of a
proceeding
or establishing or enforcing a right to indemnification under this Agreement, Section 145 of
the
Delaware General Corporation Law or otherwise.

          (c) Proceeding. For the purposes of this Agreement, “proceeding” means any
threatened, pending, or completed action, suit or other proceeding, whether civil, criminal,
administrative, legislative, investigative or any other type whatsoever, and including any of
the
foregoing commenced by or on behalf of the Company, derivatively or otherwise.

          (d) Subsidiary. For purposes of this Agreement, “subsidiary” means any
corporation, partnership, limited liability company, trust or similar entity of which more
than
50% of the outstanding voting securities is owned directly or indirectly by the Company, and
one
or more other subsidiaries, or by one or more other subsidiaries.

     2. Agreement to Serve. The Indemnitee agrees to serve and/or continue to serve
the
Company and/or its subsidiaries in the Indemnitee’s present capacity, so long as the
Indemnitee
is duly appointed or elected or until such time as the Indemnitee tenders a written
resignation;
provided, however, that, if Indemnitee is an officer of the Company, nothing contained in this
Agreement is intended to create any right to continued employment by Indemnitee.

     3. Maintenance of Liability Insurance.

          (a) The Company hereby covenants and agrees that, so long as the Indemnitee shall
continue to serve as an officer or director of the Company or any of its subsidiaries, and

 

 

thereafter so long as the Indemnitee shall be subject to any possible proceeding by reason of such
service, the Company, subject to Section 3(b), shall use reasonable efforts to obtain and maintain
in full force and effect directors’ and officers’ liability insurance (“D&O Insurance”) in
reasonable amounts from established and reputable insurers.

          (b) Notwithstanding the foregoing, the Company shall have no obligation to obtain or
maintain D&O Insurance if the Company determines in good faith that such insurance is not
reasonably available, the premium costs for such insurance are disproportionate to the amount of
coverage provided, the coverage provided by such insurance is limited by exclusions so as to
provide an insufficient benefit, or the Indemnitee is covered by similar insurance maintained by a
subsidiary of the Company.

     4. Mandatory Indemnification.

          (a) Right to Indemnification. In the event a covered person was or is made a
party or is threatened to be made a party to or is involved in any proceeding, by reason of
the fact
that the Indemnitee is or was a director, officer or employee of the Company (including any
subsidiary or affiliate thereof or any constituent corporation or any of the foregoing
absorbed in
any merger) or is or was serving at the request of the Company (including such subsidiary,
affiliate or constituent corporation) as a director, officer or employee of another
corporation, or
of a partnership, joint venture, trust or other entity, including service with respect to
employee
benefit plans, such person shall be indemnified and held harmless by the Company to the
fullest
extent permitted by applicable law, against all expenses, liability and loss (including,
without
limitation, attorneys’ fees, judgments, fines, ERISA excise and other taxes and penalties and
amounts paid or to be paid in settlement) reasonably incurred or suffered by such person in
connection therewith. Such indemnification shall continue after the Indemnitee has ceased to
serve in such capacity and shall inure to the benefit of the Indemnitee’s heirs, executors and
administrators; provided, however, that except for a proceeding pursuant to Section 7 hereof,
the
Company shall indemnify any such person in connection with a proceeding (or part thereof)
initiated by such person only if such proceeding (or part thereof) was authorized by the
Board.

          (b) Exception for Amounts Covered by Insurance. Notwithstanding the
foregoing. the Company shall not be obligated to indemnify a covered person for expenses or
liabilities of any type whatsoever (including, but not limited to, judgments, fines,
forfeitures,
attorneys’ fees, ERISA excise taxes or penalties, and amounts paid in settlement) that have
been
paid directly to such person by D&O Insurance.

          (c) Partial Indemnification. If a covered person is entitled under any
provision of this Agreement to indemnification by the Company for some or a portion of any
expenses or liabilities of any type whatsoever (including, but not limited to, judgments,
fines,
forfeitures, attorneys’ fees, ERISA excise taxes or penalties, and amounts paid in settlement)
incurred by the Indemnitee in the investigation, defense, settlement or appeal of a proceeding
but
not entitled, however, to indemnification for all of the total amount thereof, the Company
shall
nevertheless indemnify such person for such total amount except as to the portion thereof to
which the Indemnitee is not entitled.

 

 

     5. Mandatory
Advancement of Expenses. The Company shall pay all
expenses incurred by a covered person, or in defending any such proceeding as they are
incurred in advance of its final disposition; provided, however, that if the Delaware General
Corporation Law then so requires, the payment of such expenses incurred in advance of the
final disposition of such proceeding shall be made only upon delivery to the Company of an
undertaking, by or on behalf of such covered person, to repay all amounts so advanced if it
should be determined ultimately that such person is not entitled to the payment of such
expenses by the Company.

     6. Notice and Other Indemnification Procedures.

          (a) Promptly after receipt by a covered person of notice of the commencement of or the
threat of commencement of any proceeding, such person shall, if such person believes that
indemnification with respect thereto may be sought from the Company under this Agreement,
notify the Company of the commencement or threat of commencement thereof.

          (b) If,
at the time of the receipt of a notice of the commencement of a proceeding, the Company has D&O Insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the procedures set forth in the
respective policies. The Company shall thereafter take all necessary or desirable action to cause
such insurers to pay, on behalf of the covered person, all amounts payable as a result of such
proceeding in accordance with the terms of such policies.

          (c) In the event the Company shall be obligated to advance the expenses for any proceeding
against the covered person, the Company, if appropriate, shall be entitled to assume the defense of
such proceeding, with counsel approved by the covered person (such approval not to be unreasonably
withheld or delayed), upon the delivery to the covered person of written notice of its election so
to do. After delivery of such notice, approval of such counsel by the covered person and the
retention of such counsel by the Company, the Company will not be liable to the covered person
under this Agreement for any fees of counsel subsequently incurred by the covered person with
respect to the same proceeding, provided that (i) the covered person shall have the right to employ
separate counsel in any such proceeding at the covered person’s expense: and (ii) if (A) the
employment of counsel by the covered person has been previously authorized by the Company, (B) the
Company shall not, in fact, have employed counsel to assume the defense of such proceeding, or (C)
it is determined by legal counsel for the Company and the Indemnitee that a conflict of interest
exists requiring the Indemnitee to retain separate counsel, the fees and expenses of the covered
person’s counsel shall be at the expense of the Company.

     7. Right of Indemnitee to Bring Suit. If a claim for indemnification or advancement of
expenses hereunder is not paid in full by the Company within sixty days after a written claim has
been received by the Company, except in the case of a claim for an advancement of expenses, in
which case the applicable period shall be twenty days, the covered
person may at any time
thereafter bring suit against the Company to recover the unpaid amount of the claim. If successful
in whole or in part in any such suit, or in a suit brought by the Company to recover any
advancement of expenses pursuant to the terms of an undertaking, the covered person shall be
entitled to be paid also the expense of prosecuting or defending such
suit. In any suit brought by
a covered person to enforce a right to indemnification hereunder (but not in a suit brought by

 

 

a covered person to enforce a right to an advancement of expenses) it shall be a defense that
indemnification is not permitted by applicable law. Further, in any suit by the Company to recover
an advancement of expenses pursuant to the terms of an undertaking, the Company shall be entitled
to recover such expenses upon a final adjudication that indemnification is not permitted by
applicable law. Neither the failure of the Company (including the Board, independent legal counsel
or its stockholders) to have made a determination prior to the commencement of such suit that
indemnification of the covered person is proper in the circumstances, nor an actual determination
by the Company (including the Board, independent legal counsel or its stockholders) that
indemnification is not proper, shall create a presumption that the covered person is not entitled
to indemnification or, in the case of such a suit brought by a covered person, be a defense to such
suit. In any suit brought by a covered person to enforce a right to indemnification or to an
advancement of expenses hereunder, or by the Company to recover an advancement of expenses pursuant
to the terms of an undertaking, the burden of proving that the covered person is not entitled to be
indemnified, or to such advancement of expenses, shall be on the Company.

     8. Limitation of Actions and Release of Claims. No proceeding shall be brought and no
cause of action shall be asserted by or on behalf of the Company or any subsidiary against the
Indemnitee, the Indemnitee’s spouse, heirs, estate, executors or administrators after the
expiration of one year from the act or omission of the Indemnitee upon which such proceeding is
based; provided, however, that in a case where the Indemnitee fraudulently conceals the facts
underlying such cause of action, no proceeding shall be brought and no cause of action shall be
asserted after the expiration of one year from the earlier of (i) the date the Company or any
subsidiary of the Company discovers such facts, or (ii) the date the Company or any subsidiary of
the Company could have discovered such facts by the exercise of reasonable diligence. Any claim or
cause of action of the Company or any subsidiary of the Company, including claims predicated upon
the negligent act or omission of the Indemnitee, shall be extinguished and deemed released unless
asserted by filing of a legal action within such period. This Section 8 shall not apply to any
cause of action that has accrued as of the date hereof and of which the Indemnitee is aware on the
date hereof, but as to which the Company has no actual knowledge apart from the Indemnitee’s
knowledge.

     9. Non-exclusivity. The provisions for indemnification and advancement of expenses set
forth in this Agreement shall not be deemed exclusive of any other rights which the Indemnitee or
any covered person may have under any provision of law, the Company’s Certificate of Incorporation
or Bylaws, the vote of the Company’s stockholders or disinterested directors, other agreements, or
otherwise, both as to action in the Indemnitee’s official capacity and to action in another
capacity while occupying the Indemnitee’s position as an officer, director or employee of the
Company, and the Indemnitee’s right hereunder shall continue after the Indemnitee has ceased to so
act and shall inure to the benefit of any heir, executor, administrator or other legal
representative of the Indemnitee.

     10. Interpretation of Agreement. It is understood that the parties hereto intend this
Agreement to be interpreted and enforced so as to provide indemnification to the Indemnitee to the
fullest extent now or hereafter permitted by law.

 

 

     11. Severability. If any provision or provisions of this Agreement shall be held
to be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraphs of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to Section 10 hereof.

     12. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

     13. Successors and Assigns. The terms of this Agreement shall bind, and shall inure to
the benefit of, the successors and assigns of the parties hereto.

     14. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) upon receipt, if delivered by
hand, or (ii) on the third business day after the mailing date, if mailed by certified or
registered mail with postage prepaid. Addresses for notice to either party are as shown on the
signature page of this Agreement, or as subsequently modified by written notice.

     15. Governing Law. This Agreement shall be exclusively governed by and construed
according to the laws of the State of Delaware, as applied to contracts between Delaware residents
entered into and to be performed entirely with Delaware.

     16. Consent to Jurisdiction. The Company and the Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or proceeding which arises out of or relates to this Agreement.

 

 

     The parties hereto have entered into this Indemnity Agreement effective as of
the date first above written.

	 	 	 	 	 
	 	CADENCE DESIGN SYSTEMS, INC. 

 	 
	 	By:  	
     /s/ R.L. Smith McKeithen
 	 
	 	 	R.L. Smith McKeithen  	 
	 	 	Sr. Vice President, General Counsel
and Secretary	 
	 

	 	 	 	 	 	 	 
	 

	 	INDEMNITEE	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ James S. Miller, Jr. 
	 	 
	 	 	 	 	 
	 	 	James S. Miller, Jr.
	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
 

	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

EXHIBIT
B

EXECUTIVE TRANSITION AND RELEASE AGREEMENT

 

 

EXECUTIVE TRANSITION AND RELEASE AGREEMENT

     This Executive Transition and Release Agreement (this “Agreement”) is entered into
between James Miller (“Executive”) and Cadence Design Systems, Inc. (“Cadence” or the
“Company”).

     1. TRANSITION
COMMENCEMENT DATE. As of <<Transition Commencement Date>> (the
“Transition Commencement Date”), Executive will no longer hold the position of Executive Vice
President, Products and Technologies Organization and will be relieved of all of Executive’s
authority and responsibilities in that position. Executive will be paid all accrued salary for his
services as Executive Vice President, Products and Technologies Organization to the Transition
Commencement Date by not later than the following regular payroll date. Following the Transition
Commencement Date, Executive will no longer participate in Cadence’s medical, dental, and vision
insurance plans (unless Executive elects to continue coverage pursuant to COBRA), and will not be
eligible for a bonus for any services rendered after that date.

     2. TRANSITION PERIOD. The period from the Transition Commencement Date to the date when
Executive’s employment with Cadence terminates (the “Termination Date”) is called the “Transition
Period” in this Agreement. Executive’s Termination Date will be the earliest to occur of:

          a. the date on which Executive resigns from all employment with Cadence;

          b. the date on which Cadence terminates Executive’s employment due to a breach by Executive of
Executive’s duties or obligations under this Agreement; and

          c. one year from the Transition Commencement Date.

     3. DUTIES AND OBLIGATIONS DURING THE TRANSITION PERIOD AND AFTERWARDS.

          a. During the Transition Period, Executive will assume the position of <<New Position
Title>>. In this position, Executive will render those services requested by Cadence’s
<<Management Representative>> on an as-needed basis. Executive’s time rendering those
services is not expected to exceed thirty (30) hours per month.

          b. As a Cadence executive, as well as other positions Executive may have held with Cadence,
Executive has obtained extensive and valuable knowledge and information concerning Cadence’s
business (including confidential information relating to Cadence and its operations, intellectual
property assets, contracts, customers, personnel, plans, marketing plans, research and development
plans and prospects). Executive acknowledges and agrees that it would be virtually impossible for
Executive to work as an employee, consultant or advisor in the electronic design automation (“EDA”)
industry (as defined below) without inevitably disclosing confidential and proprietary information
belonging to Cadence. Accordingly, during the

 

 

Transition Period, Executive will not, directly or indirectly, provide services, whether as an
employee, consultant, independent contractor, agent, sole proprietor, partner, joint venture,
corporate officer or director, on behalf of any corporation, limited liability company,
partnership, or other entity or person that (i) is engaged in the EDA industry, (ii) directly
competes against Cadence or any of its existing or future affiliates in the EDA industry anywhere
in the world, or (iii) produces, markets, distributes or sells any products, directly or indirectly
through intermediaries, that are competitive with EDA industry products produced, marketed, sold or
distributed by Cadence. As used in this paragraph, the term “EDA industry” means the research,
design or development of electronic design automation software, electronic design verification,
emulation hardware and related products, such products containing hardware, software and both
hardware and/or software products, designs or solutions for, and all intellectual property embodied
in the foregoing, or in commercial electronic design and/or maintenance services, such services
including all intellectual property embodied in the foregoing. If Executive receives an offer of
employment or consulting from any person or entity during the Transition Period, then Executive
must first obtain written approval from Cadence’s Chief Executive Officer (“CEO”) before accepting
said offer.

          c. During the Transition Period, Executive will be prohibited, to the full extent allowed by
applicable law, and except with the written advance approval of Cadence’s CEO (or his
successor(s)), from voluntarily or involuntarily, for any reason whatsoever, directly or
indirectly, individually or on behalf of persons or entities not now parties to this Agreement: (i)
encouraging, inducing, attempting to induce, soliciting or attempting to solicit for employment,
contractor or consulting opportunities anyone who is employed at that time, or was employed during
the previous one year, by Cadence or any Cadence affiliate; (ii) interfering or attempting to
interfere with the relationship or prospective relationship of Cadence or any Cadence affiliate
with any former, present or future client, customer, joint venture partner, or financial backer of
Cadence or any Cadence affiliate; or (iii) soliciting, diverting or accepting business, in any line
or area of business engaged in by Cadence or any Cadence affiliate, from any former or present
client, customer or joint venture partner of Cadence or any Cadence affiliate (other than on behalf
of Cadence), except that Executive may solicit or accept business, in a line of business engaged in
by Cadence or a Cadence affiliate, from a former or present client, if and only if Executive had
previously provided consulting services in such line of business, to such client, prior to ever
being employed by Cadence, but in no event may Executive violate paragraph 3(b) hereof. The
restrictions contained in subparagraph (i) of this paragraph 3(c) shall also be in effect for a
period of one year following the Termination Date. This paragraph 3(c) does not alter any of the
obligations the Executive may have under the Employee Proprietary Information Agreement, dated as
of September 3, 2004.

          d. Executive will fully cooperate with Cadence in all matters relating to his employment,
including the winding up of work performed in Executive’s prior position and the orderly transition
of such work to other Cadence employees.

          e. Executive will not make any statement, written or oral, that disparages Cadence or any of
its affiliates, or any of Cadence’s or its affiliates’ products, services, policies, business
practices, employees, executives, officers, or directors. Similarly, Cadence agrees to instruct its
executive officers and members of the Company’s Board of Directors not to make any statement,
written or oral, that disparages Executive. The restrictions described in this paragraph

 

 

shall not apply to any truthful statements made in response to a subpoena or other compulsory legal
process.

          f. Notwithstanding paragraph 9 hereof, the parties agree that damages would be an inadequate remedy for Cadence in the event of a breach or threatened breach by Executive of
paragraph 3(b) or 3(c), or for Cadence or Executive in the event of a breach or threatened breach
of paragraph 3(e). In the event of any such breach or threatened breach, the non-breaching party
may, either with or without pursuing any potential damage remedies, obtain from a court of
competent jurisdiction, and enforce, an injunction prohibiting the other party from violating this
Agreement and requiring the other party to comply with the terms of this Agreement.

     4. TRANSITION COMPENSATION AND BENEFITS. In consideration of Executive’s execution of the
release of claims in this Agreement and as compensation for Executive’s services during the
Transition Period, Cadence will provide the following payments and benefits to Executive (to which
Executive would not otherwise be entitled), after Executive has returned to the Company all hard
and soft copies of records, documents, materials and files in his possession or control, which
contain or relate to confidential, proprietary or sensitive information obtained by Executive in
conjunction with his employment with the Company, as well as all other Company-owned property:

          a. all of the unvested options and other outstanding stock awards, which are held by Executive
on the Transition Commencement Date and that would have vested over the succeeding twelve (12)
month period had Executive continued to serve as an executive of the Company pursuant to his
Employment Agreement, shall immediately vest and become exercisable within five (5) days following
the Effective Date of this Agreement, and there shall be no further vesting of those options or
stock awards during the Transition Period, notwithstanding any provision in any stock grant or
stock agreement to the contrary. This acceleration will have no effect on any other provisions of
the stock awards; and

          b. if Executive elects to continue coverage under Cadence’s medical, dental, and vision
insurance plans pursuant to COBRA following the Transition Commencement Date, Cadence will pay
Executive’s COBRA premiums during the Transition Period.

Except as so provided, Executive will receive no other compensation or benefits from Cadence in
consideration of Executive’s services during the Transition Period.

     5. FIRST TERMINATION PAYMENT AND BENEFITS. Provided that Executive does not resign from
employment with Cadence and Cadence does not terminate Executive’s employment with Cadence due to a
breach by Executive of Executive’s duties under this Agreement, and in consideration for
Executive’s acceptance of this Agreement and Executive’s further execution and delivery of a
Release of Claims in the form of Attachment 1 hereto on a date that is at least six months after
the Transition Commencement Date, and as compensation for Executive’s services during the
Transition Period, Cadence will provide to Executive within ten business days after the expiration
of the revocation period of the Release of Claims (as defined in that document) the following
termination payment, to which Executive would not otherwise be entitled:

 

 

          a. a lump-sum payment of one year’s base salary at the highest rate in effect during
Executive’s employment as Executive Vice President, Products and Technologies Organization, less
applicable tax deductions and withholdings.

          b. for a period of six months, a monthly salary of $4,000 less applicable tax withholdings and
deductions, payable in accordance with Cadence’s regular payroll schedule, commencing on the first
pay date that is more than six months following the Transition Commencement Date;

     6. SECOND TERMINATION PAYMENT AND BENEFITS. Provided that Executive does not resign from
employment with Cadence and Cadence does not terminate Executive’s employment with Cadence due to a
breach by Executive of Executive’s duties under this Agreement, upon the Termination Date, and in
consideration for Executive’s acceptance of this Agreement and Executive’s further execution of a
Release of Claims in the form of Attachment 2 to this Agreement, Cadence will provide to Executive
within ten business days after the expiration of the revocation period of the Release of Claims (as
defined in that document) the following termination payment, to which Executive would not otherwise
be entitled:

          a. a lump-sum payment of one year’s target bonus at the highest rate in effect during
Executive’s employment as Executive Vice President, Products and Technologies Organization, less
applicable tax deductions and withholdings.

     7. GENERAL RELEASE OF CLAIMS.

          a. Executive hereby irrevocably, fully and finally releases Cadence, its parent,
subsidiaries, affiliates, directors, officers, agents and employees (“Releasees”) from all causes
of action, claims, suits, demands or other obligations or liabilities, whether known or unknown,
suspected or unsuspected, that Executive ever had or now has as of the time that Executive signs
this Agreement which relate to his hiring, his employment with the Company, the termination of his
employment with the Company and claims asserted in shareholder derivative actions or shareholder
class actions against the Company and its officers and Board of Directors, to the extent those
derivative or class actions relate to the period during which Executive was employed by the
Company. The claims released include, but are not limited to, any claims arising from or related to
Executive’s employment with Cadence, such as claims arising under (as amended) Title VII of the
Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of
1974, the Americans with Disabilities Act, the Equal Pay Act, the Fair Labor Standards Act, the
California Fair Employment and Housing Act, the California Labor Code, the Employee Retirement
Income and Security Act of 1974 (except for any vested right Executive has to benefits under an
ERISA plan), the state and federal Worker Adjustment and Retraining Notification Act, and the
California Business and Professions Code; any other local, state, federal, or foreign law governing
employment; and the common law of contract and tort. In no event, however, shall any claims, causes
of action, suits, demands or other obligations or liabilities be released pursuant to the foregoing
if and to the extent they relate to:

 

 

               i. any
amounts or benefits to which Executive is or becomes entitled to pursuant to the provisions of this Agreement or pursuant to the provisions designated in Section
9.9 of the Employment Agreement to survive the termination of Executive’s full-time employment;

               ii. claims for workers’ compensation benefits under any of the Company’s
workers’ compensation insurance policies or funds;

               iii. claims related to Executive’s COBRA rights; and

               iv. any rights that Executive has or may have to be indemnified by Cadence pursuant to
any contract, statute, or common law principle.

          b. Executive represents and warrants that he has not filed any claim, charge or complaint
against any of the Releasees.

          c. Executive acknowledges that the payments provided in this Agreement constitute adequate
consideration for the release set forth in this paragraph 7.

          d. Executive intends that this release of claims cover all claims, whether or not known to
Executive. Executive further recognizes the risk that, subsequent to the execution of this
Agreement, Executive may incur loss, damage or injury which Executive attributes to the claims
encompassed by this release. Executive expressly assumes this risk by signing this Agreement and
voluntarily and specifically waives any rights conferred by California Civil Code section 1542
which provides as follows:

A general release does not extend to claims which the creditor does not know or suspect
to exist in his favor which if known by him must have materially affected his
settlement with the debtor.

          e. Executive represents and warrants that there has been no assignment or other transfer of
any interest in any claim by Executive that is covered by this release.

     8.
REVIEW OF AGREEMENT; REVOCATION OF ACCEPTANCE. Executive has been given at least 21 days in which to review and consider this Agreement,
although Executive is free to accept this Agreement anytime within that 21-day period. Executive is
advised to consult with an attorney about the Agreement. If Executive accepts this Agreement,
Executive will have an additional 7 days from the date that Executive signs this Agreement to
revoke that acceptance, which Executive may effect by means of a written notice sent to the CEO. If
this 7-day period expires without a timely revocation, this Agreement will become final and
effective on the eighth day following the date of Executive’s signature, which eighth day will be
the “Effective Date” of this Agreement.

     9. ARBITRATION. Subject to paragraph 3(f) hereof, all claims, disputes, questions, or
controversies arising out of or relating to this Agreement, including without limitation the
construction or application of any of the terms, provisions, or conditions of this Agreement, will
be resolved exclusively in final and binding arbitration in accordance with the Arbitration Rules
and Procedures, or successor rules then in effect, of Judicial Arbitration &

 

 

Mediation Services, Inc. (“JAMS”). The arbitration will be held in the San Jose, California,
metropolitan area, and will be conducted and administered by JAMS or, in the event JAMS does not
then conduct arbitration proceedings, a similarly reputable arbitration administrator. Executive
and Cadence will select a mutually acceptable, neutral arbitrator from among the JAMS panel of
arbitrators. Except as provided by this Agreement, the Federal Arbitration Act will govern the
administration of the arbitration proceedings. The arbitrator will apply the substantive law (and
the law of remedies, if applicable) of the State of California, or federal law, as applicable, and
the arbitrator is without jurisdiction to apply any different substantive law. Executive and
Cadence will each be allowed to engage in adequate discovery, the scope of which will be determined
by the arbitrator consistent with the nature of the claim[s] in dispute. The arbitrator will have
the authority to entertain a motion to dismiss and/or a motion for summary judgment by any party
and will apply the standards governing such motions under the Federal Rules of Civil Procedure. The
arbitrator will render a written award and supporting opinion that will set forth the arbitrator’s
findings of fact and conclusions of law. Judgment upon the award may be entered in any court of
competent jurisdiction. Cadence will pay the arbitrator’s fees, as well as all administrative fees,
associated with the arbitration. Each party will be responsible for paying its own attorneys’ fees
and costs (including expert witness fees and costs, if any). However, in the event a party prevails
at arbitration on a statutory claim that entitles the prevailing party to reasonable attorneys’
fees as part of the costs, then the arbitrator may award those fees to the prevailing party in
accordance with that statute.

     10. NO ADMISSION OF LIABILITY. Nothing in this Agreement will constitute or be construed in
any way as an admission of any liability or wrongdoing whatsoever by Cadence or Executive.

     11. INTEGRATED AGREEMENT. This Agreement is intended by the parties to be a complete and final
expression of their rights and duties respecting the subject matter of this Agreement. Except as
expressly provided herein, nothing in this Agreement is intended to negate Executive’s agreement to
abide by Cadence’s policies while serving as a Cadence employee, including but not limited to
Cadence’s Employee Handbook, Sexual Harassment Policy and Code of Business Conduct, or Executive’s
continuing obligations under Executive’s Employee Proprietary Information and Inventions Agreement,
or any other agreement governing the disclosure and/or use of proprietary information, which
Executive signed while working with Cadence or its predecessors; nor to waive any of Executive’s
obligations under state and federal trade secret laws.

     12. FULL SATISFACTION OF COMPENSATION OBLIGATIONS; ADEQUATE CONSIDERATION. Executive agrees
that the payments and benefits provided herein satisfy in full all obligations of Cadence to
Executive arising out of or in connection with Executive’s employment through the Termination Date,
including, without limitation, all compensation, salary, bonuses, reimbursement of expenses, and
benefits.

     13. TAXES AND OTHER WITHHOLDINGS. Notwithstanding any other provision of this Agreement, the
Company may withhold from amounts payable hereunder all federal, state, local and foreign taxes and
other amounts that are required to be withheld by applicable laws or regulations, and the
withholding of any amount shall be treated as payment

 

 

thereof for purposes of determining whether Executive has been paid amounts to which he is
entitled.

     14. WAIVER. Neither party shall, by mere lapse of time, without giving notice or taking other
action hereunder, be deemed to have waived any breach by the other party of any of the provisions
of this Agreement. Further, the waiver by either party of a particular breach of this Agreement by
the other shall neither be construed as, nor constitute, a continuing waiver of such breach or of
other breaches of the same or any other provision of this Agreement.

     15. MODIFICATION. This Agreement may not be modified unless such modification is embodied in
writing, signed by the party against whom the modification is to be enforced. Notwithstanding
anything herein or in the Employment Agreement to the contrary, the Company may, in its sole
discretion, amend this Agreement (which amendment shall be effective upon its adoption or at such
other time designated by the Company) at any time prior to a Change in Control as may be necessary
to avoid the imposition of the additional tax under Section 409A(a)(l)(B) of the Code; provided,
however, that any such amendment shall be implemented in such a manner as to preserve, to the
greatest extent possible, the terms and conditions of this Agreement as in existence immediately
prior to any such amendment.

     16. ASSIGNMENT AND SUCCESSORS. Cadence shall have the right to assign its rights and
obligations under this Agreement to an entity that, directly or indirectly, acquires all or
substantially all of the assets of Cadence. The rights and obligations of Cadence under this
Agreement shall inure to the benefit and shall be binding upon the successors and assigns of
Cadence. Executive shall not have any right to assign his obligations under this Agreement and
shall only be entitled to assign his rights under this Agreement upon his death, solely to the
extent permitted by this Agreement, or as otherwise agreed to by Cadence.

     17. SEVERABILITY. In the event that any part of this Agreement is found to be void or
unenforceable, all other provisions of the Agreement will remain in full force and effect.

     18. GOVERNING LAW. This Agreement will be governed and enforced in accordance with the
laws of the State of California, without regard to its conflict of laws principles.

 

 

EXECUTION OF AGREEMENT

     The parties execute this Agreement to evidence their acceptance of it.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	.	Dated:	 	 	.	 
	 

	 	 

	 	 	 	 

	 	 

	 	 	 	 	 	 	 
	JAMES MILLER	 	CADENCE DESIGN SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	<<HRVP_Title_l>>	 	 
	 

	 	 	 	<<HRVP_Name>>	 	 

 

 

ATTACHMENT
1

RELEASE
OF CLAIMS

     1. For valuable consideration, I irrevocably, fully and finally release Cadence,
its parent, subsidiaries, affiliates, directors, officers, agents and employees (“Releasees”) from
all causes of action, claims, suits, demands or other obligations or liabilities, whether known or
unknown, suspected or unsuspected, that I ever had or now have as of the time that I sign this
Agreement which relate to my hiring, my employment with the Company, the termination of my
employment with the Company and claims asserted in shareholder derivative actions or shareholder
class actions against the Company and its officers and Board of Directors, to the extent those
derivative or class actions relate to the period during my employment with the Company. The claims
released include, but are not limited to, any claims arising from or related to Executive’s
employment with Cadence, such as claims arising under (as amended) Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1974, the
Americans with Disabilities Act, the Equal Pay Act, the Fair Labor Standards Act, the California
Fair Employment and Housing Act, the California Labor Code, the Employee Retirement Income and
Security Act of 1974 (except for any vested right Executive has to benefits under an ERISA plan),
the state and federal Worker Adjustment and Retraining Notification Act, and the California
Business and Professions Code; any other local, state, federal, or foreign law governing
employment; and the common law of contract and tort. This Release is not intended to, and does not,
encompass any right to compensation or benefits that I have under my Executive Transition and
Release Agreement with Cadence. In no event, however, shall any claims, causes of action, suits,
demands or other obligations or liabilities be released pursuant to the foregoing if and to the
extent they relate to:

               i. any
amounts or benefits to which I am or become entitled to pursuant to the provisions of this Agreement or pursuant to the provisions designated in Section
9.9 of the Employment Agreement to survive the termination of my full-time employment;

               ii. claims for workers’ compensation benefits under any of the Company’s workers’
compensation insurance policies or funds;

               iii. claims related to my COBRA rights; and

               iv. any rights that I have or may have to be indemnified by Cadence pursuant to any
contract, statute, or common law principle.

     2.
I intend that this Release cover all claims, whether or not known to me. I further recognize the risk that, subsequent to the execution of this Agreement, I may incur loss, damage or
injury which I attribute to the claims encompassed by this Release. I expressly assume this risk by
signing this Release and voluntarily and specifically waive any rights conferred by California
Civil Code section 1542 which provides as follows:

A general release does not extend to claims which the creditor does not know or suspect
to exist in his favor which if known by him must have materially affected his
settlement with the debtor.

 

 

     3. I represent and warrant that there has been no assignment or other transfer of any
interest in any claim by me that is covered by this Release.

     4. I acknowledge that Cadence has given me 21 days in which to consider this Release and
advised me to consult an attorney about it. I further acknowledge that once I execute this
Release, I will have an additional 7 days in which to revoke my acceptance of this Release by
means of a written notice of revocation given to the General Counsel and the executive overseeing
Human Resources. This Release will not be final and effective until the expiration of this
revocation period.

	 	 	 	 	 	 	 
	Dated:
	 	 

	.	 

	 	 
	 

	 	 	 	Print Name	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Sign Name	 	 

 

 

ATTACHMENT 2

RELEASE OF CLAIMS

     1. For valuable consideration, I irrevocably, fully and finally release Cadence,
its parent, subsidiaries, affiliates, directors, officers, agents and employees (“Releasees”) from
all causes of action, claims, suits, demands or other obligations or liabilities, whether known or
unknown, suspected or unsuspected, that I ever had or now have as of the time that I sign this
Agreement which relate to my hiring, my employment with the Company, the termination of my
employment with the Company and claims asserted in shareholder derivative actions or shareholder
class actions against the Company and its officers and Board of Directors, to the extent those
derivative or class actions relate to the period during my employment with the Company. The claims
released include, but are not limited to, any claims arising from or related to Executive’s
employment with Cadence, such as claims arising under (as amended) Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1974, the
Americans with Disabilities Act, the Equal Pay Act, the Fair Labor Standards Act, the California
Fair Employment and Housing Act, the California Labor Code, the Employee Retirement Income and
Security Act of 1974 (except for any vested right Executive has to benefits under an ERISA plan),
the state and federal Worker Adjustment and Retraining Notification Act, and the California
Business and Professions Code; any other local, state, federal, or foreign law governing
employment; and the common law of contract and tort. This Release is not intended to, and does not,
encompass any right to compensation or benefits that I have under my Executive Transition and
Release Agreement with Cadence. In no event, however, shall any claims, causes of action, suits,
demands or other obligations or liabilities be released pursuant to the foregoing if and to the
extent they relate to:

               i. any
amounts or benefits to which I am or become entitled to pursuant to the provisions of this Agreement or pursuant to the provisions designated in Section
9.9 of the Employment Agreement to survive the termination of my full-time employment;

               ii. claims for workers’ compensation benefits under any of the Company’s workers’
compensation insurance policies or funds;

               iii. claims related to my COBRA rights; and

               iv. any rights that I have or may have to be indemnified by Cadence pursuant to
any contract, statute, or common law principle.

     2. I intend that this Release cover all claims, whether or not known to me. I
further recognize the risk that, subsequent to the execution of this Agreement, I may incur loss,
damage or injury which I attribute to the claims encompassed by this Release. I expressly assume
this risk by signing this Release and voluntarily and specifically waive any rights conferred by
California Civil Code section 1542 which provides as follows:

A general release does not extend to claims which the creditor does not know or suspect
to exist in his favor which if known by him must have materially affected his
settlement with the debtor.

 

 

     3. I represent and warrant that there has been no assignment or other transfer of any
interest in any claim by me that is covered by this Release.

     4. I acknowledge that Cadence has given me 21 days in which to consider this Release and
advised me to consult an attorney about it. I further acknowledge that once I execute this
Release, I will have an additional 7 days in which to revoke my acceptance of this Release by
means of a written notice of revocation given to the General Counsel and the executive overseeing
Human Resources. This Release will not be final and effective until the expiration of this
revocation period.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Dated:
	 	 

	.	 

	 	 
	 

	 	 	 	Print Name	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Sign Name	 	 

 

 

EXHIBIT C

EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

 

CADENCE
DESIGN SYSTEMS, INC.

EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

     In consideration of my employment or continued employment by Cadence Design Systems, Inc. (the
“Company”), and the compensation now and hereafter paid to me, I hereby accept and agree to the
following:

1. NONDISCLOSURE

     1.1 Recognition of Company’s Rights; Nondisclosure. At all times, during my employment and
thereafter, I will hold in strictest confidence and will not disclose, use, lecture upon or publish
any of the Company’s Proprietary Information (defined below), except as such disclosure,
use or publication may be required in connection with my work for the Company, or unless an
officer of the Company expressly authorizes such in writing. I will obtain Company’s written
approval before publishing or submitting for publication any material (written, verbal, or
otherwise) that relates to my work at Company and/or incorporates any Proprietary
Information. I hereby assign to the Company any rights I may have or acquire in such
Proprietary Information and recognize that all Proprietary Information shall be
the sole property of the Company and its assigns.

     1.2 Proprietary Information. The term “Proprietary Information” shall mean any and all
confidential and/or proprietary knowledge, data or information of, or acquired by, the Company.
By way of illustration but not limitation, “Proprietary Information” includes (a) information
relating to products, processes, know-how, designs, drawings, concepts, circuits, test
data, formulas, methods, compositions, ideas, algorithms, techniques,
developmental or experimental work, improvements and discoveries, (hereinafter collectively
referred to as “Inventions”); (b) information regarding plans for research, development, new
products, marketing and selling, business plans, budgets and unpublished financial
statements, licenses, prices and costs, suppliers and customers; and (c)
information regarding the skills and compensation of other employees of the Company.
Notwithstanding the foregoing, it is understood that, at all such times, I am free to use
information which is generally known in the trade or industry, which is not gained as result of a
breach of this Agreement, and my own, skill, knowledge, know-how and experience to whatever
extent and in whichever way I wish.

     1.3 Third Party Information. I understand, in addition, that the Company has received and in the future will receive
from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on
the Company’s part to maintain the confidentiality of such information and to use it only for
certain limited purposes. During the term of my employment and thereafter, I will hold Third Party
Information in the strictest confidence and will not disclose to anyone (other than Company
personnel who need to know such information in connection with their work for the Company) or use,
except in connection with my work for the Company, Third Party Information unless expressly
authorized by an officer of the Company in writing.

     1.4 No Improper Use of Information of Prior Employers and Others.  During my employment by the
Company I will not improperly use or disclose any confidential information or trade secrets, if
any, of any former employer or any other person to whom I have an obligation of confidentiality,
and I will not bring onto the premises of the Company any unpublished documents or any property
belonging to my former employer or any other person to whom I have an obligation of
confidentiality unless consented to in writing by that former employer or person. I will use in
the performance of my duties only information which is generally known and used by persons
with training and experience comparable to my own, which is common knowledge in the industry or
otherwise legally in the public domain, or which is otherwise provided or developed by the
Company.

2. ASSIGNMENT OF INVENTIONS

     2.1 Proprietary Rights. The term “Proprietary Rights” shall mean all trade secret,
patent, copyright, mask work and other intellectual property rights throughout the world.

     2.2 Prior Inventions. Inventions, if any, patented or unpatented, which I made prior
to the commencement of my employment with the Company are excluded from the scope of
this Agreement. To preclude any possible uncertainty, I have set forth on Exhibit B (Previous
Inventions) attached hereto a complete list of all inventions that I have, alone or jointly
with others, conceived, developed or reduced to practice or caused to be

/s/ JSM                    

Initial

1.

 

conceived, developed or reduced to practice prior to the commencement of my employment with the
Company, that I consider to be my that I wish to have excluded from the scope of this Agreement
(collectively referred to as “Prior Inventions”). If disclosure of any such Prior Invention(s)
would cause me to violate any prior confidentiality agreement, I understand that I am not to list
such Prior Invention(s) in Exhibit B, but am only to disclose a cursory name for each such
invention, a listing of the party(ies) to whom it belongs and the fact that full disclosure as to
such inventions has not been made for that reason. A space is provided on Exhibit B for such
purpose. If no such disclosure is attached, I represent that there are no Prior Inventions. If, in
the course of my employment with the Company, I incorporate a Prior Invention into a Company
product, process or machine, the Company is hereby granted and shall have a nonexclusive,
royalty-free, irrevocable, perpetual, worldwide license (with rights to sublicense through
multiple tiers of sublicensees) to make, have made, modify, use and sell such Prior Invention.
Notwithstanding the foregoing, I agree that I will not incorporate, or permit to be incorporated,
Prior Inventions in any Company Inventions without the Company’s prior written consent.

     2.3 Assignment of Inventions. Subject to Sections 2.4, and 2.6, I hereby assign and agree to assign
in the future (when any such Inventions or Proprietary Rights are first reduced to practice or
first fixed in a tangible medium, as applicable) to the Company all my right, title and interest
in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether or
not patentable or registrable under copyright or similar statutes, made or conceived or
reduced to practice or learned by me, either alone or jointly with others, during the period of my
employment with the Company. Inventions assigned to the Company, or to a third party as directed
by the Company pursuant to this Section 2, are hereinafter referred to as “Company Inventions.”

     2.4 Nonassignable Inventions. This Agreement does not apply to an Invention which
qualifies fully as a nonassignable Invention under Section 2870 of the California Labor Code
(hereinafter “Section 2870”). I have reviewed the notification on Exhibit A (Limited Exclusion
Notification) and agree that my signature acknowledges receipt of the notification.

     2.5 Obligation to Keep Company Informed. During the period of my employment I will
promptly disclose to the Company fully and in writing all Inventions authored, conceived
or reduced to practice by me, either alone or jointly with others. In addition, I will promptly
disclose to the Company all patent applications filed by me or on my behalf during my employment. At the time
of each such disclosure, I will advise the Company in writing of any Inventions that I believe
fully qualify for protection under Section 2870; and I will at that time provide to the Company
in writing all evidence necessary to substantiate that belief. The Company will keep in
confidence and will not use for any purpose or disclose to third parties without my consent any
confidential information disclosed in writing to the Company pursuant to this Agreement relating
to Inventions that qualify fully for protection under the provisions of Section 2870. I will
preserve the confidentiality of any Invention that does not fully qualify for protection under
Section 2870. For one (1) year following my termination of employment any and all patent
applications filed by me or by a third party based on my work will be presumed to be owned by the
Company. I can rebut this presumption by providing evidence sufficient to establish ownership by
the party applying for the patent.

     2.6 Government or Third Party. I also agree to assign all my right, title and interest in and to
any particular Invention to a third party, including without limitation the United States, as
directed by the Company.

     2.7 Works for Hire. I acknowledge that all original works of authorship which are made by
me (solely or jointly with others) within the scope of my employment and which are protectable by
copyright are “works made for hire,” pursuant to United States Copyright Act (17 U.S.C. Section
101).

     2.8 Enforcement of Proprietary Rights. During and after my employment with the
Company, I will assist the Company in every proper way to obtain, and from time to time
enforce, United States and foreign Proprietary Rights relating to Company Inventions in any
and all countries. To that end I will execute, verify and deliver such documents and perform
such other acts (including appearances as a witness) as the Company may reasonably request
for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such
Proprietary Rights and the assignment thereof. In addition, I will execute, verify and
deliver assignments of such Proprietary Rights to the Company or its designee. My obligation
to assist the Company with respect to Proprietary Rights relating to such Company Inventions
in any and all countries shall continue beyond the termination of my employment.

In the event the Company is unable for any reason, after reasonable effort to secure my signature
on any document needed in connection with the actions specified in the preceding paragraph, I
hereby irrevocably designate and appoint the Company and

/s/ JSM                    

Initial

2.

 

its duly authorized officers and agents as my agent and attorney in fact, which appointment is
coupled with an interest, to act for and in my behalf to execute, verify and file any such
documents and to do all other lawfully permitted acts to further the purposes of the preceding
paragraph with the same legal force and effect as if executed by me. I hereby waive and quitclaim
to the Company any and all claims, of any nature whatsoever, which I now or may hereafter have for
infringement of any Proprietary Rights assigned hereunder to the Company.

3. RECORDS. I agree to keep and maintain adequate and current records (in the form of notes,
sketches, drawings and in any other form that may be required by the Company) of all
Proprietary Information developed by me and all Inventions made by me during the period of my
employment at the Company, which records shall be available to and remain the sole property of the
Company at all times.

4. ADDITIONAL ACTIVITIES. I agree that during the period of my employment by the
Company I will not, without the Company’s express written consent, engage in any
employment or business activity which is competitive with, or would otherwise conflict with,
my employment by the Company.

5. NO SOLICITATION. I agree that (1) during the term of my employment with
the Company, and for a period of one (1) year following the date of my termination of employment
with the Company, I will not solicit, recruit, for my own benefit or on behalf of any entity, any
person who is at that time an employee of the Company or who has been employed by the Company for
any period of time during the previous three (3) months, nor shall I induce or encourage any such
person to leave the employ of the Company; and (2) during the term of my employment with the
Company, and for a period of one (1) year following the date of my termination of employment with
the Company, I will not solicit the business (selling of products or services that compete with
products or services offered by the Company) of any client or
customer of the Company with whom I
had a relationship while employed with the Company or whom I know as a result of my employment with
the Company.

6. NO CONFLICTING OBLIGATION. I represent that my performance of all the terms of this Agreement, and of my duties as an employee
of the Company, does not and will not breach any agreement to keep in confidence information
acquired by me in confidence or in trust prior to my employment by the Company. I have not entered
into, and I agree I will not enter into, any agreement either written or oral in conflict
herewith.

7. RETURN OF COMPANY DOCUMENTS AND PROPERTY. When I leave the employ of the Company, I will
deliver to the Company any and all drawings, notebooks, notes, memoranda, source code,
specifications, devices, formulas, records, manuals, reports and documents, together with all
copies thereof, and any other material containing or disclosing any Company Inventions, Third
Party Information or Proprietary Information of the Company, that is within my
possession, custody or control. Further, upon termination of employment I also will return any
and all Company property or equipment in my possession, custody or control. Prior to leaving,
I will cooperate with the Company in completing and signing the Company’s trade secret
acknowledgement form.

8. NON-PRIVATE NATURE OF COMPANY PROPERTY. I understand that I have no expectation of privacy in
the voicemail and electronic mail provided to me by the Company or in any property situated on
the Company’s premises and/or owned by the Company, including disks and other storage media, filing
cabinets or other work areas. I further understand that such property, including voicemail and
electronic mail, is subject to inspection by Company personnel at any time.

9. AT-WILL EMPLOYMENT. I agree and understand that nothing in this Agreement shall confer
any right with respect to continuation of employment by the Company, nor shall it interfere in any
way with my right or the Company’s right to terminate the employment relationship at any time, for
any reason, with or without cause, and with or without notice. I understand that, other than the
Company’s Vice President of Human Resources, no manager, supervisor, employee or any
other representative or agent of the Company has the authority to enter into an agreement to the
contrary. I further understand that an agreement to the contrary by the Vice President of Human
Resources is not valid unless it is in writing.

10. NOTICES. Any notices required or permitted hereunder shall be given to the
appropriate party at the address specified below or at such other address as the party shall
specify in writing. Such notice shall be deemed given upon personal delivery to the appropriate
address or if sent by certified or registered mail, three (3) days after the date of
mailing.

11. NOTIFICATION OF NEW EMPLOYER. In the event that I leave the employ of the Company, I hereby
consent to the notification of my new

/s/ JSM                    

Initial

3.

 

employer of my rights and obligations under this Agreement.

12. GENERAL PROVISIONS.

     12.1 Governing Laws, Consent to Personal Jurisdiction. This Agreement will be governed by and
construed according to the laws of the State of California, as such laws are applied to agreements
entered into and to be performed entirely within California between California residents. I
hereby expressly consent to the personal jurisdiction of the state and federal courts
located in Santa Clara County, California for any lawsuit filed there against me by Company
arising from or related to this Agreement.

     12.2
Severability. In the event any one or more of the provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect the other provisions
of this Agreement, and this Agreement shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein. If, moreover, any one or more of
the provisions contained in this Agreement shall for any reason be held to be excessively broad as
to duration, geographical scope, activity or subject, it shall be construed by limiting and
reducing it, so as to be enforceable to the extent compatible with the applicable law
as it shall then appear.

     12.3 Survival. The provisions of this Agreement shall survive the termination
of my employment and the assignment of this Agreement by the Company to any successor in interest
or other assignee.

     12.4 Waiver. No waiver by the Company of any breach of this Agreement shall be a waiver of any
preceding or succeeding breach. No waiver by the Company of any right under this Agreement shall
be construed as a wavier of any other right. The Company shall not be required to
give notice to enforce strict adherence to all terms of this Agreement.

     12.5 Entire Agreement. The obligations pursuant to Sections 1 and 2 of this Agreement shall
apply to any time during which I was previously employed, or am in the future employed, by the
Company as a consultant if no other agreement governs nondisclosure and assignment of
inventions during such period. This Agreement is the final, complete and exclusive agreement of
the parties with respect to the subject matter hereof and supersedes all prior discussions between
us, except that the Cadence Code of Conduct and my offer letter, both of which I
signed, are incorporated herein. No modification of or amendment to this Agreement, nor any waiver
of any rights under this Agreement, will be effective unless in writing and signed by the party to
be charged. Any subsequent change or changes in my duties, salary or compensation will not affect
the validity or scope of this Agreement.

     This Agreement shall be effective as of the first day of my employment with the Company,
namely: Sept 15, 2004.

     I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS. I HAVE COMPLETELY FILLED OUT
EXHIBIT B TO THIS AGREEMENT.

Dated: 9/3/04

	 	 	 	 	 
	/s/ James S. Miller	 	 
	 	 	 
	Signature	 	 
	 

	 	 	 	 
	James S. Miller	 	 
	 	 	 
	(Printed Name)	 	 
	 
	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 
	 
	 	 	 	 
	CADENCE DESIGN SYSTEMS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

/s/ JSM                    
Initial

4.

 

EXHIBIT A

LIMITED EXCLUSION NOTIFICATION

          THIS IS TO NOTIFY you in accordance with Section 2872 of the California Labor Code that the
foregoing Agreement between you and the Company does not require you to assign or offer to assign
to the Company any invention that you developed entirely on your own time without using the
Company’s equipment, supplies, facilities or trade secret information except for those inventions
that either:

     (1) Relate at the time of conception or reduction to practice of the invention to the
Company’s business, or actual or demonstrably anticipated research or development of the Company;

     (2) Result from any work performed by you for the Company.

     To the extent a provision in the foregoing Agreement purports to require you to assign an
invention otherwise excluded from the preceding paragraph, the provision is against the public
policy of this state and is unenforceable.

     This limited exclusion does not apply to any patent or invention covered by a contract between
the Company and the United States or any of its agencies requiring full title to such patent or
invention to be in the United States.

     I ACKNOWLEDGE RECEIPT of a copy of this notification.

	 	 	 	 	 	 	 
	 

	 	By:
	 	 James Miller	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(printed name of employee)	 	 
	 

	 	 	 	 	 	 
	 	 	Date: Sept 3, 2004	 	 

5.

 

EXHIBIT B

	 	 	 
	TO:

	 	Cadence Design Systems, Inc.
	FROM:

	 	James S. Miller
	DATE:

	 	Sept 3, 2004
	SUBJECT:

	 	Previous Inventions

     1. Except as listed in Section 2 below, the following is a complete list of all inventions or
improvements relevant to the subject matter of my employment by [Company] (the “Company”) that have
been made or conceived or first reduced to practice by me alone or jointly with others prior to my
engagement by the Company:

	 	 	 	 	 	 	 
	 

	 	þ
	 	No inventions or improvements.	 	 
	 

	 	 	 	 	 	 
	 

	 	o
	 	See below:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	o	 	Additional sheets attached.	 	 

     2. Due to a prior confidentiality agreement, 1 cannot complete the disclosure under Section 1
above with respect to inventions or improvements generally listed below, the proprietary rights and
duty of confidentiality with respect to which I owe to the following party(ies);

	 	 	 	 	 	 	 	 	 
	 

	 	Invention or Improvement
	 	Party(ies)
	 	Relationship	 	 
	 

	 	 	 	 	 	 	 	 
	1.
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	2.
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	3.
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	o

	 	Additional sheets attached.	 	 	 	 	 	 

6.

 

Cadence Design Systems, Inc.

EMPLOYEE SIGNATURE AND ACKNOWLEDGMENT

     I have read and reviewed the Cadence Code of Business Conduct and agree to comply with such
Code as a condition to my employment.

  /s/ James S. Miller

 

Signature of Employee

 James S. Miller

 

Print name of Employee

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