Document:

Exhibit
      10.3

     

    SECURITIES
      PURCHASE AGREEMENT

     

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      dated as of October 11, 2006, among VendingData Corporation, a Nevada
      corporation (the “Company”),
      and
      each purchaser identified on the signature pages hereto (each, including its
      successors and assigns, a “Purchaser”
and
      collectively the “Purchasers”).

     

    RECITALS 

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      Section 4(2) of the Securities Act of 1933, as amended (the “Securities
      Act”)
      and
      Rule 506 promulgated thereunder, the Company desires to issue and sell to
      each Purchaser, and each Purchaser, severally and not jointly, desires to
      purchase from the Company, certain securities of the Company as more fully
      described in this Agreement.

     

    AGREEMENT 

    

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration, the receipt and adequacy of
      which
      are hereby acknowledged, the Company and each Purchaser agree as
      follows:

     

    ARTICLE
      I.

    DEFINITIONS

     

    1.2 Definitions.
      In
      addition to the terms defined elsewhere in this Agreement, for all purposes
      of
      this Agreement, the following terms have the meanings indicated in this Section
      1.1:

     

    “Action”
shall
      have the meaning ascribed to such term in Section 3.1(j).

     

    “Affiliate”
means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person as such
      terms are used in and construed under Rule 144 under the Securities
      Act.

     

    “Amendment”
means
      the filing of an amendment to the Company’s Articles of Incorporation, in the
      form and substance acceptable to the Purchaser’s in their reasonable discretion,
      with the Nevada Secretary of State for purposes of increasing the Company’s
      authorized Common Stock to an amount sufficient to provide for the Company’s
      issuance of all of the Securities pursuant to this Agreement. 

     

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday in the United States.

     

    “Change
      of Control Offer”
means
      a
      written offer to the Company or its stockholders to enter into a transaction
      or
      a series of related transactions which will result in either (i) a change in
      ownership of the Company’s capital stock or voting power in an amount greater
      than fifty percent (50%) or (ii) the acquisition of substantially all of the
      Company’s assets, in either case whether by merger, consolidation, acquisition
      of assets, tender offer or the like.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Closing”
means
      the Closing of the purchase and sale of the Shares and Warrants pursuant to
      Section 2.1.

     

    “Closing
      Date”
means
      the Trading Day when all of the Transaction Documents have been executed and
      delivered by the applicable parties thereto, and all conditions precedent to
      (i) the Purchasers’ obligations to pay the Subscription Amount and
      (ii) the Company’s obligations to deliver the applicable Shares and
      Warrants have been satisfied or waived.

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
means
      the common stock of the Company, par value $0.001 per share, and any other
      class
      of securities into which such securities may hereafter be reclassified or
      changed into. 

     

    “Common
      Stock Equivalents”
means
      any securities of the Company or any Subsidiary which would entitle the holder
      thereof to acquire at any time Common Stock, including, without limitation,
      any
      debt, preferred stock, rights, options, warrants or other instruments that
      are
      at any time convertible into or exercisable or exchangeable for, or otherwise
      entitles the holder thereof to receive, Common Stock.

     

    “Company
      Counsel”
means
      Preston Gates & Ellis LLP.

     

    “Disclosure
      Schedules”
means
      the Disclosure Schedules of the Company delivered to the Purchasers prior to
      the
      date hereof. 

     

    “Effective
      Date”
means
      the date that the initial Registration Statement filed by the Company pursuant
      to the Registration Rights Agreement is first declared effective by the
      Commission.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

     

    “GAAP”
shall
      have the meaning ascribed to such term in Section 3.1(h).

     

    “Intellectual
      Property Rights”
shall
      have the meaning ascribed to such term in Section 3.1(q).

     

    “Liens”
means
      a
      lien, charge, security interest, encumbrance, right of first refusal, preemptive
      right or other restriction of any kind.

     

    “Material
      Adverse Effect”
shall
      have the meaning assigned to such term in Section 3.1(b).

     

    “Material
      Permits”
shall
      have the meaning ascribed to such term in Section 3.1(o).

     

    “Melco”
means
      Melco International Development Limited, a Hong Kong company.

     

    
      
        
        

      

      
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    “Melco-PBL
      Joint Venture”
means
      the joint venture established between Melco and Publishing and Broadcasting
      Limited.

     

    “Person”
means
      an individual or corporation, partnership, trust, incorporated or unincorporated
      association, joint venture, limited liability company, joint stock company,
      government (or an agency or subdivision thereof) or other entity of any
      kind.

     

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

     

    “Purchaser
      Counsel”
means
      Latham & Watkins, with offices located at 41st
      Floor,
      One Exchange Square, 8 Connaught Place, Central, Hong Kong. 

     

    “Registration
      Rights Agreement”
means
      the Registration Rights Agreement, to be delivered at the Closing, among the
      Company and the Purchasers, substantially in the form of Exhibit
      A
      attached
      hereto.

     

    “Registration
      Statement”
means
      a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement and covering the resale by the Purchasers of the Registrable
      Securities (as defined in the Registration Rights Agreement). 

     

    “Required
      Approvals”
shall
      have the meaning ascribed to such term in Section 3.1(e).

     

    “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as
      such Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule. 

     

    “SEC
      Reports”
shall
      have the meaning ascribed to such term in Section 3.1(h).

     

    “Securities”
means
      the Shares, the Warrants and the Warrant Shares.

     

    “Shares”
means
      the shares of Common Stock issued to the Purchasers at the Closing.

     

    “Shareholder
      Approval”
means
      such approval as may be required by the applicable rules and regulations of
      the
      American Stock Exchange (or any successor entity) from the shareholders of
      the
      Company in accordance with Section 14 of the Exchange Act with respect to
      the Company’s issuance of the Shares
      and the Warrants.

     

    “Short
      Sales”
shall
      include all “short sales” as defined in Rule 200 of Regulation SHO under
      the Exchange Act (but shall not be deemed to include the location and/or
      reservation of borrowable shares of Common Stock). 

     

    
      
        
        

      

      
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    “Subscription
      Amount”
means,
      as to each Purchaser, the aggregate amount specified below such Purchaser’s name
      on the signature page of this Agreement and next to the heading “Subscription
      Amount”, in United States Dollars.

     

    “Subsidiary”
means
      any subsidiary of the Company as set forth on Schedule 3.1(a).

     

    “Trading
      Day”
means
      a
      day on which the Common Stock is traded on a Trading Market provided that,
      in
      the event that the Common Stock is not listed or quoted on a Trading Market,
      Trading Day shall mean a Business Day.

     

    “Trading
      Market”
means
      the following markets or exchanges on which the Common Stock is listed or quoted
      for trading on the date in question: the Nasdaq Capital Market, the American
      Stock Exchange, the New York Stock Exchange, the Nasdaq National Market or
      the
      OTC Bulletin Board.

     

    “Transaction
      Documents”
means
      this Agreement, the Registration Rights Agreement, and the Warrants and
      any
      other documents or agreements
      executed
      in connection with this Agreement, the Registration Rights Agreement or the
      Warrants but excluding the agreements identified in Section
      2.3(a)(v).

     

    “Warrants”
      means
      the
      Common Stock purchase warrants, substantially in the form of Exhibit B
      attached
      hereto, issued to the Purchasers at the Closing.

     

    “Warrant
      Shares”
means
      the shares of Common Stock underlying the Warrants
      issuable
      upon exercise of the Warrants.
      

     

    ARTICLE
      II.

    PURCHASE
      AND SALE

     

    2.1 Closing.
      Upon
      the terms and subject to the conditions set forth herein, at the Closing the
      Company hereby
      agrees to
      issue
      and sell to each Purchaser, and each Purchaser hereby
      agrees to
      purchase
      from the Company, severally and not jointly, the number of Shares and Warrants
      set forth on each respective Purchaser’s signature page attached hereto, for the
      Subscription Amount set forth thereon. The aggregate Subscription Amount shall
      equal $2,650,000 and the Shares and Warrants shall in the aggregate consist
      of:

     

    (b) 1,000,000
      Shares; and 

     

    (c) Warrants
      to purchase the following:

     

    (i) 6,000,000
      shares of Common Stock at $2.65 per share;

     

    (ii) 4,000,000
      shares of Common Stock at $3.00 per share;

     

    (iii) 2,000,000
      shares of Common Stock at $3.50 per share;

     

    (iv) 1,000,000
      shares of Common Stock at $4.00 per share;

     

    
      
        
        

      

      
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    (v) 1,000,000
      shares of Common Stock at $4.50 per share;

     

    (vi) 1,000,000
      shares of Common Stock at $5.00 per share; and

     

    (vii) 1,000,000
      shares of Common Stock at $5.50 per share.

     

    On
      the
      Closing Date (the “Closing
      Date”),
      each
      Purchaser shall deliver to the Company, via wire transfer or a certified check,
      immediately available funds equal to their Subscription Amount, and the Company
      shall deliver to each Purchaser full
      legal
      and
      beneficial ownership of their
      respective Shares and Warrants. Upon satisfaction of the conditions set forth
      in
      Sections 2.2 and 2.3, the Closing shall occur at the offices of Latham
& Watkins, 41st
      Floor,
      One Exchange Square, 8 Connaught Place, Central, Hong Kong, or such other
      location as the parties shall mutually agree. 

     

    2.2 Deliveries.
      

     

    (b) On
      or
      prior to the Closing Date, the Company shall deliver or cause to be delivered
      to
      each Purchaser the following:

     

    (i) this
      Agreement duly executed by the Company;

     

    (ii) one
      or
      more certificates evidencing the number of Shares as set forth opposite such
      Purchaser’s name on the signature page of this Agreement, registered in the name
      of such Purchaser;

     

    (iii) a
      legal
      opinion of Company Counsel, in the form and substance satisfactory to the
      Purchasers; 

     

    (iv) The
      Warrants purchased by each Purchaser hereunder registered in the name of each
      Purchaser and duly executed by the Company; and

     

    (v) the
      Registration Rights Agreement duly executed by the Company.

     

    (c) On
      or
      prior to the Closing Date, each Purchaser shall deliver or cause to be delivered
      to the Company the following:

     

    (i) this
      Agreement duly executed by such Purchaser;

     

    (ii) such
      Purchaser’s Subscription Amount by wire transfer or cashier’s check to the
      account specified by the Company in writing; and

     

    (iii) the
      Registration Rights Agreement duly executed by such Purchaser.

     

    
      
        
        

      

      
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    2.3 Closing
      Conditions.
      

     

    (b) The
      obligations of the Company hereunder in connection with the Closing are subject
      to the following conditions being met:

     

    (i) the
      representations and warranties of the Purchasers contained in the Transaction
      Documents and qualified as to materiality shall be true and correct and any
      such
      representations and warranties not so qualified shall be true and correct in
      all
      material respects, as of the date hereof and as of the Closing
      Date;

     

    (ii) all
      obligations, covenants and agreements of the Purchasers required to be performed
      at or prior to the Closing Date shall have been performed; 

     

    (iii) the
      delivery by the Purchasers of the items set forth in Section 2.2(b) of this
      Agreement;

     

    (iv) the
      Company’s receipt of Shareholder Approval, if required; 

     

    (v) the
      execution and delivery by the parties thereto of (a) an amendment to the Sales
      Representative Agreement dated January 5, 2006 (“Sales
      Representative Agreement”)
      entered into between the Company and Elixir Group Limited, a Hong Kong company
      (“Elixir”),
      in
      form and substance satisfactory to the parties thereto; and (b) an Alliance
      Agreement (“Alliance
      Agreement”)
      between the Company and Elixir, in form and substance satisfactory to the
      parties thereto; 

     

    (vi) the
      filing of the Amendment by the Company with the Nevada Secretary of State and
      the effectiveness of the Amendment;

     

    (vii) on
      the
      Closing Date, (A) no legal action, suit or proceeding shall be pending or
      threatened which seeks to restrain or prohibit the transactions contemplated
      by
      the Transaction Documents and (B) there shall exist no actual or potential
      regulatory impediment to the legal and beneficial ownership of the Securities
      by
      the Purchasers; and

     

    (viii) all
      consents, waivers, approvals, authorizations, registrations, filings with
      governmental entities should have been obtained.

     

    (c) The
      respective obligations of the Purchasers hereunder in connection with
the
      Closing are subject to the following conditions being met:

     

    (i) the
      representations and warranties of the Company contained in the Transaction
      Documents and qualified as to materiality shall be true and correct and any
      such
      representations and warranties not so qualified shall be true and correct in
      all
      material respects, as of the date hereof and as of the Closing
      Date;

     

    (ii) all
      obligations, covenants and agreements of the Company required to be performed
      at
      or prior to the Closing Date shall have been performed; 

     

    (iii) on
      the
      Closing Date, (A) no legal action, suit or proceeding shall be pending or
      threatened which seeks to restrain or prohibit the transactions contemplated
      by
      the Transaction Documents and (B) there shall exist no actual or potential
      regulatory impediment to the legal and beneficial ownership of the Securities
      by
      the Purchasers;

     

    
      
        
        

      

      
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    (iv) the
      execution and delivery by the parties thereto of (a) an amendment to the Sales
      Representative Agreement, in form and substance satisfactory to the parties
      thereto; and (b) an Alliance Agreement between the Company and Elixir, in form
      and substance satisfactory to the parties thereto;

     

    (v) the
      Company shall have received Shareholder Approval, if required;

     

    (vi) the
      filing of the Amendment by the Company with the Nevada Secretary of State and
      the effectiveness of the Amendment;

     

    (vii) the
      delivery by the Company of the items set forth in Section 2.2(a) of this
      Agreement; 

     

    (viii) the
      Purchasers shall have completed such due diligence as they consider necessary
      in
      connection with the Transaction Documents and the transactions contemplated
      therein, to their satisfaction, in their sole discretion;

     

    (ix) all
      consents, waivers, approvals, authorizations, registrations, filings with
      governmental entities should have been obtained.

     

    (x) the
      Company shall have delivered to the Purchasers a certificate, dated the Closing
      Date, duly executed by its Chief Executive Officer to the effect set forth
      in
      clauses (i) and (ii) above; and 

     

    (xi) the
      Company shall have delivered to the Purchasers a certificate, dated the Closing
      Date, of the Secretary or Assistant Secretary of the Company certifying (i)
      the
      certificate of incorporation and bylaws of the Company as in effect on the
      Closing Date, (ii) all resolutions of the board of directors (and committees
      thereof) of the Company relating to the Transaction Documents and the
      transactions contemplated thereby (including a resolution concerning the matters
      set forth in clause (i) of Section 4.10(b)) and (iii) the incumbency of all
      officers of the Company executing the Transaction Documents and any other
      agreement or document contemplated thereby.

     

    
      
        
        

      

      
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    ARTICLE
      III.

    REPRESENTATIONS
      AND WARRANTIES

     

    3.1 Representations
      and Warranties of the Company.
      Except
      as
      set forth under the corresponding section of the disclosure schedules delivered
      to the Purchasers prior
      to
      the date hereof (the
      “Disclosure
      Schedules”)
      which
      Disclosure Schedules shall be deemed a part hereof, the Company hereby makes
      the
      representations and warranties set forth below to each Purchaser:

     

    (a) Subsidiaries.
      All of
      the direct and indirect subsidiaries of the Company are set forth on
Schedule
      3.1(a).
      The
      Company owns, directly or indirectly, all of the capital stock or other equity
      interests of each Subsidiary free and clear of any Liens, and all the issued
      and
      outstanding shares of capital stock of each Subsidiary are validly issued and
      are fully paid, non-assessable and free of preemptive and similar rights to
      subscribe for or purchase securities. 

     

    (b) Organization
      and Qualification.
      The
      Company and each of the Subsidiaries is an entity duly incorporated or otherwise
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its incorporation or organization (as applicable), with the
      requisite power and authority to own and use its properties and assets and
      to
      carry on its business as currently conducted. Neither the Company nor any
      Subsidiary is in violation or default of any of the provisions of its respective
      certificate or articles of incorporation, bylaws or other organizational or
      charter documents. Each of the Company and the Subsidiaries is duly qualified
      to
      conduct business and is in good standing as a foreign corporation or other
      entity in each jurisdiction in which the nature of the business conducted or
      property owned by it makes such qualification necessary, except where the
      failure to be so qualified or in good standing, as the case may be, could not,
      individually or in the aggregate, have or reasonably be expected to result
      in
      (i) a material adverse effect on the legality, validity or enforceability
      of any Transaction Document, (ii) a material adverse effect on the
results
      of operations, assets, business or condition (financial or otherwise) of
the
      Company
      and the Subsidiaries, taken as a whole, or (iii) a material adverse effect
      on the Company’s ability to consummate the transactions contemplated by the
      Transaction Documents or to perform its obligations under any Transaction
      Document (any of (i), (ii) or (iii), a “Material
      Adverse Effect”)
      and no
      Proceeding has been instituted in any such jurisdiction revoking, limiting
      or
      curtailing or seeking to revoke, limit or curtail such power and authority
      or
      qualification.

     

    (c) Authorization;
      Enforcement.
      The
      Company has all requisite power and authority to execute, deliver and perform
      its obligations under this Agreement and each other Transaction Document and
      to
      consummate the transactions contemplated hereby and thereby. The execution,
      delivery and performance of this Agreement and the other Transaction Documents
      and the consummation of the transactions contemplated herein and therein have
      been duly authorized by all necessary action on the part of the Company and
      no
      further corporate proceedings by the Company are necessary to authorize this
      Agreement or the other Transaction Documents (other than the Shareholder
      Approval, if required, and approval of the Amendment by the shareholders of
      the
      Company). This Agreement and each other Transaction Document has been (or upon
      delivery will have been) duly executed by the Company and, when delivered in
      accordance with the terms hereof and thereof, will constitute the legal, valid
      and binding obligation of the Company, enforceable against the Company in
      accordance with its terms except
      (i) as limited by general equitable principles and applicable bankruptcy,
      insolvency, reorganization, moratorium and other laws of general application
      affecting enforcement of creditors’ rights generally, (ii) as limited by
      laws relating to the availability of specific performance, injunctive relief
      or
      other equitable remedies and (iii) insofar as indemnification and
      contribution provisions may be limited by applicable law.

     

    
      
        
        

      

      
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    (d) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company,
      the issuance and sale of the Securities and the consummation by the Company
      of
      the other transactions contemplated hereby and thereby do not and will not
      (i)
      conflict with or violate any provision of the Company’s or any Subsidiary’s
      certificate or articles of incorporation, bylaws or other organizational or
      charter documents, or (ii) conflict with, or constitute a default (or an event
      that with notice or lapse of time or both would become a default) under, result
      in the creation of any Lien upon any of the properties or assets of the Company
      or any Subsidiary, or give to others any rights of termination, amendment,
      acceleration or cancellation (with or without notice, lapse of time or both)
      of,
      any agreement (including, without limitation, the Gaming Chip Manufacturing
      and
      License Agreement between Progressive Gaming International Corporation and
      Dolphin Advanced Technologies Pty Limited dated June 22, 2006), credit facility,
      debt or other instrument (evidencing a Company or Subsidiary debt or otherwise)
      or other understanding to which the Company or any Subsidiary is a party or
      by
      which any property or asset of the Company or any Subsidiary is bound or
      affected, or (iii) assuming
      receipt of
      the
      Required Approvals, conflict with or result in a violation of any law, rule,
      regulation, order, judgment, injunction, decree or other restriction of any
      court or governmental authority to which the Company or a Subsidiary is subject
      (including federal and state securities laws and regulations), or by which
      any
      property or asset of the Company or a Subsidiary is bound or affected; except
      in
      the case of each of clauses (ii) and (iii), such as could not individually
      or in
      the aggregate have or reasonably be expected to result in a Material Adverse
      Effect.

     

    (e) Filings,
      Consents and Approvals.
      The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any court
      or
      other federal, state, local or other governmental authority or other Person
      in
      connection with the execution, delivery and performance by the Company of the
      Transaction Documents, other than (i) filings required pursuant to Section
      4.4 of this Agreement, (ii) the filing with the Commission of the
      Registration Statement, (iii) the Company’s receipt of Shareholder
      Approval,
      if
      required; (iv) application(s) to each applicable Trading Market for the
      listing of the Shares and the Warrant Shares for trading thereon in the time
      and
      manner required thereby, (v) approval of the Amendment by the shareholders
      of
      the Company and the filing of the Amendment by the Company with the Nevada
      Secretary of State and (vi) the filing of Form D with the Commission and
      such filings as are required to be made under applicable state securities laws
      (collectively, the “Required
      Approvals”).

     

    (f) Issuance
      of the Securities.
      Upon
      the filing of the Amendment by the Company with the Nevada Secretary of State,
      and no later than the Closing, the Securities will be duly authorized and,
      when
      issued and paid for in accordance with the applicable Transaction Documents,
      will be duly and validly issued, fully paid and nonassessable, free and clear
      of
      all Liens caused by the Company (except as resulting from the restrictions
      on
      transfer set forth in the Transaction Documents) or imposed under any U.S.
      law,
      rule or regulation. Upon the filing of the Amendment with the Nevada Secretary
      of State, and no later than the Closing, the Company will have reserved from
      its
      duly authorized capital stock, all of the Shares issuable pursuant to this
      Agreement and the Warrants. 

     

    
      
        
        

      

      
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    (g) Capitalization.
      The
      capitalization of the Company is as set forth on Schedule
      3.1(g).
      No
      Person has any right of first refusal, preemptive right, right of participation,
      or any similar right to participate in the transactions contemplated by the
      Transaction Documents. Except as a result of the purchase and sale of the
      Securities or as set forth on Schedule
      3.1(g),
      there
      are no outstanding options, warrants, script rights to subscribe to, calls
      or
      commitments of any character whatsoever relating to, or securities, rights
      or
      obligations convertible into or exercisable or exchangeable for, or giving
      any
      Person any right to subscribe for or acquire, any shares of Common Stock, or
      contracts, commitments, understandings or arrangements by which the Company
      or
      any Subsidiary is or may become bound to issue additional shares of Common
      Stock
      or Common Stock Equivalents. The issuance and sale of the Shares and the
      Warrants will not obligate the Company to issue shares of Common Stock or other
      securities to any Person (other than the Purchasers) and will not result in
      a
      right of any holder of Company securities to adjust the exercise, conversion,
      exchange or reset price under any of such securities. All of the outstanding
      shares of capital stock of the Company are duly authorized and validly issued,
      fully paid and nonassessable, have been issued in compliance with all federal
      and state securities laws, and none of such outstanding shares was issued in
      violation of any preemptive rights or similar rights to subscribe for or
      purchase securities. Other
      than
      the
      Shareholder Approval, if required, and approval of the Amendment by the
      shareholders of the Company, no further approval or authorization of any
      stockholder, the Board of Directors of the Company or any other person is
      required for the issuance and sale of the Securities. Except as set forth on
      Schedule
      3.1(g),
      there
      are no stockholders agreements, voting agreements or other similar agreements
      with respect to the Company’s capital stock to which the Company is a party or,
      to the knowledge of the Company, between or among any of the Company’s
      stockholders.

     

    (h) SEC
      Reports; Financial Statements.
      The
      Company has filed all reports, schedules, forms, statements and other documents
      required to be filed by it under the Securities Act and the Exchange Act,
      including pursuant to Section 13(a) or 15(d) thereof, for the period commencing
      January 1, 2005 through the date hereof (the foregoing materials, including
      the
      exhibits and schedules thereto and documents incorporated by reference therein,
      being collectively referred to herein as the “SEC
      Reports”)
      on a
      timely basis or has received a valid extension of such time of filing and has
      filed any such SEC Reports prior to the expiration of any such extension. Except
      as set forth on Schedule
      3.1(h),
      as of
      their respective dates, the SEC Reports complied in all material respects with
      the requirements of the Securities Act and the Exchange Act and the rules and
      regulations of the Commission promulgated thereunder, as applicable, and none
      of
      the SEC Reports, when filed, contained any untrue statement of a material fact
      or omitted 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. Except as set forth on Schedule
      3.1(h),
      the
      financial statements of the Company included in the SEC Reports complied in
      all
      material respects with applicable accounting requirements and the rules and
      regulations of the Commission with respect thereto as in effect at the time
      of
      filing. Except as set forth on Schedule
      3.1(h),
      such
      financial statements have been prepared in accordance with United States
      generally accepted accounting principles applied on a consistent basis during
      the periods involved (“GAAP”),
      except as may be otherwise specified in such financial statements or the notes
      thereto and except that unaudited financial statements may not contain all
      footnotes required by GAAP, and fairly present in all material respects the
      financial position of the Company and its consolidated subsidiaries as of and
      for the dates thereof and the results of operations and cash flows for the
      periods then ended, subject, in the case of unaudited statements, to normal,
      immaterial, year-end audit adjustments.

     

    
      
        
        

      

      
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    (i) Material
      Changes; Undisclosed Events, Liabilities or Developments.
      Since
      the date of the latest audited financial statements included within the SEC
      Reports, except as specifically disclosed in a subsequent SEC Report,
      (i) there has been no event, occurrence or development that has had or that
      could reasonably be expected to
      result
      in a Material Adverse Effect, (ii) the Company has not incurred any
      liabilities (contingent or otherwise) other than (A) trade payables and
      accrued expenses incurred in the ordinary course of business consistent with
      past practice and (B) liabilities
      not required to be reflected in the Company’s financial statements pursuant to
      GAAP or disclosed in filings made with the Commission, in
      each
      case that could not reasonably be expected to have a Material Adverse
      Effect,
      (iii) the
      Company has not altered its method of accounting, (iv) the Company has not
      declared or made any dividend or distribution of cash or other property to
      its
      stockholders or purchased, redeemed or made any agreements to purchase or redeem
      any shares of its capital stock, (v) none of the Company nor any of its
      Subsidiaries has (A) sold, assigned, transferred, abandoned, mortgaged,
      pledged or subjected to lien any of its material properties, tangible or
      intangible, or rights under any material contract, permit, license, franchise
      or
      other agreement
      or
      (B) waived or cancelled any material amounts of indebtedness or other
      obligations owed to the Company or any such Subsidiary; and (vi) the
      Company has not issued any equity securities to any officer, director or
      Affiliate, except pursuant to existing Company stock option plans and in amounts
      in accordance with past practice. The Company does not have pending before
      the
      Commission any request for confidential treatment of information. 

     

    (j) Litigation.
      There
      is no action, suit, inquiry, notice of violation, proceeding or investigation
      pending or, to the knowledge of the Company, threatened against or affecting
      the
      Company, any Subsidiary or any of their respective properties before or by
      any
      court, arbitrator, governmental or administrative agency or regulatory authority
      (federal, state, county, local or foreign) (collectively, an “Action”)
      which
      materially adversely affects or challenges the legality, validity or
      enforceability of any of the Transaction Documents or the Securities. Except
      as
      previously disclosed in writing to Purchaser
      Counsel,
      neither the Company nor any Subsidiary, nor any director or officer thereof,
      is
      or has been the subject of any material Action involving a claim of violation
      of
      or liability under federal or state securities laws or a claim of breach of
      fiduciary duty. There has not been, and to the knowledge of the Company, there
      is not pending or contemplated, any material investigation by the Commission
      involving the Company or any current or former director or officer of the
      Company. The Commission has not issued any stop order or other order suspending
      the effectiveness of any registration statement filed by the Company or any
      Subsidiary under the Exchange Act or the Securities Act. 

     

    
      
        
        

      

      
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    (k) Labor
      Relations.
      No
      material labor dispute exists or, to the knowledge of the Company, is imminent
      with respect to any of the employees of the Company which could reasonably
      be
      expected to result in a Material Adverse Effect. None of the Company’s or its
      Subsidiaries’ employees is a member of a union that relates to such employee’s
      relationship with the Company, and neither the Company or any of its
      Subsidiaries is a party to a collective bargaining agreement, and the Company
      and its Subsidiaries believe that their relationships with their employees
      are
      good. No executive officer, to the knowledge of the Company, is, or is now
      expected to be, in violation of any material term of any employment contract,
      confidentiality, disclosure or proprietary information agreement or
      non-competition agreement, or any other contract or agreement or any restrictive
      covenant, and the continued employment of each such executive officer does
      not
      subject the Company or any of its Subsidiaries to any liability with respect
      to
      any of the foregoing matters. The Company and its Subsidiaries are in compliance
      with all U.S. federal, state, local and foreign laws and regulations relating
      to
      employment and employment practices, terms and conditions of employment and
      wages and hours, except where the failure to be in compliance could not,
      individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect.

     

    (l) Business
      Relationships.
      (i) No major customer of the Company or any Subsidiary has, since December
      31, 2005, canceled or otherwise terminated or indicated an intent to cancel
      or
      otherwise terminate its relationship with the Company or any Subsidiary or
      to
      materially decrease the volume of business it conducts with the Company or
      any
      Subsidiary. (ii) No major supplier of the Company or any Subsidiary has
      stopped or indicated an intent to stop or materially reduce the rate at which
      it
      supplies materials, products or services to the Company or any
      Subsidiary.

     

    (m) Solvency.
      Based
      on the financial condition of the Company as of the Closing the Company’s fair
      saleable value of its assets exceeds the amount that will be required to be
      paid
      on or in respect of the Company’s existing debts and other liabilities
      (including known contingent liabilities) as they mature.

     

    (n) Compliance.
      Neither
      the Company nor any Subsidiary (i) is in default under or in violation of (and
      no event has occurred that has not been waived that, with notice or lapse of
      time or both, would result in a default by the Company or any Subsidiary under),
      nor has the Company or any Subsidiary received notice of a claim that it is
      in
      default under or that it is in violation of, any indenture, loan or credit
      agreement or any other agreement or instrument to which it is a party or by
      which it or any of its properties is bound (whether or not such default or
      violation has been waived), (ii) is in violation of any order of any court,
      arbitrator or governmental body, or (iii) is or has been in violation of any
      statute, rule or regulation of any governmental authority, including without
      limitation all foreign, federal, state and local laws relating to taxes, the
      environment, occupational health and safety and gaming matters, except in each
      case as could not have or reasonably be expected to result in a Material Adverse
      Effect.

     

    (o) Regulatory
      Permits.
      The
      Company and the Subsidiaries possess all certificates, authorizations and
      permits issued by the appropriate federal, state, local or foreign regulatory
      authorities necessary to conduct their respective businesses as described in
      the
      SEC Reports, except where the failure to possess such permits could not have
      or
      reasonably be expected to result in a Material Adverse Effect (“Material
      Permits”),
      and
      neither the Company nor any Subsidiary has received any notice of proceedings
      relating to the revocation or modification of any Material Permit.

     

    
      
        
        

      

      
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    (p) Title
      to Assets.
      The
      Company and the Subsidiaries have good and marketable title in fee simple to
      all
      real property owned by them that is material to the business of the Company
      and
      the Subsidiaries and good and marketable title to all personal property owned
      by
      them that is material to the business of the Company and the Subsidiaries,
      in
      each case free and clear of all Liens, except for Liens as do not materially
      affect the value of such property and do not materially interfere with the
      use
      made and proposed to be made of such property by the Company and the
      Subsidiaries and Liens for the payment of federal, state or other taxes, the
      payment of which is neither delinquent nor subject to penalties. Any real
      property and facilities held under lease by the Company and the Subsidiaries
      are
      held by them under valid, subsisting and enforceable leases with which the
      Company and the Subsidiaries are in full compliance.

     

    (q) Patents
      and Trademarks.
      The
      Company and the Subsidiaries have, or have rights to use, all patents, patent
      applications, trademarks, trademark applications, service marks, trade names,
      trade secrets, inventions, copyrights, licenses and other intellectual property
      rights and similar rights necessary or material for use in connection with
      their
      respective businesses as currently conducted, and which the failure to so have
      could have a Material Adverse Effect (collectively, the “Intellectual
      Property Rights”).
      Neither the Company nor any Subsidiary has received a notice (written or
      otherwise) or has any knowledge that the Intellectual Property Rights used
      by
      the Company or any Subsidiary violates or infringes upon the asserted rights
      of
      any Person. To the knowledge of the Company, all such Intellectual Property
      Rights are enforceable and there is no existing infringement by another Person
      of any of the Intellectual Property Rights. The Company and its Subsidiaries
      have taken reasonable security measures to protect the secrecy, confidentiality
      and value of all of their intellectual properties, except where failure to
      do so
      could not, individually or in the aggregate, reasonably be expected to have
      a
      Material Adverse Effect.

     

    (r) Insurance.
      The
      Company and the Subsidiaries are insured by insurers of recognized financial
      responsibility against such losses and risks and in such amounts as are prudent
      and customary in the businesses in which the Company and the Subsidiaries are
      engaged. Neither the Company nor any Subsidiary has any reason to believe that
      it will not be able to renew its existing insurance coverage as and when such
      coverage expires or to obtain similar coverage from similar insurers as may
      be
      necessary to continue its business without a significant increase in
      cost.

     

    (s) Transactions
      With Affiliates and Employees.
      Except
      as set forth in the SEC Reports, none of the officers or directors of the
      Company and, to the knowledge of the Company, none of the employees of the
      Company is presently a party to any transaction with the Company or any
      Subsidiary (other than for services as employees, officers and directors),
      including any contract, agreement or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any officer,
      director or such employee or, to the knowledge of the Company, any entity in
      which any officer, director, or any such employee has a substantial interest
      or
      is an officer, director, trustee or partner, in each case in excess of $60,000,
      other than (i) for payment of salary, (ii) reimbursement for expenses
      properly incurred on behalf of the Company and (iii) for other employee
      benefits, including stock option agreements under any stock option plan of
      the
      Company.

     

    
      
        
        

      

      
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    (t) Sarbanes-Oxley;
      Internal Accounting Controls.
      The
      Company is in material compliance with all provisions of the Sarbanes-Oxley
      Act
      of 2002 which are applicable to it as of the Closing Date. Except as disclosed
      in the SEC Reports, the Company and its Subsidiaries maintain a system of
      internal accounting controls sufficient
      to
      provide reasonable assurance that (i) transactions are executed in accordance
      with management’s general or specific authorizations, (ii) transactions are
      recorded as necessary to permit preparation of financial statements in
      conformity with generally accepted accounting principles and to maintain asset
      accountability, (iii) access to assets is permitted only in accordance with
      management’s general or specific authorization and (iv) the recorded
      accountability for assets is compared with the existing assets at reasonable
      intervals and appropriate action is taken with respect to any
      differences.

     

    (u) Certain
      Fees.
      No
      brokerage or finder’s fees or commissions are or will be payable by the Company
      to any broker, financial advisor or consultant, finder, placement agent,
      investment banker, bank or other Person with respect to the transactions
      contemplated by the Transaction Documents. The Purchasers shall have no
      obligation with respect to any fees or with respect to any claims made by or
      on
      behalf of other Persons (save and except for the Purchasers’ own financial
      advisor) for fees of a type contemplated in this Section that may be due in
      connection with the transactions contemplated by the Transaction Documents
      as a
      result of any action taken by the Company or its Affiliates.

     

    (v) Private
      Placement.
      Assuming the accuracy of the Purchasers’ representations and warranties set
      forth in Section 3.2(b)-(e), (g) and (h), no registration under the Securities
      Act is required for the offer and sale of the Securities by the Company to
      the
      Purchasers under the Transaction Documents. Assuming Shareholder
      Approval,
      if
      required pursuant to the AMEX Rules, the issuance and sale of the Securities
      hereunder does not contravene the rules and regulations of the Trading
      Market.

     

    (w) Investment
      Company.
      The
      Company is not, and is not an Affiliate of, and immediately after giving effect
      to the transactions contemplated by this Agreement, will not be or be an
      Affiliate of, an “investment company” within the meaning of the Investment
      Company Act of 1940, as amended. The Company shall conduct its business in
      a
      manner so that it will not become subject to the Investment Company
      Act.

     

    (x) Certain
      Registration Matters. The
      Company will be eligible to register the Common Stock for resale by the
      Purchasers under Form S-3 promulgated under the Securities Act no later than
      September 29, 2007. Except
      as
      set forth on Schedule 3.1(x),
      no
      Person has any mandatory right (including “piggy-back” registration rights) to
      cause the Company to effect the registration under the Securities Act of any
      securities of the Company.

     

    
      
        
        

      

      
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    (y) Listing
      and Maintenance Requirements.
      The
      Company’s Common Stock is registered pursuant to Section 12(b) or 12(g) of the
      Exchange Act, and the Company has taken no action designed to, or which to
      its
      knowledge is likely to have the effect of, terminating the registration of
      the
      Common Stock under the Exchange Act nor has the Company received any
      notification that the Commission is contemplating terminating such registration.
      The Company has not, in the two years preceding the date hereof, received notice
      from any Trading Market on which the Common Stock is or has been listed or
      quoted to the effect that the Company is not in compliance with the listing
      or
      maintenance requirements of such Trading Market. Subject to the Company’s
      receipt of Shareholder Approval, if required, the Company is, and has no reason
      to believe that it will not in the foreseeable future continue to be, in
      compliance with all such listing and maintenance requirements.

     

    (z) Application
      of Takeover Protections.
      The
      Company and its Board of Directors have taken all necessary action, if any,
      in
      order to render inapplicable any control share acquisition, business
      combination, poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Company’s certificate of
      incorporation (or similar charter documents), the Company’s by-laws (as amended
      and in effect) or the laws of its state of incorporation that is or could
      reasonably be expected to become applicable to the Purchasers as a result of
      the
      Purchasers and the Company fulfilling their obligations or exercising their
      rights under the Transaction Documents, including without limitation as a result
      of the Company’s issuance of the Securities and the Purchasers’ ownership of the
      Securities.

     

    (aa) No
      Integrated Offering.
      Assuming
      the accuracy of the Purchasers’ representations and warranties set forth in
      Section 3.2(b)-(e), neither the Company, nor any of its Affiliates, nor any
      Person acting on its or their behalf has, directly or indirectly, made any
      offers or sales of any security or solicited any offers to buy any security,
      under circumstances that would cause this offering of the Securities to be
      integrated with prior offerings by the Company for purposes of the Securities
      Act or any applicable shareholder approval provisions of any Trading Market
      on
      which any of the securities of the Company are listed or designated. 

     

    (bb) Tax
      Status.
      Except
      as set forth on Schedule
      3.1(bb),
      the
      Company has filed all material federal, state and local income and franchise
      and
      other tax returns required to be filed and has paid all taxes due in accordance
      therewith, and no tax deficiency has been determined adversely to the Company
      which has had (nor does the Company have any knowledge of any tax deficiency
      which, if determined adversely to the Company, could have) a Material Adverse
      Effect.

     

    (cc) No
      General Solicitation.
      Neither
      the Company nor any person acting on behalf of the Company has offered or sold
      any of the Shares or Warrants by any form of general solicitation or general
      advertising. The Company has offered the Shares and Warrants for sale only
      to
      the Purchasers and certain other “accredited investors” within the meaning of
      Rule 501 under the Securities Act.

     

    
      
        
        

      

      
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    (dd) Acknowledgment
      Regarding Purchasers’ Purchase of Shares and Warrants.
      The
      Company acknowledges and agrees that each of the Purchasers is acting solely
      in
      the capacity of an arm’s length purchaser with respect to the Transaction
      Documents and the transactions contemplated thereby. The Company further
      acknowledges that no Purchaser is acting as a financial advisor or fiduciary
      of
      the Company (or in any similar capacity) with respect to the Transaction
      Documents and the transactions contemplated thereby and any advice given by
      any
      Purchaser or any of their respective representatives or agents in connection
      with the Transaction Documents and the transactions contemplated thereby is
      merely incidental to the Purchasers’ purchase of the Shares and Warrants. The
      Company further represents to each Purchaser that the Company’s decision to
      enter into this Agreement and the other Transaction Documents has been based
      solely on the independent evaluation of the transactions contemplated hereby
      by
      the Company and its representatives.

     

    (ee) Disclosure.
      All
      disclosure furnished by or on behalf of the Company to the Purchasers regarding
      the Company, its business and the transactions contemplated hereby, (including
      the Company’s representations and warranties set forth in this Agreement and the
      Disclosure Schedules to this Agreement),
      are
      true and correct and do not contain any untrue statement of a material fact
      or
      omit to state any material fact necessary in order to make the statements made
      therein, in light of the circumstances under which they were made, not
      misleading. The Company has not taken and will not take any action designed
      to
      or that might reasonably be expected to cause or result in an unlawful
      manipulation of the price of the Common Stock to facilitate the sale or resale
      of the Securities.

     

    3.2 Representations
      and Warranties of the Purchasers.
      Each
      Purchaser hereby, for itself and for no other Purchaser, represents and warrants
      as of the date hereof and as of the Closing Date to the Company as follows:
      

     

    (a) Organization;
      Authority.
      Such
      Purchaser is an entity duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its organization with all
      requisite
      corporate or partnership power and authority to enter into and to consummate
      the
      transactions contemplated by the Transaction Documents and otherwise to carry
      out its obligations hereunder and thereunder. The execution, delivery
      and
      performance of this Agreement and each of the other Transaction
      Documents
      by such
      Purchaser and
      the
      consummation by it of
      the
      transactions contemplated by this Agreement
      and each
      other Transaction Document have been or
      upon
      delivery will have been duly
      authorized by all necessary corporate or similar action on the part of such
      Purchaser. Each Transaction Document to which it is a party has been duly
      executed by such Purchaser, and when delivered by such Purchaser in accordance
      with the terms hereof, will constitute the valid and legally binding obligation
      of such Purchaser, enforceable against it in accordance with its terms, except
      (i) as limited by general equitable principles and applicable bankruptcy,
      insolvency, reorganization, moratorium and other laws of general application
      affecting enforcement of creditors’ rights generally, (ii) as limited by laws
      relating to the availability of specific performance, injunctive relief or
      other
      equitable remedies and (iii) insofar as indemnification and contribution
      provisions may be limited by applicable law. 

     

    
      
        
        

      

      
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    (b) Own
      Account.
      Such
      Purchaser understands that the Securities are “restricted securities” and have
      not been registered under the Securities Act or any applicable state securities
      law and is acquiring the Securities as principal for its own account and not
      with a view to or for distributing or reselling such Securities or any part
      thereof without prejudice, however, to such Purchaser’s right, subject to the
      provisions of this Agreement and the Registration Rights Agreement, at all
      times
      to sell or otherwise dispose of all or any part of such Securities pursuant
      to
      an effective registration statement under the Securities Act or under an
      exemption from such registration and in compliance with applicable federal
      and
      state securities laws. Subject to the immediately preceding sentence, nothing
      contained herein shall be deemed a representation or warranty by such Purchaser
      to hold the Securities for any period of time. Such Purchaser does not have
      any
      agreement, plan or understanding, directly or indirectly, with any Person to
      distribute any of the Securities. Such Purchaser is acquiring the Securities
      hereunder in the ordinary course of its business.

     

    (c) Purchaser
      Status.
      At the
      time such Purchaser was offered the Securities, it was, and at the date hereof
      it is, an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
      (a)(7) or (a)(8) under the Securities Act. Such Purchaser is not required to
      be
      registered as a broker-dealer under Section 15 of the Exchange Act.

     

    (d) Experience
      of Such Purchaser.
      Such
      Purchaser, either alone or together with its representatives, has such
      knowledge, sophistication and experience in business and financial matters
      so as
      to be capable of evaluating the merits and risks of the prospective investment
      in the Shares and Warrants, and has so evaluated the merits and risks of such
      investment. Such Purchaser is able to bear the economic risk of an investment
      in
      the Shares and Warrants and, at the present time, is able to afford a complete
      loss of such investment.

     

    (e) General
      Solicitation.
      Such
      Purchaser is not purchasing the Shares and Warrants as a result of any
      advertisement, article, notice or other communication regarding the Shares
      published in any newspaper, magazine or similar media or broadcast over
      television or radio or presented at any seminar or any other general
      solicitation or general advertisement.

     

    (f) Short
      Sales and Confidentiality Prior To The Date Hereof.
      Other
      than the transactions contemplated hereunder, such Purchaser has not directly
      or
      indirectly, nor has any Person acting on behalf of or pursuant to any
      understanding with such Purchaser, engaged in any transaction, including Short
      Sales, in the securities of the Company since the earlier to occur of (i) the
      time that such Purchaser was first contacted by the Company regarding an
      investment in the Company, or (ii) the 30th
      day
      prior to the date of this Agreement (such
      earlier date, “Discussion
      Date”).
      Notwithstanding the foregoing, in the case of a Purchaser that is a
      multi-managed investment vehicle whereby separate portfolio managers manage
      separate portions of such Purchaser’s assets and the portfolio managers have no
      direct knowledge of the investment decisions made by the portfolio managers
      managing other portions of such Purchaser’s assets, the representation set forth
      above shall only apply with respect to the portion of assets managed by the
      portfolio manager that made the investment decision to purchase the Shares
      and
      Warrants covered by this Agreement. Purchaser at all times acted in compliance
      with Confidentiality Deed dated April 21, 2006 between the parties.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (g) Access
      to Information.
      Such
      Purchaser acknowledges that it has received and had the opportunity to review
      copies of the SEC Reports. Such Purchaser further acknowledges that it or its
      representatives have been afforded (i) the opportunity to ask such questions
      as
      it has deemed necessary of, and to receive answers from, representatives of
      the
      Company concerning the terms and conditions of the offering of the Securities,
      and the merits and risks of investing in the Securities; (ii) access to
      information about the Company and the Company’s financial condition, results of
      operations, business, properties, management and prospects sufficient to enable
      it to evaluate its investment in the Securities; and (iii) the opportunity
      to
      obtain such additional information which the Company possesses or can acquire
      without unreasonable effort or expense that is necessary to verify the accuracy
      and completeness of the information contained in the SEC Reports. Neither such
      inquiries nor any other investigation conducted by or on behalf of such
      Purchaser or its representatives or counsel shall modify, amend or affect such
      Purchaser’s right to rely on the truth, accuracy and completeness of the SEC
      Reports and the Company’s representations and warranties contained in this
      Agreement and the other Transaction.

     

    (h) Restrictions
      on Shares and Warrants.
      Such
      Purchaser understands that the Securities have not been registered under the
      Securities Act and may not be offered, resold, pledged or otherwise transferred
      except (a) pursuant to an exemption from registration under the Securities
      Act
      or pursuant to an effective registration statement in compliance with Section
      5
      under the Securities Act and (b) in accordance with all applicable securities
      laws of the states of the United States and other jurisdictions.

     

    (i) Compliance.
      Neither
      Elixir or any of its subsidiary (i) is in violation of any order of any court,
      arbitrator or governmental body, or (ii) is or has been in violation of any
      statute, rule or regulation of any governmental authority, including without
      limitation all foreign, federal, state and local laws relating to taxes, the
      environment, occupational health and safety and gaming regulatory matters,
      except in each case in
      (i)
      and (ii) as
      could
      not have or reasonably be expected to result in a material adverse
      effect.

     

    (j) Regulatory
      Permits.
      Elixir
      and its subsidiaries possess all certificates, authorizations and permits issued
      by the appropriate federal, state, local or gaming and other regulatory
      authorities necessary to conduct their respective current businesses as
      currently conducted, except where the failure to possess such permits could
      not
      have or reasonably be expected to result in a material adverse effect
      (“Material
      Elixir Permits”),
      and
      Elixir has not received any notice of proceedings relating to the revocation
      or
      modification of any Material Elixir Permit. 

     

    
      
        
        

      

      
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    ARTICLE
      IV.

    OTHER
      AGREEMENTS OF THE PARTIES

     

    4.1 Transfer
      Restrictions.
      

     

    (b) The
      Securities may only be disposed of in compliance with state and federal
      securities laws. In connection with any transfer of the Securities other than
      (i) pursuant to an effective registration statement, (ii) pursuant to
      Rule 144; (iii) to the Company or (iv) to an Affiliate of a Purchaser,
      the Company may require the transferor thereof to provide to the Company an
      opinion of counsel selected by the transferor, the form and substance of which
      opinion shall be reasonably satisfactory to the Company, to the effect that
      such
      transfer does not require registration of such transferred Shares under the
      Securities Act. 

     

    (c) The
      Purchasers agree to the imprinting, so long as is required by this
      Section 4.1(b), of a legend on any of the Securities in the following
      form:

     

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933,
      AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND ARE
“RESTRICTED SECURITIES” AS THAT TERM IS DEFINED IN RULE 144 UNDER THE SECURITIES
      ACT. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED OR OTHERWISE
      TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
      SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
      EXEMPTION FROM REGISTRATION THEREUNDER, AS EVIDENCED BY A LEGAL OPINION OF
      COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
      REASONABLY SATISFACTORY TO THE COMPANY

     

    4.2 Furnishing
      of Information.
      As long
      as any Purchaser owns any Securities, the Company covenants to timely file
      (or
      obtain extensions in respect thereof and file within the applicable grace
      period) all reports required to be filed by the Company after the date hereof
      pursuant to the Exchange Act. As long as any Purchaser owns any Securities,
      if
      the Company is not required to file reports pursuant to the Exchange Act, it
      will prepare and furnish to the Purchasers and make publicly available in
      accordance with Rule 144(c) such information as is required for the Purchasers
      to sell the Securities under Rule 144. The Company further covenants that it
      will take such further action as any holder of Securities may reasonably
      request, to the extent required from time to time to enable such Person to
      sell
      such Shares and Warrant Shares without registration under the Securities Act
      within the requirements of the exemption provided by Rule 144.

     

    4.3 Integration.
      The
      Company shall not,
      and
      shall use its best efforts to ensure that no Affiliate of the Company shall
      not
      sell,
      offer for sale or solicit offers to buy or otherwise negotiate in respect of
      any
      security (as defined in Section 2 of the Securities Act) that would be
      integrated with the offer or sale of the Securities in a manner that would
      require the registration under the Securities Act of the sale of the Securities
      to the Purchasers or that would be integrated with the offer or sale of the
      Securities for purposes of the rules and regulations of any Trading Market
      such
      that it would require shareholder approval prior to the closing of such other
      transaction unless shareholder approval is obtained before the closing of such
      subsequent transaction.

     

    
      
        
        

      

      
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    4.4 Securities
      Laws Disclosure; Publicity.
      The
      Company shall, within one Business Day of the Closing Date, issue a press
      release disclosing the material terms of the transactions contemplated hereby,
      and shall file a Current Report on Form 8-K which shall attach the
      Transaction Documents thereto by the fourth Business Day following the Closing
      Date. The
      press
      release and Form 8-K shall be acceptable to the Purchasers in their
      reasonable discretion. No Purchaser shall issue any such press release or
      otherwise make a public announcement, statement or other disclosure without
      the
      prior consent of the Company unless such public announcement, statement or
      disclosure is required by the laws, rules or regulations applicable to such
      Purchaser (including, without limitation, those stipulated by any applicable
      stock exchange), in which case such Purchaser shall provide the Company with
      prior notice of its requirement to do so. The Company shall not publicly
      disclose the name of any Purchaser, or include the name of any Purchaser in
      any
      filing with the Commission or any regulatory agency or Trading Market, without
      the prior written consent of such Purchaser, except (i) as required by
      federal securities law in connection with (A) any registration statement
      contemplated by the Registration Rights Agreement, (B) any proxy or
      information statement filed in connection with the Company’s receipt of
      Shareholder Approval and (C) the filing of final Transaction Documents
      (including signature pages thereto) with the Commission and (ii) to the
      extent such disclosure is required by law or Trading Market regulations in
      which
      case the Company shall provide the Purchasers with prior notice of such
      disclosure.

     

    4.5 Use
      of
      Proceeds.
      The
      Company shall use the net proceeds from the sale of the Shares and Warrants
      hereunder as set forth on Schedule 4.5 of the Disclosure Schedule.

     

    4.6 Listing
      of Common Stock.
      The
      Company hereby agrees to use best efforts to maintain the listing of the Common
      Stock on each Trading Market in which it is traded, and as soon as reasonably
      practicable but in no event later than 45 days following the Closing, to
      list all of the Shares and not
      later
      than 15 days following issuance thereof to list any
      Warrant
      Shares,
      on each
      such Trading Market). The Company further agrees, if the Company applies to
      have
      the Common Stock traded on any other Trading Market, it will include in such
      application all of the Shares and the Warrant Shares, and will take such other
      action as is necessary to cause all of the Shares and Warrant Shares to be
      listed on such other Trading Market as promptly as possible. The Company will
      take all action reasonably necessary to continue the listing and trading of
      its
      Common Stock on a Trading Market and will comply in all respects with the
      Company’s reporting, filing and other obligations under the bylaws or rules of
      the Trading Market.

     

    4.7 Short
      Sales and Confidentiality After The Date Hereof.
      Each
      Purchaser, severally and not jointly with the other Purchasers, covenants that
      neither it nor any Affiliate acting on its behalf or pursuant to any
      understanding with it will engage in any transactions, including any Short
      Sales, in the securities of the Company during the period commencing at the
      Discussion Time and ending at the time that the transactions contemplated by
      this Agreement are first publicly announced as described
      in
      Section 4.4. Each
      Purchaser, severally and not jointly with the other Purchasers, covenants that
      neither it nor any Affiliate acting on its behalf or pursuant to any
      understanding with it will engage in any Short Sales in the securities of the
      Company during the period commencing at the Discussion Time and ending on the
      Effective Date (“Black-out
      Termination Date”).
      Each
      Purchaser, severally and not jointly with the other Purchasers, covenants that
      until such time as the transactions contemplated by this Agreement are publicly
      disclosed by the Company as described in Section 4.4, such Purchaser will
      maintain the confidentiality of all disclosures made to it in connection with
      this transaction (including the existence and terms of this transaction). Each
      Purchaser understands and acknowledges, severally and not jointly with any
      other
      Purchaser, that the Commission currently takes the position that coverage of
      short sales of shares of the Common Stock “against the box” prior to the
      Effective Date of the Registration Statement with the Shares is a violation
      of
      Section 5 of the Securities Act, as set forth in Item 65, Section A, of the
      Manual of Publicly Available Telephone Interpretations, dated July 1997,
      compiled by the Office of Chief Counsel, Division of Corporation Finance.
Notwithstanding
      the foregoing, no Purchaser makes any representation, warranty or covenant
      hereby that it will not engage in Short Sales in the securities of the Company
      after the Black-out Termination Date. Notwithstanding
      the foregoing, in the case of a Purchaser that is a
      multi-managed investment vehicle whereby separate portfolio managers manage
      separate portions of such Purchaser’s assets and the portfolio managers have no
      direct knowledge of the investment decisions made by the portfolio managers
      managing other portions of such Purchaser’s assets, the covenant set forth above
      shall only apply with respect to the portion of assets managed by the portfolio
      manager that made the investment decision to purchase the Securities covered
      by
      this Agreement.

     

    
      
        
        

      

      
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    4.8 Form
      D; Blue Sky Filings.
      The
      Company agrees to timely file a Form D with respect to the Securities as
      required under Regulation D and to provide a copy thereof to each Purchaser.
      The
      Company shall take such action as the Company shall reasonably determine is
      necessary in order to obtain an exemption for, or to qualify the Securities
      for,
      sale to the Purchasers at the Closing under applicable securities or “Blue Sky”
laws of the states of the United States, and shall provide evidence of such
      actions promptly upon request of any Purchaser.

     

    4.9 Reduction
      in Number of Warrants.
      

     

    (b) Acceleration/Termination
      upon Change in Control.
      If at
      any time prior to the date any Warrant first becomes exercisable in accordance
      with its terms, the Company receives a Change of Control Offer from a person
      other the Purchasers or one of their Affiliates and such Change of Control
      Offer
      is not withdrawn and is accepted by the Company, then, upon consummation of
      such
      transaction (i) 4,000,000 of the Warrants to purchase Common Stock at $2.65
      per
      share described in Section 2.1(b)(i) hereof shall automatically become
      exercisable for the kind and amount of securities, cash or other assets which
      the holder of the Warrant would have owned immediately after such Change of
      Control transaction if the holder had exercised the Warrant immediately before
      the effective date of such transaction in the manner and subject to the
      provisions set forth in Section 4(f) of the Warrants without further action
      required on the part of any party (ii) the balance of the Warrants listed in
      Section 2.1(b)(i) hereof shall be automatically cancelled without further action
      required on the part of any party.

     

    
      
        
        

      

      
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    (c) Termination
      upon Breach.
      If
      Elixir or the holder of a Warrant breaches (unless such breach is due to fault
      on the part of the Company or its Affiliates) any of their material obligations
      under this Agreement or the Warrants, and the breaching party does not remedy
      such breach within ninety (90) days of receiving written notice of the same
      from
      the Company, the Company may, at its option, cancel any portion or all of any
      Warrant that remains unexercised at the end of such 90 day period. Any such
      cancellation shall not affect the agreements of the parties under the
      Transaction Documents with respect to any exercised Warrants or the Warrant
      Shares.

     

    4.10 Repurchase
      of Shares by the Company.
      

     

    (b) If
      at any
      time following the Closing Elixir believes, in its sole discretion, that it
      is,
      or may be, subject to a material regulatory examination, review, process,
      investigation, compliance obligation, prohibition or other regulatory
      requirement (in each case, a “material regulatory requirement”) arising out of,
      or resulting from, its direct ownership of Securities and which may subject
      Melco, Elixir or any of their Affiliates, directors or officers to licensing,
      gaming or other requirements in the United States of America and it believes,
      in
      its sole discretion, that it is, or will be, unable to cooperate or comply,
      as
      the case may be, with such requirements without an unreasonable amount of time,
      expense or effort, Elixir may, if advised by counsel in writing that such
      transfer would substantially eliminate such time, expense or effort, take all
      necessary steps to transfer ownership of the affected Securities to a voting
      trust. The parties agree that a “probity” or “suitability” review or process by
      United States federal or state gaming regulators with respect to Melco and/or
      Elixir or any of their subsidiaries, Affiliates, directors or officers shall
      be
      deemed to be a “material regulatory requirement”. If Elixir believes, in its
      sole discretion, that, taking into account the time, expense and effort that
      may
      be required to transfer the affected Securities to a voting trust, such a course
      of action is not commercially advisable, or if such transfer would not
      substantially eliminate such time, expense or effort, and the material
      regulatory requirement is continuing, the Company will use its best efforts
      to,
      as expeditiously as possible, (i) assist Elixir to sell all of the Shares,
      Warrant Shares and Warrants to a third party at a price not less than (A) with
      respect to such Shares, the Subscription Amount, or ratable portion thereof,
      (B)
      with respect to such Warrant Shares, the aggregate exercise amount and (C)
      with
      respect to such Warrants, the relevant portion of the Subscription Amount,
      if
      any, that was allocated to the Warrants (A, B and C, together the “Targeted
      Proceeds”),
      or,
      in the event such a transaction cannot be consummated within 90 days, (ii)
      repurchase all of the Shares, Warrant Shares and Warrants for cash consideration
      in an amount not less than the Targeted Proceeds, subject to the Board of
      Directors’ determination in good faith, after consultation with outside legal
      counsel, that such repurchase would not be inconsistent with its fiduciary
      duties to the Company’s shareholders under applicable Law. 

     

    (c) Reference
      is made to Article IX of the Company’s Articles of Incorporation, as amended.
      The parties acknowledge and agree that Article IX permits the Company, following
      a determination by the Nevada Gaming Commission or the governing gaming
      regulatory agency of a jurisdiction in which the Company holds a privileged
      license (collectively the “Gaming Regulatory Authorities”) that a holder of
      stock or other security of the Company is unsuitable, to require such holder
      to
      relinquish ownership of such stock or security and to purchase such stock or
      security for cash at “fair market value” to be determined at the sole discretion
      of the Company. The parties further agree that (i) if the Company at any time
      requires Elixir to relinquish all of its Securities at “fair market value”
pursuant to Article IX or any successor or similar provision, the Targeted
      Proceeds shall constitute a reasonable determination of the “fair market value”
of such Securities and (ii) the Company will not raise any objection or defense
      (including, without limitation, ultra
      vires
      or
      otherwise) regarding the agreements set forth in this Section
      4.10(b).

     

    
      
        
        

      

      
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    4.11 Shareholder
      Approval.
      If
      Shareholder Approval is required to consummate the transactions contemplated
      by
      the Transaction Documents (a) the Company’s Board of Directors (including
      Jim Crabbe and Mark Newburg) shall take all lawful action to (i) cause a
      special meeting of its shareholders (the “Company
      Shareholder Meeting”)
      to be
      duly called and held as soon as practicable after the date hereof for the
      purpose of voting on the approval and adoption of the Transaction Documents
      and
      (ii) solicit proxies from its shareholders to obtain the required vote for
      the approval and adoption of this Agreement and the other Transaction Documents
      and any action necessary or desirable to effectuate the transactions
      contemplated herein and therein and (b) each of Jim Crabbe and Mark Newburg
      shall vote
      all
      shares over which they have voting control in favor of the approval and adoption
      of the Transaction Documents and any action necessary or desirable to effectuate
      the transactions contemplated herein and therein. The Board of Directors of
      the
      Company shall (i) recommend that the shareholders of the Company adopt this
      Agreement and the other Transaction Documents and thereby approve the
      transactions contemplated hereby and thereby and (ii) take all lawful
      action (including the solicitation of proxies) to solicit such adoption;
      provided, however, that the Board of Directors may, at any time prior to the
      time of the Company Shareholder Meeting, withdraw, modify or change any such
      recommendation to the extent that the Board of Directors’ determines in good
      faith, after consultation with outside legal counsel, that such repurchase
      would
      not be consistent
      with its
      fiduciary duties to the Company’s shareholders under applicable Law.

     

    4.12 S-3
      Eligibility.
      The
      Company will use its best efforts to become eligible to register the Common
      Stock for resale by the Purchasers under Form S-3 promulgated under the
      Securities Act as promptly as possible.

     

    4.13 Board
      Representation.
      From
      and after the Closing, Elixir will be entitled to appoint one director to the
      Board of Directors of the Company and appoint a replacement director in the
      event such board seat becomes vacant. From and after its exercise of any of
      the
      Warrants, Elixir will be entitled to appoint a number of directors to the Board
      of Directors of the Company proportionate to its equity ownership of the Company
      on a Fully Diluted Basis (as well as appoint a replacement director in respect
      of any of its board seats that become vacant). By way of example, if Elixir’s
      equity ownership of the Company is equal to 30%, on a Fully Diluted Basis,
      Elixir shall be entitled to appoint a number of directors equal to the product
      of 30% and the authorized number of directors set forth in the organizational
      documents of the Company (as adjusted upwards, but not downwards, for any
      modifications of such maximum number in such organizational documents from
      time
      to time). Any fraction resulting from such calculation shall be rounded up
      if it
      is equal to or greater than 1⁄2 and down if it is less than 1⁄2.

     

    
      
        
        

      

      
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    The
      Company (including Jim Crabbe and Mark Newburg in their capacity as
      shareholders) and the Board of Directors of the Company will do and will cause
      to be done all things necessary or desirable (including amending the
      organizational documents of the Company) as expeditiously as possible to give
      effect to this provision (it being agreed that, if incorporated in the
      organizational documents of the Company such provision shall not thereafter
      be
      amended or canceled without the written consent of Elixir). For the purpose
      of
      this Agreement, the term “Fully Diluted Basis” shall refer, as of any specified
      date, to (i) shares of Common Stock outstanding as of a specified date and
      (ii)
      shares of Common Stock into or for which Common Stock Equivalents are
      convertible, exercisable or exchangeable (other than the Warrants).

     

    4.14 Indemnification.
      

     

    (a) Except
      as
      otherwise provided in this Section 4.14, the Company (the “Indemnifying
      Party”)
      agrees
      to indemnify, defend and
      hold
      harmless each of the Purchasers and its Affiliates and their respective
      officers, directors, agents, employees, subsidiaries, partners, members and
      controlling persons (each, an “Indemnified
      Party”)
      to the
      fullest extent permitted by law from and against any and all losses, actions,
      suits, proceedings, claims, complaints, disputes, arbitrations or investigations
      (collectively, “Claims”),
      or
      written threats thereof (including, without limitation, any Claim by a third
      party), damages, expenses (including reasonable fees, disbursements and other
      charges of counsel incurred by the Indemnified Party in any action between
      the
      Indemnifying Party and the Indemnified Party or between the Indemnified Party
      and any third
      party or otherwise) or other liabilities (collectively, “Losses”)
      resulting from, arising out of or relating to: 

     

    
      	
            	(i)	
              any
                breach of any representation or warranty in this Agreement any amendment
                thereto, the other Transaction Documents or any of the certificates,
                schedules or Disclosure Schedules delivered in connection
                therewith;

            

    

    

    
      	
            	(ii)	
              any
                breach, or failure to perform any covenant or agreement by the Company
                in
                this Agreement or the other Transaction Documents;
                and

            

    

    

    
      	
            	(iii)	
              an
                acquisition by the Company, or any of its Affiliates, of any Securities
                from Elixir in breach of the agreements between the parties set forth
                in
                Section 4.10(b) hereof.

            

    

    

    In
      connection with the obligation of the Indemnifying Party to indemnify for
      expenses as set forth above, the Indemnifying Party shall, upon presentation
      of
      appropriate invoices containing reasonable detail, reimburse each Indemnified
      Party for all such expenses (including reasonable fees, disbursements and other
      charges of counsel incurred by the Indemnified Party in any action between
      the
      Indemnifying Party and the Indemnified Party or between the Indemnified Party
      and any third party) as they are incurred by such Indemnified Party; provided,
      however, that if an Indemnified Party is reimbursed under this Section 4.14
      for any expenses, such reimbursement of expenses shall be promptly refunded
      to
      the extent it is finally judicially determined
      that the Losses in question resulted primarily from the willful misconduct
      or
      gross negligence of such Indemnified Party. 

     

    
      
        
        

      

      
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    (b) Each
      Indemnified Party under this Section 4.14 shall, promptly after the receipt
      of
      notice of the commencement of any Claim against such Indemnified Party in
      respect of which indemnity may be sought from the Indemnifying Party under
      this
      Section 4.14, notify the Indemnifying Party in writing of the commencement
      thereof. The omission of any Indemnified Party to so notify the Indemnifying
      Party of any such action shall not relieve the Indemnifying Party from any
      liability which it may have to such Indemnified Party (a) other than
      pursuant to this Section 4.14 or (b) under this Section 4.14 unless, and
      only to the extent that, such omission results in the Indemnifying Party's
      forfeiture of substantive rights or defenses. In case any such Claim shall
      be
      brought against any Indemnified Party, and it shall notify the Indemnifying
      Party of the commencement thereof, the Indemnifying Party shall be entitled
      to
      assume the defense thereof at its own expense, with counsel satisfactory to
      such
      Indemnified Party in its reasonable judgment; provided,
      however,
      that
      any Indemnified Party may, at its own expense, retain separate counsel to
      participate in such defense at its own expense. Notwithstanding the foregoing,
      in any Claim in which both the Indemnifying Party, on the one hand, and an
      Indemnified Party, on the other hand, are, or are reasonably likely to become,
      a
      party, such Indemnified Party shall have the right to employ separate counsel
      and to control its own defense of such Claim if, in the reasonable opinion
      of
      counsel to such Indemnified Party, either (x) one or more defenses are available
      to the Indemnified Party that are not available to the Indemnifying Party or
      (y)
      a conflict or potential conflict exists between the Indemnifying Party, on
      the
      one hand, and such Indemnified Party, on the other hand, that would make such
      separate representation advisable; provided,
      however,
      that
      the Indemnifying Party (i) shall not be liable
      for the fees and expenses of more than one counsel to all Indemnified Parties
      and (ii) shall reimburse the Indemnified Parties for all of such fees and
      expenses of such counsel incurred in any action between the Indemnifying Party
      and the Indemnified Parties or between the Indemnified Parties and any third
      party, as such expenses are incurred. The Indemnifying Party agrees that it
      will
      not, without the prior written consent of the Purchasers, settle, compromise
      or
      consent to the entry of any judgment in any pending or threatened Claim relating
      to the matters contemplated hereby (if any Indemnified
      Party is a party thereto or has been actually threatened to be made a party
      thereto) unless such settlement, compromise or consent includes an unconditional
      release of each Indemnified Party from all liability arising or that may arise
      out of such Claim. The Indemnifying Party shall not be liable for any settlement
      of any Claim effected against an Indemnified Party without the Indemnifying
      Party’s written consent, which consent shall not be unreasonably withheld. The
      rights accorded to an Indemnified Party hereunder shall be in addition to any
      rights that any Indemnified Party may have at common law, by separate agreement
      or otherwise; provided,
      however,
      that
      notwithstanding the foregoing or anything to the contrary contained in this
      Agreement, nothing in this Section 4.14 shall restrict or limit any rights
      that
      any Indemnified Party may have to seek equitable relief.

     

    
      
        
        

      

      
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    ARTICLE
      V.

    MISCELLANEOUS

     

    5.1 Termination.
      This
      Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations
      hereunder only and without any effect whatsoever on the obligations between
      the
      Company and the other Purchasers, or the Company by written notice to the other
      parties, if the Closing has not been consummated on or before January 31, 2007,
      or prior to this date, if Shareholder Approval has not been obtained at the
      Company Shareholder Meeting, provided, however, that no such termination will
      affect the right of any party to sue for any breach by the other party (or
      parties).

     

    5.2 Fees
      and Expenses.
      Except
      as expressly set forth in the Transaction Documents to the contrary, each party
      shall pay the fees and expenses of its advisers, counsel, accountants and other
      experts, if any, and all other expenses incurred by such party incident to
      the
      negotiation, preparation, execution, delivery and performance of this Agreement.
      The Company shall pay all transfer agent fees, stamp taxes and other taxes
      and
      duties levied in connection with the delivery of any Securities to the
      Purchasers and the sale of such Securities.

     

    5.3 Entire
      Agreement.
      The
      Transaction Documents, together with the exhibits and schedules thereto, contain
      the entire understanding of the parties with respect to the subject matter
      hereof and supersede and replace in their entirety all prior and contemporaneous
      agreements, discussions, negotiations and understandings, oral or written,
      with
      respect to such matters, which the parties acknowledge have been merged into
      such documents, exhibits and schedules.

     

    5.4 Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (a) the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile number set forth on the signature
      pages attached hereto prior to 3:00 p.m. (Las Vegas time) on a Business Day,
      (b)
      the next Business Day after the date of transmission, if such notice or
      communication is delivered via facsimile at the facsimile number set forth
      on
      the signature pages attached hereto on a day that is not a Business Day or
      later
      than 3:00 p.m. (Las Vegas time) on any Business Day, (c) the 2nd
      Business
      Day following the date of mailing, if sent by U.S. nationally recognized
      overnight courier service, or (d) upon actual receipt by the party to whom
      such
      notice is required to be given. The address for such notices and communications
      shall be as set forth on the signature pages attached hereto.

     

    5.5 Amendments;
      Waivers.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed, in the case of an amendment, by the Company and the
      Purchasers holding not more than 50% of the Shares then outstanding or, in
      the
      case of a waiver, by the party against whom enforcement of any such waived
      provision is sought. No waiver of any default with respect to any provision,
      condition or requirement of this Agreement shall be deemed to be a continuing
      waiver in the future or a waiver of any subsequent default or a waiver of any
      other provision, condition or requirement hereof, nor shall any delay or
      omission of any party to exercise any right hereunder in any manner impair
      the
      exercise of any such right.

     

    
      
        
        

      

      
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    5.6 Headings.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    5.7 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. Neither the Company nor any Purchaser
      may assign this Agreement or any rights or obligations hereunder without the
      prior written consent of each other party (other than by merger)
      except
      that each Purchaser may assigns its rights and obligations hereunder
to
      Melco,
      the Melco-PBL Joint Venture or any subsidiary of the foregoing.

     

    5.8 No
      Third-Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person.

     

    5.9 Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of the Transaction Documents shall be governed by and construed and enforced
      in
      accordance with the internal laws of the State of New York, without regard
      to
      the principles of conflicts of law thereof. Each party agrees that all legal
      proceedings concerning the interpretations, enforcement and defense of the
      transactions contemplated by this Agreement and any other Transaction Documents
      (whether brought against a party hereto or its respective affiliates, directors,
      officers, shareholders, employees or agents) shall be commenced exclusively
      in
      the state and federal courts sitting in the State of New York. The parties
      hereby waive all rights to a trial by jury. If either party shall commence
      an
      action or proceeding to enforce any provisions of the Transaction Documents,
      then the prevailing party in such action or proceeding shall be reimbursed
      by
      the other party for its reasonable attorneys’ fees and other costs and expenses
      incurred with the investigation, preparation and prosecution of such action
      or
      proceeding.

     

    5.10 Survival.
      The
      representations and warranties contained herein shall survive the Closing and
      the delivery of the Shares and the Warrants and continue in full force and
      effect until the second anniversary of the Closing. The representations,
      warranties, covenants and indemnity obligations contained herein shall in no
      way
      be affected by any investigation of the subject matter thereof made by or on
      behalf of the Purchasers or the Company.
      The
      Company expressly agrees that it may not invoke knowledge of the Purchasers
      (actual, constructive or imputed) of a fact or circumstance that might make
      a
      statement untrue, inaccurate, incomplete or misleading as a defense to a claim
      for breach of the Company’s representations and warranties.

     

    5.11 Execution.
      This
      Agreement may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission or by e-mail delivery of a “.pdf” format data file, such signature
      shall create a valid and binding obligation of the party executing (or on whose
      behalf such signature is executed) with the same force and effect as if such
      facsimile or “.pdf” signature page were an original thereof.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    5.12 Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their commercially reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction. 

     

    5.13 Rescission
      and Withdrawal Right.
      Notwithstanding anything to the contrary contained in (and without limiting
      any
      similar provisions of) any of the other Transaction Documents, whenever any
      Purchaser exercises a right, election, demand or option under a Transaction
      Document and the Company does not timely perform its related obligations within
      the periods therein provided, then such Purchaser may rescind or withdraw,
      in
      its sole discretion from time to time upon written notice to the Company, any
      relevant notice, demand or election in whole or in part without prejudice to
      its
      future actions and rights.

     

    5.14 Replacement
      of Shares.
      If any
      certificate or instrument evidencing any Securities is mutilated, lost, stolen
      or destroyed, the Company shall promptly issue or cause to be issued in exchange
      and substitution for and upon cancellation thereof (in the case of mutilation),
      or in lieu of and substitution therefor, a new certificate or instrument, but
      only upon receipt of evidence reasonably satisfactory to the Company of such
      loss, theft or destruction. The applicant for a new certificate or instrument
      under such circumstances shall also pay any reasonable third-party costs
      (including customary indemnity) associated with the issuance of such replacement
      Shares.

     

    5.15 Independent
      Nature of Purchasers’ Obligations and Rights.
      The
      obligations of each Purchaser under any Transaction Document are several and
      not
      joint with the obligations of any other Purchaser, and no Purchaser shall be
      responsible in any way for the performance or non-performance of the obligations
      of any other Purchaser under any Transaction Document. Nothing contained herein
      or in any other Transaction Document, and no action taken by any Purchaser
      pursuant thereto, shall be deemed to constitute the Purchasers as a partnership,
      an association, a joint venture or any other kind of entity, or create a
      presumption that the Purchasers are in any way acting in concert or as a group
      with respect to such obligations or the transactions contemplated by the
      Transaction Documents. Each Purchaser shall be entitled to independently protect
      and enforce its rights, including without limitation, the rights arising out
      of
      this Agreement or out of the other Transaction Documents, and it shall not
      be
      necessary for any other Purchaser to be joined as an additional party in any
      proceeding for such purpose. Each Purchaser has been represented by its own
      separate legal counsel in their review and negotiation of the Transaction
      Documents. The Company has elected to provide all Purchasers with the same
      terms
      and Transaction Documents for the convenience of the Company and not because
      it
      was required or requested to do so by the Purchasers.

     

    5.16 Construction.
      The
      parties agree that each of them and/or their respective counsel has reviewed
      and
      had an opportunity to revise the Transaction Documents and, therefore, the
      normal rule of construction to the effect that any ambiguities are to be
      resolved against the drafting party shall not be employed in the interpretation
      of the Transaction Documents or any amendments hereto.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    (Signature
      Pages Follow)

     

    
      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
      Agreement to be duly executed by their respective authorized signatories as
      of
      the date first indicated above.

     

    
      	 	 	 	 
	
              VENDINGDATA
                CORPORATION

            	 	 	
              Address
                for Notice:

            
	
               

               

            	 	 	 
	By: 
              /s/ Mark R. Newburg	 	 	
              6830
                Spencer Street

            
	
              
                

              

              Mark
                R. Newburg,

              President
                and Chief Executive Officer

            	 	 	
              Las
                Vegas, NV 89119

              Fax:
                702.733.7197

            

    

     

    As
      to
      Sections 4.11 and 4.13 only

    

      	 	 	 	 
	/s/
              Mark R.
              Newburg	 	 	 
	
              

              MARK
                NEWBURG, an individual

            	 	 	
            

    

       

    
      	 	 	 	 
	/s/
              James
              Crabbe	 	 	 
	
              

              JAMES
                CRABBE, an individual

            	 	 	
            

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGE FOR PURCHASER FOLLOWS]

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    [PURCHASER
      SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT]

    

    IN
      WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    Name
      of
      Purchaser:                        
Elixir
      Group
      Limited                                                                       

     

    Signature
      of Authorized Signatory of Purchaser:         
      /s/
      LeongVan
      Tak                                          
 

     

    Name
      of
      Authorized
      Signatory:                   Leong
      Van
      Tak                                                                              

     

    Title
      of
      Authorized Signatory:
      _____________________________________________________

     

    Email
      Address of
      Purchaser:________________________________________________

     

    Fax
      Number of Purchaser:
      ________________________________________________

     

    Address
      for Notice of Purchaser:

    

    Address
      for Delivery of Shares for Purchaser (if not same as above):

     

    Subscription
      Amount:      US$2,650,000                           

     

    Shares:
      ____One Million _______________________

    

    Warrants:        
      16
      Million                                         
      shares at $________ per share

    

    EIN
      Number: [PROVIDE
      THIS UNDER SEPARATE COVER]

     

    [SIGNATURE
      PAGES CONTINUE]

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of _________, 2006, among VendingData Corporation,
      a
      Nevada corporation (the “Company”),
      and
      the other parties identified on the signature pages hereto (collectively the
      “Selling
      Shareholders”).

     

    RECITALS 

     

    WHEREAS,
      the Company will sell up to 1,000,000 shares of its common stock, par value
      $0.001 per share (“Common
      Stock”),
      and
      warrants to purchase up to 16,000,000 shares of Common Stock (“Warrants”)
      to
      certain Selling Shareholders pursuant to that certain Securities Purchase
      Agreement (“Securities
      Purchase Agreement”)
      dated
      as of October 11, 2006 by and among the Company and the parties thereto.

     

    AGREEMENT 

    

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration, the receipt and adequacy of
      which
      are hereby acknowledged, the Company and the Selling Shareholders agree as
      follows: 

     

    Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      given such terms in the Securities Purchase Agreement. As used in this
      Agreement, the following terms shall have the following
      meanings:

     

    “Adverse
      Disclosure” means public disclosure of material non-public information, which
      disclosure in the good faith judgment of a majority of the Board of Directors
      of
      the Company after consultation with counsel to the Company would have a material
      adverse effect on the ability of the Company to consummate a material
      acquisition, disposition or other comparable extraordinary
      transaction.

    

    “Advice”
shall
      have the meaning set forth in Section 6(d).

     

    “Effectiveness
      Date”
means,
      with respect to the initial Registration Statement required to be filed
      hereunder, the 60h
      calendar
      day following the Closing
      (the
      75h
      calendar
      day in the case of a “full review” by the Commission.

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2.

     

    “Filing
      Date”
means,
      with respect to the initial “Shelf”
      Registration Statement
      required
      hereunder, the 30th
      calendar
      day following the Closing.

     

    “Holder”
or
      “Holders”
means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

     

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 5(c).

     

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section 5(c).

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    “Losses”
shall
      have the meaning set forth in Section 5(a).

     

    “Prospectus”
means
      the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by a Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus.

     

    “Registrable
      Securities”
means
      all of (i) any Warrants Shares, (ii) the shares of Common Stock issued pursuant
      to the Securities Purchase Agreement, and (iii) any shares of Common Stock
      issued or issuable upon any stock split, dividend or other distribution,
      recapitalization or similar transaction with respect to the foregoing; provided,
      however, a security shall no longer be a Registrable Security once it has been
      sold, or may be sold, without volume restrictions pursuant to Rule 144 or
      pursuant to a Registration Statement that has been declared effective under
      the
      Securities Act.

     

    “Registration
      Statement”
means
      the registration statements required to be filed hereunder, including (in each
      case) the Prospectus, amendments and supplements to such registration statement
      or Prospectus, including pre- and post-effective amendments, all exhibits
      thereto, and all material incorporated by reference or deemed to be incorporated
      by reference in such registration statement.

     

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

     

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

     

    “Selling
      Shareholder Questionnaire”
shall
      have the meaning set forth in Section 3(a).

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    Shelf and
      Demand
      Registration.
      

     

    5.17 Demand
      Registration.
      If, on
      or at any time after the Effectiveness Date there is no currently effective
      “Shelf” Registration Statement, then at any time thereafter, upon written notice
      (a “Demand”)
      from a
      Holder or Holders holding at least 50% of the Registrable Securities requesting
      that the Company effect the registration under the Securities Act of any or
      all
      of the Registrable Securities held by such Holder or Holders, which notice
      shall
      specify the intended method or methods of disposition of such Registrable
      Securities, the Company shall, within five (5)
      days
      after receiving the Holder’s or Holders’ Demand, give written notice (the
“Request
      Notice”)
      of
      such registration request to all other Holders, except if all the Registrable
      Securities are held by a single Holder, no Request Notice shall be
      required.
      The
      Request Notice shall offer to each such Holder the opportunity to include in
      such Registration Statement such number of Registrable Securities as such Holder
      may request within ten (10) days after the date of the Request Notice, subject
      to the limitations of this Section 2(a) and to compliance with the other
      provisions of this Agreement. As promptly as possible after such ten (10) day
      period, but no later than the 30th day following receipt of the Demand, the
      Company shall file a Registration Statement with the Commission for purposes
      of
      effecting, in the manner set forth in this Section 2 and Section 3 hereof,
      the
      registration under the Securities Act of all such Registrable Securities for
      disposition in accordance with the intended method or methods of disposition
      stated in the Holder’s or Holders’ request
      and
      shall use its best efforts to cause such Registration Statement to be declared
      effective under the Securities Act as promptly as possible after the filing
      thereof,
      provided that:

     

    if
      the
      filing of a Registration Statement in respect of a Demand would require the
      Company (A) to make an Adverse Disclosure or (B) if the Company has already
      commenced a bona fide
      financing plan through a formal “all hands” meeting or comparable
      action,
      and, in
      the good-
      faith
      business judgment of a majority of the Board of Directors, a
      Demand
      registration at the time and on the terms requested would have
      a
      material adverse effect on the ability of the Company to obtain such financing,
      the Company may, upon giving prompt written notice of such action to the
      Holders, delay the filing of such Registration Statement for the shortest period
      of time determined in good faith by the Company to be necessary for such
      purpose; provided, however that
      the
      Company shall not be permitted
      to do so (A) more than three times during any twenty-four month period, (B)
      for
      a period not exceeding 40 days on any one occasion or (C) for a period exceeding
      60 days in any 12 month period. The Company shall immediately notify the Holders
      of the expiration of any period during which it exercised its rights under
      this
      Section 2(a)(i);

     

    the
      Company shall not be obligated to file a Registration Statement relating to
      a
      registration request pursuant to this Section 2(a): (A) on more than
three
      occasions (it being understood and agreed that the Company shall only be
      responsible for Registration Expenses for the first two occasions), (B) within
      a
      period of one
      (1)
      month
      after the effective date of any other Registration Statement of the Company
      demanded pursuant to this Section 2(a); or (C) if such registration request
      is
      for a number of Registrable Securities that represent in the aggregate (on
      an as
      converted basis) less than one
      third
      of the
      number of Shares originally
      acquired by the Holders;

     

    the
      Company shall be deemed to have effected a Demand registration if (i) the
      applicable Registration Statement is withdrawn at the request of the Purchasers
      after having been filed with the Commission or (ii) the applicable Registration
      Statement is declared effective by the Commission and remains effective for
      not less
      than
      180 days, or, if such Registration Statement relates to an underwritten
      offering, such longer period as, in the opinion of counsel for the underwriter
      or underwriters is required by law for the delivery of a Prospectus in
      connection with the sale of Registrable Securities by an underwriter or
      dealer; a
      Holder
      may elect to withdraw its Registrable Securities from a Demand Registration
      at
      any time. If all such Holders do so, the Company shall cease its efforts to
      secure registration; and Registrations
      pursuant to this Section 2(a) shall be on Form S-3 (except if the Company is
      not
      then eligible to register for resale the Registrable Securities on Form S-3,
      in
      which case such registration shall be on another appropriate form, reasonably
      acceptable to the Holders of a majority of the Registrable Securities, and
      as
      shall permit the disposition of the Registrable Securities in accordance with
      the intended method of distribution or methods of distribution specified in
      the
      applicable Holder’s or Holders’ requests for such registration.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    

    5.18 Shelf
      Registration.
      On
      or
      prior to the Filing Date, the Company shall prepare and file with the Commission
      a “Shelf” Registration Statement covering the resale of the Registrable
      Securities by the Holders thereof from time to time in accordance with the
      methods of distribution elected by such Holders, to be made on a continuous
      basis pursuant to Rule 415. The Shelf Registration Statement shall be on Form
      S-3 (except if the Company is not then eligible to register for resale the
      Registrable Securities on Form S-3, in which case such registration shall be
      on
      another appropriate form in accordance herewith,
      reasonably acceptable to Holders of a majority of the Registrable
      Securities),
      as
      modified by the Company as necessary to conform to comments from the Commission.
      Subject to the terms of this Agreement, the Company shall use its best efforts
      to cause the Registration Statement to be declared effective under the
      Securities Act as promptly as possible after the filing thereof, but in any
      event prior to the applicable Effectiveness Date, and shall use its best efforts
      to keep such Registration Statement continuously effective under the Securities
      Act until all Registrable Securities covered by such Registration Statement
      have
      been sold, or may be sold without volume restrictions pursuant to Rule 144(k),
      as determined by the counsel to the Company pursuant to a written opinion letter
      to such effect, addressed and acceptable to the Company’s transfer agent and the
      affected Holders (the “Effectiveness
      Period”).
      Within two Trading Days after the Registration Statement is declared effective,
      the Company shall (i) file a final Prospectus with the Commission pursuant
      to
      Rule 424 and (ii) notify the Holders via facsimile of effectiveness of the
      Registration Statement.

     

    5.19 If,
      in
      connection with a registration statement pursuant to either Section 2(a) or
      2(b),
      the
      Holders intend to distribute the Registrable Securities by means of an
      underwriting, they shall so advise the Company
      (and the
      Company shall, if necessary amend or supplement the Shelf Registration Statement
      for such purpose).
      The
      underwriter will be selected by a majority in interest (as determined by the
      number of Registrable Securities held) of the Holders after
      consultation with the Company.

     

    Incidental
      Registrations.

     

    Participation.
      (A) If the Company at any time proposes to file a Registration Statement with
      respect to any offering of its securities for its own account or for the account
      of any holders of its securities (other than (1) a registration under Section
      2(a) or 2(b) hereof, (2) a registration on Form S-4 or S-8 or any successor
      form
      to such forms, (3) a registration of securities solely relating to an offering
      and sale to employees or directors of the Company pursuant to any employee
      stock
      plan or other employee benefit plan arrangement or (4) a registration of
      securities for the benefit of the holders pursuant to Section 6(e) of that
      certain registration rights agreement (the “Bric Registration Rights Agreement”)
      dated as of May 1, 2006 among the Company, Bricoleur Partners, L.P., Bricoleur
      Enhanced, L.P., BRIC 6, L.P. and Bricoleur Offshore Ltd. (the “Bricoleur
      Parties”) but only for so long as there is not an effective registration
      statement covering the registrable securities of the Bricoleur Parties, then,
      as
      soon as practicable (but in no event less than 20 days prior to the proposed
      date of filing such Registration Statement), the Company shall give written
      notice of such proposed filing to all Holders of Registrable Securities and
      (unless all such Registrable Securities are then registered pursuant to Section
      2(a) or a Shelf Registration Statement under Section 2(b) is in effect) such
      notice shall offer the Holders of such Registrable Securities the opportunity
      to
      register such number of Registrable Securities as each such Holder may request
      in writing (an “Incidental Registration”). Subject to Section 2(d)(ii), the
      Company shall include in such Registration Statement all such Registrable
      Securities which are requested to be included therein within 10 days after
      the
      receipt by such Holder of any such notice. If at any time after giving written
      notice of its intention to register any securities and prior to the effective
      date of the Registration Statement filed in connection with such registration,
      the Company shall determine for any reason not to register or to delay
      registration of such securities, the Company may, at its election, give written
      notice of such determination to each Holder of Registrable Securities and,
      (x)
      in the case of a determination not to register, shall be relieved of its
      obligation to register any Registrable Securities in connection with such
      registration, and (y) in the case of a determination to delay registering,
      shall
      be permitted to delay registering any Registrable Securities for the same period
      as the delay in registering such other securities. 

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    

    (B) If
      the
      offering pursuant to an Incidental Registraton is to be an underwritten
      offering, then each Holder making a request for its Registrable Securities
      to be
      included therein must, and the Company shall make such arrangements with the
      underwriters so that each such Holder may, participate in such underwritten
      offering on the same terms as the Company and other Persons selling securities
      in such underwritten offering. If the offering pursuant to such registration
      is
      to be on any other basis, then each Holder making a request for an Incidental
      Registration pursuant to this Section 2(d) must participate in such offering
      on
      such basis.

    

    (C) Each
      Holder shall be permitted to withdraw all or part of such Holder’s Registrable
      Securities from an Incidental Registration at any time prior to effectiveness
      of
      the Registration Statement.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    Priority
      of Incidental Registration. If the managing underwriter or underwriters of
      any
      proposed underwritten offering of a class of securities included in an
      Incidental Registration (or in the case of an Incidental Registration not being
      underwritten, the Company) informs the Holders of Registrable Securities sought
      to be included in such registration in writing that, in its or their opinion,
      the total amount or kind of securities which such Holders and any other Persons
      intend to include in such offering exceeds the number which can be sold in
      such
      offering without being likely to have a significant adverse effect on the price,
      timing or distribution of the class or classes of the securities offered or
      the
      market for the class or classes of securities offered, then the securities
      of
      each class to be included in such registration shall be allocated as
      follows:

    

    (A) first,
      100% of the securities that the Company or the Bricoleur Parties (with respect
      to the Bricoleur Parties, subject to the conditions in Section
      2(d)(i)(4));

    

    (B) second,
      and only if all the securities referenced in clause (i) have been included,
      the
      number of Registrable Securities of such class that, in the opinion of such
      underwriter or underwriters (or in the case of an Incidental Registration not
      being underwritten, the Company), can be sold without having such adverse effect
      shall be included therein, with such number to be allocated pro rata among
      the
      Holders which have requested participation in the Incidental Registration
      (based, for each such Holder, on the percentage derived by dividing (x) the
      number of Registrable Securities of such class which such Holder has requested
      to include in such Incidental Registration by (y) the aggregate number of
      Registrable Securities of such class which all such Holders have requested
      to
      include); and

    

    (C) third,
      and only if all of the Registrable Securities referenced in clauses (i) and
      (ii)
      have been included, any other securities eligible for inclusion in such
      registration shall be included therein.

    

    Registration
      Procedures

     

    In
      connection with the Company’s registration obligations under Sections 2(a),
      2(b) and 2(d), the Company shall:

     

    5.20 Not
      less
      than
      five
      Trading
      Days prior to the filing of each Registration Statement and not less than two
      Trading Days prior to the filing of any related amendment or supplement thereto,
      the Company shall, (i) furnish to each Holder copies of all documents to be
      filed, and (ii) cause its officers, directors and counsel to respond to all
      reasonable inquiries from the Holders. Each Holder agrees to furnish to the
      Company a completed Questionnaire in the form attached to this Agreement as
      Annex B (a “Selling
      Shareholder Questionnaire”)
      by the
      end of the fourth Trading Day following the date on which such Holder receives
      the Selling Shareholder Questionnaire and draft materials in accordance with
      this Section.

     

    5.21 (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep the Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period; (ii) cause the related Prospectus to be amended or supplemented by
      any
      required Prospectus supplement (subject to the terms of this Agreement), and
      as
      so supplemented or amended to be filed pursuant to Rule 424; (iii) respond
      as
      promptly as reasonably possible, and in any event within ten Business Days,
      to
      any comments received from the Commission with respect to the Registration
      Statement or any amendment thereto and, as promptly as reasonably possible
      provide the Holders true and complete copies of all correspondence from and
      to
      the Commission relating to such Registration Statement that pertains to the
      Holders as selling shareholders but not any comments that would result in the
      disclosure to the Holders of material and non-public information concerning
      the
      Company; and (iv) comply in all material respects with the provisions of the
      Securities Act and the Exchange Act with respect to a Registration Statement
      and
      the disposition of all Registrable Securities covered by each Registration
      Statement. 

     

    
      
        
        

      

      
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    5.22 Notify
      the Holders of Registrable Securities to be sold (which notice shall, pursuant
      to clauses (ii) through (iv) hereof, be accompanied by an instruction to suspend
      the use of the Prospectus until the requisite changes have been made) as
      promptly as reasonably possible (i) with respect to a Registration Statement
      or
      any post-effective amendment, when the same has become effective; (ii) of the
      issuance by the Commission or any other federal or state governmental authority
      of any stop order suspending the effectiveness of a Registration Statement
      covering any or all of the Registrable Securities; (iii) of the receipt by
      the
      Company of any notification with respect to the suspension of the qualification
      or exemption from qualification of any of the Registrable Securities for sale
      in
      any jurisdiction; or (iv) of the occurrence of any event or passage of time
      that
      makes the financial statements included in a Registration Statement ineligible
      for inclusion therein or any statement made in a Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      a
      Registration Statement, Prospectus or other documents so that, in the case
      of a
      Registration Statement or the Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading. Any
      and all of such information contemplated by subparagraphs (i) through (iv)
      shall
      remain confidential to each Holder until such information otherwise becomes
      public, unless disclosure by a Holder is required by law.

     

    5.23 Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of
      (i) any order suspending the effectiveness of a Registration Statement, or
      (ii)
      any suspension of the qualification (or exemption from qualification) of any
      of
      the Registrable Securities for sale in any jurisdiction, at the earliest
      practicable moment.

     

    5.24 Furnish
      to each Holder, without charge, such
      number
      of each
      such final Prospectus and each final amendment or supplement thereto
      as each
      such Holder may reasonably request,
      promptly
      after the filing of such documents with the Commission, for Holder’s delivery in
      connection with a sale of the Registrable Securities.

     

    
      
        
        

      

      
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    5.25 Subject
      to the terms of this Agreement, the Company hereby consents to the use of each
      Prospectus and each amendment or supplement thereto, provided by the Company
      pursuant to subpart (e) above, by each of the selling Holders in connection
      with
      the offering and sale of the Registrable Securities covered by such Prospectus
      and any amendment or supplement thereto, except after the giving of any notice
      pursuant to Section 3(d).

     

    5.26 If
      NASDR
      Rule 2710 requires any broker-dealer to make a filing prior to executing a
      sale
      by a Holder, the Company shall (i) make an Issuer Filing with the NASDR, Inc.
      Corporate Financing Department pursuant to proposed NASDR Rule
      2710(b)(10)(A)(i), (ii) respond within five Trading Days to any comments
      received from NASDR in connection therewith, and (iii) pay the filing fee
      required in connection therewith.

     

    5.27 promptly
      incorporate in a Prospectus supplement or post-effective amendment to the
      applicable Registration Statement such information as the Holders of a majority
      of the Registrable Securities agree should be included therein relating to
      the
      plan of distribution with respect to such Registrable Securities.

     

    5.28 cooperate
      with each seller of Registrable Securities and their respective counsel in
      connection with any filings required to be made with the NASD.

     

    5.29 provide
      and cause to be maintained a transfer agent and registrar for all Registrable
      Securities covered by the applicable Registration Statement from and after
      a
      date not later than the effective date of such Registration
      Statement.

     

    5.30 cause
      all
      Registrable Securities of a class covered by the applicable Registration
      Statement to be listed on each securities exchange on which any of the Company’s
      securities of such class are then listed or quoted and on each inter-dealer
      quotation system on which any of the Company’s securities of such class are then
      quoted.

     

    5.31 The
      Company covenants that it will file,
      on a
      timely basis,
      the
      reports required to be filed by it under the Securities Act and the Exchange
      Act
      and the rules and regulations adopted by the SEC thereunder (or, if the Company
      is not required to file such reports, it will upon the request of any Holder
      of
      Registrable Securities after the Closing,
      make
      publicly available other information so long as necessary to permit sales
      pursuant to Rule 144 or 144A under the Securities Act, and it will take such
      further action as any Holder of Registrable Securities may reasonably request,
      all to the extent required from time to time to enable such Holder to sell
      Registrable Securities without registration under the Securities Act within
      the
      limitation of the exemptions provided by (i) Rule 144 or 144A or Regulation
      S
      under the Securities Act, as such Rules may be amended from time to time, or
      (ii) any similar rule or regulation hereafter adopted by the
      Commission.

     

    5.32 Prior
      to
      any resale of Registrable Securities by a Holder, use its reasonable best
      efforts to register or qualify or cooperate with the selling Holders in
      connection with the registration or qualification (or exemption from the
      registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep each
      registration or qualification (or exemption therefrom) effective during the
      Effectiveness Period and to do any and all other acts or things reasonably
      necessary or advisable to enable the disposition in such jurisdictions of the
      Registrable Securities covered by each Registration Statement; provided, that
      the Company shall not be required to qualify generally to do business in any
      jurisdiction where it is not then so qualified, subject the Company to any
      material tax in any such jurisdiction where it is not then so subject or file
      a
      general consent to service of process in any such jurisdiction.

     

    
      
        
        

      

      
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    5.33 If
      requested by the Holders, cooperate with the Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to a Registration Statement, which
      certificates shall be free, to the extent permitted by the Securities Act,
      of
      all restrictive legends, and to enable such Registrable Securities to be in
      such
      denominations and registered in such names as any such Holders may request.
      

     

    Upon
      the
      occurrence of any event contemplated by clauses
      (ii) through (iv) of Section
      3(c) hereof, as promptly as reasonably possible under the circumstances taking
      into account the Company’s good faith assessment of any adverse consequences to
      the Company and its stockholders of the premature disclosure of such event,
      prepare a supplement or amendment, including a post-effective amendment, to
      a
      Registration Statement or a supplement to the related Prospectus or any document
      incorporated or deemed to be incorporated therein by reference, and file any
      other required document so that, as thereafter
      delivered, neither the
      Registration Statement nor such Prospectus will contain an untrue statement
      of a
      material fact or omit to state a material fact required to be stated therein
      or
      necessary to make the statements therein, in light of the circumstances under
      which they were made, not misleading. If the Company notifies the Holders in
      accordance with clauses (ii) through (iv) of Section 3(c) above to suspend
      the
      use of any Prospectus until the requisite changes to such Prospectus have been
      made, then the Holders shall suspend use of such Prospectus. The Company will
      use its best efforts to ensure that the use of the Prospectus may be resumed
      as
      promptly as is practicable.

     

    Use
      its
      best efforts to comply with all applicable rules and regulations of the
      Commission.

     

    The
      Company may require each selling Holder to furnish to the Company a certified
      statement as to (i) the number of shares of Common Stock beneficially owned
      by
      such Holder, (ii) the natural persons thereof that have voting and dispositive
      control over the shares of Common Stock, and (iii) any affiliation between
      the
      Holder and either the Company’s independent accountants or any member of the
      NASD.

     

    The
      Company may require each Holder of Registrable Securities as to which any
      registration is being effected to furnish to the Company such information
      regarding the distribution of such Registrable Securities and such other
      information as the Company may from time to time reasonably request. Each Holder
      agrees to furnish such information to the Company and to cooperate with the
      Company as necessary to enable the Company to comply with the provisions of
      this
      Agreement. The
      Company shall have the right to exclude any Holder that does not comply with
      the
      preceding sentence from the applicable registration.

     

    
      
        
        

      

      
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    Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to a Registration Statement. The fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings or listings or
      quotations required
      to be made with any Trading Market on which the Common Stock is then listed
      for
      trading, (B) in compliance with applicable state securities or Blue Sky laws
      reasonably agreed to by the Company in writing (including, without limitation,
      fees and disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities) and (C) if not
      previously paid by the Company in connection with an Issuer Filing, with respect
      to any filing that may be required to be made by any broker through which a
      Holder intends to make sales of Registrable Securities with NASD Regulation,
      Inc. pursuant to the NASD Rule 2710, so long as the broker is receiving no
      more
      than a customary brokerage commission in connection with such sale, (ii)
      printing expenses incurred by the Company (including, without limitation,
      expenses of printing certificates for Registrable Securities, (iii) messenger,
      telephone and delivery expenses incurred by the Company, (iv) fees and
      disbursements of counsel for the Company
      and of
      all independent certified public accountants of the Company,
      (v)
      Securities Act liability insurance incurred by the Company, if the Company
      so
      desires such insurance,
      and
      (vi)
      fees and expenses of all other Persons retained by the Company in connection
      with the consummation of the transactions contemplated by this Agreement. In
      addition, the Company shall be responsible for all of its internal expenses
      incurred in connection with the consummation of the transactions contemplated
      by
      this Agreement (including, without limitation, all salaries and expenses of
      its
      officers and employees performing legal or accounting duties), the expense
      of
      any annual audit and the fees and expenses incurred in connection with the
      listing of the Registrable Securities on any securities exchange as required
      hereunder. In no event shall the Company be responsible for any broker or
      similar commissions of any Holder or, except to the extent provided for in
      the
      Transaction Documents, any legal fees or other costs of the
      Holders.

     

    Indemnification

     

    5.34 Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, members, partners, advisors,
      agents and employees of each of them, each Person who controls any such Person
      (within the meaning of Section 15 of the Securities Act or Section 20 of the
      Exchange Act) and the officers, directors, members, shareholders, partners,
      advisors, agents and employees of each such controlling Person, to the fullest
      extent permitted by applicable law, from and against any and all losses, claims,
      damages, liabilities or actions or proceedings thereof, whether or not such
      indemnified party is a party thereto, costs (including, without limitation,
      reasonable costs of investigation and reasonable attorneys’ fees) and expenses
      (collectively, “Losses”),
      as
      incurred, arising out of or relating to any untrue or alleged untrue statement
      of a material fact contained in a Registration Statement under
      which such Registrable Securities were registered under the Securities
      Act (including
      any final, preliminary or summary Prospectus contained therein) or any amendment
      or supplement thereto or any omission or alleged omission of a material fact
      required to be stated therein or necessary to make the statements therein (in
      the case of any Prospectus or preliminary Prospectus or supplement thereto,
      in
      light of the circumstances under which they were made) not misleading, except
      to
      the extent, but only to the extent that any such Loss is based solely upon
      an
      untrue statement or alleged untrue statement or omission or alleged omission
      made in any such Registration Statement in reliance upon and in conformity
      with
      written information furnished to the Company by such Holder expressly for use
      in
      the preparation thereof. This indemnity shall be in addition to any liability
      the Company may otherwise have. This indemnity shall remain in full force and
      effect regardless of any investigations made by or on behalf of such Holder
      or
      any indemnified party and shall survive the transfer of such securities by
      such
      Holder.

     

    
      
        
        

      

      
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    5.35 Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents, attorneys and employees, each Person
      who controls the Company (within the meaning of Section 15 of the Securities
      Act
      and Section 20 of the Exchange Act), and the directors, officers, agents,
      attorneys or employees of such controlling Persons, to the fullest extent
      permitted by applicable law, from and against all Losses, as incurred, to the
      extent arising out of or based solely upon any untrue or alleged untrue
      statement of a material fact contained in any Registration Statement, any
      Prospectus, or any form of prospectus, or in any amendment or supplement thereto
      or in any preliminary prospectus, or arising out of or relating to any omission
      or alleged omission of a material fact required to be stated therein or
      necessary to make the statements therein not misleading in light of the
      circumstances in which they were made to the extent, but only to the extent,
      that such Loss
      is
      based solely upon an untrue
      statement or omission made
      in
      such Registration Statement in reliance upon and in conformity with
      written
      information furnished to
      the
      Company by such Holder to the Company expressly for use in the preparation
      thereof and was not corrected in a subsequent writing prior to or concurrently
      with the sale of the Registrable Securities to the Person asserting the
      Loss.
      This
      indemnity shall be in addition to any liability such Holder may otherwise have.
      In no event shall the liability of any selling Holder hereunder be greater
      in
      amount than the dollar amount of the net proceeds received by such Holder upon
      the sale of the Registrable Securities giving rise to such indemnification
      obligation.

     

    5.36 Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such
      Indemnified Party shall promptly notify the Person from whom indemnity is sought
      (the “Indemnifying
      Party”)
      in
      writing, and the Indemnifying Party shall have the right to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that such failure shall have materially prejudiced the Indemnifying
      Party.

     

    
      
        
        

      

      
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    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; (2) the Indemnifying
      Party shall have failed to assume the defense of such Proceeding within a
      reasonable time after having received notice of such claim from the person
      entitled to indemnification hereunder and to employ counsel reasonably
      satisfactory to such Indemnified Party in any such Proceeding;
      (3)
      in
      the reasonable judgment of the
      Indemnified Party,
      based
      upon advice of its counsel, a conflict of interest may exist between such
      Person
      and the
      Indemnifying Party
      with
      respect to such claims or (4) the Indemnified Party has reasonably concluded,
      based on the advice of counsel, that there are legal defenses available to
      it
      that are different from or in addition to those available to
      the
      Indemnifying Party, in which case, if such Indemnified Party notifies the
      Indemnifying Party in writing that it elects to employ separate counsel at
      the
      expense of the Indemnifying Party, the Indemnifying Party shall not have the
      right to assume the defense thereof and the reasonable fees and expenses of
      no
      more than one separate counsel shall be at the expense
      of the
      Indemnifying Party. If such defense is not assumed by the Indemnifying Party,
      the Indemnifying Party will not be subject to any liability for any settlement
      made without its consent, but such consent may not be unreasonably withheld;
      provided,
      however,
      that an
      Indemnifying Party shall not be required to consent to any settlement involving
      the imposition of equitable remedies or involving the imposition of any material
      obligations on such Indemnifying Party other than financial obligations for
      which such Indemnified Party will be indemnified hereunder. If the Indemnifying
      Party assumes the defense, the Indemnifying Party shall have the right to settle
      such action without the consent of the Indemnified Party, provided,
      however,
      that
      the Indemnifying Party shall be required to obtain such consent (which consent
      shall not be unreasonably withheld) if the settlement includes any admission
      of
      wrongdoing on the part of the Indemnified Party or any restriction on the
      Indemnified Party or its officers or directors. No
      Indemnifying Party shall consent to entry of any judgment or enter into any
      settlement which does not include as an unconditional term thereof the giving
      by
      the claimant or plaintiff to each Indemnified party of an unconditional release
      from all liability in respect of such claim or litigation.

     

    Subject
      to and without limiting the terms of this Agreement, all reasonable fees and
      expenses of the Indemnified Party under this Section 5 (including reasonable
      fees and expenses incurred in connection with investigating or preparing to
      defend such Proceeding in a manner not inconsistent with this Section) shall
      be
      paid to the Indemnified Party as incurred by such Indemnified Party.

     

    5.37 Contribution.
      If the
      indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified
      Party or insufficient to hold an Indemnified Party harmless for any Losses,
      then
      each Indemnifying Party shall contribute to the amount paid or payable by such
      Indemnified Party, in such proportion as is appropriate to reflect the relative
      fault of the Indemnifying Party and Indemnified Party in connection with the
      actions, statements or omissions that resulted in such Losses as well as any
      other relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged untrue
      statement of a material fact or omission or alleged omission to state a material
      fact, has been taken or made by, or relates to information supplied by, such
      Indemnifying Party or Indemnified Party, and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in this Agreement, any reasonable attorneys’ or other fees or expenses incurred
      by such party in connection with any Proceeding to the extent such party would
      have been indemnified for such fees or expenses if the indemnification provided
      for in this Section was available to such party in accordance with its
      terms.

     

    
      
        
        

      

      
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    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission. No person guilty of fraudulent misrepresentation
      (within the meaning of Section 11(f) of the Securities Act) shall be entitled
      to
      contribution from any Person who was not guilty of such fraudulent
      misrepresentation.

     

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

     

    Miscellaneous

     

    5.38 Remedies.
      It is
      hereby agreed and acknowledged that it will be impossible to measure in money
      the damages that would be suffered if the parties fail to comply with any of
      the
      obligations herein imposed on them and that in the event of any such failure
      an
      aggrieved Person will be irreparably damaged and will not have an adequate
      remedy at law. Any such person shall therefore be entitled (in addition to
      any
      other remedy to which it may be entitled in law or in equity) to injunctive
      relief, including, without limitation, specific performance, to enforce such
      obligations, and if any action should be brought in equity to enforce any of
      the
      provisions of this Agreement, none of the parties hereto shall raise the defense
      that there is an adequate remedy at law.

     

    5.39 No
      Piggyback on Registrations.
      Except
      for
      the
      Bricoleur Parties exercising registration rights previously granted to them
      under the Bric Registration Rights Agreement (and only for so long as there
      is
      not an effective registration statement covering the registrable securities
      of
      the Bricoleur Parties) neither
      the Company nor any of its present or future security holders (other than the
      Holders in such capacity pursuant hereto) may include securities of the Company
      in the initial “Shelf”
      Registration
      Statement other than the Registrable Securities. 

     

    
      
        
        

      

      
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    5.40 Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to a Registration Statement.

     

    5.41 Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of Registrable Securities that, upon receipt
      of
      a notice from the Company of the occurrence of any event of the kind described
      in Section 3(c)(ii) through (iv), such Holder will forthwith discontinue
      disposition of such Registrable Securities under a Registration Statement until
      it is advised in writing (the “Advice”)
      by the
      Company that the use of the applicable Prospectus (as it may have been
      supplemented or amended) may be resumed. The Company will use its best efforts
      to ensure that the use of the Prospectus may be resumed as promptly as it
      practicable. 

     

    Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of at least a majority the then
      outstanding Registrable Securities. Notwithstanding the foregoing, a waiver
      or
      consent to depart from the provisions hereof with respect to a matter that
      relates exclusively to the rights of Holders and that does not directly or
      indirectly affect the rights of other Holders may be given by Holders of all
      of
      the Registrable Securities to which such waiver or consent relates; provided,
      however,
      that
      the provisions of this sentence may not be amended, modified, or supplemented
      except in accordance with the provisions of the immediately preceding
      sentence.

     

    Notices.
      Any
      and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be delivered as set forth in the Securities Purchase
      Agreement.

     

    Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights (except by merger) or obligations
      hereunder without the prior written consent of at least a majority of the
      Holders of the then-outstanding Registrable Securities. Each Holder may assign
      their respective rights hereunder only to a permitted transferee of the
      Registrable Securities who agrees in writing to be bound by the provisions
      of
      this Agreement and where notice of such assignment shall have been provided
      to
      the Company.

     

    No
      Inconsistent Agreements.
      Neither
      the Company nor any of its Subsidiaries has entered, as of the date hereof,
      nor
      shall the Company or any of its Subsidiaries, on or after the date of this
      Agreement, enter into any agreement with respect to its securities, that would
      be inconsistent with the rights granted to the Holders in this Agreement or
      otherwise conflicts with the provisions hereof. 

     

    Execution
      and Counterparts.
      This
      Agreement may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission or by e-mail delivery of a “.pdf” format data file, such signature
      shall create a valid and binding obligation of the party executing (or on whose
      behalf such signature is executed) with the same force and effect as if such
      facsimile or “.pdf” signature page were an original thereof.

     

    
      
        
        

      

      
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    Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each party agrees that all legal
      proceedings concerning the interpretations, enforcement and defense of the
      transactions contemplated by this Agreement (whether brought against a party
      hereto or its respective affiliates, directors, officers, shareholders,
      employees or agents) shall be commenced exclusively in the state and federal
      courts sitting in the State of New York. The parties hereby waive all rights
      to
      a trial by jury. If either party shall commence an action or proceeding to
      enforce any provisions of this Agreement, then the prevailing party in such
      action or proceeding shall be reimbursed by the other party for its reasonable
      attorneys’ fees and other costs and expenses incurred with the investigation,
      preparation and prosecution of such action or proceeding.

     

    Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any other remedies
      provided by law.

     

    Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their commercially reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction. 

     

    Headings.
      The
      headings in this Agreement are for convenience only, do not constitute a part
      of
      this Agreement, and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    Independent
      Nature of Holders’ Obligations and Rights.
      The
      obligations of each Holder hereunder are several and not joint with the
      obligations of any other Holder hereunder, and no Holder shall be responsible
      in
      any way for the performance of the obligations of any other Holder hereunder.
      Nothing contained herein or in any other agreement or document delivered at
      any
      closing, and no action taken by any Holder pursuant hereto or thereto, shall
      be
      deemed to constitute the Holders as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Holders
      are in any way acting in concert with respect to such obligations or the
      transactions contemplated by this Agreement. Each Holder shall be entitled
      to
      protect and enforce its rights, including without limitation the rights arising
      out of this Agreement, and it shall not be necessary for any other Holder to
      be
      joined as an additional party in any proceeding for such purpose.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOLLOW]

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    
      	 	 	 
	 	VENDINGDATA
              CORPORATION 
	 
 	 
 	 
 
	
            	By:  	
            
	 	 	
              

              Mark
                Newburg, 

              President
                and Chief Executive Officer

            
	 	 	 
	 	
              [NAME]

            
	 	 	 
	 	
              By:
                

            	_______________________________________________,
	 	 	 

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Annex
      B

     

    VendingData
      Corporation 

     

    Selling
      Securityholder Notice and Questionnaire

     

    The
      undersigned beneficial owner of common stock, par value $0.001 per share (the
      “Common
      Stock”),
      of
      VendingData Corporation, a Nevada corporation (the “Company”),
      (the
“Registrable
      Securities”)
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission (the “Commission”)
      a
      registration statement on Form S-3 (the “Registration
      Statement”)
      for
      the registration and resale under Rule 415 of the Securities Act of 1933, as
      amended (the “Securities
      Act”),
      of
      the Registrable Securities, in accordance with the terms of the Registration
      Rights Agreement, dated as of __________, 2006 (the “Registration
      Rights Agreement”),
      among
      the Company and the Holders named therein. A copy of the Registration Rights
      Agreement is available from the Company upon request at the address set forth
      below. All capitalized terms not otherwise defined herein shall have the
      meanings ascribed thereto in the Registration Rights Agreement.

     

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus. Accordingly, holders and
      beneficial owners of Registrable Securities are advised to consult their own
      securities law counsel regarding the consequences of being named or not being
      named as a selling securityholder in the Registration Statement and the related
      prospectus.

     

    NOTICE

     

    The
      undersigned beneficial owner (the “Selling
      Securityholder”)
      of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it and listed below in Item 3 (unless otherwise specified under such Item
      3)
      in the Registration Statement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    QUESTIONNAIRE

     

    
      	1.	
              Name.

            

    

     

    
      	 	
              (a)

            	
              Full
                Legal Name of Selling
                Securityholder

            

    

     

    
      	 
	 

    

    

    
      	 	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities Listed in Item 3 below are
                held:

            

    

     

    
      	 
	 

    

    

    
      	 	
              (c)

            	
              Full
                Legal Name of Natural Control Person (which means a natural person
                who
                directly or indirectly alone or with others has power to vote or
                dispose
                of the securities covered by the
                questionnaire):

            

    

     

    
      	 
	 

    

    

     

    
      	2.	
              Address
                for Notices to Selling
                Securityholder:

            

    

     

    
      	 
	 
	 
	
              Telephone:
                _______________________________________________________________________________________

            
	
              Fax:
                _____________________________________________________________________________________________

            
	
              Contact
                Person:
                ____________________________________________________________________________________

            

    

    

    
      	3.	
              Beneficial
                Ownership of Registrable
                Securities:

            

    

     

    
      	 	
              (a)

            	
              Type
                and Number of Registrable Securities beneficially
                owned:

            

    

     

    
      	 

    

    
      	 
	 
	 

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	4.	
              Broker-Dealer
                Status:

            

    

     

    
      	 	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes
o No
o

     

    
      	 	
              (b)

            	
              If
                “yes” to Section 4(a), did you receive your Registrable Securities as
                compensation for investment banking services to the
                Company.

            

    

     

    Yes
o No
o

     

    
      	 	
              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    
      	 	
              (c)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    Yes
o No
o

     

    
      	 	
              (d)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                bought
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            

    

     

    Yes
o No
o

     

    
      	 	
              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    5.
      Beneficial Ownership of Other Securities of the Company Owned by the Selling
      Securityholder.

     

    Except
      as set forth below in this Item 5, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the Registrable
      Securities listed above in Item 3.

     

    
      	 	
              (a)

            	
              Type
                and Amount of Other Securities beneficially owned by the Selling
                Securityholder:

            

    

    
      	 
	 
	 

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	6.	
              Relationships
                with the Company:

            

    

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    State
      any
      exceptions here:

    
      	 
	 
	 

    

     

    
      	7.	
              Relationships
                with the Company’s Independent
                Accountant:

            

    

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company’s independent accountants, Piercy
      Bowler Taylor & Kern, of Las Vegas , Nevada (or its predecessors or
      affiliates) during the past three years.

     

    State
      any
      exceptions here:

    
      	 
	 
	 

    

     

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      at any time while the Registration Statement remains effective.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 7 and the inclusion of such
      information in the Registration Statement and the related prospectus and any
      amendments or supplements thereto. The undersigned understands that such
      information will be relied upon by the Company in connection with the
      preparation or amendment of the Registration Statement and the related
      prospectus.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

    
      	 	 	 
	 	
              Beneficial
                Owner:  

              
                
 

            
	
              Dated: 

              
                

              

            	By:  	
            
	 	
              

              Name:

              Title:

            

    

     

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
      THE ORIGINAL BY OVERNIGHT MAIL, TO:

     

    Daniel
      Donahue, Esq.

    Preston
      Gates Ellis LLP

    1900
      Main
      Street, Suite 600

    Irvine,
      CA 92614

    

    Fax:
      949-253-0902

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6(B)

     

    PIGGYBACK
      REGISTRATIONS

     

    The
      Company intends to include on the initial Registration
      Statement:

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      EXHIBIT
        B

       

      NEITHER
        THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
        HAVE
        BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND ARE “RESTRICTED
        SECURITIES” AS THAT TERM IS DEFINED IN RULE 144 UNDER THE SECURITIES ACT. SUCH
        SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
        EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
        ACT
        AND THE APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM
        REGISTRATION THEREUNDER, AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
        TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
        SATISFACTORY TO THE COMPANY

    

    

    COMMON
      STOCK PURCHASE WARRANT

    

    To
      Purchase ________ Shares of Common Stock of

     

    VENDINGDATA
      CORPORATION

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, _____________ (together with its successors
      or assigns the “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after March 31, 2007 (the
      “Initial
      Exercise Date”)
      and on
      or prior to the close of business on December 31, 2009 (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from VendingData Corporation,
      a
      Nevada corporation (the “Company”),
      up to
      _________ shares (the “Warrant
      Shares”)
      of
      Common Stock, par value $0.001 per share, of the Company (the “Common
      Stock”),
      subject to adjustment as set forth herein. The purchase price of one share
      of
      Common Stock under this Warrant shall be equal to the Exercise Price, as defined
      in Section 3(b). The Initial Exercise Date and the Termination Date may be
      extended as described in this Warrant. 

     

    Section
      1. Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Securities Purchase Agreement (the “Purchase
      Agreement”)
      dated
      October 11, 2006 between the Company and the Holder.

     

    Section
      2. Modification
      of Initial Exercise Date and Termination Date.
      

     

    a) Extension.
      On or
      before January 25, 2007, the Holder may send a written notice to the Company
      requesting that the Initial Exercise Date be delayed until December 31, 2007,
      and that the Termination Date be extended to a date no later than December
      31,
      2010. At any time after January 25, 2007, the Initial Exercise Date and/or
      Termination Date may be delayed or extended only by written agreement between
      the Holder and the Company.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    b) Acceleration.
      If at
      any time after the date hereof [whether
      prior to or following the Initial Exercise Date],
      the
      Company acquires any securities of the Holder this Warrant shall be immediately
      exercisable in full subject to the ability of the Holder to delay such Holder’s
      ability to exercise this Warrant for up to 90 days, on a rolling basis, for
      multiple occasions, by notice to the Company. 

     

    c) [Acceleration/Termination]
      upon Change in Control.
      If at
      any time prior to the date this Warrant first becomes exercisable in accordance
      with its terms, the Company receives a Change of Control Offer from a person
      other than Elixir or one if its Affiliates and such Change of Control Offer
      is
      not withdrawn and is accepted by the Company, then, upon consummation of such
      transaction this Warrant shall automatically [be
      cancelled][become
      exercisable for the kind and amount of securities, cash or other assets which
      the Holder of the Warrant would have owned immediately after such Change of
      Control transaction if the Holder had exercised the Warrant immediately before
      the effective date of such transaction in the manner and subject to the
      provisions set forth in Section 4(f)]
      without
      further action required on the part of any party.

     

    d) Termination
      upon Breach
      If
      Elixir, Melco or Holder breach (unless such breach is due to fault on the part
      of the Company or its Affiliates) any of their material obligations under this
      Warrant or the Purchase Agreement, and the breaching party does not remedy
      such
      breach within ninety (90) days of receiving written notice of the same from
      the
      Company, the Company may, at its option, cancel any portion or all of this
      Warrant that remains unexercised at the end of such 90 day period. Any such
      cancellation of this Warrant shall not affect the agreements of the parties
      under the Transaction Documents with respect to other Warrants, any exercised
      Warrants or the Warrant Shares.

     

    Section
      3. Exercise.

     

    a) Exercise
      of Warrant.
      Subject
      to Section 2(b), exercise of the purchase rights represented by this Warrant
      may
      be made, in whole or in part, at any time or times on or after the Initial
      Exercise Date and on or before the Termination Date by delivery to the Company
      of a duly executed Notice of Exercise Form annexed hereto (or such other office
      or agency of the Company as it may designate by notice in writing to the
      registered Holder at the address of such Holder appearing on the books of the
      Company) and, in the case of an exercise that is not a Cashless Exercise
      pursuant to Section 3(c) hereof, along with payment of the aggregate
      Exercise Price of the shares thereby purchased by wire transfer or cashier’s
      check drawn on a United States bank (such exercise a “Cash
      Exercise”).
      Notwithstanding anything herein to the contrary, the Holder shall not be
      required to physically surrender this Warrant to the Company until the Holder
      has purchased all of the Warrant Shares available hereunder and the Warrant
      has
      been exercised in full, in which case, the Holder shall surrender this Warrant
      to the Company for cancellation within 3 Trading Days of the date the final
      Notice of Exercise is delivered to the Company. Partial exercises of this
      Warrant resulting in purchases of a portion of the total number of Warrant
      Shares available hereunder shall have the effect of lowering the outstanding
      number of Warrant Shares purchasable hereunder in an amount equal to the
      applicable number of Warrant Shares purchased or reduced, as the case may be.
      The Holder and any assignee, by acceptance of this Warrant, acknowledge and
      agree that, by reason of the provisions of this paragraph, following the
      purchase or reduction of a portion of the Warrant Shares hereunder, the number
      of Warrant Shares available for purchase hereunder at any given time may be
      less
      than the amount stated on the face hereof.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    b) Exercise
      Price.
      The
      exercise price per share of the Common Stock under this Warrant shall be
$___,
      subject
      to adjustment herein (the “Exercise
      Price”).

     

    c) Cashless
      Exercise.
      This
      Warrant may also be exercised by means of a “cashless exercise” in which the
      Holder shall be entitled to tender Warrants for cancellation and in return
      receive a certificate for the number of Warrant Shares equal to the quotient
      obtained by dividing [(A-B) (X)] by (A), where:

     

    (A)
      = the
      VWAP on the Trading Day immediately preceding the date of such
      election;

    

    (B)
      = the
      Exercise Price of this Warrant, as adjusted; and 

    

    (X)
      = the
      number of Warrant Shares issuable upon exercise of the Warrants tendered for
      cancellation in accordance with the terms of this Warrant by means of a cash
      exercise rather than a cashless exercise.

    

    “VWAP”
means,
      for any date, the price determined by the first of the following clauses that
      applies: (a) if the Common Stock is then listed or quoted on a Trading Market
      other than the OTC Bulletin Board, the daily volume weighted average price
      of
      the Common Stock for such date (or the nearest preceding date) on the Trading
      Market on which the Common Stock is then listed or quoted for trading as
      reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m.
      (New
      York City time) to 4:02 p.m. (New York City time); (b) if the OTC Bulletin
      Board is the Trading Market, the volume weighted average price of the Common
      Stock for such date (or the nearest preceding date) on the OTC Bulletin Board;
      (c) if the Common Stock is not then quoted for trading on the OTC Bulletin
      Board
      and if prices for the Common Stock are then reported in the “Pink Sheets”
published by Pink Sheets, LLC (or a similar organization or agency succeeding
      to
      its functions of reporting prices), the most recent bid price per share of
      the
      Common Stock so reported; or (d) in all other cases, the fair market value
      of a share of Common Stock as determined by the Board of Directors of the
      Company in good faith.

    

    d) Mechanics
      of Exercise.
      

     

    i. Authorization
      of Warrant Shares.
      The
      Company covenants that all Warrant Shares which may be issued upon the exercise
      of the purchase rights represented by this Warrant will, upon exercise of the
      purchase rights represented by this Warrant, be duly authorized, validly issued,
      fully paid and nonassessable and free and clear of all Liens caused
      by
      the Company (except as resulting from the restrictions on transfer set forth
      in
      the Transaction Documents) but not including the restrictions on resale of
      restricted securities set forth in the Securities Act or any Lien imposed under
      any other U.S. law, rule or regulation.
      

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    ii. Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be promptly transmitted by
      the
      transfer agent of the Company to the Holder subject to the Holder’s delivery to
      the Company of the Notice of Exercise Form, surrender of this Warrant (if
      required) and payment of the aggregate Exercise Price as set forth above, in
      the
      event of a Cash Exercise. 

     

    iii. Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, at the request
      of
      a Holder and upon surrender of this Warrant, at the time of delivery of the
      certificate or certificates representing Warrant Shares, deliver to the Holder
      a
      new Warrant evidencing the rights of the Holder to purchase the unpurchased
      Warrant Shares called for by this Warrant, which new Warrant shall in all other
      respects be identical with this Warrant.

     

    iv. No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share which the Holder
      would otherwise be entitled to purchase upon such exercise, the Company shall
      at
      its election, either pay a cash adjustment in respect of such final fraction
      in
      an amount equal to such fraction multiplied by the VWAP of one Warrant Share
      or
      round up to the next whole share.

     

    v. Charges,
      Taxes and Expenses.
      Issuance and delivery of certificates for Warrant Shares shall be made without
      charge to the Holder for any issue or transfer tax, withholding tax, transfer
      agent fees or other incidental tax or expense in respect of the issuance of
      such
      certificate, all of which taxes and expenses shall be paid by the Company,
      and
      such certificates shall be issued in the name of the Holder or in such name
      or
      names as may be directed by the Holder; provided,
      however,
      that in
      the event certificates for Warrant Shares are to be issued in a name other
      than
      the name of the Holder, this Warrant when surrendered for exercise shall be
      accompanied by the Assignment Form attached hereto duly executed by the Holder;
      and the Company may require, as a condition thereto, the payment of a sum equal
      to the transfer tax incurred by it as a result of such assignment.

     

    vi. Closing
      of Books.
      The
      Company will not close its stockholder books or records in any manner which
      prevents the timely exercise of this Warrant, pursuant to the terms
      hereof.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Section
      4. Certain Adjustments.
      

     

    a) Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding: (A) pays a stock
      dividend or otherwise makes a distribution or distributions on shares of its
      Common Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Company upon exercise of this Warrant),
      (B)
      subdivides or reclassifies outstanding shares of Common Stock into a larger
      number of shares, (C) combines or reclassifies (including by way of reverse
      stock split) outstanding shares of Common Stock into a smaller number of shares,
      (D) makes a distribution on its Common Stock in shares of its capital stock
      other than Common Stock, or (E) issues by reclassification of shares of the
      Common Stock any shares of capital stock of the Company, then in each case
      the
      Exercise Price shall be multiplied by a fraction of which the numerator shall
      be
      the number of shares of Common Stock (excluding treasury shares, if any)
      outstanding immediately before such event and of which the denominator shall
      be
      the number of shares of Common Stock outstanding immediately after such event
      and the number of shares issuable upon exercise of this Warrant shall be
      proportionately adjusted so that the Holder of any Warrant thereafter exercised
      shall be entitled to receive the number of shares of capital stock of the
      Company which such Holder would have owned immediately following such action
      had
      such Warrant been exercised immediately prior thereto. If, after an adjustment,
      a Holder of a Warrant upon exercise of it may receive shares of two or more
      classes of capital stock of the Company, the Company shall determine the
      allocation of the adjusted Exercise Price between the classes of capital stock.
      The adjustment referenced herein shall be made successively whenever any event
      listed above shall occur. Any adjustment made pursuant to clause (A) of this
      Section 4(a) shall become effective immediately after the record date for the
      determination of stockholders entitled to receive such dividend or distribution
      and any adjustment pursuant to clause (B), (C), (D) or (E) shall become
      effective immediately after the effective date in the case of a subdivision,
      combination or re-classification.

     

    b) Subsequent
      Rights Offerings.
      If the
      Company, at any time while the Warrant is outstanding, shall issue rights,
      options or warrants to all holders of Common Stock entitling them to subscribe
      for or purchase shares of Common Stock at a price per share less than the VWAP
      at the record date mentioned below, then the Exercise Price shall be multiplied
      by a fraction, of which the denominator shall be the number of shares of the
      Common Stock outstanding on the date of issuance of such rights or warrants
      plus
      the number of additional shares of Common Stock offered for subscription or
      purchase, and of which the numerator shall be (A) the number of shares of the
      Common Stock outstanding on the date of issuance of such rights or warrants
      plus
      (B) the number of shares which the aggregate offering price of the total number
      of shares so offered (assuming receipt by the Company in full of all
      consideration payable upon exercise of such rights, options or warrants) would
      purchase at such VWAP. Such adjustment shall be made successively whenever
      such
      rights or warrants are issued, and shall become effective immediately after
      the
      record date for the determination of stockholders entitled to receive such
      rights, options or warrants. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    c) Pro
      Rata Distributions.
      If the
      Company, at any time prior to the Termination Date, shall distribute to all
      holders of Common Stock (i) evidences of indebtedness of the Company or any
      of
      its Subsidiaries, (ii) assets of the Company or any of its Subsidiaries
      (including cash and cash dividends) or (iii) rights, options or warrants to
      subscribe for or purchase any of the foregoing or any other security of the
      Company, then in each such case the Exercise Price shall be adjusted by
      multiplying the Exercise Price in effect immediately prior to the record date
      fixed for determination of stockholders entitled to receive such distribution
      by
      a fraction of which the denominator shall be the VWAP determined as of the
      record date mentioned above, and of which the numerator shall be such VWAP
      on
      such record date less the then per share fair market value at such record date
      of the portion of such assets or evidence of indebtedness so distributed
      applicable to one outstanding share of the Common Stock as determined by the
      Board of Directors in good faith. In either case the adjustments shall be
      described in a statement provided to the Holder of the portion of assets or
      evidences of indebtedness so distributed or such subscription rights applicable
      to one share of Common Stock. Such adjustment shall be made successively
      whenever any such distribution is made and shall become effective immediately
      after the record date mentioned above.

     

    d) Adjustment
      for Common Stock Issue.
      If the
      Company issues shares of Common Stock or on or after the date hereof for a
      consideration per share less than the VWAP on the date the Company fixes the
      offering price of such additional shares, the Warrant Shares shall be adjusted
      in accordance with the formula:

     

    W’
=
      W
      x  
      A  

      
   
O
      +
      P

                   
        M

    where:

    

    
      	 	
              W’
                =

            	
              the
                adjusted Warrant Shares

            

    

    

    
      	 	
              W
                =

            	
              the
                Warrant Shares immediately prior to any such
                issuance.

            

    

    

    
      	 	
              O
                =

            	
              the
                number of shares of Common Stock outstanding, on a Fully Diluted
                Basis,
                immediately prior to the issuance of such additional shares of Common
                Stock.

            

    

    

    
      	 	
              P
                =

            	
              the
                aggregate consideration received for the issuance of such additional
                shares of Common Stock.

            

    

    

    
      	 	
              M
                =

            	
              the
                VWAP per share of Common Stock on the date of issuance of such additional
                shares.

            

    

    

    
      	 	
              A
                =

            	
              the
                number of shares of Common Stock outstanding, on a fully diluted
                basis,
                immediately after the issuance of such additional shares of Common
                Stock.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    The
      adjustment shall be made successively whenever any such issuance is made, and
      shall become effective immediately after such issuance.

    

    This
      subsection (d) does not apply to any of the transactions described in subsection
      (a) of this Section 4.

    

    e) Adjustment
      for Convertible Securities Issue.
      If the
      Company issues any options, warrants or other securities convertible into or
      exchangeable or exercisable for Common Stock (other than securities issued
      in
      transactions described in subsection (b) or (c) of this Section 4 and other
      than the Warrant) on or after the date hereof for a consideration per share
      of
      Common Stock initially deliverable upon conversion, exchange or exercise of
      such
      securities less than the VWAP on the date of issuance of such securities, the
      Warrant Shares shall be adjusted in accordance with this formula:

     

    W’
=
      W
      x O
      +
      D

            
      O + P
      

                           
      M

    

    where:

    

    
      	 	
              W’
                =

            	
              the
                adjusted Warrant Shares.

            

    

    

    
      	 	
              W
                =

            	
              the
                Warrant Shares immediately prior to any such
                issuance.

            

    

    

    
      	 	
              O
                =

            	
              the
                number of outstanding immediately, on a fully diluted basis, prior
                to the
                issuance of such securities.

            

    

    

    
      	 	
              P
                =

            	
              the
                aggregate consideration received for the issuance of such
                securities.

            

    

    

    
      	 	
              M
                =

            	
              the
                VWAP per share of Common Stock on the date of issuance of such
                securities.

            

    

    

    
      	 	
              D
                =

            	
              the
                maximum number of shares of Common Stock deliverable upon conversion or in
                exchange for or upon exercise of such securities at the initial
                conversion, exchange or exercise
                rate.

            

    

    

    The
      adjustment shall be made successively whenever any such issuance is made, and
      shall become effective immediately after such issuance.

    

    f) Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation or other business combination with and into another Person,
      (B)
      the Company effects any sale of all or substantially all of its assets in one
      or
      a series of related transactions (C) any tender offer or exchange offer (whether
      by the Company or another Person) is completed pursuant to which holders of
      Common Stock are permitted to tender or exchange their shares for other
      securities, cash or property, or (D) the Company effects any reclassification
      of
      the Common Stock or any compulsory share exchange pursuant to which the Common
      Stock is effectively converted into or exchanged for other securities, cash
      or
      property (in any such case, a “Fundamental
      Transaction”),
      and
      such Fundamental Transaction constitutes a Change of Control then, upon
      consummation of such transaction the Warrant shall automatically [be
      cancelled, without further action required on the part of any party] [become
      exercisable for the kind and amount of securities, cash or other assets which
      the Holder of a Warrant would have owned immediately after the Fundamental
      Transaction if the Holder had exercised the Warrant immediately before the
      effective date of such transaction, without further action required on the
      part
      of any party (the “Alternate
      Consideration”).
      If
      holders of Common Stock are given any choice as to the securities, cash or
      property to be received in a Fundamental Transaction, then the Holder shall
      be
      given the same choice as to the consideration it receives upon any exercise
      of
      this Warrant following such Fundamental Transaction. To the extent necessary
      to
      effectuate the foregoing provisions, any successor to the Company or surviving
      entity in such Fundamental Transaction shall issue to the Holder a new warrant
      consistent with the foregoing provisions and evidencing the Holder’s right to
      exercise such warrant into Alternate Consideration. The terms of any agreement
      pursuant to which a Fundamental Transaction is effected shall include terms
      requiring any such successor or surviving entity to expressly assume, by a
      supplemental warrant agreement or other acknowledgement executed and delivered
      to the Holder, the obligation to deliver to such Holder the Alternate
      Consideration as, in accordance with the foregoing provisions, such Holder
      may
      be entitled to purchase, and all other obligations and liabilities of the
      Company under this Agreement.]

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    g) Calculations.
      All
      calculations under this Section 4 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      4,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

     

    h) Voluntary
      Adjustment by Company.
      The
      Company may at any time during the term of this Warrant reduce the then current
      Exercise Price to any amount and for any period of time deemed appropriate
      by
      the Board of Directors of the Company. A reduction of the Exercise Price shall
      not change or adjust the Exercise Price otherwise in effect for purposes of
      subsections (a), (b), (c), (d) or (e).

     

    i) Notice
      to Holders.
      

     

    i. Adjustment
      to Exercise Price.
      Upon
      any adjustment pursuant to Section 4 hereof, the Company shall promptly
      thereafter cause to be mailed to the Holder a notice setting forth the number
      of
      underlying shares of Common Stock with respect to the Warrant and the Exercise
      Price after such adjustment, and setting forth in reasonable detail the method
      of calculation and the facts upon which such calculations are based.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ii. Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock; (B) the Company shall declare a special nonrecurring
      cash dividend on or a redemption of the Common Stock; (C) the Company shall
      authorize the granting to all holders of the Common Stock rights or warrants
      to
      subscribe for or purchase any shares of capital stock of any class or of any
      rights; (D) the approval of any stockholders of the Company shall be required
      in
      connection with any reclassification of the Common Stock, any consolidation,
      merger or other business combination to which the Company is a party or any
      sale
      or transfer of all or substantially all of the assets of the Company, whereby
      the Common Stock is converted into other securities, cash or property; (E)
      a
      tender offer or exchange offer will be commenced (whether by the Company or
      another person) pursuant to which holders of the Common Stock will be permitted
      to tender or exchange their shares for other securities, cash or property;
      (F)
      the Company shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Company; or (G) the Company
      proposes to take any other action that would require an adjustment of Exercise
      Price pursuant to Section 4; then, in each case, the Company shall cause to
      be mailed to the Holder at its last address as it shall appear upon the Warrant
      Register of the Company, at least 30 calendar days prior to the applicable
      record or effective date hereinafter specified, a notice stating (x) the date
      on
      which a record is to be taken for the purpose of such dividend, distribution,
      redemption, rights or warrants, or if a record is not to be taken, the date
      as
      of which the holders of the Common Stock of record to be entitled to such
      dividend, distribution, redemption, rights or warrants are to be determined,
      (y)
      the date on which such reclassification, consolidation, merger, other business
      combination, sale, transfer dissolution, liquidation or winding up is expected
      to become effective or close or (z) the initial expiration date set forth in
      any
      tender offer or exchange offer for Common Stock, and the date as of which it
      is
      expected that holders of the Common Stock of record shall be entitled to
      exchange their shares of the Common Stock for securities, cash or other property
      deliverable upon such reclassification, consolidation, merger, other business
      combination, sale, transfer or share exchange; provided that the failure to
      mail
      such notice or any defect therein or in the mailing thereof shall not affect
      the
      validity of the corporate action required to be specified in such notice.

     

    j) In
      the
      event of any issuance, sale, grant or distribution by the Company of any capital
      stock of the Company, or any other voting or other security of the Company
      whose
      participation varies with the income or value of the Company (collectively,
      an
“Equity Security”) or any security convertible into or exchangeable for any such
      Equity Security of the Company, or any contract right measured or otherwise
      valued by reference thereto, (i) the Company shall provide written notice
      thereof to the Holder at least 30 days prior to such issuance, sale, grant
      or
      distribution and (ii) the Company shall issue to the Holder, in conjunction
      with
      the proposed transaction, such number of additional Warrants (the “Additional
      Warrants”), if any, to purchase additional shares of Common Stock so that
      following such issuance (and taking into account any adjustments pursuant to
      Section 4 hereof), the Holder will have the same percentage of the equity
      ownership of the Company (on a fully diluted basis) as such Holder had (on
      a
      fully diluted basis) prior to such issuance, sale, grant, or distribution.
      The
      exercise price of the Additional Warrants shall be $3.37. 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    k) The
      Holder will not be entitled to any Additional Warrants pursuant to subsections
      (d), (e) or (j) of this Section 4 in the event of the issuance of Common Stock
      (i) upon the exercise of any employee stock options outstanding on the date
      hereof or upon the exercise of any employee stock options issued after the
      date
      hereof, (ii) upon the exercise of any common stock purchase warrants outstanding
      on the date hereof or (iii) upon the exercise any of the equity put rights,
      outstanding and unexercised as of the date here, pursuant to the terms of that
      certain agreement between the Company and Bricoleur Capital Management dated
      May
      1, 2006.

     

    Section
      5. Transfer
      of Warrant.

     

    a) Transferability.
      Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Section 5(d) hereof, this Warrant and all rights hereunder (including,
      without limitation, any registration rights) are transferable, in whole or
      in
      part, upon surrender of this Warrant at the principal office of the Company
      or
      its designated agent, together with a written assignment of this Warrant
      substantially in the form attached hereto duly executed by the Holder or its
      agent or attorney and funds sufficient to pay any transfer taxes payable upon
      the making of such transfer. Upon such surrender and, if required, such payment,
      the Company shall execute and deliver a new Warrant or Warrants in the name
      of
      the assignee or assignees and in the denomination or denominations specified
      in
      such instrument of assignment, and shall issue to the assignor a new Warrant
      evidencing the portion of this Warrant not so assigned, and this Warrant shall
      promptly be cancelled. A Warrant, if properly assigned, may be exercised by
      a
      new Holder for the purchase of Warrant Shares without having a new Warrant
      issued. Notwithstanding the foregoing, this Warrant may be transferred only
      to
      Melco International Development Limited, a Hong Kong company (“Melco”), the
      joint venture established between Melco and Publishing and Broadcasting Limited,
      an Australian company (“the Melco-PBL Joint Venture”) or to any subsidiary of
      Melco or any member of the Melco-PBL Joint Venture. 

     

    b) New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice.

     

    c) Warrant
      Register.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    d) Transfer
      Restrictions.
      The
      Company may require, as a condition of allowing the transfer of this Warrant
      (i)
      the opinion of counsel to the Holder reasonably satisfactory in the form and
      substance to the Company that such transfer may be made without registration
      under the Securities Act and under applicable state securities or blue sky
      laws
      and (ii) that the holder or transferee execute and deliver to the Company an
      investment letter in form and substance acceptable to the Company and (iii)
      that
      the transferee be an “accredited investor” as defined in Rule 501(a)(1), (a)(2),
      (a)(3), (a)(7), or (a)(8) promulgated under the Securities Act or a “qualified
      institutional buyer” as defined in Rule 144A(a) under the Securities Act.

     

    e) Legend
      Removal.
      The
      Warrant Shares shall bear a restrictive legend substantially in the form of
      the
      legend appearing on the first page of this Warrant until such time as the
      Warrant Shares (A) have been sold pursuant to an effective Registration
      Statement, (B) have been sold pursuant to Rule 144 (or any similar rule or
      regulation), or (C) may be sold pursuant to Rule 144(k) in the opinion of
      counsel to Holder reasonably satisfactory in the form and substance to the
      Company. 

     

    Section
      6. Miscellaneous.

     

    a) No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof as set forth herein.
      

     

    b) Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of indemnity or security reasonably satisfactory to it
      (which, in the case of the Warrant, shall not include the posting of any bond),
      and upon surrender and cancellation of such Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate.

     

    c) Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall not be a Business Day, then such action
      may be taken or such right may be exercised on the next succeeding Business
      Day.

     

    d) Authorized
      Shares.
      

     

    The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. The Company will take all such reasonable action
      as
      may be necessary to assure that such Warrant Shares may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of the Trading Market upon which the Common Stock may be listed.
      

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary action,
      avoid or seek to avoid the observance or performance of any of the terms of
      this
      Warrant, but will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of the Holder as set forth in this Warrant
      against impairment. Without limiting the generality of the foregoing, the
      Company will (a) not increase the par value of any Warrant Shares above the
      amount payable therefor upon such exercise immediately prior to such increase
      in
      par value, (b) take all such action as may be necessary or appropriate in order
      that the Company may validly and legally issue fully paid and nonassessable
      Warrant Shares upon the exercise of this Warrant at the Exercise Price as so
      adjusted, and (c) use commercially reasonable efforts to obtain all such
      authorizations, exemptions or consents from any public regulatory body having
      jurisdiction thereof as may be necessary to enable the Company to perform its
      obligations under this Warrant.

     

    e) Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be determined in accordance with the provisions of the
      Purchase Agreement. Where used in this Agreement, the singular includes the
      plural and vice versa.

     

    f) Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.

     

    g) Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. 

     

    h) Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

    i) Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant to purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Stock or as a stockholder of the Company, whether
      such liability is asserted by the Company or by creditors of the
      Company.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    j) Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive and not to assert the
      defense in any action for specific performance that a remedy at law would be
      adequate.

     

    k) Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by any such Holder
      or
      holder of Warrant Shares and, without limiting the generality of the foregoing
      it is acknowledged and agreed that the term “Holder” shall include the
      successors and permitted assigns of the initial Holder.

     

    l) Amendment.
      This
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and the Holder.

     

    m) Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant.

     

    n) Registration
      Rights.
      This
      Warrant and the Warrant Shares are entitled to the benefits of that certain
      Registration Rights Agreement dated as of even date herewith between the
      Company, Holder and the other signatories thereto (the “Registration
      Rights Agreement”).
      The
      Company shall keep a copy of the Registration Rights Agreement, and any
      amendments thereto, at its principal office, and shall furnish copies thereof
      to
      the Holder upon request. The parties hereto acknowledge and agree that a holder
      of Warrant Shares issued upon the exercise of this Warrant, in whole or in
      part,
      shall continue to be entitled with respect to such shares to all rights to
      which
      it would have been entitled as a “Holder” under the Registration Rights
      Agreement.

     

    o) Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.

     

    

    ********************

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized.

     

    
      	 	 	 
	 	
              VENDINGDATA
                CORPORATION

            
	 
 	 
 	 
 
	
              Dated:
                ______________, 2006

            	By:  	
            
	 	
              

              Mark
                R. Newburg,

              President
                and Chief Executive Officer

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
        10.3

    

     

    NOTICE
      OF EXERCISE

    

    TO: VENDINGDATA
      CORPORATION

    

    (1) The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full [if
      this Notice of Exercise concerns a Cash Exercise] [transfer taxes for account
      of
      Company per Section 3(d)(v), if applicable.]

     

    (2) Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

     

    _______________________________

    

    The
      Warrant Shares shall be delivered to the following DWAC Account Number or by
      physical delivery of a certificate to:

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (3)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    

    [SIGNATURE
      OF HOLDER]

     

    Name
      of
      Investing Entity:
      ________________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      __________________________________________________

    Name
      of
      Authorized Signatory:
      ____________________________________________________________________

    Title
      of
      Authorized Signatory:
      _____________________________________________________________________

    Date:________________________________________________________________________________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      Exhibit
        10.3

    

     

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing Warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the Warrant.)

    

    

    

    FOR
      VALUE
      RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
      rights evidenced thereby are hereby assigned to

     

    

    _______________________________________________
      whose address is

     

    _______________________________________________________________.

     

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    Holder’s
      Signature: _____________________________

    

    Holder’s
      Address: _____________________________

     

     
      _____________________________

    

    Signature
      Guaranteed: ___________________________________________

     

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.Unassociated Document

    
 

    
      

      
ACE
      SECURITIES CORP.

    Depositor

     

    WELLS
      FARGO BANK, N.A.

    Master
      Servicer and Securities Administrator

    

    HSBC
      BANK
      USA, NATIONAL ASSOCIATION

    Trustee

    

    POOLING
      AND SERVICING AGREEMENT

    Dated
      as
      of July 1, 2006

     

    ACE
      Securities Corp. Home Equity Loan Trust, Series 2006-CW1

    Asset
      Backed Pass-Through Certificates

     

    
      

      

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    TABLE
      OF
      CONTENTS

    
      	
              ARTICLE
                I

            	 	
              DEFINITIONS

            	 	
              9

            
	
              SECTION
                1.01.

            	 	
              Defined
                Terms.

            	 	
              9

            
	
              SECTION
                1.02.

            	 	
              Allocation
                of Certain Interest Shortfalls.

            	 	
              83

            
	
              ARTICLE
                II

            	 	
              CONVEYANCE
                OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

            	 	
              86

            
	
              SECTION
                2.01.

            	 	
              Conveyance
                of the Mortgage Loans.

            	 	
              86

            
	
              SECTION
                2.02.

            	 	
              Acceptance
                of REMIC I by Trustee.

            	 	
              87

            
	
              SECTION
                2.03.

            	 	
              Repurchase
                or Substitution of Mortgage Loans.

            	 	
              87

            
	
              SECTION
                2.04.

            	 	
              Representations
                and Warranties of the Master Servicer.

            	 	
              90

            
	
              SECTION
                2.05.

            	 	
              [Reserved]

            	 	
              92

            
	
              SECTION
                2.06.

            	 	
              Issuance
                of the REMIC I Regular Interests and the Class R-I
                Interest.

            	 	
              92

            
	
              SECTION
                2.07.

            	 	
              Conveyance
                of the REMIC I Regular Interests; Acceptance of REMIC II and REMIC
                III by
                the Trustee.

            	 	
              92

            
	
              SECTION
                2.08.

            	 	
              Issuance
                of the Residual Certificates.

            	 	
              92

            
	
              SECTION
                2.09.

            	 	
              Establishment
                of the Trust.

            	 	
              93

            
	
              SECTION
                2.10.

            	 	
              Purpose
                and Powers of the Trust.

            	 	
              93

            
	
              SECTION
                2.11.

            	 	
              Representations
                and Warranties of the Trustee.

            	 	
              93

            
	
              ARTICLE
                III

            	 	
              ADMINISTRATION
                OF THE MORTGAGE LOANS; ACCOUNTS

            	 	
              94

            
	
              SECTION
                3.01.

            	 	
              The
                Distribution Account.

            	 	
              94

            
	
              SECTION
                3.02.

            	 	
              Withdrawals
                from the Distribution Account.

            	 	
              94

            
	
              SECTION
                3.03.

            	 	
              Investment
                of Funds in the Investment Accounts.

            	 	
              95

            
	
              SECTION
                3.04.

            	 	
              Trustee
                to Cooperate; Release of Mortgage Files.

            	 	
              96

            
	
              SECTION
                3.05.

            	 	
              Reserve
                Fund.

            	 	
              97

            
	
              ARTICLE
                IV

            	 	
              ADMINISTRATION
                AND MASTER SERVICING OF THE MORTGAGE LOANS BY THE MASTER
                SERVICER

            	 	
              100

            
	
              SECTION
                4.01.

            	 	
              Master
                Servicer.

            	 	
              100

            
	
              SECTION
                4.02.

            	 	
              REMIC-Related
                Covenants.

            	 	
              101

            
	
              SECTION
                4.03.

            	 	
              Monitoring
                of Servicer.

            	 	
              101

            
	
              SECTION
                4.04.

            	 	
              Fidelity
                Bond.

            	 	
              102

            
	
              SECTION
                4.05.

            	 	
              Power
                to Act; Procedures.

            	 	
              102

            
	
              SECTION
                4.06.

            	 	
              Due-on-Sale
                Clauses; Assumption Agreements.

            	 	
              103

            
	
              SECTION
                4.07.

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

            	 	
              103

            
	
              SECTION
                4.08.

            	 	
              Standard
                Hazard Insurance and Flood Insurance Policies.

            	 	
              103

            
	
              SECTION
                4.09.

            	 	
              Presentment
                of Claims and Collection of Proceeds.

            	 	
              103

            
	
              SECTION
                4.10.

            	 	
              Maintenance
                of Primary Mortgage Insurance Policies.

            	 	
              104

            
	
              SECTION
                4.11.

            	 	
              Trustee
                to Retain Possession of Certain Insurance Policies and
                Documents.

            	 	
              104

            
	
              SECTION
                4.12.

            	 	
              Realization
                Upon Defaulted Mortgage Loans.

            	 	
              104

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                4.13.

            	 	
              Compensation
                for the Master Servicer.

            	 	
              104

            
	
              SECTION
                4.14.

            	 	
              REO
                Property.

            	 	
              105

            
	
              SECTION
                4.15.

            	 	
              Master
                Servicer Annual Statement of Compliance.

            	 	
              105

            
	
              SECTION
                4.16.

            	 	
              Master
                Servicer Assessments of Compliance.

            	 	
              106

            
	
              SECTION
                4.17.

            	 	
              Master
                Servicer Attestation Reports.

            	 	
              108

            
	
              SECTION
                4.18.

            	 	
              Annual
                Certification.

            	 	
              109

            
	
              SECTION
                4.19.

            	 	
              Obligation
                of the Master Servicer in Respect of Prepayment Interest
                Shortfalls.

            	 	
              109

            
	
              ARTICLE
                V

            	 	
              PAYMENTS
                TO CERTIFICATEHOLDERS

            	 	
              110

            
	
              SECTION
                5.01.

            	 	
              Distributions.

            	 	
              110

            
	
              SECTION
                5.02.

            	 	
              Statements
                to Certificateholders.

            	 	
              124

            
	
              SECTION
                5.03.

            	 	
              Servicing
                Reports; P&I Advances.

            	 	
              128

            
	
              SECTION
                5.04.

            	 	
              Allocation
                of Realized Losses.

            	 	
              128

            
	
              SECTION
                5.05.

            	 	
              Compliance
                with Withholding Requirements.

            	 	
              131

            
	
              SECTION
                5.06.

            	 	
              Reports
                Filed with Securities and Exchange Commission.

            	 	
              131

            
	
              SECTION
                5.07.

            	 	
              Supplemental
                Interest Trust.

            	 	
              136

            
	
              SECTION
                5.08.

            	 	
              Tax
                Treatment of Swap Payments and Swap Termination Payments.

            	 	
              138

            
	
              ARTICLE
                VI

            	 	
              THE
                CERTIFICATES

            	 	
              140

            
	
              SECTION
                6.01.

            	 	
              The
                Certificates.

            	 	
              140

            
	
              SECTION
                6.02.

            	 	
              Registration
                of Transfer and Exchange of Certificates.

            	 	
              142

            
	
              SECTION
                6.03.

            	 	
              Mutilated,
                Destroyed, Lost or Stolen Certificates.

            	 	
              148

            
	
              SECTION
                6.04.

            	 	
              Persons
                Deemed Owners.

            	 	
              148

            
	
              SECTION
                6.05.

            	 	
              Certain
                Available Information.

            	 	
              148

            
	
              ARTICLE
                VII

            	 	
              THE
                DEPOSITOR AND THE MASTER SERVICER

            	 	
              149

            
	
              SECTION
                7.01.

            	 	
              Liability
                of the Depositor and the Master Servicer.

            	 	
              149

            
	
              SECTION
                7.02.

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

            	 	
              149

            
	
              SECTION
                7.03.

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

            	 	
              149

            
	
              SECTION
                7.04.

            	 	
              Reserved.

            	 	
              150

            
	
              SECTION
                7.05.

            	 	
              Limitation
                on Resignation of the Master Servicer.

            	 	
              150

            
	
              SECTION
                7.06.

            	 	
              Assignment
                of Master Servicing.

            	 	
              151

            
	
              SECTION
                7.07.

            	 	
              Rights
                of the Depositor in Respect of the Master Servicer.

            	 	
              151

            
	
              SECTION
                7.08.

            	 	
              Duties
                of the Credit Risk Manager.

            	 	
              152

            
	
              SECTION
                7.09.

            	 	
              Limitation
                Upon Liability of the Credit Risk Manager.

            	 	
              152

            
	
              SECTION
                7.10.

            	 	
              Removal
                of the Credit Risk Manager.

            	 	
              153

            
	
              ARTICLE
                VIII

            	 	
              DEFAULT

            	 	
              154

            
	
              SECTION
                8.01.

            	 	
              Servicer
                Events of Default.

            	 	
              154

            
	
              SECTION
                8.02.

            	 	
              Master
                Servicer to Act; Appointment of Successor.

            	 	
              157

            
	
              SECTION
                8.03.

            	 	
              Notification
                to Certificateholders.

            	 	
              159

            
	
              SECTION
                8.04.

            	 	
              Waiver
                of Servicer Events of Default.

            	 	
              159

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              ARTICLE
                IX

            	 	
              CONCERNING
                THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

            	 	
              160

            
	
              SECTION
                9.01.

            	 	
              Duties
                of Trustee and Securities Administrator.

            	 	
              160

            
	
              SECTION
                9.02.

            	 	
              Certain
                Matters Affecting Trustee and Securities Administrator.

            	 	
              161

            
	
              SECTION
                9.03.

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

            	 	
              164

            
	
              SECTION
                9.04.

            	 	
              Trustee
                and Securities Administrator May Own Certificates.

            	 	
              164

            
	
              SECTION
                9.05.

            	 	
              Fees
                and Expenses of Trustee, Custodian and Securities
                Administrator.

            	 	
              164

            
	
              SECTION
                9.06.

            	 	
              Eligibility
                Requirements for Trustee and Securities Administrator.

            	 	
              165

            
	
              SECTION
                9.07.

            	 	
              Resignation
                and Removal of Trustee and Securities Administrator.

            	 	
              166

            
	
              SECTION
                9.08.

            	 	
              Successor
                Trustee or Securities Administrator.

            	 	
              167

            
	
              SECTION
                9.09.

            	 	
              Merger
                or Consolidation of Trustee or Securities Administrator.

            	 	
              167

            
	
              SECTION
                9.10.

            	 	
              Appointment
                of Co-Trustee or Separate Trustee.

            	 	
              168

            
	
              SECTION
                9.11.

            	 	
              Appointment
                of Office or Agency.

            	 	
              169

            
	
              SECTION
                9.12.

            	 	
              Representations
                and Warranties.

            	 	
              169

            
	
              ARTICLE
                X

            	 	
              TERMINATION

            	 	
              171

            
	
              SECTION
                10.01.

            	 	
              Termination
                Upon Repurchase or Liquidation of All Mortgage Loans.

            	 	
              171

            
	
              SECTION
                10.02.

            	 	
              Additional
                Termination Requirements.

            	 	
              173

            
	
              ARTICLE
                XI

            	 	
              REMIC
                PROVISIONS

            	 	
              175

            
	
              SECTION
                11.01.

            	 	
              REMIC
                Administration.

            	 	
              175

            
	
              SECTION
                11.02.

            	 	
              Prohibited
                Transactions and Activities.

            	 	
              177

            
	
              SECTION
                11.03.

            	 	
              Indemnification.

            	 	
              178

            
	
              ARTICLE
                XII

            	 	
              MISCELLANEOUS
                PROVISIONS

            	 	
              179

            
	
              SECTION
                12.01.

            	 	
              Amendment.

            	 	
              179

            
	
              SECTION
                12.02.

            	 	
              Recordation
                of Agreement; Counterparts.

            	 	
              180

            
	
              SECTION
                12.03.

            	 	
              Limitation
                on Rights of Certificateholders.

            	 	
              180

            
	
              SECTION
                12.04.

            	 	
              Governing
                Law.

            	 	
              181

            
	
              SECTION
                12.05.

            	 	
              Notices.

            	 	
              181

            
	
              SECTION
                12.06.

            	 	
              Severability
                of Provisions.

            	 	
              182

            
	
              SECTION
                12.07.

            	 	
              Notice
                to Rating Agencies.

            	 	
              182

            
	
              SECTION
                12.08.

            	 	
              Article
                and Section References.

            	 	
              183

            
	
              SECTION
                12.09.

            	 	
              Grant
                of Security Interest.

            	 	
              183

            
	
              SECTION
                12.10.

            	 	
              Survival
                of Indemnification.

            	 	
              184

            
	
              SECTION
                12.11.

            	 	
              Intention
                of the Parties and Interpretation.

            	 	
              184

            
	
              SECTION
                12.12.

            	 	
              Indemnification.

            	 	
              184

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    
       

      Exhibits

    

    

      
        	
                Exhibit
                  A-1

              	 	
                Form
                  of Class A Certificate

              
	
                Exhibit
                  A-2

              	 	
                Form
                  of Class M-[1][2][3][4][5][6][7][8][9] Certificate

              
	
                Exhibit
                  A-4

              	 	
                Form
                  of Class M-[10][11]

              
	
                Exhibit
                  A-5

              	 	
                Form
                  of Class CE Certificate

              
	
                Exhibit
                  A-6

              	 	
                Form
                  of Class P Certificate

              
	
                Exhibit
                  A-7

              	 	
                Form
                  of Class R Certificate

              
	
                Exhibit
                  B-1

              	 	
                Form
                  of Transferor Representation Letter and Form of Transferee Representation
                  Letter in Connection with Transfer of the Class P Certificates,
                  Class CE
                  Certificates and Residual Certificates Pursuant to Rule 144A Under
                  the
                  Securities Act

              
	
                Exhibit
                  B-2

              	 	
                Form
                  of Transferor Representation Letter and Form of Transferee Representation
                  Letter in Connection with Transfer of the Class P Certificates,
                  Class CE
                  Certificates and Residual Certificates Pursuant to Rule 501(a)
                  Under the
                  Securities Act

              
	
                Exhibit
                  B-3

              	 	
                Form
                  of Transfer Affidavit and Agreement and Form of Transferor Affidavit
                  in
                  Connection with Transfer of Residual Certificates

              
	
                Exhibit
                  C

              	 	
                Reserved

              
	
                Exhibit
                  D

              	 	
                Form
                  of Power of Attorney

              
	
                Exhibit
                  E

              	 	
                Servicing
                  Criteria

              
	
                Exhibit
                  F

              	 	
                Mortgage
                  Loan Purchase Agreement

              
	
                Exhibit
                  G

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

              
	
                Exhibit
                  H

              	 	
                Additional
                  Disclosure Notification

              
	
                Exhibit
                  I

              	 	
                Swap
                  Agreement

              
	
                Exhibit
                  J

              	 	
                Cap
                  Contracts

              
	
                Exhibit
                  K

              	 	
                Assignment,
                  Assumption and Recognition Agreement

              
	
                Schedule
                  1

              	 	
                Mortgage
                  Loan Schedule

              
	
                Schedule
                  2

              	 	
                Prepayment
                  Charge Schedule

              
	
                Schedule
                  3

              	 	
                Reserved

              
	
                Schedule
                  4

              	 	
                Reserved

              
	
                Schedule
                  5

              	 	
                Standard
                  File Layout - Master Servicing

              
	
                Schedule
                  6

              	 	
                Data
                  Requirements of Servicing Advances Incurred Prior to Cut-off
                  Date

              

      

    

     

    
      
        
        

      

      
        iv

        
          

        

      

       

    

    This
      Pooling and Servicing Agreement, is dated and effective as of July 1, 2006,
      among ACE SECURITIES CORP., as Depositor, WELLS FARGO BANK, N.A., Master
      Servicer and Securities Administrator and HSBC BANK USA, NATIONAL ASSOCIATION,
      as Trustee.

     

    PRELIMINARY
      STATEMENT:

     

    The
      Depositor intends to sell pass-through certificates to be issued hereunder
      in
      multiple classes, which in the aggregate will evidence the entire beneficial
      ownership interest of the Trust Fund created hereunder. The Trust Fund will
      consist of a segregated pool of assets comprised of the Mortgage Loans and
      certain other related assets subject to this Agreement.

     

    REMIC
      I

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the Mortgage Loans and certain other related assets
      subject to this Agreement (other than the Reserve Fund and, for the avoidance
      of
      doubt, the Supplemental Interest Trust, the Cap Contracts and the Swap
      Agreement) as a REMIC for federal income tax purposes, and such segregated
      pool
      of assets will be designated as “REMIC I”. The Class R-I Interest will be the
      sole class of “residual interests” in REMIC I for purposes of the REMIC
      Provisions (as defined herein). The following table irrevocably sets forth
      the
      designation, the REMIC I Remittance Rate, the initial Uncertificated Balance
      and, for purposes of satisfying Treasury regulation
      Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for each
      of the REMIC I Regular Interests (as defined herein). None of the REMIC I
      Regular Interests will be certificated.

     

    
      	
              Designation

            	 	
              REMIC
                I

              Remittance
                Rate

            	 	
              Initial

              Uncertificated
                Balance

            	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 
	
              I

            	 	
              Variable(2)

            	 	$	
               54,921,839.07
                

            	 	
              July
                25, 2036

            	 
	
              I-1-A

            	 	
              Variable(2)

            	 	$	
              6,368,257.95
                

            	 	
              July
                25, 2036

            	 
	
              I-1-B

            	 	
              Variable(2)

            	 	$	
              6,368,257.95
                

            	 	
              July
                25, 2036

            	 
	
              I-2-A

            	 	
              Variable(2)

            	 	$	
              6,806,422.93
                

            	 	
              July
                25, 2036

            	 
	
              I-2-B

            	 	
              Variable(2)

            	 	$	
              6,806,422.93
                

            	 	
              July
                25, 2036

            	 
	
              I-3-A

            	 	
              Variable(2)

            	 	$	
              7,192,172.59
                

            	 	
              July
                25, 2036

            	 
	
              I-3-B

            	 	
              Variable(2)

            	 	$	
              7,192,172.59
                

            	 	
              July
                25, 2036

            	 
	
              I-4-A

            	 	
              Variable(2)

            	 	$	
              6,904,250.02
                

            	 	
              July
                25, 2036

            	 
	
              I-4-B

            	 	
              Variable(2)

            	 	$	
              6,904,250.02
                

            	 	
              July
                25, 2036

            	 
	
              I-5-A

            	 	
              Variable(2)

            	 	$	
              6,626,660.43
                

            	 	
              July
                25, 2036

            	 
	
              I-5-B

            	 	
              Variable(2)

            	 	$	
              6,626,660.43
                

            	 	
              July
                25, 2036

            	 
	
              I-6-A

            	 	
              Variable(2)

            	 	$	
              6,360,259.05
                

            	 	
              July
                25, 2036

            	 
	
              I-6-B

            	 	
              Variable(2)

            	 	$	
              6,360,259.05
                

            	 	
              July
                25, 2036

            	 
	
              I-7-A

            	 	
              Variable(2)

            	 	$	
              6,104,670.28
                

            	 	
              July
                25, 2036

            	 
	
              I-7-B

            	 	
              Variable(2)

            	 	$	
              6,104,670.28
                

            	 	
              July
                25, 2036

            	 
	
              I-8-A

            	 	
              Variable(2)

            	 	$	
              5,859,413.71
                

            	 	
              July
                25, 2036

            	 
	
              I-8-B

            	 	
              Variable(2)

            	 	$	
              5,859,413.71
                

            	 	
              July
                25, 2036

            	 
	
              I-9-A

            	 	
              Variable(2)

            	 	$	
              5,624,029.05
                

            	 	
              July
                25, 2036

            	 
	
              I-9-B

            	 	
              Variable(2)

            	 	$	
              5,624,029.05
                

            	 	
              July
                25, 2036

            	 
	
              I-10-A

            	 	
              Variable(2)

            	 	$	
              5,398,197.17
                

            	 	
              July
                25, 2036

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Designation

            	 	
              REMIC
                I

              Remittance
                Rate

            	 	
              Initial

              Uncertificated
                Balance

            	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 

    

    
      	
              I-10-B

            	 	
              Variable(2)

            	 	$	
              5,398,197.17
                

            	 	
              July
                25, 2036

            	 
	
              I-11-A

            	 	
              Variable(2)

            	 	$	
              5,181,487.85
                

            	 	
              July
                25, 2036

            	 
	
              I-11-B

            	 	
              Variable(2)

            	 	$	
              5,181,487.85
                

            	 	
              July
                25, 2036

            	 
	
              I-12-A

            	 	
              Variable(2)

            	 	$ 	
              4,987,659.12
                

            	 	
              July
                25, 2036

            	 
	
              I-12-B

            	 	
              Variable(2)

            	 	$	
              4,987,659.12
                

            	 	
              July
                25, 2036

            	 
	
              I-13-A

            	 	
              Variable(2)

            	 	$	
              4,816,681.74
                

            	 	
              July
                25, 2036

            	 
	
              I-13-B

            	 	
              Variable(2)

            	 	$	
              4,816,681.74
                

            	 	
              July
                25, 2036

            	 
	
              I-14-A

            	 	
              Variable(2)

            	 	$	
              4,885,615.52
                

            	 	
              July
                25, 2036

            	 
	
              I-14-B

            	 	
              Variable(2)

            	 	$	
              4,885,615.52
                

            	 	
              July
                25, 2036

            	 
	
              I-15-A

            	 	
              Variable(2)

            	 	$	
              13,187,780.27
                

            	 	
              July
                25, 2036

            	 
	
              I-15-B

            	 	
              Variable(2)

            	 	$	
              13,187,780.27
                

            	 	
              July
                25, 2036

            	 
	
              I-16-A

            	 	
              Variable(2)

            	 	$	
              11,100,837.98
                

            	 	
              July
                25, 2036

            	 
	
              I-16-B

            	 	
              Variable(2)

            	 	$	
              11,100,837.98
                

            	 	
              July
                25, 2036

            	 
	
              I-17-A

            	 	
              Variable(2)

            	 	$	
              9,351,874.94
                

            	 	
              July
                25, 2036

            	 
	
              I-17-B

            	 	
              Variable(2)

            	 	$	
              9,351,874.94
                

            	 	
              July
                25, 2036

            	 
	
              I-18-A

            	 	
              Variable(2)

            	 	$	
              7,796,967.75
                

            	 	
              July
                25, 2036

            	 
	
              I-18-B

            	 	
              Variable(2)

            	 	$	
              7,796,967.75
                

            	 	
              July
                25, 2036

            	 
	
              I-19-A

            	 	
              Variable(2)

            	 	$ 	
              2,854,713.85
                

            	 	
              July
                25, 2036

            	 
	
              I-19-B

            	 	
              Variable(2)

            	 	$ 	
              2,854,713.85
                

            	 	
              July
                25, 2036

            	 
	
              I-20-A

            	 	
              Variable(2)

            	 	$	
              2,726,121.75
                

            	 	
              July
                25, 2036

            	 
	
              I-20-B

            	 	
              Variable(2)

            	 	$	
              2,726,121.75
                

            	 	
              July
                25, 2036

            	 
	
              I-21-A

            	 	
              Variable(2)

            	 	$ 	
              2,609,640.50
                

            	 	
              July
                25, 2036

            	 
	
              I-21-B

            	 	
              Variable(2)

            	 	$ 	
              2,609,640.50
                

            	 	
              July
                25, 2036

            	 
	
              I-22-A

            	 	
              Variable(2)

            	 	$	
              2,497,303.90
                

            	 	
              July
                25, 2036

            	 
	
              I-22-B

            	 	
              Variable(2)

            	 	$	
              2,497,303.90
                

            	 	
              July
                25, 2036

            	 
	
              I-23-A

            	 	
              Variable(2)

            	 	$	
              2,391,519.74
                

            	 	
              July
                25, 2036

            	 
	
              I-23-B

            	 	
              Variable(2)

            	 	$	
              2,391,519.74
                

            	 	
              July
                25, 2036

            	 
	
              I-24-A

            	 	
              Variable(2)

            	 	$	
              2,290,317.77
                

            	 	
              July
                25, 2036

            	 
	
              I-24-B

            	 	
              Variable(2)

            	 	$ 	
              2,290,317.77
                

            	 	
              July
                25, 2036

            	 
	
              I-25-A

            	 	
              Variable(2)

            	 	$	
              2,193,510.57
                

            	 	
              July
                25, 2036

            	 
	
              I-25-B

            	 	
              Variable(2)

            	 	$	
              2,193,510.57
                

            	 	
              July
                25, 2036

            	 
	
              I-26-A

            	 	
              Variable(2)

            	 	$	
              2,100,900.82
                

            	 	
              July
                25, 2036

            	 
	
              I-26-B

            	 	
              Variable(2)

            	 	$	
              2,100,900.82
                

            	 	
              July
                25, 2036

            	 
	
              I-27-A

            	 	
              Variable(2)

            	 	$	
              2,012,058.01
                

            	 	
              July
                25, 2036

            	 
	
              I-27-B

            	 	
              Variable(2)

            	 	$	
              2,012,058.01
                

            	 	
              July
                25, 2036

            	 
	
              I-28-A

            	 	
              Variable(2)

            	 	$	
              1,926,383.61
                

            	 	
              July
                25, 2036

            	 
	
              I-28-B

            	 	
              Variable(2)

            	 	$	
              1,926,383.61
                

            	 	
              July
                25, 2036

            	 
	
              I-29-A

            	 	
              Variable(2)

            	 	$	
              1,845,354.91
                

            	 	
              July
                25, 2036

            	 
	
              I-29-B

            	 	
              Variable(2)

            	 	$	
              1,845,354.91
                

            	 	
              July
                25, 2036

            	 
	
              I-30-A

            	 	
              Variable(2)

            	 	$	
              1,767,817.15
                

            	 	
              July
                25, 2036

            	 
	
              I-30-B

            	 	
              Variable(2)

            	 	$	
              1,767,817.15
                

            	 	
              July
                25, 2036

            	 
	
              I-31-A

            	 	
              Variable(2)

            	 	$	
              1,693,614.81
                

            	 	
              July
                25, 2036

            	 
	
              I-31-B

            	 	
              Variable(2)

            	 	$	
              1,693,614.81
                

            	 	
              July
                25, 2036

            	 
	
              I-32-A

            	 	
              Variable(2)

            	 	$	
              1,622,598.91
                

            	 	
              July
                25, 2036

            	 
	
              I-32-B

            	 	
              Variable(2)

            	 	$	
              1,622,598.91
                

            	 	
              July
                25, 2036

            	 
	
              I-33-A

            	 	
              Variable(2)

            	 	$	
              1,554,630.39
                

            	 	
              July
                25, 2036

            	 

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              Designation

            	 	
              REMIC
                I

              Remittance
                Rate

            	 	
              Initial

              Uncertificated
                Balance

            	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 

    

    
      	
              I-33-B

            	 	
              Variable(2)

            	 	$	
              1,554,630.39
                

            	 	
              July
                25, 2036

            	 
	
              I-34-A

            	 	
              Variable(2)

            	 	$	
              1,489,504.86
                

            	 	
              July
                25, 2036

            	 
	
              I-34-B

            	 	
              Variable(2)

            	 	$	
              1,489,504.86
                

            	 	
              July
                25, 2036

            	 
	
              I-35-A

            	 	
              Variable(2)

            	 	$	
              1,427,251.85
                

            	 	
              July
                25, 2036

            	 
	
              I-35-B

            	 	
              Variable(2)

            	 	$	
              1,427,251.85
                

            	 	
              July
                25, 2036

            	 
	
              I-36-A

            	 	
              Variable(2)

            	 	$	
              1,367,664.36
                

            	 	
              July
                25, 2036

            	 
	
              I-36-B

            	 	
              Variable(2)

            	 	$	
              1,367,664.36
                

            	 	
              July
                25, 2036

            	 
	
              I-37-A

            	 	
              Variable(2)

            	 	$	
              1,310,624.24
                

            	 	
              July
                25, 2036

            	 
	
              I-37-B

            	 	
              Variable(2)

            	 	$	
              1,310,624.24
                

            	 	
              July
                25, 2036

            	 
	
              I-38-A

            	 	
              Variable(2)

            	 	$	
              1,256,018.58
                

            	 	
              July
                25, 2036

            	 
	
              I-38-B

            	 	
              Variable(2)

            	 	$	
              1,256,018.58
                

            	 	
              July
                25, 2036

            	 
	
              I-39-A

            	 	
              Variable(2)

            	 	$	
              1,203,742.04
                

            	 	
              July
                25, 2036

            	 
	
              I-39-B

            	 	
              Variable(2)

            	 	$	
              1,203,742.04
                

            	 	
              July
                25, 2036

            	 
	
              I-40-A

            	 	
              Variable(2)

            	 	$	
              1,153,661.58
                

            	 	
              July
                25, 2036

            	 
	
              I-40-B

            	 	
              Variable(2)

            	 	$	
              1,153,661.58
                

            	 	
              July
                25, 2036

            	 
	
              I-41-A

            	 	
              Variable(2)

            	 	$	
              1,105,749.24
                

            	 	
              July
                25, 2036

            	 
	
              I-41-B

            	 	
              Variable(2)

            	 	$	
              1,105,749.24
                

            	 	
              July
                25, 2036

            	 
	
              I-42-A

            	 	
              Variable(2)

            	 	$	
              1,059,875.37
                

            	 	
              July
                25, 2036

            	 
	
              I-42-B

            	 	
              Variable(2)

            	 	$	
              1,059,875.37
                

            	 	
              July
                25, 2036

            	 
	
              I-43-A

            	 	
              Variable(2)

            	 	$	
              1,015,950.06
                

            	 	
              July
                25, 2036

            	 
	
              I-43-B

            	 	
              Variable(2)

            	 	$	
              1,015,950.06
                

            	 	
              July
                25, 2036

            	 
	
              I-44-A

            	 	
              Variable(2)

            	 	$	
              973,888.63
                

            	 	
              July
                25, 2036

            	 
	
              I-44-B

            	 	
              Variable(2)

            	 	$	
              973,888.63
                

            	 	
              July
                25, 2036

            	 
	
              I-45-A

            	 	
              Variable(2)

            	 	$	
              933,610.30
                

            	 	
              July
                25, 2036

            	 
	
              I-45-B

            	 	
              Variable(2)

            	 	$	
              933,610.30
                

            	 	
              July
                25, 2036

            	 
	
              I-46-A

            	 	
              Variable(2)

            	 	$	
              22,160,777.13
                

            	 	
              July
                25, 2036

            	 
	
              I-46-B

            	 	
              Variable(2)

            	 	$	
              22,160,777.13
                

            	 	
              July
                25, 2036

            	 
	
              II

            	 	
              Variable(2)

            	 	$	
              50,141,083.13
                

            	 	
              July
                25, 2036

            	 
	
              II-1-A

            	 	
              Variable(2)

            	 	$	
              5,813,912.55
                

            	 	
              July
                25, 2036

            	 
	
              II-1-B

            	 	
              Variable(2)

            	 	$	
              5,813,912.55
                

            	 	
              July
                25, 2036

            	 
	
              II-2-A

            	 	
              Variable(2)

            	 	$	
              6,213,936.07
                

            	 	
              July
                25, 2036

            	 
	
              II-2-B

            	 	
              Variable(2)

            	 	$	
              6,213,936.07
                

            	 	
              July
                25, 2036

            	 
	
              II-3-A

            	 	
              Variable(2)

            	 	$	
              6,566,106.91
                

            	 	
              July
                25, 2036

            	 
	
              II-3-B

            	 	
              Variable(2)

            	 	$	
              6,566,106.91
                

            	 	
              July
                25, 2036

            	 
	
              II-4-A

            	 	
              Variable(2)

            	 	$	
              6,303,247.48
                

            	 	
              July
                25, 2036

            	 
	
              II-4-B

            	 	
              Variable(2)

            	 	$	
              6,303,247.48
                

            	 	
              July
                25, 2036

            	 
	
              II-5-A

            	 	
              Variable(2)

            	 	$	
              6,049,821.57
                

            	 	
              July
                25, 2036

            	 
	
              II-5-B

            	 	
              Variable(2)

            	 	$	
              6,049,821.57
                

            	 	
              July
                25, 2036

            	 
	
              II-6-A

            	 	
              Variable(2)

            	 	$	
              5,806,609.95
                

            	 	
              July
                25, 2036

            	 
	
              II-6-B

            	 	
              Variable(2)

            	 	$	
              5,806,609.95
                

            	 	
              July
                25, 2036

            	 
	
              II-7-A

            	 	
              Variable(2)

            	 	$	
              5,573,269.72
                

            	 	
              July
                25, 2036

            	 
	
              II-7-B

            	 	
              Variable(2)

            	 	$	
              5,573,269.72
                

            	 	
              July
                25, 2036

            	 
	
              II-8-A

            	 	
              Variable(2)

            	 	$	
               5,349,362.29
                

            	 	
              July
                25, 2036

            	 
	
              II-8-B

            	 	
              Variable(2)

            	 	$	
              5,349,362.29
                

            	 	
              July
                25, 2036

            	 
	
              II-9-A

            	 	
              Variable(2)

            	 	$	
              5,134,467.45
                

            	 	
              July
                25, 2036

            	 
	
              II-9-B

            	 	
              Variable(2)

            	 	$	
              5,134,467.45
                

            	 	
              July
                25, 2036

            	 

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              Designation

            	 	
              REMIC
                I

              Remittance
                Rate

            	 	
              Initial

              Uncertificated
                Balance

            	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 

    

    
      	
              II-10-A

            	 	
              Variable(2)

            	 	$	
              4,928,293.83
                

            	 	
              July
                25, 2036

            	 
	
              II-10-B

            	 	
              Variable(2)

            	 	$	
              4,928,293.83
                

            	 	
              July
                25, 2036

            	 
	
              II-11-A

            	 	
              Variable(2)

            	 	$	
              4,730,448.65
                

            	 	
              July
                25, 2036

            	 
	
              II-11-B

            	 	
              Variable(2)

            	 	$	
              4,730,448.65
                

            	 	
              July
                25, 2036

            	 
	
              II-12-A

            	 	
              Variable(2)

            	 	$	
              4,553,492.38
                

            	 	
              July
                25, 2036

            	 
	
              II-12-B

            	 	
              Variable(2)

            	 	$	
              4,553,492.38
                

            	 	
              July
                25, 2036

            	 
	
              II-13-A

            	 	
              Variable(2)

            	 	$	
              4,397,398.26
                

            	 	
              July
                25, 2036

            	 
	
              II-13-B

            	 	
              Variable(2)

            	 	$	
              4,397,398.26
                

            	 	
              July
                25, 2036

            	 
	
              II-14-A

            	 	
              Variable(2)

            	 	$	
              4,460,331.48
                

            	 	
              July
                25, 2036

            	 
	
              II-14-B

            	 	
              Variable(2)

            	 	$	
              4,460,331.48
                

            	 	
              July
                25, 2036

            	 
	
              II-15-A

            	 	
              Variable(2)

            	 	$	
              12,039,807.73
                

            	 	
              July
                25, 2036

            	 
	
              II-15-B

            	 	
              Variable(2)

            	 	$	
              12,039,807.73
                

            	 	
              July
                25, 2036

            	 
	
              II-16-A

            	 	
              Variable(2)

            	 	$	
              10,134,530.02
                

            	 	
              July
                25, 2036

            	 
	
              II-16-B

            	 	
              Variable(2)

            	 	$	
              10,134,530.02
                

            	 	
              July
                25, 2036

            	 
	
              II-17-A

            	 	
              Variable(2)

            	 	$	
              8,537,811.06
                

            	 	
              July
                25, 2036

            	 
	
              II-17-B

            	 	
              Variable(2)

            	 	$ 	
              8,537,811.06
                

            	 	
              July
                25, 2036

            	 
	
              II-18-A

            	 	
              Variable(2)

            	 	$	
              7,118,255.75
                

            	 	
              July
                25, 2036

            	 
	
              II-18-B

            	 	
              Variable(2)

            	 	$	
              7,118,255.75
                

            	 	
              July
                25, 2036

            	 
	
              II-19-A

            	 	
              Variable(2)

            	 	$	
              2,606,216.15
                

            	 	
              July
                25, 2036

            	 
	
              II-19-B

            	 	
              Variable(2)

            	 	$ 	
              2,606,216.15
                

            	 	
              July
                25, 2036

            	 
	
              II-20-A

            	 	
              Variable(2)

            	 	$	
              2,488,817.75
                

            	 	
              July
                25, 2036

            	 
	
              II-20-B

            	 	
              Variable(2)

            	 	$	
              2,488,817.75
                

            	 	
              July
                25, 2036

            	 
	
              II-21-A

            	 	
              Variable(2)

            	 	$	
              2,382,476.00
                

            	 	
              July
                25, 2036

            	 
	
              II-21-B

            	 	
              Variable(2)

            	 	$	
              2,382,476.00
                

            	 	
              July
                25, 2036

            	 
	
              II-22-A

            	 	
              Variable(2)

            	 	$	
              2,279,918.10
                

            	 	
              July
                25, 2036

            	 
	
              II-22-B

            	 	
              Variable(2)

            	 	$	
              2,279,918.10
                

            	 	
              July
                25, 2036

            	 
	
              II-23-A

            	 	
              Variable(2)

            	 	$	
              2,183,342.26
                

            	 	
              July
                25, 2036

            	 
	
              II-23-B

            	 	
              Variable(2)

            	 	$	
              2,183,342.26
                

            	 	
              July
                25, 2036

            	 
	
              II-24-A

            	 	
              Variable(2)

            	 	$	
              2,090,949.73
                

            	 	
              July
                25, 2036

            	 
	
              II-24-B

            	 	
              Variable(2)

            	 	$	
              2,090,949.73
                

            	 	
              July
                25, 2036

            	 
	
              II-25-A

            	 	
              Variable(2)

            	 	$	
              2,002,569.43
                

            	 	
              July
                25, 2036

            	 
	
              II-25-B

            	 	
              Variable(2)

            	 	$	
              2,002,569.43
                

            	 	
              July
                25, 2036

            	 
	
              II-26-A

            	 	
              Variable(2)

            	 	$	
              1,918,021.18
                

            	 	
              July
                25, 2036

            	 
	
              II-26-B

            	 	
              Variable(2)

            	 	$	
              1,918,021.18
                

            	 	
              July
                25, 2036

            	 
	
              II-27-A

            	 	
              Variable(2)

            	 	$	
              1,836,911.99
                

            	 	
              July
                25, 2036

            	 
	
              II-27-B

            	 	
              Variable(2)

            	 	$	
              1,836,911.99
                

            	 	
              July
                25, 2036

            	 
	
              II-28-A

            	 	
              Variable(2)

            	 	$	
              1,758,695.39
                

            	 	
              July
                25, 2036

            	 
	
              II-28-B

            	 	
              Variable(2)

            	 	$	
              1,758,695.39
                

            	 	
              July
                25, 2036

            	 
	
              II-29-A

            	 	
              Variable(2)

            	 	$	
              1,684,720.09
                

            	 	
              July
                25, 2036

            	 
	
              II-29-B

            	 	
              Variable(2)

            	 	$	
              1,684,720.09
                

            	 	
              July
                25, 2036

            	 
	
              II-30-A

            	 	
              Variable(2)

            	 	$	
              1,613,931.85
                

            	 	
              July
                25, 2036

            	 
	
              II-30-B

            	 	
              Variable(2)

            	 	$	
              1,613,931.85
                

            	 	
              July
                25, 2036

            	 
	
              II-31-A

            	 	
              Variable(2)

            	 	$	
              1,546,188.69
                

            	 	
              July
                25, 2036

            	 
	
              II-31-B

            	 	
              Variable(2)

            	 	$	
              1,546,188.69
                

            	 	
              July
                25, 2036

            	 
	
              II-32-A

            	 	
              Variable(2)

            	 	$	
              1,481,354.59
                

            	 	
              July
                25, 2036

            	 
	
              II-32-B

            	 	
              Variable(2)

            	 	$	
              1,481,354.59
                

            	 	
              July
                25, 2036

            	 

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              Designation

            	 	
              REMIC
                I

              Remittance
                Rate

            	 	
              Initial

              Uncertificated
                Balance

            	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 

    

    
      	
              II-33-A

            	 	
              Variable(2)

            	 	$	
              1,419,302.61
                

            	 	
              July
                25, 2036

            	 
	
              II-33-B

            	 	
              Variable(2)

            	 	$	
              1,419,302.61
                

            	 	
              July
                25, 2036

            	 
	
              II-34-A

            	 	
              Variable(2)

            	 	$	
              1,359,846.14
                

            	 	
              July
                25, 2036

            	 
	
              II-34-B

            	 	
              Variable(2)

            	 	$	
              1,359,846.14
                

            	 	
              July
                25, 2036

            	 
	
              II-35-A

            	 	
              Variable(2)

            	 	$	
              1,303,012.15
                

            	 	
              July
                25, 2036

            	 
	
              II-35-B

            	 	
              Variable(2)

            	 	$	
              1,303,012.15
                

            	 	
              July
                25, 2036

            	 
	
              II-36-A

            	 	
              Variable(2)

            	 	$	
              1,248,611.64
                

            	 	
              July
                25, 2036

            	 
	
              II-36-B

            	 	
              Variable(2)

            	 	$	
              1,248,611.64
                

            	 	
              July
                25, 2036

            	 
	
              II-37-A

            	 	
              Variable(2)

            	 	$	
              1,196,536.76
                

            	 	
              July
                25, 2036

            	 
	
              II-37-B

            	 	
              Variable(2)

            	 	$	
              1,196,536.76
                

            	 	
              July
                25, 2036

            	 
	
              II-38-A

            	 	
              Variable(2)

            	 	$	
              1,146,684.42
                

            	 	
              July
                25, 2036

            	 
	
              II-38-B

            	 	
              Variable(2)

            	 	$	
              1,146,684.42
                

            	 	
              July
                25, 2036

            	 
	
              II-39-A

            	 	
              Variable(2)

            	 	$	
              1,098,958.46
                

            	 	
              July
                25, 2036

            	 
	
              II-39-B

            	 	
              Variable(2)

            	 	$	
              1,098,958.46
                

            	 	
              July
                25, 2036

            	 
	
              II-40-A

            	 	
              Variable(2)

            	 	$	
              1,053,237.42
                

            	 	
              July
                25, 2036

            	 
	
              II-40-B

            	 	
              Variable(2)

            	 	$	
              1,053,237.42
                

            	 	
              July
                25, 2036

            	 
	
              II-41-A

            	 	
              Variable(2)

            	 	$	
              1,009,495.76
                

            	 	
              July
                25, 2036

            	 
	
              II-41-B

            	 	
              Variable(2)

            	 	$	
              1,009,495.76
                

            	 	
              July
                25, 2036

            	 
	
              II-42-A

            	 	
              Variable(2)

            	 	$	
              967,615.13
                

            	 	
              July
                25, 2036

            	 
	
              II-42-B

            	 	
              Variable(2)

            	 	$	
              967,615.13
                

            	 	
              July
                25, 2036

            	 
	
              II-43-A

            	 	
              Variable(2)

            	 	$	
              927,513.44
                

            	 	
              July
                25, 2036

            	 
	
              II-43-B

            	 	
              Variable(2)

            	 	$	
              927,513.44
                

            	 	
              July
                25, 2036

            	 
	
              II-44-A

            	 	
              Variable(2)

            	 	$	
              889,113.37
                

            	 	
              July
                25, 2036

            	 
	
              II-44-B

            	 	
              Variable(2)

            	 	$	
              889,113.37
                

            	 	
              July
                25, 2036

            	 
	
              II-45-A

            	 	
              Variable(2)

            	 	$	
              852,341.20
                

            	 	
              July
                25, 2036

            	 
	
              II-45-B

            	 	
              Variable(2)

            	 	$	
              852,341.20
                

            	 	
              July
                25, 2036

            	 
	
              II-46-A

            	 	
              Variable(2)

            	 	$	
              20,231,721.37
                

            	 	
              July
                25, 2036

            	 
	
              II-46-B

            	 	
              Variable(2)

            	 	$	
              20,231,721.37
                

            	 	
              July
                25, 2036

            	 
	
              P

            	 	
              Variable(2)

            	 	$	
              100.00
                

            	 	
              July
                25, 2036

            	 

    

     

    
      

    

    
      	(1)	
              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 has been designated as
                the
                “latest possible maturity date” for each REMIC I Regular
                Interest.

            

    

    
      	(2)	
              Calculated
                in accordance with the definition of “REMIC I Remittance Rate”
                herein.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

       

    

    REMIC
      II

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the REMIC I Regular Interests as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC II.” The Class R-II Interest will evidence the sole class
      of “residual interests” in REMIC II for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the designation, the REMIC II Remittance
      Rate, the initial aggregate Uncertificated Balance and, for purposes of
      satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest
      possible maturity date” for each of the REMIC II Regular Interests. None of the
      REMIC II Regular Interests will be certificated.

     

    
      	
              Designation

            	 	
              REMIC
                II

              Remittance

              Rate

            	 	
              Initial

              Uncertificated
                Balance

            	 	
              Latest
                Possible

              Maturity
                Date (1)

            
	
              AA

            	 	
              Variable(2)

            	 	$	
               413,480,336.39
                

            	 	
              July
                25, 2036

            
	
              A-1

            	 	
              Variable(2)

            	 	$	
              1,742,415.00
                

            	 	
              July
                25, 2036

            
	
              A-2A

            	 	
              Variable(2)

            	 	$	
              764,675.00
                

            	 	
              July
                25, 2036

            
	
              A-2B

            	 	
              Variable(2)

            	 	$	
              237,845.00
                

            	 	
              July
                25, 2036

            
	
              A-2C

            	 	
              Variable(2)

            	 	$	
              377,650.00
                

            	 	
              July
                25, 2036

            
	
              A-2D

            	 	
              Variable(2)

            	 	$	
              210,570.00
                

            	 	
              July
                25, 2036

            
	
              M-1

            	 	
              Variable(2)

            	 	$	
              149,780.00
                

            	 	
              July
                25, 2036

            
	
              M-2

            	 	
              Variable(2)

            	 	$	
              137,125.00
                

            	 	
              July
                25, 2036

            
	
              M-3

            	 	
              Variable(2)

            	 	$	
              80,165.00
                

            	 	
              July
                25, 2036

            
	
              M-4

            	 	
              Variable(2)

            	 	$	
              69,615.00
                

            	 	
              July
                25, 2036

            
	
              M-5

            	 	
              Variable(2)

            	 	$	
              69,615.00
                

            	 	
              July
                25, 2036

            
	
              M-6

            	 	
              Variable(2)

            	 	$	
              61,180.00
                

            	 	
              July
                25, 2036

            
	
              M-7

            	 	
              Variable(2)

            	 	$	
              59,070.00
                

            	 	
              July
                25, 2036

            
	
              M-8

            	 	
              Variable(2)

            	 	$	
              48,520.00
                

            	 	
              July
                25, 2036

            
	
              M-9

            	 	
              Variable(2)

            	 	$	
              37,975.00
                

            	 	
              July
                25, 2036

            
	
              M-10

            	 	
              Variable(2)

            	 	$	
              23,205.00
                

            	 	
              July
                25, 2036

            
	
              M-11

            	 	
              Variable(2)

            	 	$	
              42,190.00
                

            	 	
              July
                25, 2036

            
	
              ZZ

            	 	
              Variable(2)

            	 	$	
              4,326,779.21
                

            	 	
              July
                25, 2036

            
	
              P

            	 	
              Variable(2)

            	 	$	
              100.00
                

            	 	
              July
                25, 2036

            
	
              IO

            	 	
              Variable(2)

            	 	 	
              (3

            	)	
              July
                25, 2036

            
	
              I-SUB

            	 	
              Variable(2)

            	 	$	
              9,263.49
                

            	 	
              July
                25, 2036

            
	
              I-GRP

            	 	
              Variable(2)

            	 	$	
              44,111.80
                

            	 	
              July
                25, 2036

            
	
              II-SUB

            	 	
              Variable(2)

            	 	$	
              8,457.15
                

            	 	
              July
                25, 2036

            
	
              II-GRP

            	 	
              Variable(2)

            	 	$	
              40,271.95
                

            	 	
              July
                25, 2036

            
	
              XX

            	 	
              Variable(2)

            	 	$	
              421,816,606.21
                

            	 	
              July
                25, 2036

            

    

    

    
      
        

      

    

    
      	
              (1)

            	
              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 has been designated as
                the
                “latest possible maturity date” for each REMIC II Regular
                Interest.

            

    

    
      	
              (2)

            	
              Calculated
                in accordance with the definition of “REMIC II Remittance Rate”
                herein.

            

    

    
      	
              (3)

            	
              REMIC
                II Regular Interest IO will not have an Uncertificated Balance, but
                will
                accrue interest on its Uncertificated Notional
                Amount.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    REMIC
      III

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the REMIC II Regular Interests as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC III.” The Class R-III Interest will evidence the sole class
      of “residual interests” in REMIC III for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the designation, the Pass-Through Rate,
      the initial aggregate Certificate Principal Balance and, for purposes of
      satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest
      possible maturity date” for the indicated Classes of Certificates.

     

    
      	
              Designation

            	 	
              Pass-Through
                Rate

            	 	
               Initial
                Aggregate Certificate Principal Balance

            	 	 	
              Latest
                Possible

              Maturity
                Date (1)

            
	
              Class
                A-1

            	 	
              Variable(2)

            	 	$	
               348,483,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                A-2A

            	 	
              Variable(2)

            	 	$	
              152,935,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                A-2B

            	 	
              Variable(2)

            	 	$	
              47,569,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                A-2C

            	 	
              Variable(2)

            	 	$	
              75,530,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                A-2D

            	 	
              Variable(2)

            	 	$	
              42,114,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-1

            	 	
              Variable(2)  

            	 	$	
              29,956,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-2

            	 	
              Variable(2)

            	 	$	
              27,425,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-3

            	 	
              Variable(2)

            	 	$	
              16,033,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-4

            	 	
              Variable(2)

            	 	$	
              13,923,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-5

            	 	
              Variable(2)

            	 	$ 	
              13,923,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-6

            	 	
              Variable(2)

            	 	$	
              12,236,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-7 

            	 	
              Variable(2)

            	 	$	
              11,814,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-8 

            	 	
              Variable(2)

            	 	$	
              9,704,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-9 

            	 	
              Variable(2)

            	 	$ 	
              7,595,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-10

            	 	
              Variable(2)

            	 	$	
              4,641,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                M-11

            	 	
              Variable(2)

            	 	$	
              8,438,000.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                P 

            	 	
              N/A(3)

            	 	$	
              100.00
                

            	 	 	
              July
                25, 2036

            
	
              Class
                CE

            	 	
              N/A(4)

            	 	$	
               21,518,421.20
                

            	 	 	
              July
                25, 2036

            
	
              Class
                IO Interest 

            	 	
              N/A(5)

            	 	 	
              (5

            	)	 	
              July
                25, 2036

            

    

    

    
      
        

      

    

    
      	
              (1)

            	
              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 has been designated as
                the
                “latest possible maturity date” for each Class of
                Certificates.

            

    

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

            

    

    
      	(3)	
              The
                Class P Certificates will not accrue
                interest.

            

    

    
      	(4)	
              The
                Class CE Certificates will accrue interest at their variable Pass-Through
                Rate on the Notional Amount of the Class CE Certificates outstanding
                from
                time to time which shall equal the Uncertificated Balance of the
                REMIC II
                Regular Interests (other than REMIC II Regular Interest P). The Class
                CE
                Certificates will not accrue interest on their Certificate Principal
                Balance.

            

    

    
      	(5)	
              The
                Class IO Interest will not have a Pass-Through Rate or a Certificate
                Principal Balance, but will be entitled to 100% of amounts distributed
                on
                REMIC II Regular Interest IO.

            

    

    

    The
      Mortgage Loans had an aggregate Scheduled Principal Balance as of the Cut-off
      Date, after deducting all Monthly Payments due on or before the Cut-off Date,
      of
      $843,837,521.20. As of the Cut-off Date, the Group I Mortgage Loans had an
      aggregate Scheduled Principal Balance equal to $441,118,025.68 and
      the
      Group II Mortgage Loans had an aggregate Scheduled Principal Balance equal
      to
      $402,719,495.52.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

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

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

      ARTICLE
        I

       

      DEFINITIONS

       

      SECTION
        1.01. Defined
        Terms.

       

      Whenever
        used in this Agreement, including, without limitation, in the Preliminary
        Statement hereto, the following words and phrases, unless the context otherwise
        requires, shall have the meanings specified in this Article. Unless otherwise
        specified, all calculations described herein shall be made on the basis of
        a
        360-day year consisting of twelve 30-day months.

       

      “Accepted
        Master Servicing Practices”: With respect to any Mortgage Loan, as applicable,
        either (x) those customary mortgage master 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 Master Servicer
        or (y) as provided in the Servicing Agreement hereof, but in no event below
        the
        standard set forth in clause (x) above.

       

      “Account”:
        The Collection Account and the Distribution Account, as the context may
        require.

       

      “Accrued
        Certificate Interest”: With respect to any Class A Certificate, Mezzanine
        Certificate or Class CE Certificate and each Distribution Date, interest
        accrued
        during the related Interest Accrual Period at the Pass-Through Rate for such
        Certificate for such Distribution Date on the Certificate Principal Balance,
        in
        the case of the Class A Certificates and the Mezzanine Certificates, or on
        the
        Notional Amount in the case of the Class CE Certificates of such Certificate
        immediately prior to such Distribution Date. The Class P Certificates are
        not
        entitled to distributions in respect of interest and, accordingly, will not
        accrue interest. All distributions of interest on the Class A Certificates
        and
        the Mezzanine Certificates will be calculated on the basis of a 360-day year
        and
        the actual number of days in the applicable Interest Accrual Period. All
        distributions of interest on the Class CE Certificates will be based on a
        360-day year consisting of twelve 30-day months. Accrued Certificate Interest
        with respect to each Distribution Date, as to any Class A Certificate, Mezzanine
        Certificate or Class CE Certificate shall be reduced by an amount equal to
        the
        portion allocable to such Certificate pursuant to Section 1.02 hereof, if
        any, of the sum of (a) the aggregate Prepayment Interest Shortfall, if any,
        for
        such Distribution Date to the extent not covered by compensating interest
        payments made by the Servicer pursuant to the Servicing Agreement or the
        Master
        Servicer pursuant to Section 4.19 of this Agreement and (b) the aggregate
        amount of any Relief Act Interest Shortfall, if any, for such Distribution
        Date.
        In addition, Accrued Certificate Interest with respect to each Distribution
        Date, as to any Class CE Certificate, shall be reduced by an amount equal
        to the
        portion allocable to such Class CE Certificate of Realized Losses, if any,
        pursuant to Section 1.02 and Section 5.04 hereof. 

       

      “Additional
        Disclosure Notification”: Has the meaning set forth in Section 5.06(a)(ii) of
        this Agreement. 

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      “Additional
        Form 10-D Disclosure”: Has the meaning set forth in Section 5.06(a)(i) of this
        Agreement.

       

      “Additional
        Form 10-K Disclosure”: Has the meaning set forth in Section 5.06(d)(i) of this
        Agreement.

       

      “Additional
        Servicer”: Means each affiliate of the Servicer that Services any of the
        Mortgage Loans and each Person who is not an affiliate of the Servicer. For
        clarification purposes, the Master Servicer and the Securities Administrator
        are
        Additional Servicers.

       

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

       

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

       

      “Administration
        Fees: The sum of (i) the Servicing Fee, (ii) the Master Servicing Fee and
        (iii)
        the Credit Risk Management Fee.

       

      “Administration
        Fee Rate”: The sum of (i) the Servicing Fee Rate, (ii) the Master Servicing Fee
        Rate and (iii) the Credit Risk Management Fee Rate. 

       

      “Affiliate”:
        With respect to any specified Person, any other Person controlling or controlled
        by or under common control with such specified Person. For the purposes of
        this
        definition, “control” when used with respect to any specified Person means the
        power to direct the management and policies of such Person, directly or
        indirectly, whether through the ownership of voting securities, by contract
        or
        otherwise, and the terms “controlling” and “controlled” have meanings
        correlative to the foregoing.

       

      “Aggregate
        Loss Severity Percentage”: With respect to any Distribution Date, the percentage
        equivalent of a fraction, the numerator of which is the aggregate amount
        of
        Realized Losses incurred on any Mortgage Loans from the Cut-off Date to the
        last
        day of the preceding calendar month and the denominator of which is the
        aggregate principal balance of such Mortgage Loans immediately prior to the
        liquidation of such Mortgage Loans.

       

      “Agreement”:
        This Pooling and Servicing Agreement, including all exhibits and schedules
        hereto and all amendments hereof and supplements hereto.

       

      “Allocated
        Realized Loss Amount”: With respect to any Class of Mezzanine Certificates and
        any Distribution Date, an amount equal to the sum of any Realized Loss allocated
        to that Class of Certificates on the Distribution Date and any Allocated
        Realized Loss Amount for that Class remaining unpaid from the previous
        Distribution Date.

       

      “Amounts
        Held for Future Distribution”: As to any Distribution Date, the aggregate amount
        held in the Collection Account at the close of business on the immediately
        preceding Determination Date on account of (i) all Monthly Payments or portions
        thereof received in respect of the Mortgage Loans due after the related Due
        Period and (ii) Principal Prepayments and Liquidation Proceeds received in
        respect of such Mortgage Loans after the last day of the related Prepayment
        Period.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      “Ancillary
        Income”: All income derived from the Mortgage Loans, other than Servicing Fees
        and Prepayment Charges, including but not limited to, late charges, fees
        received with respect to checks or bank drafts returned by the related bank
        for
        non-sufficient funds, assumption fees, optional insurance administrative
        fees
        and all other incidental fees and charges.

       

      “Assignment”:
        An assignment of Mortgage, notice of transfer or equivalent instrument, in
        recordable form, which is sufficient under the laws of the jurisdiction where
        the related Mortgaged Property is located to reflect of record the sale and
        assignment of the Mortgage, which assignment, notice of transfer or equivalent
        instrument may be in the form of one or more blanket assignments covering
        Mortgages secured by Mortgaged Properties located in the same county, if
        permitted by law.

       

      “Assignment
        Agreement”: Shall mean the Assignment, Assumption and Recognition Agreement,
        dated as of July 25, 2006, among the Sponsor, the Depositor, Countrywide
        Home
        Loans, Inc. and the Servicer, pursuant to which the Servicing Agreement was
        assigned to the Depositor, a copy of which is attached hereto as Exhibit
        K.

       

      “Authorized
        Officers”: A managing director of the whole loan trading desk and a managing
        director in global markets.

       

      “Available
        Distribution Amount”: With respect to any Distribution Date, an amount equal to
        (1) the sum of (a) the aggregate of the amounts on deposit in the Collection
        Account and Distribution Account as of the close of business on the Servicer
        Remittance Date, (b) the aggregate of any amounts deposited in the Distribution
        Account in respect of Prepayment Interest Shortfalls for such Distribution
        Date
        pursuant to the Servicing Agreement or by the Master Servicer pursuant to
        Section 4.19 of this Agreement, (c) the aggregate of any P&I Advances
        for such Distribution Date made by the Servicer pursuant to the Servicing
        Agreement and (d) the aggregate of any P&I Advances made by a successor
        Servicer (including the Master Servicer) for such Distribution Date pursuant
        to
        Section 8.02 of this Agreement reduced (to an amount not less than zero) by
        (2) the portion of the amount described in clause (1)(a) above that represents
        (i) Amounts Held for Future Distribution, (ii) Principal Prepayments on the
        Mortgage Loans received after the related Prepayment Period (together with
        any
        interest payments received with such Principal Prepayments to the extent
        they
        represent the payment of interest accrued on the Mortgage Loans during a
        period
        subsequent to the related Prepayment Period), (iii) Liquidation Proceeds,
        Insurance Proceeds and Subsequent Recoveries received in respect of the Mortgage
        Loans after the related Prepayment Period, (iv) amounts reimbursable or payable
        to the Depositor, the Servicer, the Trustee, the Master Servicer, the Securities
        Administrator or the Custodian pursuant to the Servicing Agreement or
        Section 9.05 of this Agreement or otherwise payable in respect of
        Extraordinary Trust Fund Expenses, (v) the Credit Risk Management Fee, (vi)
        amounts deposited in the Collection Account or the Distribution Account in
        error, (vii) the amount of any Prepayment Charges collected by the Servicer
        in
        connection with the Principal Prepayment of any of the Mortgage Loans and
        (viii)
        amounts reimbursable to a successor Servicer (including the Master Servicer)
        pursuant to Section 8.02 of this Agreement.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      “Balloon
        Mortgage Loan”: A Mortgage Loan that provides for the payment of the unamortized
        principal balance of such Mortgage Loan in a single payment, that is
        substantially greater than the preceding monthly payment at the maturity
        of such
        Mortgage Loan.

       

      “Balloon
        Payment”: A payment of the unamortized principal balance of a Mortgage Loan in a
        single payment, that is substantially greater than the preceding Monthly
        Payment
        at the maturity of such Mortgage Loan.

       

      “Bankruptcy
        Code”: The Bankruptcy Reform Act of 1978 (Title 11 of the United States Code),
        as amended.

       

      “Book-Entry
        Certificates”: The Class A Certificates and the Mezzanine Certificates for so
        long as the Certificates of such Class shall be registered in the name of
        the
        Depository or its nominee.

       

      “Book-Entry
        Custodian”: The custodian appointed pursuant to Section 6.01.

       

      “Business
        Day”: Any day other than a Saturday, a Sunday or a day on which banking or
        savings and loan institutions in the States of New York, Maryland or Minnesota
        or in the city in which the Corporate Trust Office of the Trustee is located,
        are authorized or obligated by law or executive order to be closed.

       

      “Cap
        Contracts”: Shall mean the Group I Cap Contract and the Group II Cap
        Contract.

       

      “Cap
        Counterparty”: The counterparty under each Cap Contract, and any successor in
        interest or assign. Initially, the Cap Counterparty shall be The Royal Bank
        of
        Scotland plc.

       

      “Cash-Out
        Refinancing”: A Refinanced Mortgage Loan the proceeds of which are more than a
        nominal amount in excess of the principal balance of any existing first mortgage
        plus any subordinate mortgage on the related Mortgaged Property and related
        closing costs.

       

      “Certificate”:
        Any one of ACE Securities Corp., Asset Backed Pass-Through Certificates,
        Series
        2006-CW1, Class A-1, Class A-2A, Class A-2B, Class A-2C, Class A-2D, Class
        M-1,
        Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8,
        Class M-9, Class M-10, Class M-11, Class P, Class CE and Class R Certificates
        issued under this Agreement. 

       

      “Certificate
        Factor”: With respect to any Class of Certificates (other than the Residual
        Certificates) as of any Distribution Date, a fraction, expressed as a decimal
        carried to six places, the numerator of which is the aggregate Certificate
        Principal Balance (or Notional Amount, in the case of the Class CE Certificates)
        of such Class of Certificates on such Distribution Date (after giving effect
        to
        any distributions of principal and allocations of Realized Losses resulting
        in
        reduction of the Certificate Principal Balance (or Notional Amount, in the
        case
        of the Class CE Certificates) of such Class of Certificates to be made on
        such
        Distribution Date), and the denominator of which is the initial aggregate
        Certificate Principal Balance (or Notional Amount, in the case of the Class
        CE
        Certificates) of such Class of Certificates as of the Closing Date.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      “Certificate
        Margin”: With respect to the Class A-1 Certificates and, for purposes of the
        definition of “Marker Rate”, REMIC II Regular Interest A-1, 0.140% in the case
        of each Distribution Date through and including the Optional Termination
        Date
        and 0.280% in the case of each Distribution Date thereafter.

       

      With
        respect to the Class A-2A Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest A-2A, 0.050% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.100%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class A-2B Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest A-2B, 0.100% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.200%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class A-2C Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest A-2C, 0.140% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.280%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class A-2D Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest A-2D, 0.260% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.520%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-1 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-1, 0.260% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.390%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-2 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-2, 0.320% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.480%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-3 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-3, 0.360% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.540%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-4 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-4, 0.380% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.570%
        in the case of each Distribution Date thereafter.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      With
        respect to the Class M-5 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-5, 0.420% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.630%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-6 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-6, 0.480% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.720%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-7 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-7, 0.950% in the case of each
        Distribution Date through and including the Optional Termination Date and
        1.425%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-8 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-8, 1.100% in the case of each
        Distribution Date through and including the Optional Termination Date and
        1.600%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-9 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-9, 1.900% in the case of each
        Distribution Date through and including the Optional Termination Date and
        2.400%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-10 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-10, 2.500% in the case of each
        Distribution Date through and including the Optional Termination Date and
        3.000%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-11 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-11, 2.500% in the case of each
        Distribution Date through and including the Optional Termination Date and
        3.000%
        in the case of each Distribution Date thereafter.

       

      “Certificateholder”
        or “Holder”: The Person in whose name a Certificate is registered in the
        Certificate Register, except that a Disqualified Organization or a Non-United
        States Person shall not be a Holder of a Residual Certificate for any purposes
        hereof, and solely for the purposes of giving any consent pursuant to this
        Agreement, any Certificate registered in the name of or beneficially owned
        by
        the Depositor, the Sponsor, the Servicer, the Master Servicer, the Securities
        Administrator, the Trustee or any Affiliate thereof shall be deemed not to
        be
        outstanding and the Voting Rights to which it is entitled shall not be taken
        into account in determining whether the requisite percentage of Voting Rights
        necessary to effect any such consent has been obtained, except as otherwise
        provided in Section 12.01 of this Agreement. The Trustee and the Securities
        Administrator may conclusively rely upon a certificate of the Depositor,
        the
        Sponsor, the Master Servicer, the Securities Administrator or the Servicer
        in
        determining whether a Certificate is held by an Affiliate thereof. All
        references herein to “Holders” or “Certificateholders” shall reflect the rights
        of Certificate Owners as they may indirectly exercise such rights through
        the
        Depository and participating members thereof, except as otherwise specified
        herein; provided, however, that the Trustee and the Securities Administrator
        shall be required to recognize as a “Holder” or “Certificateholder” only the
        Person in whose name a Certificate is registered in the Certificate
        Register.

       

      
        
          
          

        

        
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      “Certificate
        Owner”: With respect to a Book-Entry Certificate, the Person who is the
        beneficial owner of such Certificate as reflected on the books of the Depository
        or on the books of a Depository Participant or on the books of an indirect
        participating brokerage firm for which a Depository Participant acts as
        agent.

       

      “Certificate
        Principal Balance”: With respect to each Class A Certificate, Mezzanine
        Certificate or Class P Certificate as of any date of determination, the
        Certificate Principal Balance of such Certificate on the Distribution Date
        immediately prior to such date of determination plus any Subsequent Recoveries
        added to the Certificate Principal Balance of such Certificate pursuant to
        Section 5.04 of this Agreement, minus (i) all distributions allocable to
        principal made thereon and (ii) Realized Losses allocated thereto, if any,
        on
        such immediately prior Distribution Date (or, in the case of any date of
        determination up to and including the first Distribution Date, the initial
        Certificate Principal Balance of such Certificate, as stated on the face
        thereof). With respect to each Class CE Certificate as of any date of
        determination, an amount equal to the Percentage Interest evidenced by such
        Certificate times the excess, if any, of (A) the then aggregate Uncertificated
        Balances of the REMIC II Regular Interests over (B) the then aggregate
        Certificate Principal Balances of the Class A Certificates, the Mezzanine
        Certificates and the Class P Certificates then outstanding. The aggregate
        initial Certificate Principal Balance of each Class of Regular Certificates
        is
        set forth in the Preliminary Statement hereto.

       

      “Certificate
        Register”: The register maintained pursuant to Section 6.02 of this
        Agreement.

      

      “Certification
        Parties”: Has the meaning set forth in Section 4.18 of this
        Agreement.

       

      “Certifying
        Person”: Has the meaning set forth in Section 4.18 of this
        Agreement.

       

      “Class”:
        Collectively, all of the Certificates bearing the same class
        designation.

       

      “Class
        A
        Certificate”: Any Class A-1, Class A-2A, Class A-2B, Class A-2C or Class A-2D
        Certificate.

       

      “Class
        A
        Principal Distribution Amount”: The Class A Principal Distribution Amount is an
        amount equal to the sum of: (i) the Class A-1 Principal Distribution Amount
        and
        (ii) the Class A-2 Principal Distribution Amount.

       

      “Class
        A-1 Allocation Percentage”: With respect to any Distribution Date is the
        percentage equivalent of a fraction, the numerator of which is (x) the Group
        I
        Principal Remittance Amount for such Distribution Date and the denominator
        of
        which is (y) the Principal Remittance Amount for such Distribution
        Date.

       

      
        
          
          

        

        
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      “Class
        A-1 Certificate”: Any one of the Class A-1 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-1 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        A-1 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the Certificate Principal Balance of the Class A-1 Certificates
        immediately prior to such Distribution Date over (y) the lesser of (A) the
        product of (i) 58.00% and (ii) the aggregate Stated Principal Balance of
        the
        Group I Mortgage Loans as of the last day of the related Due Period (after
        giving effect to scheduled payments of principal due during the related Due
        Period, to the extent received or advanced and unscheduled collections of
        principal received during the related Prepayment Period) and (B) the aggregate
        Stated Principal Balance of the Group I Mortgage Loans as of the last day
        of the
        related Due Period (after giving effect to scheduled payments of principal
        due
        during the related Due Period, to the extent received or advanced and
        unscheduled collections of principal received during the related Prepayment
        Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance
        of the Group I Mortgage Loans as of the Cut-off Date.

       

      “Class
        A-2 Allocation Percentage”: With respect to any Distribution Date is the
        percentage equivalent of a fraction, the numerator of which is (x) the Group
        II
        Principal Remittance Amount for such Distribution Date and the denominator
        of
        which is (y) the Principal Remittance Amount for such Distribution
        Date.

       

      “Class
        A-2 Certificate”: Any Class A-2A, Class A-2B, Class A-2C or Class A-2D
        Certificate.

       

      “Class
        A-2 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of the Certificate Principal Balances of the Class
        A-2A,
        Class A-2B, Class A-2C and Class A-2D Certificates immediately prior to such
        Distribution Date over (y) the lesser of (A) the product of (i) 58.00% and
        (ii)
        the aggregate Stated Principal Balance of the Group II Mortgage Loans as
        of the
        last day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced
        and unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate Stated Principal Balance of the Group II Mortgage
        Loans as of the last day of the related Due Period (after giving effect to
        scheduled payments of principal due during the related Due Period, to the
        extent
        received or advanced and unscheduled collections of principal received during
        the related Prepayment Period) minus the product of (i) 0.50% and (ii) the
        aggregate principal balance of the Group II Mortgage Loans as of the Cut-off
        Date.

       

      “Class
        A-2A Certificate”: Any one of the Class A-2A Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-1 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      “Class
        A-2B Certificate”: Any one of the Class A-2B Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-1 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        A-2C Certificate”: Any one of the Class A-2C Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-1 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        A-2D Certificate”: Any one of the Class A-2D Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-1 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        CE
        Certificate”: Any one of the Class CE Certificates executed and authenticated by
        the Securities Administrator and delivered by the Trustee, substantially
        in the
        form annexed hereto as Exhibit A-3 and evidencing a Regular Interest in REMIC
        III for purposes of the REMIC Provisions.

       

      “Class
        IO
        Distribution Amount”: As defined in Section 5.07(e) hereof. For
        purposes of clarity, the Class IO Distribution Amount for any Distribution
        Date
        shall equal the amount payable to the Supplemental Interest Trust on such
        Distribution Date in excess of the amount payable on the Class IO Interest
        on
        such Distribution Date, all as further provided in Section 5.07(e)
        hereof.

       

      “Class
        IO
        Interest”: An uncertificated interest in the Trust Fund held by the Trustee,
        evidencing a REMIC Regular Interest in REMIC III for purposes of the REMIC
        Provisions.

       

      “Class
        M-1 Certificate”: Any one of the Class M-1 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-2 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        M-1/M-2/M-3 Principal Distribution Amount”: With respect to any Distribution
        Date on or after the Stepdown Date and on which a Trigger Event is not in
        effect, the excess of (x) the sum of (i) the aggregate Certificate Principal
        Balance of the Class A Certificates (after taking into account the payment
        of
        the Class A Principal Distribution Amount on such Distribution Date) and
        (ii)
        the sum of the Certificate Principal Balances of the Class M-1, Class M-2
        and
        Class M-3 Certificates immediately prior to such Distribution Date over (y)
        the
        lesser of (A) the product of (i) 75.40% and (ii) the aggregate Stated Principal
        Balance of the Mortgage Loans as of the last day of the related Due Period
        (after giving effect to scheduled payments of principal due during the related
        Due Period, to the extent received or advanced and unscheduled collections
        of
        principal received during the related Prepayment Period) and (B) the aggregate
        Stated Principal Balance of the Mortgage Loans as of the last day of the
        related
        Due Period (after giving effect to scheduled payments of principal due during
        the related Due Period, to the extent received or advanced and unscheduled
        collections of principal received during the related Prepayment Period) minus
        the product of (i) 0.50% and (ii) the aggregate principal balance of the
        Mortgage Loans as of the Cut-off Date.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      “Class
        M-2 Certificate”: Any one of the Class M-2 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-2 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        M-3 Certificate”: Any one of the Class M-3 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-2 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        M-4 Certificate”: Any one of the Class M-4 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-2 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        M-4 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the aggregate
        Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
        Certificates (after taking into account the payment of the Class M-1/M-2/M-3
        Principal Distribution Amount on such Distribution Date) and (iii) the
        Certificate Principal Balance of the Class M-4 Certificates immediately prior
        to
        such Distribution Date over (y) the lesser of (A) the product of (i) 78.70%
        and
        (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the
        last
        day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced
        and unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans
        as
        of the last day of the related Due Period (after giving effect to scheduled
        payments of principal due during the related Due Period, to the extent received
        or advanced and unscheduled collections of principal received during the
        related
        Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
        principal balance of the Mortgage Loans as of the Cut-off Date.

       

      “Class
        M-5 Certificate”: Any one of the Class M-5 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-2 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        M-5 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the aggregate
        Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
        Certificates (after taking into account the payment of the Class M-1/M-2/M-3
        Principal Distribution Amount on such Distribution Date), (iii) the Certificate
        Principal Balance of the Class M-4 Certificates (after taking into account
        the
        payment of the Class M-4 Principal Distribution Amount on such Distribution
        Date) and (iv) the Certificate Principal Balance of the Class M-5 Certificates
        immediately prior to such Distribution Date over (y) the lesser of (A) the
        product of (i) 82.00% and (ii) the aggregate Stated Principal Balance of
        the
        Mortgage Loans as of the last day of the related Due Period (after giving
        effect
        to scheduled payments of principal due during the related Due Period, to
        the
        extent received or advanced and unscheduled collections of principal received
        during the related Prepayment Period) and (B) the aggregate Stated Principal
        Balance of the Mortgage Loans as of the last day of the related Due Period
        (after giving effect to scheduled payments of principal due during the related
        Due Period, to the extent received or advanced and unscheduled collections
        of
        principal received during the related Prepayment Period) minus the product
        of
        (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans
        as of
        the Cut-off Date.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      “Class
        M-6 Certificate”: Any one of the Class M-6 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-2 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        M-6 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the aggregate
        Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
        Certificates (after taking into account the payment of the Class M-1/M-2/M-3
        Principal Distribution Amount on such Distribution Date), (iii) the Certificate
        Principal Balance of the Class M-4 Certificates (after taking into account
        the
        payment of the Class M-4 Principal Distribution Amount on such Distribution
        Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
        (after taking into account the payment of the Class M-5 Principal Distribution
        Amount on such Distribution Date) and (v) the Certificate Principal Balance
        of
        the Class M-6 Certificates immediately prior to such Distribution Date over
        (y)
        the lesser of (A) the product of (i) 84.90% and (ii) the aggregate Stated
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period (after giving effect to scheduled payments of principal due during
        the
        related Due Period, to the extent received or advanced and unscheduled
        collections of principal received during the related Prepayment Period) and
        (B)
        the aggregate Stated Principal Balance of the Mortgage Loans as of the last
        day
        of the related Due Period (after giving effect to scheduled payments of
        principal due during the related Due Period, to the extent received or advanced
        and unscheduled collections of principal received during the related Prepayment
        Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance
        of the Mortgage Loans as of the Cut-off Date.

       

      “Class
        M-7 Certificate”: Any one of the Class M-7 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-2 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      “Class
        M-7 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the aggregate
        Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
        Certificates (after taking into account the payment of the Class M-1/M-2/M-3
        Principal Distribution Amount on such Distribution Date), (iii) the Certificate
        Principal Balance of the Class M-4 Certificates (after taking into account
        the
        payment of the Class M-4 Principal Distribution Amount on such Distribution
        Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
        (after taking into account the payment of the Class M-5 Principal Distribution
        Amount on such Distribution Date), (v) the Certificate Principal Balance
        of the
        Class M-6 Certificates (after taking into account the payment of the Class
        M-6
        Principal Distribution Amount on such Distribution Date) and (vi) the
        Certificate Principal Balance of the Class M-7 Certificates immediately prior
        to
        such Distribution Date over (y) the lesser of (A) the product of (i) 87.70%
        and
        (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the
        last
        day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced
        and unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans
        as
        of the last day of the related Due Period (after giving effect to scheduled
        payments of principal due during the related Due Period, to the extent received
        or advanced and unscheduled collections of principal received during the
        related
        Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
        principal balance of the Mortgage Loans as of the Cut-off Date.

       

      “Class
        M-8 Certificate”: Any one of the Class M-8 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-2 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        M-8 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the aggregate
        Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
        Certificates (after taking into account the payment of the Class M-1/M-2/M-3
        Principal Distribution Amount on such Distribution Date), (iii) the Certificate
        Principal Balance of the Class M-4 Certificates (after taking into account
        the
        payment of the Class M-4 Principal Distribution Amount on such Distribution
        Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
        (after taking into account the payment of the Class M-5 Principal Distribution
        Amount on such Distribution Date), (v) the Certificate Principal Balance
        of the
        Class M-6 Certificates (after taking into account the payment of the Class
        M-6
        Principal Distribution Amount on such Distribution Date), (vi) the Certificate
        Principal Balance of the Class M-7 Certificates (after taking into account
        the
        payment of the Class M-7 Principal Distribution Amount on such Distribution
        Date) and (vii) the Certificate Principal Balance of the Class M-8 Certificates
        immediately prior to such Distribution Date over (y) the lesser of (A) the
        product of (i) 90.00% and (ii) the aggregate Stated Principal Balance of
        the
        Mortgage Loans as of the last day of the related Due Period (after giving
        effect
        to scheduled payments of principal due during the related Due Period, to
        the
        extent received or advanced and unscheduled collections of principal received
        during the related Prepayment Period) and (B) the aggregate Stated Principal
        Balance of the Mortgage Loans as of the last day of the related Due Period
        (after giving effect to scheduled payments of principal due during the related
        Due Period, to the extent received or advanced and unscheduled collections
        of
        principal received during the related Prepayment Period) minus the product
        of
        (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans
        as of
        the Cut-off Date.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      “Class
        M-9 Certificate”: Any one of the Class M-9 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-2 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        M-9 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the aggregate
        Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
        Certificates (after taking into account the payment of the Class M-1/M-2/M-3
        Principal Distribution Amount on such Distribution Date), (iii) the Certificate
        Principal Balance of the Class M-4 Certificates (after taking into account
        the
        payment of the Class M-4 Principal Distribution Amount on such Distribution
        Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
        (after taking into account the payment of the Class M-5 Principal Distribution
        Amount on such Distribution Date), (v) the Certificate Principal Balance
        of the
        Class M-6 Certificates (after taking into account the payment of the Class
        M-6
        Principal Distribution Amount on such Distribution Date). (vi) the Certificate
        Principal Balance of the Class M-7 Certificates (after taking into account
        the
        payment of the Class M-7 Principal Distribution Amount on such Distribution
        Date), (vii) the Certificate Principal Balance of the Class M-8 Certificates
        (after taking into account the payment of the Class M-8 Principal Distribution
        Amount on such Distribution Date) and (viii) the Certificate Principal Balance
        of the Class M-9 Certificates immediately prior to such Distribution Date
        over
        (y) the lesser of (A) the product of (i) 91.80% and (ii) the aggregate Stated
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period (after giving effect to scheduled payments of principal due during
        the
        related Due Period, to the extent received or advanced and unscheduled
        collections of principal received during the related Prepayment Period) and
        (B)
        the aggregate Stated Principal Balance of the Mortgage Loans as of the last
        day
        of the related Due Period (after giving effect to scheduled payments of
        principal due during the related Due Period, to the extent received or advanced
        and unscheduled collections of principal received during the related Prepayment
        Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance
        of the Mortgage Loans as of the Cut-off Date.

       

      “Class
        M-10 Certificate”: Any one of the Class M-10 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-3 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        M-10 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the aggregate
        Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
        Certificates (after taking into account the payment of the Class M-1/M-2/M-3
        Principal Distribution Amount on such Distribution Date), (iii) the Certificate
        Principal Balance of the Class M-4 Certificates (after taking into account
        the
        payment of the Class M-4 Principal Distribution Amount on such Distribution
        Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
        (after taking into account the payment of the Class M-5 Principal Distribution
        Amount on such Distribution Date), (v) the Certificate Principal Balance
        of the
        Class M-6 Certificates (after taking into account the payment of the Class
        M-6
        Principal Distribution Amount on such Distribution Date). (vi) the Certificate
        Principal Balance of the Class M-7 Certificates (after taking into account
        the
        payment of the Class M-7 Principal Distribution Amount on such Distribution
        Date), (vii) the Certificate Principal Balance of the Class M-8 Certificates
        (after taking into account the payment of the Class M-8 Principal Distribution
        Amount on such Distribution Date), (viii) the Certificate Principal Balance
        of
        the Class M-9 Certificates (after taking into account the payment of the
        Class
        M-9 Principal Distribution Amount on such Distribution Date) and (ix) the
        Certificate Principal Balance of the Class M-10 Certificates immediately
        prior
        to such Distribution Date over (y) the lesser of (A) the product of (i) 92.90%
        and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as
        of the
        last day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced
        and unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans
        as
        of the last day of the related Due Period (after giving effect to scheduled
        payments of principal due during the related Due Period, to the extent received
        or advanced and unscheduled collections of principal received during the
        related
        Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
        principal balance of the Mortgage Loans as of the Cut-off Date.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      “Class
        M-11 Certificate”: Any one of the Class M-11 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-3 and evidencing a
        Regular
        Interest in REMIC III for purposes of the REMIC Provisions.

       

      “Class
        M-11 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the aggregate
        Certificate Principal Balance of the Class M-1, Class M-2 and Class M-3
        Certificates (after taking into account the payment of the Class M-1/M-2/M-3
        Principal Distribution Amount on such Distribution Date), (iii) the Certificate
        Principal Balance of the Class M-4 Certificates (after taking into account
        the
        payment of the Class M-4 Principal Distribution Amount on such Distribution
        Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
        (after taking into account the payment of the Class M-5 Principal Distribution
        Amount on such Distribution Date), (v) the Certificate Principal Balance
        of the
        Class M-6 Certificates (after taking into account the payment of the Class
        M-6
        Principal Distribution Amount on such Distribution Date). (vi) the Certificate
        Principal Balance of the Class M-7 Certificates (after taking into account
        the
        payment of the Class M-7 Principal Distribution Amount on such Distribution
        Date), (vii) the Certificate Principal Balance of the Class M-8 Certificates
        (after taking into account the payment of the Class M-8 Principal Distribution
        Amount on such Distribution Date), (viii) the Certificate Principal Balance
        of
        the Class M-9 Certificates (after taking into account the payment of the
        Class
        M-9 Principal Distribution Amount on such Distribution Date), (ix) the
        Certificate Principal Balance of the Class M-10 Certificates (after taking
        into
        account the payment of the Class M-10 Principal Distribution Amount on such
        Distribution Date) and (x) the Certificate Principal Balance of the Class
        M-11
        Certificates immediately prior to such Distribution Date over (y) the lesser
        of
        (A) the product of (i) 94.90% and (ii) the aggregate Stated Principal Balance
        of
        the Mortgage Loans as of the last day of the related Due Period (after giving
        effect to scheduled payments of principal due during the related Due Period,
        to
        the extent received or advanced and unscheduled collections of principal
        received during the related Prepayment Period) and (B) the aggregate Stated
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period (after giving effect to scheduled payments of principal due during
        the
        related Due Period, to the extent received or advanced and unscheduled
        collections of principal received during the related Prepayment Period) minus
        the product of (i) 0.50% and (ii) the aggregate principal balance of the
        Mortgage Loans as of the Cut-off Date.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      “Class
        P
        Certificate”: Any one of the Class P Certificates executed and authenticated by
        the Securities Administrator and delivered by the Trustee, substantially
        in the
        form annexed hereto as Exhibit A-5 and evidencing a Regular Interest in REMIC
        III for purposes of the REMIC Provisions.

       

      “Class
        R
        Certificates”: Any one of the Class R Certificates executed and authenticated by
        the Securities Administrator and delivered by the Trustee, substantially
        in the
        form annexed hereto as Exhibit A-6, and evidencing the Class R-I Interest,
        the
        Class R-II Interest and the Class R-III Interest.

       

      “Class
        R-I Interest”: The uncertificated residual interest in REMIC I.

       

      “Class
        R-II Interest”: The uncertificated residual interest in REMIC II.

       

      “Class
        R-III Interest”: The uncertificated residual interest in REMIC III.

       

      “Closing
        Date”: July 25, 2006.

       

      “Code”:
        The Internal Revenue Code of 1986 as amended from time to time.

       

      “Collection
        Account”: The separate account or accounts created and maintained, or caused to
        be created and maintained, by the Servicer pursuant to the Servicing
        Agreement.

       

      “Commission”:
        The Securities and Exchange Commission.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      “Controlling
        Person”: Means, with respect to any Person, any other Person who “controls” such
        Person within the meaning of the Securities Act.

       

      “Corporate
        Trust Office”: The principal corporate trust office of the Trustee or the
        Securities Administrator, as the case may be, at which, at any particular
        time,
        its corporate trust business in connection with this Agreement shall be
        administered, which office at the date of the execution of this instrument
        is
        located at (i) with respect to the Trustee, HSBC Bank USA, National Association,
        452 Fifth Avenue, New York, New York 10018, Attention: ACE Securities Corp.,
        2006-CW1, or at such other address as the Trustee may designate from time
        to
        time by notice to the Certificateholders, the Depositor, the Master Servicer,
        the Securities Administrator and the Servicer and (ii) with respect to the
        Securities Administrator, (A) for purposes of Certificate transfers and
        surrender, Wells Fargo Bank, National Association, Sixth Street and Marquette
        Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust (ACE 2006-CW1),
        and (B) for all other purposes, Wells Fargo Bank, National Association, P.O.
        Box
        98, Columbia, Maryland 21046, Attention: Corporate Trust (ACE 2006-CW1) (or
        for
        overnight deliveries, at 9062 Old Annapolis Road, Columbia, Maryland 21045,
        Attention: Corporate Trust (ACE 2006-CW1)), or at such other address as the
        Securities Administrator may designate from time to time by notice to the
        Certificateholders, the Depositor, the Master Servicer, the Servicer and
        the
        Trustee.

       

      “Corresponding
        Certificate”: With respect to each REMIC II Regular Interest, as
        follows:

       

      
        	
                REMIC
                  II Regular Interest

              	 	
                Class

              
	
                REMIC
                  II Regular Interest A-1

              	 	
                A-1

              
	
                REMIC
                  II Regular Interest A-2A

              	 	
                A-2A

              
	
                REMIC
                  II Regular Interest A-2B

              	 	
                A-2B

              
	
                REMIC
                  II Regular Interest A-2C

              	 	
                A-2C

              
	
                REMIC
                  II Regular Interest A-2D

              	 	
                A-2D

              
	
                REMIC
                  II Regular Interest M-1

              	 	
                M-1

              
	
                REMIC
                  II Regular Interest M-2

              	 	
                M-2

              
	
                REMIC
                  II Regular Interest M-3

              	 	
                M-3

              
	
                REMIC
                  II Regular Interest M-4

              	 	
                M-4

              
	
                REMIC
                  II Regular Interest M-5

              	 	
                M-5

              
	
                REMIC
                  II Regular Interest M-6

              	 	
                M-6

              
	
                REMIC
                  II Regular Interest M-7

              	 	
                M-7

              
	
                REMIC
                  II Regular Interest M-8

              	 	
                M-8

              
	
                REMIC
                  II Regular Interest M-9

              	 	
                M-9

              
	
                REMIC
                  II Regular Interest M-10

              	 	
                M-10

              
	
                REMIC
                  II Regular Interest M-11

              	 	
                M-11

              
	
                REMIC
                  II Regular Interest P

              	 	
                P

              

      

      

      “Credit
        Enhancement Percentage”: For any Distribution Date, the percentage equivalent of
        a fraction, the numerator of which is the sum of the aggregate Certificate
        Principal Balances of the Mezzanine Certificates and the Class CE Certificates,
        and the denominator of which is the aggregate Stated Principal Balance of
        the
        Mortgage Loans, calculated after taking into account distributions of principal
        on the Mortgage Loans and distribution of the Principal Distribution Amount
        to
        the Certificates then entitled to distributions of principal on such
        Distribution Date.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      “Credit
        Risk Management Agreements”: The agreements between the Credit Risk Manager and
        the Servicer and/or Master Servicer, each regarding the loss mitigation and
        advisory services to be provided by the Credit Risk Manager.

       

      “Credit
        Risk Management Fee”: The amount payable to the Credit Risk Manager on each
        Distribution Date as compensation for all services rendered by it in the
        exercise and performance of any and all powers and duties of the Credit Risk
        Manager under the Credit Risk Management Agreements, which amount shall equal
        one twelfth of the product of (i) the Credit Risk Management Fee Rate multiplied
        by (ii) the Stated Principal Balance of the Mortgage Loans and any related
        REO
        Properties as of the first day of the related Due Period.

       

      “Credit
        Risk Management Fee Rate”: 0.0140% per annum.

       

      “Credit
        Risk Manager”: Clayton Fixed Income Services Inc. (formerly known as The
        Murrayhill Company), a Colorado corporation, and its successors and
        assigns.

       

      “Custodial
        Agreement”: The Custodial Agreement dated as of July 1, 2006, among the Trustee,
        Wells Fargo and the Servicer, as may be amended or supplemented from time
        to
        time.

       

      “Custodian”:
        Wells Fargo or any other custodian appointed under any custodial agreement
        entered into after the date of this Agreement.

       

      “Cut-off
        Date”: With respect to each Mortgage Loan, July 1, 2006. With respect to all
        Qualified Substitute Mortgage Loans, their respective dates of substitution.
        References herein to the “Cut-off Date,” when used with respect to more than one
        Mortgage Loan, shall be to the respective Cut-off Dates for such Mortgage
        Loans.

       

      “Debt
        Service Reduction”: With respect to any Mortgage Loan, a reduction in the
        scheduled Monthly Payment for such Mortgage Loan by a court of competent
        jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction
        resulting from a Deficient Valuation.

       

      “Deficient
        Valuation”: With respect to any Mortgage Loan, a valuation of the related
        Mortgaged Property by a court of competent jurisdiction in an amount less
        than
        the then outstanding principal balance of the Mortgage Loan, which valuation
        results from a proceeding initiated under the Bankruptcy Code.

       

      “Definitive
        Certificates”: As defined in Section 6.01(b) of this
        Agreement.

       

      “Deleted
        Mortgage Loan”: A Mortgage Loan replaced or to be replaced by a Qualified
        Substitute Mortgage Loan.

       

      “Delinquency
        Percentage”: As of the last day of the related Due Period, the percentage
        equivalent of a fraction, the numerator of which is the aggregate Stated
        Principal Balance of all Mortgage Loans that, as of the last day of the previous
        calendar month, are sixty (60) or more days delinquent, are in foreclosure,
        have
        been converted to REO Properties or have been discharged by reason of
        bankruptcy, and the denominator of which is the aggregate Stated Principal
        Balance of the Mortgage Loans and REO Properties as of the last day of the
        previous calendar month.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      “Depositor”:
        ACE Securities Corp., a Delaware corporation, or its successor in
        interest.

       

      “Depository”:
        The Depository Trust Company, or any successor Depository hereafter named.
        The
        nominee of the initial Depository, for purposes of registering those
        Certificates that are to be Book-Entry Certificates, is Cede & Co. The
        Depository shall at all times be a “clearing corporation” as defined in
        Section 8-102(3) of the Uniform Commercial Code of the State of New York
        and a “clearing agency” registered pursuant to the provisions of
        Section 17A of the Exchange Act.

       

      “Depository
        Institution”: Any depository institution or trust company, including the
        Trustee, that (a) is incorporated under the laws of the United States of
        America
        or any State thereof, (b) is subject to supervision and examination by federal
        or state banking authorities and (c) has outstanding unsecured commercial
        paper
        or other short-term unsecured debt obligations (or, in the case of a depository
        institution that is the principal subsidiary of a holding company, such holding
        company has unsecured commercial paper or other short-term unsecured debt
        obligations) that are rated at least A-1+ by S&P, F-1+ by Fitch and P-1 by
        Moody’s (or, if such Rating Agencies are no longer rating the Offered
        Certificates, comparable ratings by any other nationally recognized statistical
        rating agency then rating the Offered Certificates).

       

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

       

      “Determination
        Date”: With respect to each Distribution Date, the date set forth in the
        Servicing Agreement. The Determination Date for purposes of Article X hereof
        shall mean the 15th
        day of
        the month or, if such 15th
        day is
        not a Business Day, the first Business Day following such 15th
        day.

       

      “Directly
        Operate”: With respect to any REO Property, the furnishing or rendering of
        services to the tenants thereof, the management or operation of such REO
        Property, the holding of such REO Property primarily for sale to customers,
        the
        performance of any construction work thereon or any use of such REO Property
        in
        a trade or business conducted by REMIC I other than through an Independent
        Contractor; provided, however, that the Servicer, on behalf of the Trustee,
        shall not be considered to Directly Operate an REO Property solely because
        the
        Servicer establishes rental terms, chooses tenants, enters into or renews
        leases, deals with taxes and insurance, or makes decisions as to repairs
        or
        capital expenditures with respect to such REO Property.

       

      “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 Freddie Mac, 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, (v) an “electing large partnership” and
        (vi) 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 Trust REMIC or any Person having an Ownership Interest
        in any Class of Certificates (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.

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      “Distribution
        Account”: The separate trust account or accounts created and maintained by the
        Securities Administrator pursuant to Section 3.01(a) of this Agreement in
        the
        name of the Securities Administrator for the benefit of the Certificateholders
        and designated “Wells Fargo Bank, National Association, in trust for registered
        holders of ACE Securities Corp. Home Equity Loan Trust, Series 2006-CW1”. Funds
        in the Distribution Account shall be held in trust for the Certificateholders
        for the uses and purposes set forth in this Agreement. The Distribution Account
        must be an Eligible Account.

       

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

       

      “Due
        Date”: With respect to each Distribution Date, the day of the month on which the
        Monthly Payment is due on a Mortgage Loan during the related Due Period,
        exclusive of any days of grace.

       

      “Due
        Period”: With respect to any Distribution Date, the period commencing on the
        second day of the month immediately preceding the month in which such
        Distribution Date occurs and ending on the first day of the month in which
        such
        Distribution Date occurs. 

       

      “Eligible
        Account”: Any of (i) an account or accounts maintained with a Depository
        Institution, (ii) an account or accounts the deposits in which are fully
        insured
        by the FDIC or (iii) a trust account or accounts maintained with a federal
        depository institution or state chartered depository institution acting in
        its
        fiduciary capacity. Eligible Accounts may bear interest.

       

      “ERISA”:
        The Employee Retirement Income Security Act of 1974, as amended from time
        to
        time.

       

      “Estate
        in Real Property”: A fee simple estate in a parcel of land.

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      “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 Net Mortgage Rate through the last day of the month
        in
        which the related Liquidation Event occurs, plus (ii) related liquidation
        expenses or other amounts to which the Servicer is entitled to be reimbursed
        from Liquidation Proceeds with respect to such liquidated Mortgage Loan pursuant
        to the Servicing Agreement.

       

      “Exchange
        Act”: The Securities Exchange Act of 1934, as amended, and the rules and
        regulations thereunder.

       

      “Extraordinary
        Trust Fund Expense”: Any amounts payable or reimbursable to the Trustee, the
        Master Servicer, the Securities Administrator, the Custodian or any director,
        officer, employee or agent of any such Person from the Trust Fund pursuant
        to
        the terms of this Agreement and any amounts payable from the Distribution
        Account in respect of taxes pursuant to Section 11.01(g)(v) of this
        Agreement.

       

      “Fannie
        Mae”: Fannie Mae, formerly known as the Federal National Mortgage Association,
        or any successor thereto.

       

      “FDIC”:
        Federal Deposit Insurance Corporation or any successor thereto.

       

      “Final
        Maturity Date”: The Distribution Date occurring in July 2036.

       

      “Final
        Recovery Determination”: With respect to any defaulted Mortgage Loan or any REO
        Property (other than a Mortgage Loan or REO Property purchased by an originator,
        the Sponsor or the Terminator pursuant to or as contemplated by
        Section 2.03 or Section 10.01 of this Agreement), a determination made
        by the Servicer that all Insurance Proceeds, Liquidation Proceeds and other
        payments or recoveries which the Servicer, in its reasonable good faith
        judgment, expects to be finally recoverable in respect thereof have been
        so
        recovered, which determination shall be evidenced by a certificate of a
        Servicing Officer of the Servicer delivered to the Master Servicer and
        maintained in its records.

       

      “Fitch”:
        Fitch Ratings or any successor in interest.

       

      “Form
        8-K
        Disclosure Information”: Has the meaning set forth in
        Section 5.06(b).

       

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

       

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

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      “Group
        I
        Allocation Percentage”: The aggregate principal balance of the Group I Mortgage
        Loans divided by the sum of the aggregate principal balance of the Group
        I
        Mortgage Loans and Group II Mortgage Loans.

       

      “Group
        I
        Cap Contract”: The Cap Contract between the Trustee and the Cap Counterparty,
        for the benefit of the Holders of the Class A-1 Certificates and the Mezzanine
        Certificates. 

       

      “Group
        I
        Interest Remittance Amount”: With respect to any Distribution Date, that portion
        of the Available Distribution Amount for such Distribution Date that represents
        interest received or advanced on the Group I Mortgage Loans (net of the
        Administration Fees and any Prepayment Charges and after taking into account
        amounts payable or reimbursable to the Trustee, the Custodian, the Securities
        Administrator, the Credit Risk Manager, the Master Servicer or the Servicer
        pursuant to this Agreement, the Servicing Agreement or the Custodial Agreement
        with respect to the Group I Mortgage Loans).

       

      “Group
        I
        Mortgage Loans”: Those Mortgage Loans identified on the Mortgage Loan Schedule
        as Group I Mortgage Loans.

       

      “Group
        I
        Principal Distribution Amount”: With respect to any Distribution Date, the sum
        of (i) the principal portion of all Monthly Payments on the Group I Mortgage
        Loans due during the related Due Period, whether or not received on or prior
        to
        the related Determination Date; (ii) the principal portion of all proceeds
        received in respect of the repurchase of a Group I Mortgage Loan or, in the
        case
        of a substitution, certain amounts representing a principal adjustment, during
        the related Prepayment Period pursuant to or as contemplated by
        Section 2.03 and Section 10.01 of this Agreement; (iii) the principal
        portion of all other unscheduled collections, including Insurance Proceeds,
        Liquidation Proceeds and all Principal Prepayments in full and in part, received
        during the related Prepayment Period, to the extent applied as recoveries
        of
        principal on the Group I Mortgage Loans, net in each case of payments or
        reimbursements to the Trustee, the Custodian, the Credit Risk Manager, the
        Master Servicer, the Securities Administrator or the Servicer and (iv) the
        Class
        A-1 Allocation Percentage of the amount of any Overcollateralization Increase
        Amount for such Distribution Date minus
        (v) the
        Class A-1 Allocation Percentage of the amount of any Overcollateralization
        Reduction Amount for such Distribution Date.

       

      “Group
        I
        Principal Remittance Amount”: With respect to any Distribution Date, the sum of
        (a) the amounts described in clauses (i) through (iii) of the definition
        of
        Group I Principal Distribution Amount.

       

      “Group
        II
        Allocation Percentage”: The aggregate principal balance of the Group II Mortgage
        Loans divided by the sum of the aggregate principal balance of the Group
        I
        Mortgage Loans and Group II Mortgage Loans.

       

      “Group
        II
        Cap Contract”: The Cap Contract between the Trustee and the Cap Counterparty,
        for the benefit of the Class A-2 Certificates and the Mezzanine
        Certificates.

       

      “Group
        II
        Interest Remittance Amount”: With respect to any Distribution Date, that portion
        of the Available Distribution Amount for such Distribution Date that represents
        interest received or advanced on the Group II Mortgage Loans (net of the
        Administration Fees and any Prepayment Charges and after taking into account
        amounts payable or reimbursable to the Trustee, the Custodian, the Securities
        Administrator, the Credit Risk Manager, the Master Servicer or the Servicer
        pursuant to this Agreement, the Servicing Agreement or the Custodial Agreement
        with respect to the Group II Mortgage Loans).

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      “Group
        II
        Mortgage Loans”: Those Mortgage Loans identified on the Mortgage Loan Schedule
        as Group II Mortgage Loans.

       

      “Group
        II
        Principal Distribution Amount”: With respect to any Distribution Date, the sum
        of (i) the principal portion of all Monthly Payments on the Group II Mortgage
        Loans due during the related Due Period, whether or not received on or prior
        to
        the related Determination Date; (ii) the principal portion of all proceeds
        received in respect of the repurchase of a Group II Mortgage Loan or, in
        the
        case of a substitution, certain amounts representing a principal adjustment,
        during the related Prepayment Period pursuant to or as contemplated by
        Section 2.03 and Section 10.01 of this Agreement; (iii) the principal
        portion of all other unscheduled collections, including Insurance Proceeds,
        Liquidation Proceeds and all Principal Prepayments in full and in part, received
        during the related Prepayment Period, to the extent applied as recoveries
        of
        principal on the Group II Mortgage Loans, net in each case of payments or
        reimbursements to the Trustee, the Custodian, the Credit Risk Manager, the
        Master Servicer, the Securities Administrator or the Servicer and (iv) the
        Class
        A-2 Allocation Percentage of the amount of any Overcollateralization Increase
        Amount for such Distribution Date minus
        (v) the
        Class A-2 Allocation Percentage of the amount of any Overcollateralization
        Reduction Amount for such Distribution Date.

       

      “Group
        II
        Principal Remittance Amount”: With respect to any Distribution Date, the sum of
        the amounts described in clauses (i) through (iii) of the definition of Group
        II
        Principal Distribution Amount.

       

      “Independent”:
        When used with respect to any accountants, a Person who is “independent” within
        the meaning of Rule 2-01(B) of the Commission’s Regulation S-X. When used with
        respect to any specified Person, any such Person who (a) is in fact independent
        of the Depositor, the Master Servicer, the Securities Administrator, the
        Servicer, the Sponsor, any originator and their respective Affiliates, (b)
        does
        not have any direct financial interest in or any material indirect financial
        interest in the Depositor, the Master Servicer, the Securities Administrator,
        the Servicer, the Sponsor, any originator or any Affiliate thereof, (c) is
        not
        connected with the Depositor, the Master Servicer, the Securities Administrator,
        the Servicer, the Sponsor, any originator or any Affiliate thereof as an
        officer, employee, promoter, underwriter, trustee, partner, director or Person
        performing similar functions and (d) is not a member of the immediate family
        of
        a Person defined on clause (b) or (c) above.

       

      “Independent
        Contractor”: Either (i) any Person (other than a Servicer) that would be an
“independent contractor” with respect to REMIC I within the meaning of
        Section 856(d)(3) of the Code if REMIC I were a real estate investment
        trust (except that the ownership tests set forth in that section shall be
        considered to be met by any Person that owns, directly or indirectly, 35%
        or
        more of any Class of Certificates), so long as REMIC I does not receive or
        derive any income from such Person and provided that the relationship between
        such Person and REMIC I is at arm’s length, all within the meaning of Treasury
        Regulation Section 1.856-4(b)(5), or (ii) any other Person (including any
        Servicer) if the Trustee has received an Opinion of Counsel to the effect
        that
        the taking of any action in respect of any REO Property by such Person, subject
        to any conditions therein specified, that is otherwise herein contemplated
        to be
        taken by an Independent Contractor will not cause such REO Property to cease
        to
        qualify as “foreclosure property” within the meaning of Section 860G(a)(8)
        of the Code (determined without regard to the exception applicable for purposes
        of Section 860D(a) of the Code), or cause any income realized in respect of
        such REO Property to fail to qualify as Rents from Real Property.

       

      
        
          
          

        

        
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      “Index”:
        As of any Adjustment Date, the index applicable to the determination of the
        Mortgage Rate on each Adjustable Rate Mortgage Loan will generally be either
        (i)
        the average of the interbank offered rates for six-month United States dollar
        deposits in the London market as published in The
        Wall Street Journal and
        as
        most recently available either (a) as of the first Business Day forty-five
        (45)
        days prior to such Adjustment Date or (b) as of the first Business Day of
        the
        month preceding the month of such Adjustment Date, as specified in the related
        Mortgage Note or (ii) the weekly average yield on United States Treasury
        Securities adjusted to a constant maturity of one year, as published in the
        Federal Statistical Release H.15 (519) as most recently announced as of a
        date
        45 days prior to such Adjustment Date.

       

      “Institutional
        Accredited Investor”: As defined in Section 6.01(c).

       

      “Insurance
        Proceeds”: Proceeds of any title policy, hazard policy or other insurance
        policy, covering a Mortgage Loan or the related Mortgaged Property, to the
        extent such proceeds are not to be applied to the restoration of the related
        Mortgaged Property or released to the Mortgagor or a senior lienholder in
        accordance with Accepted Servicing Practices, subject to the terms and
        conditions of the related Mortgage Note and Mortgage.

       

      “Interest
        Accrual Period”: With respect to any Distribution Date and the Class A
        Certificates and the Mezzanine Certificates, the period commencing on the
        Distribution Date of the month immediately preceding the month in which such
        Distribution Date occurs (or, in the case of the first Distribution Date,
        commencing on the Closing Date) and ending on the day preceding such
        Distribution Date. With respect to any Distribution Date and the Class CE
        Certificates and the REMIC I Regular Interests, the one-month period ending
        on
        the last day of the calendar month immediately preceding the month in which
        such
        Distribution Date occurs.

       

      “Interest
        Carry Forward Amount”: With respect to any Distribution Date and any Class A
        Certificate or Mezzanine Certificate, the sum of (i) the amount, if any,
        by
        which (a) the Interest Distribution Amount for such Class as of the immediately
        preceding Distribution Date exceeded (b) the actual amount distributed on
        such
        Class in respect of interest on such immediately preceding Distribution Date
        and
        (ii) the amount of any Interest Carry Forward Amount for such Class remaining
        unpaid from the previous Distribution Date, plus accrued interest on such
        sum
        calculated at the related Pass-Through Rate for the most recently ended Interest
        Accrual Period.

       

      “Interest
        Determination Date”: With respect to the Class A Certificates, the Mezzanine
        Certificates, REMIC I Regular Interests and REMIC II Regular Interests (other
        than REMIC I Regular Interest P and REMIC II Regular Interest P) and any
        Interest Accrual Period therefor, the second London Business Day preceding
        the
        commencement of such Interest Accrual Period.

       

      
        
          
          

        

        
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      “Interest
        Distribution Amount”: With respect to any Distribution Date and any Class A
        Certificates, any Mezzanine Certificates and any Class CE Certificates, the
        aggregate Accrued Certificate Interest on the Certificates of such Class
        for
        such Distribution Date.

       

      “Interest
        Remittance Amount”: With respect to any Distribution Date, the sum of: (i) the
        Group I Interest Remittance Amount and (ii) the Group II Interest Remittance
        Amount.

       

      “Last
        Scheduled Distribution Date”: The Distribution Date in July 2036, which is the
        Distribution Date immediately following the maturity date for the Mortgage
        Loan
        with the latest maturity date.

       

      “Late
        Collections”: With respect to any Mortgage Loan and any Due Period, all amounts
        received subsequent to the Determination Date immediately following such
        Due
        Period with respect to such Mortgage Loan, whether as late payments of Monthly
        Payments or as Insurance Proceeds, Liquidation Proceeds or otherwise, which
        represent late payments or collections of principal and/or interest due (without
        regard to any acceleration of payments under the related Mortgage and Mortgage
        Note) but delinquent for such Due Period and not previously
        recovered.

       

      “Liquidation
        Event”: With respect to any Mortgage Loan, any of the following events: (i) such
        Mortgage Loan is paid in full; (ii) a Final Recovery Determination is made
        as to
        such Mortgage Loan or (iii) such Mortgage Loan is removed from REMIC I by
        reason
        of its being purchased, sold or replaced pursuant to or as contemplated by
        Section 2.03 or Section 10.01 of this Agreement. With respect to any
        REO Property, either of the following events: (i) a Final Recovery Determination
        is made as to such REO Property or (ii) such REO Property is removed from
        REMIC
        I by reason of its being purchased pursuant to Section 10.01 of this
        Agreement.

       

      “Liquidation
        Proceeds”: The amount (other than Insurance Proceeds, amounts received in
        respect of the rental of any REO Property prior to REO Disposition, or required
        to be released to a Mortgagor or a senior lienholder in accordance with
        applicable law or the terms of the related Mortgage Loan Documents) received
        by
        the Servicer in connection with (i) the taking of all or a part of a Mortgaged
        Property by exercise of the power of eminent domain or condemnation (other
        than
        amounts required to be released to the Mortgagor or a senior lienholder),
        (ii)
        the liquidation of a defaulted Mortgage Loan through a trustee’s sale,
        foreclosure sale or otherwise, (iii) the repurchase, substitution or sale
        of a
        Mortgage Loan or an REO Property pursuant to or as contemplated by the Servicing
        Agreement or Section 2.03, or Section 10.01 of this Agreement or (iv)
        any Subsequent Recoveries. 

       

      “Loan-to-Value
        Ratio”: As of any date of determination, the fraction, expressed as a
        percentage, the numerator of which is the principal balance of the related
        Mortgage Loan at such date and the denominator of which is the Value of the
        related Mortgaged Property.

       

      
        
          
          

        

        
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      “London
        Business Day”: Any day on which banks in the Cities of London and New York are
        open and conducting transactions in United States dollars.

       

      “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 principal
        balance of such Mortgage Loan immediately prior to the liquidation of such
        Mortgage Loan.

       

      “Marker
        Rate”: With respect to the Class CE Certificates and any Distribution Date, a
        per annum rate equal to two (2) times the weighted average of the REMIC II
        Remittance Rate for each of REMIC II Regular Interest A-1, REMIC II Regular
        Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest
        A-2C,
        REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular
        Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4,
        REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular
        Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9,
        REMIC II Regular Interest M-10, REMIC II Regular Interest M-11 and REMIC
        II
        Regular Interest ZZ, with the rate on each such REMIC II Regular Interest
        (other
        than REMIC II Regular Interest ZZ) subject to a cap equal to the lesser of
        (i)
        the related One-Month LIBOR Pass-Through Rate and (ii) the related Net WAC
        Pass-Through Rate for the Corresponding Certificate for the purpose of this
        calculation for such Distribution Date and with the rate on REMIC II Regular
        Interest ZZ subject to a cap of zero for the purpose of this calculation;
        provided however, each such cap for each REMIC II Regular Interest shall
        be
        multiplied by a fraction the numerator of which is the actual number of days
        in
        the related Interest Accrual Period and the denominator of which is
        30.

       

      “Master
        Servicer”: As of the Closing Date, Wells Fargo Bank, National Association and
        thereafter, its respective successors in interest who meet the qualifications
        of
        this Agreement. The Master Servicer and the Securities Administrator shall
        at
        all times be the same Person or an Affiliate.

       

      “Master
        Servicer Event of Default”: One or more of the events described in
        Section 8.01(b) of this Agreement.

       

      “Master
        Servicing Fee”: With respect to each Mortgage Loan and for any calendar month,
        an amount equal to one-twelfth of the product of the Master Servicing Fee
        Rate
        multiplied by the Scheduled Principal Balance of the Mortgage Loans as of
        the
        Due Date in the preceding calendar month.

       

      “Master
        Servicing Fee Rate”: 0.000% per annum.

       

      “Maximum
        ZZ Uncertificated Interest Deferral Amount”: With respect to any Distribution
        Date, the excess of (i) accrued interest at the REMIC II Remittance Rate
        applicable to REMIC II Regular Interest ZZ for such Distribution Date on
        a
        balance equal to the Uncertificated Balance of REMIC II Regular Interest
        ZZ
        minus the REMIC II Overcollateralization Amount, in each case for such
        Distribution Date, over (ii) Uncertificated Interest on REMIC II Regular
        Interest A-1, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B,
        REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II
        Regular
        Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3,
        REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular
        Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest M-8,
        REMIC II Regular Interest M-9, REMIC II Regular Interest M-10 and REMIC II
        Regular Interest M-11 for such Distribution Date, with the rate on each such
        REMIC II Regular Interest subject to a cap equal to the lesser of (i) the
        related One-Month LIBOR Pass-Through Rate and (ii) the related Net WAC
        Pass-Through Rate for the Corresponding Certificate for the purpose of this
        calculation for such Distribution Date; provided however, each such cap for
        each
        REMIC II Regular Interest shall be multiplied by a fraction the numerator
        of
        which is the actual number of days in the related Interest Accrual Period
        and
        the denominator of which is 30.

       

      
        
          
          

        

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

       

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

       

      “MERS®
        System”: The system of recording transfers of mortgages electronically
        maintained by MERS.

       

      “Mezzanine
        Certificate”: Any Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
        M-6, Class M-7, Class M-8, Class M-9, Class M-10 or Class M-11
        Certificate.

       

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

       

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

       

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

       

      “Monthly
        Payment”: With respect to any Mortgage Loan, the scheduled monthly payment of
        principal and interest on such Mortgage Loan which is payable by the related
        Mortgagor from time to time under the related Mortgage Note, determined:
        (a)
        after giving effect to (i) any Deficient Valuation and/or Debt Service Reduction
        with respect to such Mortgage Loan and (ii) any reduction in the amount of
        interest collectible from the related Mortgagor pursuant to the Relief Act
        or
        similar state or local laws; (b) without giving effect to any extension granted
        or agreed to by the Servicer pursuant to the Servicing Agreement; and (c)
        on the
        assumption that all other amounts, if any, due under such Mortgage Loan are
        paid
        when due.

       

      “Moody’s”:
        Moody’s Investors Service, Inc. or any successor in interest.

       

      
        
          
          

        

        
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      “Mortgage”:
        The mortgage, deed of trust or other instrument creating a first or second
        lien
        on, or first or second priority security interest in, a Mortgaged Property
        securing a Mortgage Note.

       

      “Mortgage
        File”: The Mortgage Loan Documents pertaining to a particular Mortgage
        Loan.

       

      “Mortgage
        Loan”: Each mortgage loan transferred and assigned to the Trustee and the
        Mortgage Loan Documents for which have been delivered to the Custodian pursuant
        to Section 2.01 of this Agreement and pursuant to the Custodial Agreement,
        as held from time to time as a part of the Trust Fund, the Mortgage Loans
        so
        held being identified in the Mortgage Loan Schedule. 

       

      “Mortgage
        Loan Documents”: The documents evidencing or relating to each Mortgage Loan
        delivered to the Custodian under the Custodial Agreement on behalf of the
        Trustee.

       

      “Mortgage
        Loan Purchase Agreement”: Shall mean the Mortgage Loan Purchase Agreement dated
        as of July 25, 2006, between the Depositor and the Sponsor a copy of which
        is
        attached hereto as Exhibit
        F.

       

      “Mortgage
        Loan Schedule”: As of any date, the list of Mortgage Loans included in REMIC I
        on such date, separately identifying the Group I Mortgage Loans and the Group
        II
        Mortgage Loans, attached hereto as Schedule 1. The Depositor shall deliver
        or
        cause the delivery of the initial Mortgage Loan Schedule to the Servicer,
        the
        Master Servicer, the Custodian and the Trustee on the Closing Date. The Mortgage
        Loan Schedule shall set forth the following information with respect to each
        Mortgage Loan:

       

      (i) the
        Mortgage Loan identifying number;

       

      (ii) the
        Mortgagor’s first and last name;

       

      (iii) the
        street address of the Mortgaged Property including the state and zip
        code;

       

      (iv) a
        code
        indicating whether the Mortgaged Property is owner-occupied;

       

      (v) the
        type
        of Residential Dwelling constituting the Mortgaged Property;

       

      (vi) the
        original months to maturity;

       

      (vii) the
        original date of the Mortgage Loan and the remaining months to maturity from
        the
        Cut-off Date, based on the original amortization schedule;

       

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

       

      
        
          
          

        

        
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      (ix) the
        Mortgage Rate in effect immediately following the Cut-off Date;

       

      (x) the
        date
        on which the first Monthly Payment was due on the Mortgage Loan;

       

      (xi) the
        stated maturity date;

       

      (xii) the
        amount of the Monthly Payment at origination;

       

      (xiii) the
        amount of the Monthly Payment as of the Cut-off Date;

       

      (xiv) the
        last
        Due Date on which a Monthly Payment was actually applied to the unpaid Stated
        Principal Balance;

       

      (xv) the
        original principal amount of the Mortgage Loan;

       

      (xvi) the
        Stated Principal Balance of the Mortgage Loan as of the close of business
        on the
        Cut-off Date;

       

      (xvii) with
        respect to each Adjustable Rate Mortgage Loan, the first Adjustment
        Date;

       

      (xviii) with
        respect to each Adjustable Rate Mortgage Loan, the Gross Margin;

       

      (xix) a
        code
        indicating the purpose of the loan (i.e., purchase financing, rate/term
        refinancing, cash-out refinancing);

       

      (xx) with
        respect to each Adjustable Rate Mortgage Loan, the Maximum Mortgage Rate
        under
        the terms of the Mortgage Note;

       

      (xxi) with
        respect to each Adjustable Rate Mortgage Loan, the Minimum Mortgage Rate
        under
        the terms of the Mortgage Note;

       

      (xxii) the
        Mortgage Rate at origination;

       

      (xxiii) with
        respect to each Adjustable Rate Mortgage Loan, the Periodic Rate
        Cap;

       

      (xxiv) with
        respect to each Adjustable Rate Mortgage Loan, the first Adjustment Date
        immediately following the Cut-off Date;

       

      (xxv) with
        respect to each Adjustable Rate Mortgage Loan, the Index;

       

      (xxvi) the
        date
        on which the first Monthly Payment was due on the Mortgage Loan and, if such
        date is not consistent with the Due Date currently in effect, such Due
        Date;

       

      
        
          
          

        

        
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      (xxvii) a
        code
        indicating whether the Mortgage Loan is an Adjustable Rate Mortgage Loan
        or a
        fixed rate Mortgage Loan;

       

      (xxviii) 
        a code
        indicating the documentation style (i.e., full, stated or limited);

       

      (xxix) a
        code
        indicating if the Mortgage Loan is subject to a primary insurance policy
        or
        lender paid mortgage insurance policy and the name of the insurer and, if
        applicable, the rate payable in connection therewith;

       

      (xxx) the
        Appraised Value of the Mortgaged Property;

       

      (xxxi) the
        sale
        price of the Mortgaged Property, if applicable;

       

      (xxxii) a
        code
        indicating whether the Mortgage Loan is subject to a Prepayment Charge, the
        term
        of such Prepayment Charge and the amount of such Prepayment Charge;

       

      (xxxiii) the
        product type (e.g., 2/28, 15 year fixed, 30 year fixed, 15/30 balloon,
        etc.);

       

      (xxxiv) the
        Mortgagor’s debt to income ratio; 

       

      (xxxv) the
        FICO
        score at origination; 

       

      (xxxvi) with
        respect to each Mortgage Loan registered on MERS, the MIN;

       

      (xxxvii) a
        code
        indicating whether the Mortgage Loan is secured by a first or second lien;
        and

       

      (xxxviii) the
        Custodian.

       

      The
        Mortgage Loan Schedule shall set forth the following information with respect
        to
        the Mortgage Loans in the aggregate as of the Cut-off Date: (1) the number
        of
        Mortgage Loans; (2) the current principal balance of the Mortgage Loans;
        (3) the
        weighted average Mortgage Rate of the Mortgage Loans; and (4) the weighted
        average maturity of the Mortgage Loans. The Mortgage Loan Schedule shall
        be
        amended from time to time by the Depositor in accordance with the provisions
        of
        this Agreement. With respect to any Qualified Substitute Mortgage Loan, the
        Cut-off Date shall refer to the related Cut-off Date for such Mortgage Loan,
        determined in accordance with the definition of Cut-off Date
        herein.

       

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

       

      “Mortgage
        Rate”: With respect to each Mortgage Loan, the annual rate at which interest
        accrues on such Mortgage Loan from time to time in accordance with the
        provisions of the related Mortgage Note, which rate with respect to each
        Adjustable Rate Mortgage Loan (A) as of any date of determination until the
        first Adjustment Date following the Cut-off Date shall be the rate set forth
        in
        the Mortgage Loan Schedule as the Mortgage Rate in effect immediately following
        the Cut-off Date and (B) as of any date of determination thereafter shall
        be the
        rate as adjusted on the most recent Adjustment Date equal to the sum, rounded
        to
        the nearest 0.125% as provided in the Mortgage Note, of the Index, as most
        recently available as of a date prior to the Adjustment Date as set forth
        in the
        related Mortgage Note, plus the related Gross Margin; provided that the Mortgage
        Rate on such Adjustable Rate Mortgage Loan on any Adjustment Date shall never
        be
        more than the lesser of (i) the sum of the Mortgage Rate in effect immediately
        prior to the Adjustment Date plus the related Periodic Rate Cap, if any,
        and
        (ii) the related Maximum Mortgage Rate, and shall never be less than the
        greater
        of (i) the Mortgage Rate in effect immediately prior to the Adjustment Date
        less
        the Periodic Rate Cap, if any, and (ii) the related Minimum Mortgage Rate.
        With
        respect to each Mortgage Loan that becomes an REO Property, as of any date
        of
        determination, the annual rate determined in accordance with the immediately
        preceding sentence as of the date such Mortgage Loan became an REO
        Property.

       

      
        
          
          

        

        
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      “Mortgaged
        Property”: The underlying property securing a Mortgage Loan, including any REO
        Property, consisting of an Estate in Real Property improved by a Residential
        Dwelling.

       

      “Mortgagor”:
        The obligor on a Mortgage Note.

       

      “Net
        Monthly Excess Cashflow”: With respect to any Distribution Date, the sum of (i)
        any Overcollateralization Reduction Amount for such Distribution Date and
        (ii)
        the excess of (x) the Available Distribution Amount for such Distribution
        Date
        over (y) the sum for such Distribution Date of (A) the aggregate Senior Interest
        Distribution Amounts payable to the Holders of the Class A Certificates,
        (B) the
        aggregate Interest Distribution Amounts payable to the holders of the Mezzanine
        Certificates, (C) the Principal Remittance Amount and (D) any Net Swap Payment
        or Swap Termination Payment (not caused by the occurrence of a Swap Provider
        Trigger Event) owed to the Swap Provider.

       

      “Net
        Mortgage Rate”: With respect to any Mortgage Loan (or the related REO Property)
        as of any date of determination, a per annum rate of interest equal to the
        then
        applicable Mortgage Rate for such Mortgage Loan minus the Administration
        Fee
        Rate.

       

      “Net
        Swap
        Payment”: With respect to each Distribution Date, the net payment required to be
        made pursuant to the terms of the Swap Agreement by either the Swap Provider
        or
        the Supplemental Interest Trust Trustee from the Supplemental Interest Trust,
        which net payment shall not take into account any Swap Termination
        Payment.

       

      “Net
        WAC
        Pass-Through Rate”: With respect to the Class A-1 Certificates and any
        Distribution Date, a rate per annum (adjusted for the actual number of days
        elapsed in the related Interest Accrual Period) equal to the product of (i)
        twelve and (ii) a fraction, expressed as a percentage, the numerator of which
        is
        the amount of interest which accrued on the Group I Mortgage Loans in the
        prior
        calendar month minus the fees payable to the Servicer, the Master Servicer
        and
        the Credit Risk Manager with respect to the Group I Mortgage Loans for such
        Distribution Date and the Group I Allocation Percentage of any Net Swap Payment
        payable to the Swap Provider and Swap Termination Payment payable to the
        Swap
        Provider which was not caused by the occurrence of a Swap Provider Trigger
        Event, in each case for such Distribution Date and the denominator of which
        is
        the aggregate principal balance of the Group I Mortgage Loans as of the last
        day
        of the immediately preceding Due Period (or as of the Cut-off Date with respect
        to the first Distribution Date). For federal income tax purposes, the economic
        equivalent of such rate shall be expressed as the weighted average of (adjusted
        for the actual number of days elapsed in the related Interest Accrual Period)
        the REMIC II Remittance Rate on REMIC II Regular Interest I-GRP, weighted
        on the
        basis of the Uncertificated Balance of such REMIC II Regular Interest.

       

      
        
          
          

        

        
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      With
        respect to the Class A-2 Certificates and any Distribution Date, a rate per
        annum (adjusted for the actual number of days elapsed in the related Interest
        Accrual Period) equal to the product of (i) twelve and (ii) a fraction,
        expressed as a percentage, the numerator of which is the amount of interest
        which accrued on the Group II Mortgage Loans in the prior calendar month
        minus
        the fees payable to the Servicer, the Master Servicer and the Credit Risk
        Manager with respect to the Group II Mortgage Loans for such Distribution
        Date
        and the Group II Allocation Percentage of any Net Swap Payment payable to
        the
        Swap Provider and Swap Termination Payment payable to the Swap Provider which
        was not caused by the occurrence of a Swap Provider Trigger Event, in each
        case
        for such Distribution Date and the denominator of which is the aggregate
        principal balance of the Group II Mortgage Loans as of the last day of the
        immediately preceding Due Period (or as of the Cut-off Date with respect
        to the
        first Distribution Date). For federal income tax purposes, the economic
        equivalent of such rate shall be expressed as the weighted average of (adjusted
        for the actual number of days elapsed in the related Interest Accrual Period)
        the REMIC II Remittance Rate on REMIC II Regular Interest II-GRP, weighted
        on
        the basis of the Uncertificated Balance of such REMIC II Regular
        Interest.

       

      With
        respect to the Mezzanine Certificates and any Distribution Date a rate per
        annum
        equal to the weighted average (weighted in proportion to the results of
        subtracting from the Scheduled Principal Balance of each loan group, the
        Certificate Principal Balance of the related Class A Certificates), of (i)
        the
        Net WAC Pass-Through Rate for the Class A-1 Certificates and (ii) the Net
        WAC
        Pass-Through Rate for the Class A-2 Certificates. For federal income tax
        purposes, the economic equivalent of such rate shall be expressed as the
        weighted average of (adjusted for the actual number of days elapsed in the
        related Interest Accrual Period) the REMIC II Remittance Rates on (a) REMIC
        II
        Regular Interest I-SUB, subject to a cap and a floor equal to the REMIC II
        Remittance Rate on REMIC II Regular Interest I-GRP, and (b) REMIC II Regular
        Interest II-SUB, subject to a cap and a floor equal to the REMIC II Remittance
        Rate on REMIC II Regular Interest II-GRP, weighted on the basis of the
        Uncertificated Balance of each such REMIC II Regular Interest.

       

      “Net
        WAC
        Rate Carryover Amount”: With respect to any Class A Certificate or Mezzanine
        Certificate and any Distribution Date on which the Pass-Through Rate is limited
        to the applicable Net WAC Pass-Through Rate, an amount equal to the sum of
        (i)
        the excess of (x) the amount of interest such Class would have been entitled
        to
        receive on such Distribution Date if the applicable Net WAC Pass-Through
        Rate
        would not have been applicable to such Class on such Distribution Date over
        (y)
        the amount of interest paid to such Class on such Distribution Date at the
        applicable Net WAC Pass-Through Rate plus (ii) the related Net WAC Rate
        Carryover Amount for the previous Distribution Date not previously distributed
        to such Class together with interest thereon at a rate equal to the Pass-Through
        Rate for such Class for the most recently ended Interest Accrual Period without
        taking into account
        the
        applicable Net WAC Pass-Through Rate.

       

      
        
          
          

        

        
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      “New
        Lease”: Any lease of REO Property entered into on behalf of REMIC I, including
        any lease renewed or extended on behalf of REMIC I, if REMIC I has the right
        to
        renegotiate the terms of such lease.

       

      “Nonrecoverable
        P&I Advance”: Any P&I Advance previously made or proposed to be made in
        respect of a Mortgage Loan or REO Property that, in the good faith business
        judgment of the Servicer or a successor to the Servicer (including the Master
        Servicer) will not or, in the case of a proposed P&I Advance, would not be
        ultimately recoverable from related Late Collections, Insurance Proceeds
        or
        Liquidation Proceeds on such Mortgage Loan or REO Property as provided
        herein.

       

      “Nonrecoverable
        Servicing Advance”: Any Servicing Advance previously made or proposed to be made
        in respect of a Mortgage Loan or REO Property that, in the good faith business
        judgment of the Servicer or a successor to the Servicer will not or, in the
        case
        of a proposed Servicing Advance, would not be ultimately recoverable from
        related Late Collections, Insurance Proceeds or Liquidation Proceeds on such
        Mortgage Loan or REO Property as provided herein.

       

      “Non-United
        States Person”: Any Person other than a United States Person.

       

      “Notional
        Amount”: With respect to the Class CE Certificates and any Distribution Date,
        the Uncertificated Balance of the REMIC II Regular Interests (other than
        REMIC
        II Regular Interest P) for such Distribution Date. As of the Closing Date,
        the
        Notional Amount of the Class CE Certificates is equal to
        $843,837,421.20.

       

      “Offered
        Certificates”: The Class A Certificates and the Class M-1, Class M-2, Class M-3,
        Class M-4, Class M-5, Class M-6 Class M-7, Class M-8 and Class M-9 Certificates,
        collectively.

       

      “Officer’s
        Certificate”: With respect to any Person, a certificate signed by the Chairman
        of the Board, the Vice Chairman of the Board, the President or a vice president
        (however denominated), or by the Treasurer, the Secretary, or one of the
        assistant treasurers or assistant secretaries of such Person (or, in the
        case of
        a Person that is not a corporation, signed by a person or persons having
        like
        responsibilities.

       

      “One-Month
        LIBOR”: With respect to the Class A Certificates, the Mezzanine Certificates,
        REMIC II Regular Interests (other than REMIC II Regular Interest P) and any
        Interest Accrual Period therefor, the rate determined by the Securities
        Administrator on the related Interest Determination Date on the basis of
        the
        offered rate for one-month U.S. dollar deposits, as such rate appears on
        Telerate Page 3750 as of 11:00 a.m. (London time) on such Interest Determination
        Date; provided that if such rate does not appear on Telerate Page 3750, the
        rate
        for such date will be determined on the basis of the offered rates of the
        Reference Banks for one-month U.S. dollar deposits, as of 11:00 a.m. (London
        time) on such Interest Determination Date. In such event, the Securities
        Administrator will request the principal London office of each of the Reference
        Banks to provide a quotation of its rate. If on such Interest Determination
        Date, two or more Reference Banks provide such offered quotations, One-Month
        LIBOR for the related Interest Accrual Period shall be the arithmetic mean
        of
        such offered quotations (rounded upwards if necessary to the nearest whole
        multiple of 1/16). If on such Interest Determination Date, fewer than two
        Reference Banks provide such offered quotations, One-Month LIBOR for the
        related
        Interest Accrual Period shall be the higher of (i) LIBOR as determined on
        the
        previous Interest Determination Date and (ii) the Reserve Interest Rate.
        Notwithstanding the foregoing, if, under the priorities described above,
        LIBOR
        for an Interest Determination Date would be based on LIBOR for the previous
        Interest Determination Date for the third consecutive Interest Determination
        Date, the Securities Administrator shall select an alternative comparable
        index
        (over which the Securities Administrator 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
        One-Month LIBOR by the Securities Administrator and the Securities
        Administrator’s subsequent calculation of the One-Month LIBOR Pass-Through Rates
        for the relevant Interest Accrual Period, shall, in the absence of manifest
        error, be final and binding.

       

      
        
          
          

        

        
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      “One-Month
        LIBOR Pass-Through Rate”: With respect to the Class A-1 Certificates and, for
        purposes of the definition of “Marker Rate”, REMIC II Regular Interest A-1, a
        per annum rate equal to One-Month LIBOR plus the related Certificate
        Margin.

       

      With
        respect to the Class A-2A Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest A-2A, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class A-2B Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest A-2B, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class A-2C Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest A-2C, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class A-2D Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest A-2D, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-1 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-1, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-2 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-2, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-3 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-3, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      
        
          
          

        

        
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      With
        respect to the Class M-4 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-4, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-5 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-5, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-6 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-6, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-7 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-7, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-8 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-8, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-9 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-9, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-10 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-10, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-11 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC II Regular Interest M-11, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      “Opinion
        of Counsel”: A written opinion of counsel, who may, without limitation, be
        salaried counsel for the Depositor, the Servicer, the Securities Administrator
        or the Master Servicer, acceptable to the Trustee, except that any opinion
        of
        counsel relating to (a) the qualification of any REMIC as a REMIC or (b)
        compliance with the REMIC Provisions must be an opinion of Independent
        counsel.

       

      “Optional
        Termination Date”: The Distribution Date on which the aggregate principal
        balance of the Mortgage Loans (and properties acquired in respect thereof)
        remaining in the Trust Fund as of the last day of the related Due Period
        is
        equal to or less than 10% of the aggregate principal balance of the Mortgage
        Loans as of the Cut-off Date.

       

      “Overcollateralization
        Amount”: With respect to any Distribution Date, the excess, if any, of (a) the
        aggregate Stated Principal Balances of the Mortgage Loans and REO Properties
        immediately following such Distribution Date over (b) the sum of the aggregate
        Certificate Principal Balances of the Class A Certificates, the Mezzanine
        Certificates and the Class P Certificates as of such Distribution Date (after
        taking into account the payment of the Principal Remittance Amount on such
        Distribution Date).

       

      
        
          
          

        

        
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      “Overcollateralization
        Increase Amount”: With respect to any Distribution Date, the amount of Net
        Monthly Excess Cashflow actually applied as an accelerated payment of principal
        to the Class A Certificates and the Mezzanine Certificates then entitled
        to
        distributions of principal to the extent the Required Overcollateralization
        Amount exceeds the Overcollateralization Amount.

       

      “Overcollateralization
        Reduction Amount”: With respect to any Distribution Date, the lesser of (i) the
        amount by which the Overcollateralization Amount exceeds the Required
        Overcollateralization Amount and (ii) the Principal Remittance Amount; provided
        however that on any Distribution Date on which a Trigger Event is in effect,
        the
        Overcollateralization Reduction Amount shall equal zero.

       

      “Ownership
        Interest”: As to any Certificate, any ownership or security interest in such
        Certificate, including any interest in such Certificate as the Holder thereof
        and any other interest therein, whether direct or indirect, legal or beneficial,
        as owner or as pledgee.

       

      “P&I
        Advance”: As to any Mortgage Loan or REO Property, any advance made by the
        Servicer in respect of any Determination Date pursuant to the Servicing
        Agreement or in respect of any Distribution Date by a successor Servicer
        pursuant to Section 8.02 of this Agreement (which advances shall not
        include principal or interest shortfalls due to bankruptcy proceedings or
        application of the Relief Act or similar state or local laws).

       

      “Pass-Through
        Rate”: With respect to the Class A Certificates and the Mezzanine Certificates,
        and any Distribution Date, a rate per annum equal to the lesser of (i) the
        related One-Month LIBOR Pass-Through Rate for such Distribution Date and
        (ii)
        the related Net WAC Pass-Through Rate for such Distribution Date.

       

      With
        respect to the Class CE Certificates and any Distribution Date, a rate per
        annum
        equal to the percentage equivalent of a fraction, the numerator of which
        is the
        sum of the amounts calculated pursuant to clauses (i) through (xix) below,
        and
        the denominator of which is the aggregate Uncertificated Balances of REMIC
        II
        Regular Interest AA, REMIC II Regular Interest A-1, REMIC II Regular Interest
        A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC
        II
        Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest
        M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC
        II
        Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest
        M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9, REMIC
        II
        Regular Interest M-10, REMIC II Regular Interest M-11 and REMIC II Regular
        Interest ZZ. For purposes of calculating the Pass-Through Rate for the Class
        CE
        Certificates, the numerator is equal to the sum of the following
        components:

       

      (i) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest AA minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest AA;

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

      (ii) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest A-1 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest A-1;

       

      (iii) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest A-2A minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest A-2A;

       

      (iv) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest A-2B minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest A-2B;

       

      (v) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest A-2C minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest A-2C;

       

      (vi) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest A-2D minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest A-2D;

       

      (vii) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-1 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-1;

       

      (viii) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-2 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-2;

       

      (ix) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-3 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-3;

       

      (x) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-4 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-4;

       

      (xi) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-5 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-5;

       

      (xii) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-6 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-6;

       

      (xiii) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-7 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-7;

       

      
        
          
          

        

        
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      (xiv) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-8 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-8;

       

      (xv) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-9 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-9;

       

      (xvi) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-10 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-10;

       

      (xvii) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest M-11 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest M-11;

       

      (xviii) the
        REMIC
        II Remittance Rate for REMIC II Regular Interest ZZ minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest ZZ; and

       

      (xix) 100%
        of
        the interest on REMIC II Regular Interest P.

       

      The
        Class
        IO Interest shall not have a Pass-Through Rate, but current interest for
        the
        Class IO Interest and each Distribution Date shall be an amount equal to
        100% of
        the amounts distributable to REMIC II Regular Interest IO for such Distribution
        Date.

       

      “PCAOB”:
        Means the Public Company Accounting Oversight Board.

       

      “Percentage
        Interest”: With respect to any Class of Certificates (other than the Residual
        Certificates), the undivided percentage ownership in such Class evidenced
        by
        such Certificate, expressed as a percentage, the numerator of which is the
        initial Certificate Principal Balance represented by such Certificate and
        the
        denominator of which is the aggregate initial Certificate Principal Balance
        or
        Notional Amount of all of the Certificates of such Class. The Class A
        Certificates and the Mezzanine Certificates are issuable only in minimum
        Percentage Interests corresponding to minimum initial Certificate Principal
        Balances of $25,000 and integral multiples of $1.00 in excess thereof. The
        Class
        P Certificates are issuable only in Percentage Interests corresponding to
        initial Certificate Principal Balances of $20 and integral multiples thereof.
        The Class CE Certificates are issuable only in minimum Percentage Interests
        corresponding to minimum initial Notional Balances of $10,000 and integral
        multiples of $1.00 in excess thereof; provided, however, that a single
        Certificate of each such Class of Certificates may be issued having a Percentage
        Interest corresponding to the remainder of the aggregate initial Notional
        Balance of such Class or to an otherwise authorized denomination for such
        Class
        plus such remainder. With respect to any Residual Certificate, the undivided
        percentage ownership in such Class evidenced by such Certificate, as set
        forth
        on the face of such Certificate. The Residual Certificates are issuable in
        Percentage Interests of 20% and integral multiples of 5% in excess
        thereof.

       

      
        
          
          

        

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

       

      “Permitted
        Investments”: Any one or more of the following obligations or securities
        acquired at a purchase price of not greater than par, regardless of whether
        issued by the Depositor, the Servicer, the Master Servicer, the Trustee or
        any
        of their respective Affiliates:

       

      (i) direct
        obligations of, or obligations fully guaranteed as to timely payment of
        principal and interest by, the United States or any agency or instrumentality
        thereof, provided such obligations are backed by the full faith and credit
        of
        the United States;

       

      (ii) (A)
        demand and time deposits in, certificates of deposit of, bankers’ acceptances
        issued by or federal funds sold by any depository institution or trust company
        (including the Trustee or its agent acting in their respective commercial
        capacities) incorporated under the laws of the United States of America or
        any
        state thereof and subject to supervision and examination by federal and/or
        state
        authorities, so long as, at the time of such investment or contractual
        commitment providing for such investment, such depository institution or
        trust
        company (or, if the only Rating Agency is S&P, in the case of the principal
        depository institution in a depository institution holding company, debt
        obligations of the depository institution holding company) or its ultimate
        parent has a short-term uninsured debt rating in the highest available rating
        category of Moody’s, Fitch and S&P and provided that each such investment
        has an original maturity of no more than 365 days; and provided further that,
        if
        the only Rating Agency is S&P and if the depository or trust company is a
        principal subsidiary of a bank holding company and the debt obligations of
        such
        subsidiary are not separately rated, the applicable rating shall be that
        of the
        bank holding company; and, provided further that, if the original maturity
        of
        such short-term obligations of a domestic branch of a foreign depository
        institution or trust company shall exceed 30 days, the short-term rating
        of such
        institution shall be A-1+ in the case of S&P if S&P is the Rating
        Agency; and (B) any other demand or time deposit or deposit which is fully
        insured by the FDIC;

       

      (iii) repurchase
        obligations with a term not to exceed 30 days with respect to any security
        described in clause (i) above and entered into with a depository institution
        or
        trust company (acting as principal) rated A-1+ or higher by S&P, F-1 or
        higher by Fitch and A2 or higher by Moody’s, provided, however, that collateral
        transferred pursuant to such repurchase obligation must be of the type described
        in clause (i) above and must (A) be valued daily at current market prices
        plus
        accrued interest, (B) pursuant to such valuation, be equal, at all times,
        to
        105% of the cash transferred by a party in exchange for such collateral and
        (C)
        be delivered to such party or, if such party is supplying the collateral,
        an
        agent for such party, in such a manner as to accomplish perfection of a security
        interest in the collateral
        by possession of certificated securities;

       

      
        
          
          

        

        
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      (iv) securities
        bearing interest or sold at a discount that are issued by any corporation
        incorporated under the laws of the United States of America or any state
        thereof
        and that are rated by each Rating Agency that rates such securities in its
        highest long-term unsecured rating categories at the time of such investment
        or
        contractual commitment providing for such investment;

       

      (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 30 days after the date of acquisition thereof) that is rated by each
        Rating
        Agency that rates such securities in its highest short-term unsecured debt
        rating available at the time of such investment;

       

      (vi) units
        of
        money market funds that have been rated “AAA” by Fitch (if rated by Fitch),
“AAA” by S&P or “Aaa” by Moody’s including any such money market fund
        managed or advised by the Master Servicer, the Trustee or any of their
        Affiliates; and

       

      (vii) if
        previously confirmed in writing to the Trustee, any other demand, money market
        or time deposit, or any other obligation, security or investment, as may
        be
        acceptable to the Rating Agencies as a permitted investment of funds backing
        securities having ratings equivalent to its highest initial rating of the
        Class
        A Certificates;

       

      provided,
        however, that no instrument described hereunder shall evidence either the
        right
        to receive (a) only interest with respect to the obligations underlying such
        instrument or (b) both principal and interest payments derived from obligations
        underlying such instrument and the interest and principal payments with respect
        to such instrument provide a yield to maturity at par greater than 120% of
        the
        yield to maturity at par of the underlying obligations.

       

      “Permitted
        Transferee”: Any Transferee of a Residual Certificate other than a Disqualified
        Organization or Non-United States Person.

       

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

       

      “Plan”:
        Any employee benefit plan or certain other retirement plans and arrangements,
        including individual retirement accounts and annuities, Keogh plans and bank
        collective investment funds and insurance company general or separate accounts
        in which such plans, accounts or arrangements are invested, that are subject
        to
        ERISA or Section 4975 of the Code.

       

      “Prepayment
        Assumption”: A prepayment rate for (a) the Adjustable Rate Mortgage Loans of
        100% PPC, which represents (i) a per annum prepayment rate of 5% of the then
        outstanding principal balance of the Adjustable Rate Mortgage Loans in the
        first
        month of the life of the Adjustable Rate Mortgage Loans, (ii) an additional 2%
        per annum in each month thereafter through the eleventh month, (iii) building
        to
        a constant prepayment rate of 27% per annum beginning in the twelfth month
        and
        remaining constant until the twenty-third month, (iv) increasing to and
        remaining constant at a prepayment rate of 60% per annum beginning in the
        twenty-fourth month until the twenty-seventh month and (v) decreasing and
        remaining constant at a prepayment rate of 30% per annum from the twenty-eighth
        month and thereafter; provided, however, the prepayment rate will not exceed
        85%
        per annum in any period for any percentage of PPC; and (b) the fixed-rate
        Mortgage Loans of 100% PPC, which represents (i) a per annum prepayment rate
        of
        4% of the then outstanding principal balance of the fixed rate Mortgage Loans
        in
        the first month of the life of such Mortgage Loans, (ii) an additional 1.72727%
        per annum in each month thereafter through the eleventh month and (iii) a
        constant prepayment rate of 23% per annum beginning in the twelfth month
        and in
        each month thereafter during the life of the fixed rate Mortgage Loans;
        provided, however, the prepayment rate will not exceed 85% per annum in any
        period for any percentage of PPC. The Prepayment Assumption is used solely
        for
        determining the accrual of original issue discount on the Certificates for
        federal income tax purposes.

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

       

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

       

      “Prepayment
        Charge Schedule”: As of any date, the list of Mortgage Loans providing for a
        Prepayment Charge included in the Trust Fund on such date, attached hereto
        as
        Schedule 2 (including the prepayment charge summary attached thereto). The
        Depositor shall deliver or cause the delivery of the Prepayment Charge Schedule
        to the Servicer, the Master Servicer and the Trustee on the Closing Date.
        The
        Prepayment Charge Schedule shall set forth the following information with
        respect to each Prepayment Charge:

       

      (viii) the
        Mortgage Loan identifying number;

       

      (ix) a
        code
        indicating the type of Prepayment Charge;

       

      (x) the
        date
        on which the first Monthly Payment was due on the related Mortgage
        Loan;

       

      (xi) the
        term
        of the related Prepayment Charge;

       

      (xii) the
        original Stated Principal Balance of the related Mortgage Loan; and

       

      (xiii) the
        Stated Principal Balance of the related Mortgage Loan as of the Cut-off
        Date.

       

      “Prepayment
        Interest Shortfall”: With respect to any Distribution Date, for each such
        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 related Prepayment Period and the last day of the calendar month
        preceding the month in which such Distribution Date occurs that was applied
        by
        the Servicer to reduce the outstanding principal balance of such Mortgage
        Loan
        on a date preceding the Due Date in the succeeding Prepayment Period, an
        amount
        equal to interest at the applicable Net Mortgage 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 Distribution Date. The obligations of the Servicer and the Master Servicer
        in respect of any Prepayment Interest Shortfall are set forth in the Servicing
        Agreement and Section 4.19 of this Agreement, respectively. 

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

      “Prepayment
        Period”: For any Distribution Date the period beginning on the 16th day of the
        month preceding the month in which the related Distribution Date occurs (or
        with
        respect to the first Prepayment Period, the period commencing on the Cut-off
        Date) and ending on the 15th day of the month in which such Distribution
        Date
        occurs.

       

      “Principal
        Prepayment”: Any voluntary payment of principal made by the Mortgagor 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 the full amount
        of
        scheduled interest due on any Due Date in any month or months subsequent
        to the
        month of prepayment.

       

      “Principal
        Distribution Amount”: With respect to any Distribution Date is the sum of the
        Group I Principal Distribution Amount and the Group II Principal Distribution
        Amount.

       

      “Principal
        Remittance Amount”: With respect to any Distribution Date is the sum of the
        Group I Principal Remittance Amount and the Group II Principal Remittance
        Amount.

       

      “Purchase
        Price”: With respect to any Mortgage Loan or REO Property to be purchased
        pursuant to or as contemplated by the Servicing Agreement or Section 2.03
        or Section 10.01 of this Agreement, and as confirmed by a certification of
        a Servicing Officer of the Servicer to the Trustee, an amount equal to the
        sum
        of (i) 100% of the Stated Principal Balance thereof as of the date of purchase
        (or such other price as provided in Section 10.01 of this Agreement), (ii)
        in the case of (x) a Mortgage Loan, accrued interest on such Stated Principal
        Balance at the applicable Net Mortgage Rate in effect from time to time from
        the
        Due Date as to which interest was last covered by a payment by the Mortgagor
        or
        a P&I Advance by the Servicer, which payment or P&I Advance had as of
        the date of purchase been distributed pursuant to Section 5.01 of this
        Agreement, through the end of the calendar month in which the purchase is
        to be
        effected and (y) an REO Property, the sum of (1) accrued interest on such
        Stated
        Principal Balance at the applicable Net Mortgage Rate in effect from time
        to
        time from the Due Date as to which interest was last covered by a payment
        by the
        Mortgagor or a P&I Advance by the Servicer through the end of the calendar
        month immediately preceding the calendar month in which such REO Property
        was
        acquired, plus (2) REO Imputed Interest for such REO Property for each calendar
        month commencing with the calendar month in which such REO Property was acquired
        and ending with the calendar month in which such purchase is to be effected,
        net
        of the total of all net rental income, Insurance Proceeds, Liquidation Proceeds
        and P&I Advances that as of the date of purchase had been distributed as or
        to cover REO Imputed Interest pursuant to Section 5.01 of this Agreement,
        (iii) any unreimbursed Servicing Advances and P&I Advances (including
        Nonrecoverable P&I Advances and Nonrecoverable Servicing Advances) and any
        unpaid Servicing Fees allocable to such Mortgage Loan or REO Property and
        (iv)
        in the case of a Mortgage Loan required to be purchased pursuant to
        Section 2.03 of this Agreement, expenses reasonably incurred or to be
        incurred by the Servicer or the Trustee in respect of the breach or defect
        giving rise to the purchase obligation and any costs and damages incurred
        by the
        Trust Fund and the Trustee in connection with any violation by any such Mortgage
        Loan of any predatory or abusive lending law.

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

       

      “QIB”:
        As
        defined in Section 6.01(c).

       

      “Qualified
        Substitute Mortgage Loan”: A mortgage loan substituted for a Deleted Mortgage
        Loan pursuant to the terms of this Agreement which must, on the date of such
        substitution, (i) have an outstanding principal balance, after application
        of
        all scheduled payments of principal and interest due during or prior to the
        month of substitution, not in excess of the Scheduled Principal Balance of
        the
        Deleted Mortgage Loan as of the Due Date in the calendar month during which
        the
        substitution occurs, (ii) have a Mortgage Rate not less than (and not more
        than
        one percentage point in excess of) the Mortgage Rate of the Deleted Mortgage
        Loan, (iii) if the mortgage loan is an Adjustable Rate Mortgage Loan, have
        a
        Maximum Mortgage Rate not less than the Maximum Mortgage Rate on the Deleted
        Mortgage Loan, (iv) if the mortgage loan is an Adjustable Rate Mortgage Loan,
        have a Minimum Mortgage Rate not less than the Minimum Mortgage Rate of the
        Deleted Mortgage Loan, (v) if the mortgage loan is an Adjustable Rate Mortgage
        Loan, have a Gross Margin equal to the Gross Margin of the Deleted Mortgage
        Loan, (vi) if the mortgage loan is an Adjustable Rate Mortgage Loan, have
        a next
        Adjustment Date not more than two months later than the next Adjustment Date
        on
        the Deleted Mortgage Loan, (vii) have a remaining term to maturity not greater
        than (and not more than one year less than) that of the Deleted Mortgage
        Loan,
        (viii) have the same Due Date as the Due Date on the Deleted Mortgage Loan,
        (ix)
        have a Loan-to-Value Ratio as of the date of substitution equal to or lower
        than
        the Loan-to-Value Ratio of the Deleted Mortgage Loan as of such date, (x)
        be
        secured by the same lien priority on the related Mortgaged Property as the
        Deleted Mortgage Loan, (xi) have a credit grade at least equal to the credit
        grading assigned on the Deleted Mortgage Loan, (xii) be a “qualified mortgage”
as defined in the REMIC Provisions and (xiii) conform to each representation
        and
        warranty set forth in Section 6 of the Mortgage Loan Purchase Agreement
        applicable to the Deleted Mortgage Loan. In the event that one or more mortgage
        loans are substituted for one or more Deleted Mortgage Loans, the amounts
        described in clause (i) hereof shall be determined on the basis of aggregate
        principal balances, the Mortgage Rates described in clause (ii) hereof shall
        be
        determined on the basis of weighted average Mortgage Rates, the terms described
        in clause (vii) hereof shall be determined on the basis of weighted average
        remaining term to maturity, the Loan-to-Value Ratios described in clause
        (ix)
        hereof shall be satisfied as to each such mortgage loan, the credit grades
        described in clause (x) hereof shall be satisfied as to each such mortgage
        loan
        and, except to the extent otherwise provided in this sentence, the
        representations and warranties described in clause (xii) hereof must be
        satisfied as to each Qualified Substitute Mortgage Loan or in the aggregate,
        as
        the case may be.

       

      “Rate/Term
        Refinancing”: A Refinanced Mortgage Loan, the proceeds of which are not more
        than a nominal amount in excess of the existing first mortgage loan and any
        subordinate mortgage loan on the related Mortgaged Property and related closing
        costs, and were used exclusively (except for such nominal amount) to satisfy
        the
        then existing first mortgage loan and any subordinate mortgage loan of the
        Mortgagor on the related Mortgaged Property and to pay related closing
        costs.

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

       

      “Rating
        Agency or Rating Agencies”: Moody’s and S&P or their successors. If such
        agencies or their successors are no longer in existence, “Rating Agencies” shall
        be such nationally recognized statistical rating agencies, or other comparable
        Persons, designated by the Depositor, notice of which designation shall be
        given
        to the Trustee and the Servicer.

       

      “Realized
        Loss”: With respect to each Mortgage Loan as to which a Final Recovery
        Determination has been made, an amount (not less than zero), as reported
        by the
        Servicer to the Master Servicer, equal to (i) the unpaid principal balance
        of
        such Mortgage Loan as of the commencement of the calendar month in which
        the
        Final Recovery Determination was made, plus (ii) accrued interest from the
        Due
        Date as to which interest was last paid by the Mortgagor through the end
        of the
        calendar month in which such Final Recovery Determination was made, calculated
        in the case of each calendar month during such period (A) at an annual rate
        equal to the annual rate at which interest was then accruing on such Mortgage
        Loan and (B) on a principal amount equal to the Stated Principal Balance
        of such
        Mortgage Loan as of the close of business on the Distribution Date during
        such
        calendar month, plus (iii) any amounts previously withdrawn from the Collection
        Account in respect of such Mortgage Loan pursuant to the Servicing Agreement,
        minus (iv) the proceeds, if any, received in respect of such Mortgage Loan
        during the calendar month in which such Final Recovery Determination was
        made,
        net of amounts that are payable therefrom to the Servicer with respect to
        such
        Mortgage Loan pursuant the Servicing Agreement.

       

      With
        respect to any REO Property as to which a Final Recovery Determination has
        been
        made, an amount (not less than zero) equal to (i) the unpaid principal balance
        of the related Mortgage Loan as of the date of acquisition of such REO Property
        on behalf of REMIC I, plus (ii) accrued interest from the Due Date as to
        which
        interest was last paid by the Mortgagor in respect of the related Mortgage
        Loan
        through the end of the calendar month immediately preceding the calendar
        month
        in which such REO Property was acquired, calculated in the case of each calendar
        month during such period (A) at an annual rate equal to the annual rate at
        which
        interest was then accruing on the related Mortgage Loan and (B) on a principal
        amount equal to the Stated Principal Balance of the related Mortgage Loan
        as of
        the close of business on the Distribution Date during such calendar month,
        plus
        (iii) REO Imputed Interest for such REO Property for each calendar month
        commencing with the calendar month in which such REO Property was acquired
        and
        ending with the calendar month in which such Final Recovery Determination
        was
        made, plus (iv) any amounts previously withdrawn from the Collection Account
        in
        respect of the related Mortgage Loan pursuant to the Servicing Agreement,
        minus
        (v) the aggregate of all P&I Advances and Servicing Advances (in the case of
        Servicing Advances, without duplication of amounts netted out of the rental
        income, Insurance Proceeds and Liquidation Proceeds described in clause (vi)
        below) made by the Servicer in respect of such REO Property or the related
        Mortgage Loan for which the Servicer has been or, in connection with such
        Final
        Recovery Determination, will be reimbursed pursuant to the Servicing Agreement
        out of rental income, Insurance Proceeds and Liquidation Proceeds received
        in
        respect of such REO Property, minus (vi) the total of all net rental income,
        Insurance Proceeds and Liquidation Proceeds received in respect of such REO
        Property that has been, or in connection with such Final Recovery Determination,
        will be remitted by the Servicer pursuant to the Servicing
        Agreement.

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

       

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

       

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

       

      To
        the
        extent the Servicer receives Subsequent Recoveries, with respect to any Mortgage
        Loan, the amount of Realized Loss with respect to that Mortgage Loan will
        be
        reduced to the extent such recoveries are applied to reduce the Certificate
        Principal Balance of any Class of Certificates on any Distribution
        Date.

       

      “Record
        Date”: With respect to each Distribution Date and the Class A Certificates and
        the Mezzanine Certificates, the Business Day immediately preceding such
        Distribution Date for so long as such Certificates are Book-Entry Certificates.
        With respect to each Distribution Date and any other Class of Certificates,
        including any Definitive Certificates, the last day of the calendar month
        immediately preceding the month in which such Distribution Date
        occurs.

       

      “Reference
        Banks”: Barclays Bank PLC, The Tokyo Mitsubishi Bank and National Westminster
        Bank PLC and their successors in interest; provided, however, that if any
        of the
        foregoing banks are not suitable to serve as a Reference Bank, then any leading
        banks selected by the Securities Administrator which are engaged in transactions
        in Eurodollar deposits in the International Eurocurrency market (i) with
        an
        established place of business in London, (ii) not controlling, under the
        control
        of or under common control with the Depositor or any Affiliate thereof and
        (iii)
        which have been designated as such by the Securities Administrator.

       

      “Refinanced
        Mortgage Loan”: A Mortgage Loan the proceeds of which were not used to purchase
        the related Mortgaged Property.

       

      “Regular
        Certificate”: Any Class A Certificate, Mezzanine Certificate, Class CE
        Certificate or Class P Certificate.

       

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

       

      “Regulation
        AB”: Means 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.

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

       

      “Regulation
        S Temporary Global Certificate”: As defined in Section 6.01(c).

       

      “Regulation
        S Permanent Global Certificate”: As defined in Section 6.01(c).

      

      “Release
        Date”: The fortieth (40th) day after the later of (i) commencement of the
        offering of the Class M-10, Class M-11, Class CE or Class P Certificates
        and
        (ii) the Closing Date.

       

      “Relevant
        Servicing Criteria”: Means the Servicing Criteria applicable to the various
        parties, as set forth on Exhibit
        E
        attached
        hereto. For clarification purposes, multiple parties can have responsibility
        for
        the same Relevant Servicing Criteria. With respect to a Servicing Function
        Participant engaged by the Master Servicer, the Securities Administrator,
        the
        Trustee or the Servicer, the term “Relevant Servicing Criteria” may refer to a
        portion of the Relevant Servicing Criteria applicable to such
        parties.

       

      “Relief
        Act”: The Servicemembers Civil Relief Act, as amended, or similar state or local
        laws.

       

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

       

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

       

      “REMIC
        I”: The segregated pool of assets subject hereto, constituting the primary
        trust
        created hereby and to be administered hereunder, with respect to which a
        REMIC
        election is to be made, consisting of: (i) such Mortgage Loans and Prepayment
        Charges as from time to time are subject to this Agreement, together with
        the
        Mortgage Files relating thereto, and together with all collections thereon
        and
        proceeds thereof; (ii) any REO Property, together with all collections thereon
        and proceeds thereof; (iii) the Trustee’s rights with respect to the Mortgage
        Loans under all insurance policies required to be maintained pursuant to
        this
        Agreement and the Servicing Agreement, and any proceeds thereof; (iv) the
        Depositor’s rights under the Mortgage Loan Purchase Agreement (including any
        security interest created thereby), and (v) the Collection Account, the
        Distribution Account and any REO Account, and such assets that are deposited
        therein from time to time and any investments thereof, together with any
        and all
        income, proceeds and payments with respect thereto. Notwithstanding the
        foregoing, however, REMIC I specifically excludes (i) all payments and other
        collections of principal and interest due on the Mortgage Loans on or before
        the
        Cut-off Date and all Prepayment Charges payable in connection with Principal
        Prepayments made before the Cut-off Date; (ii) the Reserve Fund and any amounts
        on deposit therein from time to time and any proceeds thereof; (iii) the
        Swap
        Agreement; (iv) the Cap Contracts; and (v) the Supplemental Interest
        Trust.

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

       

      “REMIC
        I
        Group I Regular Interests”: REMIC I Regular Interest I and REMIC I Regular
        Interest I-1-A through REMIC I Regular Interest I-46-B as designated in the
        Preliminary Statement hereto.

       

      “REMIC
        I
        Group II Regular Interests”: REMIC I Regular Interest II and REMIC I Regular
        Interest II-1-A through REMIC I Regular Interest II-46-B as designated in
        the
        Preliminary Statement hereto.

       

      “REMIC
        I
        Regular Interest”: Any of the 187 separate non-certificated beneficial ownership
        interests in REMIC I issued hereunder and designated as a “regular interest” in
        REMIC I. Each REMIC I Regular Interest shall accrue interest at the related
        REMIC I Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto. 

       

      “REMIC
        I
        Remittance Rate”:
        With
        respect to REMIC I Regular Interest I, a per annum rate equal to the weighted
        average of the Net Mortgage Rates of the Group I Mortgage Loans. With respect
        to
        each REMIC I Group I Regular Interest ending with the designation “A”, a per
        annum rate equal to the weighted average of the Net Mortgage Rates of the
        Group
        I Mortgage Loans multiplied by 2, subject to a maximum rate of 10.960%. With
        respect to each REMIC I Group I Regular Interest ending with the designation
        “B”, the greater of (x) a per annum rate equal to the excess, if any, of (i)
        2
        multiplied by the weighted average of the Net Mortgage Rates of the Group
        I
        Mortgage Loans over (ii) 10.960% and (y) 0.00%. With respect to REMIC I Regular
        Interest II, a per annum rate equal to the weighted average of the Net Mortgage
        Rates of the Group II Mortgage Loans. With respect to each REMIC I Group
        II
        Regular Interest ending with the designation “A”, a per annum rate equal to the
        weighted average of the Net Mortgage Rates of the Group II Mortgage Loans
        multiplied by 2, subject to a maximum rate of 10.960%. With respect to each
        REMIC I Group II Regular Interest ending with the designation “B”, the greater
        of (x) a per annum rate equal to the excess, if any, of (i) 2 multiplied
        by the
        weighted average of the Net Mortgage Rates of the Group II Mortgage Loans
        over
        (ii) 10.960% and (y) 0.00%. 

       

      “REMIC
        II”: The segregated pool of assets consisting of all of the REMIC I Regular
        Interests conveyed in trust to the Trustee, for the benefit of the REMIC
        II
        Regular Interests pursuant to Section 2.07, and all amounts deposited
        therein, with respect to which a separate REMIC election is to be
        made.

       

      “REMIC
        II
        Interest Loss Allocation Amount”: With respect to any Distribution Date, an
        amount equal to (a) the product of (i) 50% of the aggregate Stated Principal
        Balance of the Mortgage Loans and REO Properties then outstanding and (ii)
        the
        REMIC II Remittance Rate for REMIC II Regular Interest AA minus the Marker
        Rate,
        divided by (b) 12.

       

      “REMIC
        II
        Marker Allocation Percentage”: 50% of any amount payable or loss attributable
        from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest
        AA, REMIC II Regular Interest A-1, REMIC II Regular Interest A-2A, REMIC
        II
        Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest
        A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC
        II
        Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest
        M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest M-7, REMIC
        II
        Regular Interest M-8, REMIC II Regular Interest M-9, REMIC II Regular Interest
        M-10, REMIC II Regular Interest M-11, REMIC II Regular Interest ZZ and REMIC
        II
        Regular Interest P.

       

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

       

      “REMIC
        II
        Overcollateralization Amount”: With respect to any date of determination, (i)
        0.50% of the aggregate Uncertificated Balances of the REMIC II Regular Interests
        (other than REMIC II Regular Interest P) minus (ii) the aggregate of the
        Uncertificated Balances of REMIC II Regular Interest A-1, REMIC II Regular
        Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest
        A-2C,
        REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular
        Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4,
        REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular
        Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9,
        REMIC II Regular Interest M-10 and REMIC II Regular Interest M-11, in each
        case
        as of such date of determination.

       

      “REMIC
        II
        Principal Loss Allocation Amount”: With respect to any Distribution Date, an
        amount equal to (a) the product of (i) 50% of the aggregate Stated Principal
        Balance of the Mortgage Loans and REO Properties then outstanding and (ii)
        1
        minus a fraction, the numerator of which is two times the aggregate of the
        Uncertificated Balances of REMIC II Regular Interest A-1, REMIC II Regular
        Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest
        A-2C,
        REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular
        Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4,
        REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular
        Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9,
        REMIC II Regular Interest M-10, REMIC II Regular Interest M-11 and the
        denominator of which is the aggregate of the Uncertificated Balances of REMIC
        II
        Regular Interest A-1, REMIC II Regular Interest A-2A, REMIC II Regular Interest
        A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC
        II
        Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest
        M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC
        II
        Regular Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest
        M-8, REMIC II Regular Interest M-9, REMIC II Regular Interest M-10, REMIC
        II
        Regular Interest M-11 and REMIC II Regular Interest ZZ.

       

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

       

      “REMIC
        II
        Regular Interest AA”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest AA shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

       

      “REMIC
        II
        Regular Interest A-1”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest A-1 shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest A-2A”: One of the separate non-certificated beneficial
        ownership interests in REMIC II issued hereunder and designated as a Regular
        Interest in REMIC II. REMIC II Regular Interest A-2A shall accrue interest
        at
        the related REMIC II Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest A-2B”: One of the separate non-certificated beneficial
        ownership interests in REMIC II issued hereunder and designated as a Regular
        Interest in REMIC II. REMIC II Regular Interest A-2B shall accrue interest
        at
        the related REMIC II Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest A-2C”: One of the separate non-certificated beneficial
        ownership interests in REMIC II issued hereunder and designated as a Regular
        Interest in REMIC II. REMIC II Regular Interest A-2C shall accrue interest
        at
        the related REMIC II Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest A-2D”: One of the separate non-certificated beneficial
        ownership interests in REMIC II issued hereunder and designated as a Regular
        Interest in REMIC II. REMIC II Regular Interest A-2D shall accrue interest
        at
        the related REMIC II Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest IO”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest IO shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time and shall not be entitled
        to distributions of principal. 

       

      “REMIC
        II
        Regular Interest M-1”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest M-1 shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

       

      “REMIC
        II
        Regular Interest M-2”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest M-2 shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest M-3”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest M-3 shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest M-4”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest M-4 shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest M-5”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest M-5 shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest M-6”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest M-6 shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest M-7”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest M-7 shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest M-8”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest M-8 shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

       

      “REMIC
        II
        Regular Interest M-9”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest M-9 shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest M-10”: One of the separate non-certificated beneficial
        ownership interests in REMIC II issued hereunder and designated as a Regular
        Interest in REMIC II. REMIC II Regular Interest M-10 shall accrue interest
        at
        the related REMIC II Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest M-11”: One of the separate non-certificated beneficial
        ownership interests in REMIC II issued hereunder and designated as a Regular
        Interest in REMIC II. REMIC II Regular Interest M-11 shall accrue interest
        at
        the related REMIC II Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest P”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest P shall accrue interest at the related
        REMIC
        II Remittance Rate in effect from time to time, and shall be entitled to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest XX”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest XX shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest ZZ”: One of the separate non-certificated beneficial ownership
        interests in REMIC II issued hereunder and designated as a Regular Interest
        in
        REMIC II. REMIC II Regular Interest ZZ shall accrue interest at the related
        REMIC II Remittance Rate in effect from time to time, and shall be entitled
        to
        distributions of principal, subject to the terms and conditions hereof, in
        an
        aggregate amount equal to its initial Uncertificated Balance as set forth
        in the
        Preliminary Statement hereto.

       

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

       

      “REMIC
        II
        Regular Interest I-SUB”: One of the separate non-certificated beneficial
        ownership interests in REMIC II issued hereunder and designated as a Regular
        Interest in REMIC II. REMIC II Regular Interest I-SUB shall accrue interest
        at
        the related REMIC II Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest I-GRP”: One of the separate non-certificated beneficial
        ownership interests in REMIC II issued hereunder and designated as a Regular
        Interest in REMIC II. REMIC II Regular Interest I-GRP shall accrue interest
        at
        the related REMIC II Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest II-SUB”: One of the separate non-certificated beneficial
        ownership interests in REMIC II issued hereunder and designated as a Regular
        Interest in REMIC II. REMIC II Regular Interest II-SUB shall accrue interest
        at
        the related REMIC II Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        II
        Regular Interest II-GRP”: One of the separate non-certificated beneficial
        ownership interests in REMIC II issued hereunder and designated as a Regular
        Interest in REMIC II. REMIC II Regular Interest II-GRP shall accrue interest
        at
        the related REMIC II Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        II
        Remittance Rate”: With respect to REMIC II Regular Interest AA, REMIC II Regular
        Interest A-1, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B,
        REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II
        Regular
        Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3,
        REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular
        Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest M-8,
        REMIC II Regular Interest M-9, REMIC II Regular Interest M-10, REMIC II Regular
        Interest M-11, REMIC II Regular Interest ZZ, REMIC II Regular Interest I-SUB,
        REMIC II Regular Interest II-SUB and REMIC II Regular Interest XX, a per
        annum
        rate (but not less than zero) equal to the weighted average of: (w) with
        respect
        to REMIC I Regular Interest I, REMIC I Regular Interest II and REMIC I Regular
        Interest P, the REMIC I Remittance Rate for each such REMIC I Regular Interest
        for each such Distribution Date, (x) with respect to each REMIC I Regular
        Interest ending with the designation “B”, the weighted average of the REMIC I
        Remittance Rates for such REMIC I Regular Interests, weighted on the basis
        of
        the Uncertificated Balances of such REMIC I Regular Interests for each such
        Distribution Date and (y) with respect to REMIC I Regular Interests ending
        with
        the designation “A”, for each Distribution Date listed below, the weighted
        average of the rates listed below for each such REMIC I Regular Interest
        listed
        below, weighted on the basis of the Uncertificated Balances of each such
        REMIC I
        Regular Interest for each such Distribution Date:

      

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              
	
                1st
                  through 6th

              	 	
                I-1-A
                  through I-46-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-46-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                7

              	 	
                I-1-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	 	 	 
	
                8

              	 	
                I-2-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-2-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate REMIC I Remittance
                  Rate

              
	 	 	
                I-1-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                9

              	 	
                I-3-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-3-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  and I-2-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  and II-2-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                10

              	 	
                I-4-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-4-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-3-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-3-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                11

              	 	
                I-5-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-5-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-4-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-4-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                12

              	 	
                I-6-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-6-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-5-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-5-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                13

              	 	
                I-7-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-7-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-6-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-6-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                14

              	 	
                I-8-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-8-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-7-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-7-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                15

              	 	
                I-9-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-9-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-8-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-8-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                16

              	 	
                I-10-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-10-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-9-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-9-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                17

              	 	
                I-11-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-11-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-10-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-10-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          59

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              

      

      
        	
                18

              	 	
                I-12-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-12-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-11-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-11-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                19

              	 	
                I-13-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-13-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-12-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-12-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                20

              	 	
                I-14-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-14-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-13-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-13-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                21

              	 	
                I-15-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-15-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-14-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-14-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                22

              	 	
                I-16-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-16-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-15-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-15-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                23

              	 	
                I-17-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-17-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-16-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-16-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                24

              	 	
                I-18-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-18-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-17-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-17-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                25

              	 	
                I-19-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-19-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-18-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-18-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                26

              	 	
                I-20-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-20-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-19-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-19-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                27

              	 	
                I-21-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-21-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-20-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-20-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          60

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              

      

      
        	
                28

              	 	
                I-22-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-22-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-21-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-21-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                29

              	 	
                I-23-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-23-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-22-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-22-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                30

              	 	
                I-24-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-24-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-23-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-23-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                31

              	 	
                I-25-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-25-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-24-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-24-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                32

              	 	
                I-26-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-26-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-25-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-25-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                33

              	 	
                I-27-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-27-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-26-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-26-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                34

              	 	
                I-28-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-28-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-27-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-27-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                35

              	 	
                I-29-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-29-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-28-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-28-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                36

              	 	
                I-30-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-30-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-29-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-29-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                37

              	 	
                I-31-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-31-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-30-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-30-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                38

              	 	
                I-32-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-32-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-31-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-31-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          61

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              

      

      
        	
                39

              	 	
                I-33-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-33-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-32-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-32-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                40

              	 	
                I-34-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-34-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-33-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-33-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                41

              	 	
                I-35-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-35-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-34-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-34-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                42

              	 	
                I-36-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-36-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-35-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-35-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                43

              	 	
                I-37-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-37-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-36-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-36-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                44

              	 	
                I-38-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-38-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-37-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-37-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                45

              	 	
                I-39-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-39-A
                    through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-38-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-38-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                46

              	 	
                I-40-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-40-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-39-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-39-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                47

              	 	
                I-41-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-41-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-40-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-40-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                48

              	 	
                I-42-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-42-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-41-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-41-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                49

              	 	
                I-43-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-43-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-42-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-42-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          62

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              

      

      
        	
                50

              	 	
                I-44-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-44-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-43-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-43-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                51

              	 	
                I-45-A
                  and I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-45-A
                  and II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-44-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-44-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                52

              	 	
                I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-45-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-45-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                thereafter

              	 	
                I-1-A
                  through I-46-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	
                II-1-A
                  through II-46-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      With
        respect to REMIC II Regular Interest I-GRP, a per annum rate (but not less
        than
        zero) equal to the weighted average of: (w) with respect to REMIC I Regular
        Interest I and REMIC I Regular Interest P, the REMIC I Remittance Rate for
        each
        such REMIC I Regular Interest for each such Distribution Date, (x) with respect
        to REMIC I Group I Regular Interests ending with the designation “B”, the
        weighted average of the REMIC I Remittance Rates for such REMIC I Regular
        Interests, weighted on the basis of the Uncertificated Balances of each such
        REMIC I Regular Interest for each such Distribution Date and (y) with respect
        to
        REMIC I Group I Regular Interests ending with the designation “A”, for each
        Distribution Date listed below, the weighted average of the rates listed
        below
        for such REMIC I Regular Interests listed below, weighted on the basis of
        the
        Uncertificated Balances of each such REMIC I Regular Interest for each such
        Distribution Date:

       

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              
	
                1st
                  through 6th 

              	 	
                I-1-A
                  through I-46-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                7

              	 	
                I-1-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	 	 	 
	
                8

              	 	
                I-2-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                9

              	 	
                I-3-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  and I-2-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                10

              	 	
                I-4-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-3-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                11

              	 	
                I-5-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-4-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          63

          
            

          

        

        
          
          

        

      

       

        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              

      

      
        	
                12

              	 	
                I-6-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-5-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                13

              	 	
                I-7-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-6-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                14

              	 	
                I-8-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-7-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                15

              	 	
                I-9-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-8-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                16

              	 	
                I-10-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-9-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                17

              	 	
                I-11-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-10-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                18

              	 	
                I-12-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-11-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                19

              	 	
                I-13-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-12-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                20

              	 	
                I-14-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-13-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                21

              	 	
                I-15-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-14-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                22

              	 	
                I-16-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-15-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                23

              	 	
                I-17-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-16-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                24

              	 	
                I-18-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-17-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                25

              	 	
                I-19-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-18-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                26

              	 	
                I-20-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-19-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          64

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              

      

      
        	
                27

              	 	
                I-21-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-20-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                28

              	 	
                I-22-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-21-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                29

              	 	
                I-23-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-22-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                30

              	 	
                I-24-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-23-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                31

              	 	
                I-25-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-24-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                32

              	 	
                I-26-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-25-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                33

              	 	
                I-27-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-26-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                34

              	 	
                I-28-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-27-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                35

              	 	
                I-29-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-28-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                36

              	 	
                I-30-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-29-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                37

              	 	
                I-31-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-30-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                38

              	 	
                I-32-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-31-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                39

              	 	
                I-33-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-32-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                40

              	 	
                I-34-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-33-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                41

              	 	
                I-35-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-34-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          65

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              

      

      
        	
                42

              	 	
                I-36-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-35-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                43

              	 	
                I-37-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-36-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                44

              	 	
                I-38-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-37-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                45

              	 	
                I-39-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-38-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                46

              	 	
                I-40-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-39-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                47

              	 	
                I-41-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-40-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                48

              	 	
                I-42-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-41-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                49

              	 	
                I-43-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-42-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                50

              	 	
                I-44-A
                  through I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-43-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                51

              	 	
                I-45-A
                  and I-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-44-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                52

              	 	
                I-46-A
                  

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                I-1-A
                  through I-45-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                thereafter

              	 	
                I-1-A
                  through I-46-A

              	 	
                REMIC
                  I Remittance Rate

              

      

      

      With
        respect to REMIC II Regular Interest II-GRP, a per annum rate (but not less
        than
        zero) equal to the weighted average of: (w) with respect to REMIC I Regular
        Interest II, the REMIC I Remittance Rate for such REMIC I Regular Interest
        for
        each such Distribution Date, (x) with respect to REMIC I Group II Regular
        Interests ending with the designation “B”, the weighted average of the REMIC I
        Remittance Rates for such REMIC I Regular Interests, weighted on the basis
        of
        the Uncertificated Balances of each such REMIC I Regular Interest for each
        such
        Distribution Date and (y) with respect to REMIC I Group II Regular Interests
        ending with the designation “A”, for each Distribution Date listed below, the
        weighted average of the rates listed below for such REMIC I Regular Interests
        listed below, weighted on the basis of the Uncertificated Balances of each
        such
        REMIC I Regular Interest for each such Distribution Date:

       

      
        
          
          

        

        
          66

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              
	
                1st
                  through 6th 

              	 	
                II-1-A
                  through II-46-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                7

              	 	
                II-1-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	 	 	 
	
                8

              	 	
                II-2-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                9

              	 	
                II-3-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  and II-2-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                10

              	 	
                II-4-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-3-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                11

              	 	
                II-5-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-4-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                12

              	 	
                II-6-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-5-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                13

              	 	
                II-7-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-6-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                14

              	 	
                II-8-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-7-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                15

              	 	
                II-9-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-8-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                16

              	 	
                II-10-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-9-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                17

              	 	
                II-11-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-10-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                18

              	 	
                II-12-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-11-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                19

              	 	
                II-13-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-12-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                20

              	 	
                II-14-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-13-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          67

          
            

          

        

        
          
          

        

      

       

      
        	
                
                  Distribution
                    Date

                

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              

      

      
        	
                21

              	 	
                II-15-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-14-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                22

              	 	
                II-16-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-15-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                23

              	 	
                II-17-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-16-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                24

              	 	
                II-18-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-17-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                25

              	 	
                II-19-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-18-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                26

              	 	
                II-20-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-19-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                27

              	 	
                II-21-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-20-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                28

              	 	
                II-22-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-21-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                29

              	 	
                II-23-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-22-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                30

              	 	
                II-24-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-23-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                31

              	 	
                II-25-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-24-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                32

              	 	
                II-26-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-25-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                33

              	 	
                II-27-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-26-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                34

              	 	
                II-28-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-27-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                35

              	 	
                II-29-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-28-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          68

          
            

          

        

        
          
          

        

      

       

      
        	
                
                  Distribution
                    Date

                

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              

      

      
        	
                36

              	 	
                II-30-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-29-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                37

              	 	
                II-31-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-30-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                38

              	 	
                II-32-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-31-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                39

              	 	
                II-33-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-32-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                40

              	 	
                II-34-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-33-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                41

              	 	
                II-35-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-34-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                42

              	 	
                II-36-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-35-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                43

              	 	
                II-37-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-36-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                44

              	 	
                II-38-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-37-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                45

              	 	
                II-39-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-38-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                46

              	 	
                II-40-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-39-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                47

              	 	
                II-41-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-40-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                48

              	 	
                II-42-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-41-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                49

              	 	
                II-43-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-42-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                50

              	 	
                II-44-A
                  through II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-43-A

              	 	
                REMIC
                  I Remittance Rate

              

      

       

      
        
          
          

        

        
          69

          
            

          

        

        
          
          

        

      

       

      
        	
                
                  Distribution
                    Date

                

              	 	
                REMIC
                  I Regular Interest

              	 	
                Rate

              

      

      
        	
                51

              	 	
                II-45-A
                  and II-46-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-44-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                52

              	 	
                II-46-A
                  

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
                  Remittance
                  Rate

              
	 	 	
                II-1-A
                  through II-45-A

              	 	
                REMIC
                  I Remittance Rate

              
	 	 	 	 	 
	
                thereafter

              	 	
                II-1-A
                  through II-46-A

              	 	
                REMIC
                  I Remittance Rate

              

      

      

      With
        respect to REMIC II Regular Interest IO, and (i) the 1st Distribution Date
        through the 6th Distribution Date, the excess of (x) the weighted average
        of the
        REMIC I Remittance Rates for REMIC I Regular Interests including the designation
        “A”, over (y) the weighted average of the REMIC I Remittance Rates for REMIC
        I
        Regular Interests including the designation “A”, (ii) the 7th Distribution Date
        through the 52nd Distribution Date, the excess of (x) the weighted average
        of
        the REMIC I Remittance Rates for REMIC I Regular Interests including the
        designation “A”, over (y) 2 multiplied by Swap LIBOR and (iii) thereafter,
        0.00%. With respect to REMIC II Regular Interest P, 0.00%.

       

      “REMIC
        II
        Sub WAC Allocation Percentage”: 50% of any amount payable or loss attributable
        from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest
        I-SUB, REMIC II Regular Interest I-GRP, REMIC II Regular Interest II-SUB,
        REMIC
        II Regular Interest II-GRP and REMIC II Regular Interest XX.

       

      “REMIC
        II
        Subordinated Balance Ratio”: The ratio among the Uncertificated Balances of each
        REMIC II Regular Interest ending with the designation “SUB,”, equal to the ratio
        between, with respect to each such REMIC II Regular Interest, the excess
        of (x)
        the aggregate Stated Principal Balance of the Group I Mortgage Loans or Group
        II
        Mortgage Loans, as applicable over (y) the current Certificate Principal
        Balance
        of related Class A Certificates.

       

      “REMIC
        II
        Required Overcollateralization Amount”: 0.50% of the Required
        Overcollateralization Amount.

       

      “REMIC
        III”: The segregated pool of assets consisting of all of the REMIC II Regular
        Interests conveyed in trust to the Trustee, for the benefit of the REMIC
        III
        Certificateholders pursuant to Section 2.07, and all amounts deposited
        therein, with respect to which a separate REMIC election is to be
        made.

       

      “REMIC
        III Certificate”: Any Regular Certificate or Class R Certificate.

       

      “REMIC
        III Certificateholder”: The Holder of any REMIC III Certificate.

       

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

       

      
        
          
          

        

        
          70

          
            

          

        

        
          
          

        

      

       

      “REMIC
        Regular Interest”: Any REMIC I Regular Interest or REMIC II Regular
        Interest.

       

      “REMIC
        Remittance Rate”: The REMIC I Remittance Rate or the REMIC II Remittance
        Rate.

       

      “Remittance
        Report”: A report by the Servicer pursuant the Servicing Agreement.

       

      “Rents
        from Real Property”: With respect to any REO Property, gross income of the
        character described in Section 856(d) of the Code as being included in the
        term “rents from real property.”

       

      “REO
        Account”: The account or accounts maintained, or caused to be maintained, by the
        Servicer in respect of an REO Property pursuant to the Servicing
        Agreement.

       

      “REO
        Disposition”: The sale or other disposition of an REO Property on behalf of
        REMIC I.

       

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

       

      “REO
        Principal Amortization”: With respect to any REO Property, for any calendar
        month, the excess, if any, of (a) the aggregate of all amounts received in
        respect of such REO Property during such calendar month, whether in the form
        of
        rental income, sale proceeds (including, without limitation, that portion
        of the
        Termination Price paid in connection with a purchase of all of the Mortgage
        Loans and REO Properties pursuant to Section 10.01 of this Agreement that
        is allocable to such REO Property) or otherwise, net of any portion of such
        amounts (i) payable in respect of the proper operation, management and
        maintenance of such REO Property or (ii) payable or reimbursable to the Servicer
        pursuant to the Servicing Agreement for unpaid Servicing Fees in respect
        of the
        related Mortgage Loan and unreimbursed Servicing Advances and P&I Advances
        in respect of such REO Property or the related Mortgage Loan, over (b) the
        REO
        Imputed Interest in respect of such REO Property for such calendar
        month.

       

      “REO
        Property”: A Mortgaged Property acquired by the Servicer or its nominee on
        behalf of REMIC I through foreclosure or deed-in-lieu of
        foreclosure.

       

      “Reportable
        Event”: Has the meaning set forth in Section 5.06(b) of this
        Agreement.

       

      “Required
        Overcollateralization Amount”: With respect to any Distribution Date (i) prior
        to the Stepdown Date, the product of (A) 2.55% and (B) the aggregate principal
        balance of the Mortgage Loans as of the Cut-off Date, (ii) on or after the
        Stepdown Date provided a Trigger Event is not in effect, the greater of (x)
        5.10% of the aggregate Stated Principal Balance of the Mortgage Loans as
        of the
        last day of the related Due Period and (y) an amount equal to the product
        of (A)
        0.50% and (B) the aggregate principal balance of the Mortgage Loans as of
        the
        Cut-off Date, and (iii) on or after the Stepdown Date and a Trigger Event
        is in
        effect, the Required Overcollateralization Amount for the immediately preceding
        Distribution Date. Notwithstanding the foregoing, on and after any Distribution
        Date following the reduction of the aggregate Certificate Principal Balance
        of
        the Class A Certificates and Mezzanine Certificates to zero, the Required
        Overcollateralization Amount shall be zero.

       

      
        
          
          

        

        
          71

          
            

          

        

        
          
          

        

      

       

      “Reserve
        Fund”: A fund created pursuant to Section 3.05 which shall be an asset of
        the Trust Fund but which shall not be an asset of any Trust REMIC.

       

      “Reserve
        Interest Rate”: With respect to any Interest Determination Date, the rate per
        annum that the Securities Administrator determines to be either (i) the
        arithmetic mean (rounded upwards if necessary to the nearest whole multiple
        of
        1/16%) of the one-month U.S. dollar lending rates which New York City banks
        selected by the Securities Administrator, after consultation with the Depositor,
        are quoting on the relevant Interest Determination Date to the principal
        London
        offices of leading banks in the London interbank market or (ii) in the event
        that the Securities Administrator can determine no such arithmetic mean,
        the
        lowest one-month U.S. dollar lending rate which New York City banks selected
        by
        the Securities Administrator are quoting on such Interest Determination Date
        to
        leading European banks.

       

      “Residential
        Dwelling”: Any one of the following: (i) a detached one-family dwelling, (ii) a
        detached two- to four-family dwelling, (iii) a one-family dwelling unit in
        a
        Fannie Mae eligible condominium project, (iv) a manufactured home, (v) a
        detached one-family dwelling in a planned unit development or (vi) a townhouse,
        none of which is a co-operative or mobile home.

       

      “Residual
        Certificate”: Any one of the Class R Certificates.

       

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

       

      “Responsible
        Officer”: When used with respect to the Trustee, any officer of the Trustee
        having direct responsibility for the administration of this Agreement and,
        with
        respect to a particular matter, to whom such matter is referred because of
        such
        officer’s knowledge of and familiarity with the particular subject.

       

      “Rule
        144A”: As defined in Section 6.01(c).

       

      “S&P”:
        Standard and Poor’s, a division of the McGraw-Hill Companies, Inc.

       

      “Sarbanes-Oxley
        Act”: Means the Sarbanes-Oxley Act of 2002 and the rules and regulations of the
        Commission promulgated thereunder (including any interpretations thereof
        by the
        Commission’s staff). 

       

      “Sarbanes-Oxley
        Certification”: A written certification signed by an officer of the Master
        Servicer that complies with (i) the Sarbanes-Oxley Act of 2002, as amended
        from
        time to time, and (ii) Exchange Act Rules 13a-14(d) and 15d-14(d), as in
        effect
        from time to time; provided that if, after the Closing Date (a) the
        Sarbanes-Oxley Act of 2002 is amended, (b) the Rules referred to in clause
        (ii)
        are modified or superceded by any subsequent statement, rule or regulation
        of
        the Commission or any statement of a division thereof, or (c) any future
        releases, rules and regulations are published by the Commission from time
        to
        time pursuant to the Sarbanes-Oxley Act of 2002, which in any such case affects
        the form or substance of the required certification and results in the required
        certification being, in the reasonable judgment of the Master Servicer,
        materially more onerous that then form of the required certification as of
        the
        Closing Date, the Sarbanes-Oxley Certification shall be as agreed to by the
        Master Servicer, the Depositor and the Sponsor following a negotiation in
        good
        faith to determine how to comply with any such new requirements.

       

      
        
          
          

        

        
          72

          
            

          

        

        
          
          

        

      

       

      “Scheduled
        Principal Balance”: With respect to any Mortgage Loan: (a) as of the Cut-off
        Date, the outstanding principal balance of such Mortgage Loan as of such
        date,
        net of the principal portion of all unpaid Monthly Payments, if any, due
        on or
        before such date; (b) as of any Due Date subsequent to the Cut-off Date up
        to
        and including the Due Date in the calendar month in which a Liquidation Event
        occurs with respect to such Mortgage Loan, the Scheduled Principal Balance
        of
        such Mortgage Loan as of the Cut-off Date, minus the sum of (i) the principal
        portion of each Monthly Payment due on or before such Due Date but subsequent
        to
        the Cut-off Date, whether or not received, (ii) all Principal Prepayments
        received before such Due Date but after the Cut-off Date, (iii) the principal
        portion of all Liquidation Proceeds and Insurance Proceeds received before
        such
        Due Date but after the Cut-off Date, net of any portion thereof that represents
        principal due (without regard to any acceleration of payments under the related
        Mortgage and Mortgage Note) on a Due Date occurring on or before the date
        on
        which such proceeds were received and (iv) any Realized Loss incurred with
        respect thereto as a result of a Deficient Valuation occurring before such
        Due
        Date, but only to the extent such Realized Loss represents a reduction in
        the
        portion of principal of such Mortgage Loan not yet due (without regard to
        any
        acceleration of payments under the related Mortgage and Mortgage Note) as
        of the
        date of such Deficient Valuation; and (c) as of any Due Date subsequent to
        the
        occurrence of a Liquidation Event with respect to such Mortgage Loan, zero.
        With
        respect to any REO Property: (a) as of any Due Date subsequent to the date
        of
        its acquisition on behalf of the Trust Fund up to and including the Due Date
        in
        the calendar month in which a Liquidation Event occurs with respect to such
        REO
        Property, an amount (not less than zero) equal to the Scheduled Principal
        Balance of the related Mortgage Loan as of the Due Date in the calendar month
        in
        which such REO Property was acquired, minus the aggregate amount of REO
        Principal Amortization, if any, in respect of REO Property for all previously
        ended calendar months; and (b) as of any Due Date subsequent to the occurrence
        of a Liquidation Event with respect to such REO Property, zero.

       

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

       

      “Securities
        Administrator”: As of the Closing Date, Wells Fargo Bank, National Association
        and thereafter, its respective successors in interest that meet the
        qualifications of this Agreement. The Securities Administrator and the Master
        Servicer shall at all times be the same Person or Affiliates.

       

      “Senior
        Interest Distribution Amount”: With respect to any Distribution Date, an amount
        equal to the sum of (i) the Interest Distribution Amount for such Distribution
        Date for the Class A Certificates and (ii) the Interest Carry Forward Amount,
        if
        any, for such Distribution Date for the Class A Certificates.

       

      
        
          
          

        

        
          73

          
            

          

        

        
          
          

        

      

       

      “Servicer”:
        Countrywide Home Loans Servicing LP, or any successor thereto appointed
        hereunder in connection with the servicing and administration of the Mortgage
        Loans.

       

      “Servicer
        Event of Default”: An event of default set forth in the Servicing
        Agreement.

       

      “Servicer
        Remittance Date”: With respect to any Distribution Date, as set forth in the
        Servicing Agreement.

       

      “Servicer
        Report”: A report on an electronic data file or tape prepared by the Servicer
        pursuant to the Servicing Agreement, with such additions, deletions and
        modifications as agreed to by the Master Servicer, the Securities Administrator
        and the Servicer.

       

      “Service(s)(ing)”:
        Means, in accordance with Regulation AB, the act of servicing and administering
        the Mortgage Loans or any other assets of the Trust by an entity that meets
        the
        definition of “servicer” set forth in Item 1101 of Regulation AB and is subject
        to the disclosure requirements set forth in Item 1108 of Regulation AB. For
        clarification purposes, any uncapitalized occurrence of this term shall have
        the
        meaning commonly understood by participants in the residential mortgage-backed
        securitization market.

       

      “Servicing
        Advances”: The customary and reasonable “out-of-pocket” costs and expenses
        incurred prior to or on or after the Cut-off Date (the amounts incurred prior
        to
        the Cut-off Date shall be identified on the Servicing Advance Schedule by
        (a)
        the Servicer with respect to any Mortgage Loans that were transferred to
        the
        Servicer prior to the Cut-off Date and/or (b) the Depositor with respect
        to any
        Mortgage Loans that were transferred to the Servicer after the Cut-off Date)
        by
        the Servicer in connection with a default, delinquency or other unanticipated
        event by the Servicer in the performance of its servicing obligations,
        including, but not limited to, the cost of (i) the preservation, restoration
        and
        protection of a Mortgaged Property, (ii) any enforcement or judicial
        proceedings, including but not limited to foreclosures, in respect of a
        particular Mortgage Loan, including any expenses incurred in relation to
        any
        such proceedings that result from the Mortgage Loan being registered on the
        MERS® System, (iii) the management (including reasonable fees in connection
        therewith) and liquidation of any REO Property, (iv) the performance of certain
        obligations the cost of which is reimbursable as a Servicing Advance under
        the
        Servicing Agreement and (v) obtaining any legal documentation required to
        be
        included in the Mortgage File and/or correcting any outstanding title issues
        (i.e., any lien or encumbrance on the Mortgaged Property that prevents the
        effective enforcement of the intended lien position) reasonably necessary
        for
        the Servicer perform its obligations under the Servicing Agreement. Servicing
        Advances also include any reasonable “out-of-pocket” cost and expenses
        (including legal fees) incurred by the Servicer in connection with executing
        and
        recording instruments of satisfaction, deeds of reconveyance or Assignments
        to
        the extent not recovered from the Mortgagor or otherwise payable under the
        Servicing Agreement. The Servicer shall not be required to make any
        Nonrecoverable Servicing Advances.

       

      
        
          
          

        

        
          74

          
            

          

        

        
          
          

        

      

       

      “Servicing
        Advance Schedule”: With respect to any Servicing Advances incurred prior to the
        Cut-off Date, the schedule or schedules provided by (a) the Servicer with
        respect to any Mortgage Loans that were transferred to the Servicer prior
        to the
        Cut-off Date and/or (b) the Depositor with respect to any Mortgage Loans
        that
        were transferred to the Servicer after the Cut-off Date, as applicable, to
        the
        Master Servicer and, if such schedule is provided by the Depositor, to the
        Servicer, on the earlier of the date on which the Servicer or five (5) Business
        Days following the Servicing Transfer Date, which schedule or schedules shall
        contain the information set forth on Schedule 6.

       

      “Servicing
        Agreement”: The Amended and Restated Master Mortgage Loan Purchase and Servicing
        Agreement, dated as of September 1, 2005 as amended and restated to and
        including May 1, 2006, as amended and as modified by the Assignment Agreement
        between the Sponsor and Countrywide Home Loans, Inc.

       

      “Servicing
        Criteria”: Means the criteria set forth in paragraph (d) of Item 1122 of
        Regulation AB, as such may be amended from time to time.

       

      “Servicing
        Fee”: With respect to each Mortgage Loan and for any calendar month, an amount
        equal to one-twelfth of the product of the Servicing Fee Rate multiplied
        by the
        Scheduled Principal Balance of the Mortgage Loans as of the Due Date in the
        preceding calendar month. The Servicing Fee is payable solely from collections
        of interest on the Mortgage Loans.

       

      “Servicing
        Fee Rate”: 0.50% per annum.

       

      “Servicing
        Function Participant”: Means any Sub-Servicer, Subcontractor or any other
        Person, other than each Servicer, the Master Servicer, the Custodian, the
        Trustee and the Securities Administrator, that is determined to be
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB, without regard to any threshold referenced therein.

       

      “Servicing
        Officer”: Any officer of the Servicer or the Master Servicer involved in, or
        responsible for, the administration and servicing of the related Mortgage
        Loans,
        whose name and specimen signature appear on a list of Servicing Officers
        furnished by the Servicer or the Master Servicer to the Trustee, the Master
        Servicer (in the case of the Servicer), the Securities Administrator and
        the
        Depositor on the Closing Date, as such list may from time to time be
        amended.

       

      “Single
        Certificate”: With respect to any Class of Certificates (other than the Residual
        Certificates), a hypothetical Certificate of such Class evidencing a Percentage
        Interest for such Class corresponding to an initial Certificate Principal
        Balance of $1,000. With respect to the Residual Certificates, a hypothetical
        Certificate of such Class evidencing a 100% Percentage Interest in such Class.
        

       

      “Sponsor”:
        DB Structured Products, Inc. or its successor in interest, in its capacity
        as
        seller under the Mortgage Loan Purchase Agreement.

       

      “Startup
        Day”: With respect to each Trust REMIC, the day designated as such pursuant to
        Section 11.01(b) hereof.

       

      
        
          
          

        

        
          75

          
            

          

        

        
          
          

        

      

       

      “Stated
        Principal Balance”: With respect to any Mortgage Loan: (a) as of any date of
        determination up to but not including the Distribution Date on which the
        proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan
        would be distributed, the Scheduled Principal Balance of such Mortgage Loan
        as
        of the Cut-off Date, as shown in the Mortgage Loan Schedule, minus the sum
        of
        (i) the principal portion of each Monthly Payment due on a Due Date subsequent
        to the Cut-off Date, to the extent received from the Mortgagor or advanced
        by
        the Servicer or a successor to the Servicer and distributed pursuant to
        Section 5.01 of this Agreement on or before such date of determination,
        (ii) all Principal Prepayments received after the Cut-off Date, to the extent
        distributed pursuant to Section 5.01 of this Agreement on or before such
        date of determination, (iii) all Liquidation Proceeds and Insurance Proceeds
        applied by the Servicer as recoveries of principal in accordance with the
        provisions of the Servicing Agreement, to the extent distributed pursuant
        to
        Section 5.01 of this Agreement on or before such date of determination, and
        (iv) any Realized Loss incurred with respect thereto as a result of a Deficient
        Valuation made during or prior to the Prepayment Period for the most recent
        Distribution Date coinciding with or preceding such date of determination;
        and
        (b) as of any date of determination coinciding with or subsequent to the
        Distribution Date on which the proceeds, if any, of a Liquidation Event with
        respect to such Mortgage Loan would be distributed, zero. With respect to
        any
        REO Property: (a) as of any date of determination up to but not including
        the
        Distribution Date on which the proceeds, if any, of a Liquidation Event with
        respect to such REO Property would be distributed, an amount (not less than
        zero) equal to the Stated Principal Balance of the related Mortgage Loan
        as of
        the date on which such REO Property was acquired on behalf of REMIC I, minus
        the
        sum of (i) if such REO Property was acquired before the Distribution Date
        in any
        calendar month, the principal portion of the Monthly Payment due on the Due
        Date
        in the calendar month of acquisition, to the extent advanced by the Servicer
        or
        a successor to the Servicer and distributed pursuant to Section 5.01 of
        this Agreement, on or before such date of determination and (ii) the aggregate
        amount of REO Principal Amortization in respect of such REO Property for
        all
        previously ended calendar months, to the extent distributed pursuant to
        Section 5.01 of this Agreement on or before such date of determination; and
        (b) as of any date of determination coinciding with or subsequent to the
        Distribution Date on which the proceeds, if any, of a Liquidation Event with
        respect to such REO Property would be distributed, zero.

       

      “Stepdown
        Date”: The earlier to occur of (i) the later to occur of (x) the Distribution
        Date occurring in August 2009 and (y) the first Distribution Date on which
        the
        Credit Enhancement Percentage (calculated for this purpose only after taking
        into account distributions of principal on the Mortgage Loans, but prior
        to any
        distribution of the Principal Distribution Amount to the holders of the
        Certificates then entitled to distributions of principal on such Distribution
        Date), is greater than or equal to approximately 42.00% and (ii) the first
        Distribution Date following the Distribution Date on which the aggregate
        Certificate Principal Balance of the Class A Certificates has been reduced
        to
        zero.

       

      “Subcontractor”:
        Means any vendor, subcontractor or other Person that is not responsible for
        the
        overall servicing of Mortgage Loans but performs one or more discrete functions
        identified in Item 1122(d) of Regulation AB (without regard to any threshold
        percentage specified therein) with respect to Mortgage Loans under the direction
        or authority of any Servicer (or a Sub-Servicer of any Servicer), the Master
        Servicer, the Trustee, the Custodian or the Securities
        Administrator.

       

      
        
          
          

        

        
          76

          
            

          

        

        
          
          

        

      

       

      “Subordinate
        Certificates”: Collectively, the Mezzanine Certificates and the Class CE
        Certificates.

       

      “Subsequent
        Recoveries”: As of any Distribution Date, amounts received during the related
        Prepayment Period by the Servicer specifically related to a defaulted Mortgage
        Loan or disposition of an REO Property prior to the related Prepayment Period
        that resulted in a Realized Loss, after the liquidation or disposition of
        such
        defaulted Mortgage Loan, net of any amounts reimbursable to the Servicer
        related
        to such Mortgage Loan or REO Property.

       

      “Sub-Servicer”:
        Means any Person that (i) is considered to be a Servicing Function Participant,
        (ii) services Mortgage Loans on behalf of any Servicer, the Master Servicer,
        the
        Securities Administrator or the Trustee, and (iii) is responsible for the
        performance (whether directly or through sub-servicers or Subcontractors)
        of
        Servicing functions required to be performed under this Agreement, the Servicing
        Agreement or any related Sub-Servicing Agreement that is identified in Item
        1122(d) of Regulation AB.

       

      “Sub-Servicing
        Agreement”: The written contract between the Servicer and a Sub-Servicer
        relating to servicing and administration of certain Mortgage Loans as provided
        in the Servicing Agreement.

       

      “Substitution
        Shortfall Amount”: As defined in Section 2.03 of this
        Agreement.

       

      “Supplemental
        Interest Trust”: The corpus of a trust created pursuant to Section 5.07 of
        this Agreement and designated as the “Supplemental Interest Trust,” consisting
        of the Swap Agreement, the Class IO Interest and the right to receive payments
        in respect of the Class IO Distribution Amount. For the avoidance of doubt,
        the
        Supplemental Interest Trust does not constitute a part of the Trust
        Fund.

       

      “Supplemental
        Interest Trust Trustee”: HSBC Bank USA, National Association a national banking
        association, or its successor in interest, or any successor supplemental
        interest trust trustee appointed as provided herein or in the Swap Agreement
        provided.

       

      “Swap
        Agreement”: The Interest Rate Swap Agreement, dated as of July 25, 2006, between
        the Supplemental Interest Trust Trustee, on behalf of the Supplemental Interest
        Trust, and the Swap Provider, which agreement provides for Net Swap Payments
        and
        Swap Termination Payments to be paid, as provided therein, together with
        any
        schedules, confirmations or other agreements relating thereto. The Securities
        Administrator will provide a copy of the Swap Agreement to any Certificateholder
        upon request. 

       

      “Swap
        LIBOR”: LIBOR as determined pursuant to the Swap Agreement.

       

      
        
          
          

        

        
          77

          
            

          

        

        
          
          

        

      

       

      “Swap
        Notional Amount”: For each calculation period as defined in the Swap Agreement,
        the amount set forth below:

       

      
        	
                Distribution
                  Date

              	 	
                Swap
                  Notional Amount

                ($)

              	 
	
                February
                  2007

              	 	 	
                738,774,499

              	 
	
                March
                  2007

              	 	 	
                714,410,158

              	 
	
                April
                  2007

              	 	 	
                688,369,440

              	 
	
                May
                  2007

              	 	 	
                660,852,881

              	 
	
                June
                  2007

              	 	 	
                634,437,886

              	 
	
                July
                  2007

              	 	 	
                609,084,922

              	 
	
                August
                  2007

              	 	 	
                584,751,184

              	 
	
                September
                  2007

              	 	 	
                561,395,304

              	 
	
                October
                  2007

              	 	 	
                538,977,752

              	 
	
                November
                  2007

              	 	 	
                517,460,759

              	 
	
                December
                  2007

              	 	 	
                496,807,777

              	 
	
                January
                  2008

              	 	 	
                476,983,904

              	 
	
                February
                  2008

              	 	 	
                457,901,601

              	 
	
                March
                  2008

              	 	 	
                439,473,441

              	 
	
                April
                  2008

              	 	 	
                420,781,547

              	 
	
                May
                  2008

              	 	 	
                370,326,371

              	 
	
                June
                  2008

              	 	 	
                327,855,635

              	 
	
                July
                  2008

              	 	 	
                292,076,263

              	 
	
                August
                  2008

              	 	 	
                262,245,816

              	 
	
                September
                  2008

              	 	 	
                251,323,956

              	 
	
                October
                  2008

              	 	 	
                240,894,077

              	 
	
                November
                  2008

              	 	 	
                230,909,844

              	 
	
                December
                  2008

              	 	 	
                221,355,400

              	 
	
                January
                  2009

              	 	 	
                212,205,676

              	 
	
                February
                  2009

              	 	 	
                203,443,141

              	 
	
                March
                  2009

              	 	 	
                195,050,981

              	 
	
                April
                  2009

              	 	 	
                187,013,137

              	 
	
                May
                  2009

              	 	 	
                179,315,197

              	 
	
                June
                  2009

              	 	 	
                171,945,039

              	 
	
                July
                  2009

              	 	 	
                164,884,889

              	 
	
                August
                  2009

              	 	 	
                158,121,391

              	 
	
                September
                  2009

              	 	 	
                151,641,784

              	 
	
                October
                  2009

              	 	 	
                145,433,877

              	 
	
                November
                  2009

              	 	 	
                139,486,011

              	 
	
                December
                  2009

              	 	 	
                133,787,309

              	 
	
                January
                  2010

              	 	 	
                128,326,781

              	 
	
                February
                  2010

              	 	 	
                123,094,229

              	 
	
                March
                  2010

              	 	 	
                118,079,907

              	 
	
                April
                  2010

              	 	 	
                113,274,501

              	 

      

       

      
        
          
          

        

        
          78

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	 	
                Swap
                  Notional Amount

                ($)

              

      

      
        	
                May
                  2010

              	 	 	
                108,669,100

              	 
	
                June
                  2010

              	 	 	
                104,255,302

              	 
	
                July
                  2010

              	 	 	
                100,024,812

              	 
	
                August
                  2010

              	 	 	
                95,969,831

              	 
	
                September
                  2010

              	 	 	
                92,082,904

              	 
	
                October
                  2010

              	 	 	
                88,356,900

              	 
	
                November
                  2010

              	 	 	
                84,784,997

              	 

      

       

      “Swap
        Provider”: The swap provider under the Swap Agreement either (a) entitled to
        receive payments from the Supplemental Interest Trust or (b) required to
        make
        payments to the Supplemental Interest Trust, in either case pursuant to the
        terms of the Swap Agreement, and any successor in interest or assign. Initially,
        the Swap Provider shall be The Royal Bank of Scotland plc.

       

      “Swap
        Provider Trigger Event”: A Swap Provider Trigger Event shall have occurred if
        any of the following has occurred: (i) an Event of Default under the Swap
        Agreement with respect to which the Swap Provider is a Defaulting Party (as
        defined in the Swap Agreement), (ii) a Termination Event under the Swap
        Agreement with respect to which the Swap Provider is the sole Affected Party
        (as
        defined in the Swap Agreement) or (iii) an Additional Termination Event under
        the Swap Agreement with respect to which the Swap Provider is the sole Affected
        Party.

       

      “Swap
        Termination Payment”: Upon the designation of an “Early Termination Date” as
        defined in the Swap Agreement, the payment to be made by the Securities
        Administrator on behalf of the Supplemental Interest Trust Trustee from the
        Supplemental Interest Trust to the Swap Provider, or by the Swap Provider
        to the
        Supplemental Interest Trust, as applicable, pursuant to the terms of the
        Swap
        Agreement.

       

      “Tax
        Returns”: The federal income tax return on Internal Revenue Service Form 1066,
        U.S. Real Estate Mortgage Investment Conduit Income Tax Return, including
        Schedule Q thereto, Quarterly Notice to Residual Interest Holders of REMIC
        Taxable Income or Net Loss Allocation, or any successor forms, to be filed
        on
        behalf of the Trust REMICs under the REMIC Provisions, together with any
        and all
        other information reports or returns that may be required to be furnished
        to the
        Certificateholders or filed with the Internal Revenue Service or any other
        governmental taxing authority under any applicable provisions of federal,
        state
        or local tax laws.

       

      “Telerate
        Page 3750”: The display designated as page “3750” on the Dow Jones Telerate
        Capital Markets Report (or such other page as may replace page 3750 on that
        report for the purpose of displaying London interbank offered rates of major
        banks).

       

      “Termination
        Price”: As defined in Section 10.01.

       

      “Terminator”
        As defined in Section 10.01.

       

      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

      

       

      “Transfer”:
        Any direct or indirect transfer, sale, pledge, hypothecation, or other form
        of
        assignment of any Ownership Interest in a Certificate.

       

      “Transferee”:
        Any Person who is acquiring by Transfer any Ownership Interest in a
        Certificate.

       

      “Transferor”:
        Any Person who is disposing by Transfer of any Ownership Interest in a
        Certificate.

       

      “Trigger
        Event”: A Trigger Event has occurred with respect to a Distribution Date if
        either (x) the Delinquency Percentage exceeds 38.00% of the Credit Enhancement
        Percentage with respect to such Distribution Date or (y) the aggregate amount
        of
        Realized Losses incurred since the Cut-off Date through the last day of the
        related Due Period divided by the aggregate principal balance of the Mortgage
        Loans as of the Cut-off Date exceeds the applicable percentages set forth
        below
        with respect to such Distribution Date:

       

      
        	
                Distribution
                  Date

              	 	
                Percentage

              
	
                August
                  2008 to July 2009

              	 	
                1.20%
                  plus 1/12 of 1.45% for each month thereafter

              
	
                August
                  2009 to July 2010

              	 	
                2.65%
                  plus 1/12 of 1.60% for each month thereafter

              
	
                August
                  2010 to July 2011

              	 	
                4.25%
                  plus 1/12 of 1.30% for each month thereafter

              
	
                August
                  2011 to July 2012

              	 	
                5.55%
                  plus 1/12 of 0.70% for each month thereafter

              
	
                August
                  2012 to July 2013

              	 	
                6.25%
                  plus 1/12 of 0.10% for each month thereafter

              
	
                August
                  2013 and thereafter

              	 	
                6.35%

              

      

      

      “Trust”:
        ACE Securities Corp., Home Equity Loan Trust, Series 2006-CW1, the trust
        created
        hereunder.

       

      “Trust
        Fund”: Collectively, all of the assets of REMIC I, REMIC II, REMIC III and the
        Reserve Fund and any amounts on deposit therein and any proceeds thereof
        and the
        Cap Contracts. For avoidance of doubt, the Trust Fund does not include the
        Supplemental Interest Trust.

       

      “Trust
        REMIC”: REMIC I, REMIC II or REMIC III.

       

      “Trustee”:
        HSBC Bank USA, National Association a national banking association, or its
        successor in interest, or any successor trustee appointed as herein
        provided.

       

      “Uncertificated
        Balance”: The amount of the REMIC Regular Interests outstanding as of any date
        of determination. As of the Closing Date, the Uncertificated Balance of each
        REMIC Regular Interest shall equal the amount set forth in the Preliminary
        Statement hereto as its initial uncertificated balance. On each Distribution
        Date, the Uncertificated Balance of the REMIC Regular Interest shall be reduced
        by all distributions of principal made on such REMIC Regular Interest on
        such
        Distribution Date pursuant to Section 5.01 of this Agreement and, if and to
        the extent necessary and appropriate, shall be further reduced on such
        Distribution Date by Realized Losses as provided in Section 5.04 of this
        Agreement and the Uncertificated Balance of REMIC II Regular Interest ZZ
        shall
        be increased by interest deferrals as provided in Section 5.01 of this
        Agreement. The Uncertificated Balance of each REMIC Regular Interest shall
        never
        be less than zero.

       

      
        
          
          

        

        
          80

          
            

          

        

        
          
          

        

      

       

      “Uncertificated
        Interest”: With respect to any REMIC Regular Interest for any Distribution Date,
        one month’s interest at the related REMIC Remittance Rate applicable to such
        REMIC Regular Interest for such Distribution Date, accrued on the Uncertificated
        Balance thereof immediately prior to such Distribution Date. Uncertificated
        Interest in respect of the REMIC Regular Interests shall accrue on the basis
        of
        a 360-day year consisting of twelve 30-day months. Uncertificated Interest
        with
        respect to each Distribution Date, as to any REMIC Regular Interest, shall
        be
        reduced by an amount equal to the sum of (a) the aggregate Prepayment Interest
        Shortfall, if any, for such Distribution Date to the extent not covered by
        compensating interest payments made by the Servicer pursuant to the Servicing
        Agreement or by the Master Servicer pursuant to Section 4.19 of this
        Agreement and (b) the aggregate amount of any Relief Act Interest Shortfall,
        if
        any allocated, in each case, to such REMIC Regular Interest or REMIC Regular
        Interest pursuant to Section 1.02 of this Agreement. In addition,
        Uncertificated Interest with respect to each Distribution Date, as to any
        REMIC
        Regular Interest, shall be reduced by Realized Losses, if any, allocated
        to such
        REMIC Regular Interest pursuant to Section 1.02 and Section 5.04 of
        this Agreement.

       

      “Uncertificated
        Notional Amount”: With respect to REMIC II Regular Interest IO and each
        Distribution Date listed below, the aggregate Uncertificated Balance of the
        REMIC I Regular Interests ending with the designation “A” listed
        below:

       

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  I Regular Interests

              
	
                1st
                  through 7th 

              	 	
                I-1-A
                  through I-46-A and II-1-A through II-46-A 

              
	
                8

              	 	
                I-2-A
                  through I-46-A and II-2-A through II-46-A 

              
	
                9

              	 	
                I-3-A
                  through I-46-A and II-3-A through II-46-A 

              
	
                10

              	 	
                I-4-A
                  through I-46-A and II-4-A through II-46-A 

              
	
                11

              	 	
                I-5-A
                  through I-46-A and II-5-A through II-46-A 

              
	
                12

              	 	
                I-6-A
                  through I-46-A and II-6-A through II-46-A 

              
	
                13

              	 	
                I-7-A
                  through I-46-A and II-7-A through II-46-A 

              
	
                14

              	 	
                I-8-A
                  through I-46-A and II-8-A through II-46-A

              
	
                15

              	 	
                I-9-A
                  through I-46-A and II-9-A through II-46-A 

              
	
                16

              	 	
                I-10-A
                  through I-46-A and II-10-A through II-46-A 

              
	
                17

              	 	
                I-11-A
                  through I-46-A and II-11-A through II-46-A 

              
	
                18

              	 	
                I-12-A
                  through I-46-A and II-12-A through II-46-A 

              
	
                19

              	 	
                I-13-A
                  through I-46-A and II-13-A through II-46-A 

              
	
                20

              	 	
                I-14-A
                  through I-46-A and II-14-A through II-46-A 

              
	
                21

              	 	
                I-15-A
                  through I-46-A and II-15-A through II-46-A 

              
	
                22

              	 	
                I-16-A
                  through I-46-A and II-16-A through II-46-A 

              
	
                23

              	 	
                I-17-A
                  through I-46-A and II-17-A through II-46-A 

              
	
                24

              	 	
                I-18-A
                  through I-46-A and II-18-A through II-46-A 

              
	
                25

              	 	
                I-19-A
                  through I-46-A and II-19-A through II-46-A 

              
	
                26

              	 	
                I-20-A
                  through I-46-A and II-20-A through II-46-A 

              
	
                27

              	 	
                I-21-A
                  through I-46-A and II-21-A through II-46-A 

              
	
                28

              	 	
                I-22-A
                  through I-46-A and II-22-A through II-46-A 

              
	
                29

              	 	
                I-23-A
                  through I-46-A and II-23-A through II-46-A 

              
	
                30

              	 	
                I-24-A
                  through I-46-A and II-24-A through II-46-A 

              
	
                31

              	 	
                I-25-A
                  through I-46-A and II-25-A through II-46-A 

              
	
                32

              	 	
                I-26-A
                  through I-46-A and II-26-A through II-46-A 

              
	
                33

              	 	
                I-27-A
                  through I-46-A and II-27-A through II-46-A 

              
	
                34

              	 	
                I-28-A
                  through I-46-A and II-28-A through II-46-A 

              
	
                35

              	 	
                I-29-A
                  through I-46-A and II-29-A through II-46-A

              
	
                36

              	 	
                I-30-A
                  through I-46-A and II-30-A through II-46-A

              

      

       

      
        
          
          

        

        
          81

          
            

          

        

        
          
          

        

      

       

        	
                Distribution
                  Date

              	 	
                
                  REMIC
                    I Regular Interests

                

              

      

      
        	
                37

              	 	
                I-31-A
                  through I-46-A and II-31-A through II-46-A 

              
	
                38

              	 	
                I-32-A
                  through I-46-A and II-32-A through II-46-A 

              
	
                39

              	 	
                I-33-A
                  through I-46-A and II-33-A through II-46-A 

              
	
                40

              	 	
                I-34-A
                  through I-46-A and II-34-A through II-46-A 

              
	
                41

              	 	
                I-35-A
                  through I-46-A and II-35-A through II-46-A 

              
	
                42

              	 	
                I-36-A
                  through I-46-A and II-36-A through II-46-A 

              
	
                43

              	 	
                I-37-A
                  through I-46-A and II-37-A through II-46-A 

              
	
                44

              	 	
                I-38-A
                  through I-46-A and II-38-A through II-46-A 

              
	
                45

              	 	
                I-39-A
                  through I-46-A and II-39-A through II-46-A

              
	
                46

              	 	
                I-40-A
                  through I-46-A and II-40-A through II-46-A

              
	
                47

              	 	
                I-41-A
                  through I-46-A and II-41-A through II-46-A 

              
	
                48

              	 	
                I-42-A
                  through I-46-A and II-42-A through II-46-A 

              
	
                49

              	 	
                I-43-A
                  through I-46-A and II-43-A through II-46-A 

              
	
                50

              	 	
                I-44-A
                  through I-46-A and II-44-A through II-46-A 

              
	
                51

              	 	
                I-45-A
                  and I-46-A and II-45-A and II-46-A 

              
	
                52

              	 	
                I-46-A
                  and II-46-A 

              
	
                thereafter

              	 	
                $0.00

              

      

      

      With
        respect to the Class IO Interest and any Distribution Date, an amount equal
        to
        the Uncertificated Notional Amount of the REMIC II Regular Interest
        IO.

       

      “Uninsured
        Cause”: Any cause of damage to a Mortgaged Property such that the complete
        restoration of such property is not fully reimbursable by the hazard insurance
        policies required to be maintained by the Servicer pursuant to the Servicing
        Agreement.

       

      “United
        States Person”: A citizen or resident of the United States, a corporation,
        partnership or other entity created or organized in, or under the laws of,
        the
        United States or any political subdivision thereof (except, in the case of
        a
        partnership, to the extent provided in regulations) provided that, for purposes
        solely of the restrictions on the transfer of any Class R Certificate, 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 required to be 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 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, 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 I 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.
        The term “United States” shall have the meaning set forth in Section 7701
        of the Code.

       

      “Value”:
        With respect to any Mortgaged Property, the lesser of (i) the lesser of (a)
        the
        value thereof as determined by an appraisal made for the related originator
        of
        the Mortgage Loan at the time of origination of the Mortgage Loan by an
        appraiser who met the minimum requirements of Fannie Mae and Freddie Mac
        and (b)
        the value thereof as determined by a review appraisal conducted by the related
        originator of the Mortgage Loan in accordance with the related originator’s
        underwriting guidelines, and (ii) the purchase price paid for the related
        Mortgaged Property by the Mortgagor with the proceeds of the Mortgage Loan;
        provided, however, (A) in the case of a Refinanced Mortgage Loan, such value
        of
        the Mortgaged Property is based solely upon the lesser of (1) the value
        determined by an appraisal made for the related originator of the Mortgage
        Loan
        of such Refinanced Mortgage Loan at the time of origination of such Refinanced
        Mortgage Loan by an appraiser who met the minimum requirements of Fannie
        Mae and
        Freddie Mac and (2) the value thereof as determined by a review appraisal
        conducted by the related originator of the Mortgage Loan in accordance with
        the
        related originator’s underwriting guidelines, and (B) in the case of a Mortgage
        Loan originated in connection with a “lease-option purchase,” such value of the
        Mortgaged Property is based on the lower of the value determined by an appraisal
        made for the originator of such Mortgage Loan at the time of origination
        or the
        sale price of such Mortgaged Property if the “lease option purchase price” was
        set less than twelve (12) months prior to origination, and is based on the
        value
        determined by an appraisal made for the related originator of such Mortgage
        Loan
        at the time of origination if the “lease option purchase price” was set twelve
        (12) months or more prior to origination.

       

      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

       

      “Voting
        Rights”: The portion of the voting rights of all of the Certificates which is
        allocated to any such Certificate. With respect to any date of determination,
        98% of all Voting Rights will be allocated among the holders of the Class
        A
        Certificates, the Mezzanine Certificates and the Class CE Certificates in
        proportion to the then outstanding Certificate Principal Balances of their
        respective Certificates, 1% of all Voting Rights will be allocated among
        the
        holders of the Class P Certificates and 1% of all Voting Rights will be
        allocated among the holders of the Class R Certificates. The Voting Rights
        allocated to each Class of Certificate shall be allocated among Holders of
        each
        such Class in accordance with their respective Percentage Interests as of
        the
        most recent Record Date. 

       

      “Wells
        Fargo”: Wells Fargo Bank, National Association in its capacity as a Custodian
        under the Wells Fargo Custodial Agreement or any successor thereto.

       

      SECTION
        1.02. Allocation
        of Certain Interest Shortfalls.

       

      For
        purposes of calculating the amount of Accrued Certificate Interest and the
        amount of the Interest Distribution Amount for the Class A Certificates,
        the
        Mezzanine Certificates and the Class CE Certificates for any Distribution
        Date,
        (1) the aggregate amount of any Prepayment Interest Shortfalls (to the extent
        not covered by compensating interest payments made by the Servicer pursuant
        to
        the Servicing Agreement or by the Master Servicer pursuant to Section 4.19
        of this Agreement) and any Relief Act Interest Shortfalls incurred in respect
        of
        the Mortgage Loans for any Distribution Date shall be allocated first, to
        the
        Class CE Certificates, second, to the Class M-11 Certificates, third, to
        the
        Class M-10 Certificates, fourth, to the Class M-9 Certificates, fifth, to
        the
        Class M-8 Certificates, sixth, to the Class M-7 Certificates, seventh, to
        the
        Class M-6 Certificates, eighth, to the Class M-5 Certificates, ninth, to
        the
        Class M-4 Certificates, tenth, to the Class M-3 Certificates, eleventh, to
        the
        Class M-2 Certificates, twelfth, to the Class M-1 Certificates and thirteenth,
        to the Class A Certificates, on a pro
        rata
        basis,
        in each case based on, and to the extent of, one month’s interest at the then
        applicable respective Pass-Through Rate on the respective Certificate Principal
        Balance or Notional Amount, as applicable, of each such Certificate and (2)
        the
        aggregate amount of any Realized Losses allocated to the Mezzanine Certificates
        and Net WAC Rate Carryover Amounts paid to the Class A Certificates and the
        Mezzanine Certificates incurred for any Distribution Date shall be allocated
        to
        the Class CE Certificates on a pro
        rata
        basis
        based on, and to the extent of, one month’s interest at the then applicable
        respective Pass-Through Rate on the respective Certificate Principal Balance
        or
        Notional Amount thereof, as applicable.

       

      
        
          
          

        

        
          83

          
            

          

        

        
          
          

        

      

       

      For
        purposes of calculating the amount of Uncertificated Interest for the REMIC
        I
        Group I Regular Interests for any Distribution Date, the aggregate amount
        of any
        Prepayment Interest Shortfalls (to the extent not covered by compensating
        interest payments made by the Servicer pursuant to the Servicing Agreement
        or by
        the Master Servicer pursuant to Section 4.19 of this Agreement) and any
        Relief Act Interest Shortfalls incurred in respect of Group I Mortgage Loans
        shall be allocated first, to REMIC I Regular Interest I and to the REMIC
        I Group
        I Regular Interests ending with the designation “B”, pro
        rata
        based
        on, and to the extent of, one month’s interest at the then applicable respective
        REMIC I Remittance Rates on the respective Uncertificated Principal Balances
        of
        each such REMIC I Regular Interest, and then, to REMIC I Group I Regular
        Interests ending with the designation “A”, pro rata based on, and to the extent
        of, one month’s interest at the then applicable respective REMIC I Remittance
        Rates on the respective Uncertificated Balances of each such REMIC I Regular
        Interest.

       

      For
        purposes of calculating the amount of Uncertificated Interest for the REMIC
        I
        Group II Regular Interests for any Distribution Date, the aggregate amount
        of
        any Prepayment Interest Shortfalls (to the extent not covered by compensating
        interest payments made by the Servicer pursuant to the Servicing Agreement
        or by
        the Master Servicer pursuant to Section 4.19 of this Agreement) and any
        Relief Act Interest Shortfalls incurred in respect of Group II Mortgage Loans
        shall be allocated first, to REMIC I Regular Interest II and to the REMIC
        I
        Group II Regular Interests ending with the designation “B”, pro
        rata
        based
        on, and to the extent of, one month’s interest at the then applicable respective
        REMIC I Remittance Rates on the respective Uncertificated Principal Balances
        of
        each such REMIC I Regular Interest, and then, to REMIC I Group II Regular
        Interests ending with the designation “A”, pro rata based on, and to the extent
        of, one month’s interest at the then applicable respective REMIC I Remittance
        Rates on the respective Uncertificated Balances of each such REMIC I Regular
        Interest. 

       

      For
        purposes of calculating the amount of Uncertificated Interest for the REMIC
        II
        Regular Interests for any Distribution Date:

       

      (A) The
        REMIC
        II Marker Allocation Percentage of the aggregate amount of any Prepayment
        Interest Shortfalls (to the extent not covered by compensating interest payments
        made by the Servicer pursuant to the Servicing Agreement or by the Master
        Servicer pursuant to Section 4.19 of this Agreement) and the REMIC II
        Marker Allocation Percentage of any Relief Act Interest Shortfalls incurred
        in
        respect of the Mortgage Loans for any Distribution Date shall be allocated
        among
        REMIC II Regular Interest AA, REMIC II Regular Interest A-1, REMIC II Regular
        Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest
        A-2C,
        REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular
        Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4,
        REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular
        Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9,
        REMIC II Regular Interest M-10, REMIC II Regular Interest M-11, REMIC II
        Regular
        Interest M-11 and REMIC II Regular Interest ZZ pro
        rata
        based
        on, and to the extent of, one month’s interest at the then applicable respective
        REMIC II Remittance Rate on the respective Uncertificated Balance of each
        such
        REMIC II Regular Interest; and

       

      
        
          
          

        

        
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      (B) The
        REMIC
        II Sub WAC Allocation Percentage of the aggregate amount of any Prepayment
        Interest Shortfalls (to the extent not covered by compensating interest payments
        made by the Servicer pursuant to the Servicing Agreement or by the Master
        Servicer pursuant to Section 4.19 of this Agreement) and the REMIC II Sub
        WAC Allocation Percentage of any Relief Act Interest Shortfalls incurred
        in
        respect of the Mortgage Loans for any Distribution Date shall be allocated
        first, to Uncertificated Interest payable to REMIC II Regular Interest I-SUB,
        REMIC II Regular Interest I-GRP, REMIC II Regular Interest II-SUB, REMIC
        II
        Regular Interest II-GRP and REMIC II Regular Interest XX, pro
        rata
        based
        on, and to the extent of, one month’s interest at the then applicable respective
        REMIC II Remittance Rate on the respective Uncertificated Balance of each
        such
        REMIC II Regular Interest.

      
        
          
          

        

        
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      ARTICLE
        II

       

      CONVEYANCE
        OF MORTGAGE LOANS;

      ORIGINAL
        ISSUANCE OF CERTIFICATES

       

      SECTION
        2.01. Conveyance
        of the Mortgage Loans.

       

      The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey to the Trustee, on behalf
        of the
        Trust, without recourse, for the benefit of the Certificateholders, all the
        right, title and interest of the Depositor, including any security interest
        therein for the benefit of the Depositor, in and to the Mortgage Loans
        identified on the Mortgage Loan Schedule, the rights of the Depositor under
        the
        Mortgage Loan Purchase Agreement and the Assignment Agreement (including,
        without limitation the right to enforce the obligations of the other parties
        thereto thereunder), the right to any Net Swap Payment and any Swap Termination
        Payment made by the Swap Provider and all other assets included or to be
        included in REMIC I. Such assignment includes all interest and principal
        received by the Depositor and the Servicer on or with respect to the Mortgage
        Loans (other than payments of principal and interest due on such Mortgage
        Loans
        on or before the Cut-off Date). A copy of the Mortgage Loan Purchase Agreement
        is attached hereto as Exhibit F, and a copy of the Assignment Agreement is
        attached hereto as Exhibit K.

       

      In
        connection with such transfer and assignment, the Depositor does hereby deliver
        to, and deposit with the Custodian pursuant to the Custodial Agreement the
        documents with respect to each Mortgage Loan as described under Section 2
        of the related Custodial Agreement (the “Mortgage Loan Documents”). In
        connection with such delivery and as further described in the Custodial
        Agreement, the Custodian will be required to review such Mortgage Loan Documents
        and deliver to the Trustee, the Depositor, the Servicer and the Sponsor
        certifications (in the forms attached to the Custodial Agreement) with respect
        to such review with exceptions noted thereon. In addition, under the Custodial
        Agreement the Depositor will be required to cure certain defects with respect
        to
        the Mortgage Loan Documents for the related Mortgage Loans after the delivery
        thereof by the Depositor to the Custodian as more particularly set forth
        therein.

       

      Notwithstanding
        anything to the contrary contained herein, the parties hereto acknowledge
        that
        the functions of the Trustee with respect to the custody, acceptance, inspection
        and release of the Mortgage Files, including, but not limited to certain
        insurance policies and documents contemplated by Section 4.11 of this
        Agreement, and preparation and delivery of the certifications shall be performed
        by the Custodian pursuant to the terms and conditions of the Custodial
        Agreement.

       

      The
        Depositor shall deliver or cause the related originator to deliver to the
        Servicer copies of all trailing documents required to be included in the
        related
        Mortgage File at the same time the originals or certified copies thereof
        are
        delivered to the Trustee or Custodian, such documents including the mortgagee
        policy of title insurance and any Mortgage Loan Documents upon return from
        the
        recording office. 

       

      
        
          
          

        

        
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      The
        Mortgage Loans permitted by the terms of this Agreement to be included in
        the
        Trust are limited to (i) Mortgage Loans (which the Depositor acquired pursuant
        to the Mortgage Loan Purchase Agreement, which contains, among other
        representations and warranties, a representation and warranty of the Sponsor
        that no Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
        Home Ownership Act effective November 27, 2003 or as defined in the New Mexico
        Home Loan Protection Act effective January 1, 2004, as defined in the
        Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
        (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
        Act,
        effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9))
        or a
“high risk home loan” under the Illinois High Risk Home Loan Act, effective as
        of January 1, 2004, and (ii) Qualified Substitute Mortgage Loans (which,
        by
        definition as set forth herein and referred to in the Mortgage Loan Purchase
        Agreement, are required to conform to, among other representations and
        warranties, the representation and warranty of the Sponsor that no Qualified
        Substitute Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
        Home Ownership Act effective November 27, 2003 or as defined in the New Mexico
        Home Loan Protection Act effective January 1, 2004, as defined in the
        Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
        (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
        Act,
        effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9).
        The
        Depositor and the Trustee on behalf of the Trust understand and agree that
        it is
        not intended that any Mortgage Loan be included in the Trust that is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective
        November 27, 2003, as defined in the New Mexico Home Loan Protection Act
        effective January 1, 2004, as defined in the Massachusetts Predatory Home
        Loan
        Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as
        defined in the Indiana Home Loan Practices Act, effective January 1, 2005
        (Ind.
        Code Ann. Sections 24-9-1 through 24-9-9) or a “high risk home loan” under the
        Illinois High Risk Home Loan Act, effective as of January 1, 2004. 

       

      SECTION
        2.02. Acceptance
        of REMIC I by Trustee.

       

      The
        Trustee acknowledges receipt, subject to the provisions of Section 2.01
        hereof and Section 2 of the Custodial Agreement, of the Mortgage Loan
        Documents and all other assets included in the definition of “REMIC I” under
        clauses (i), (iii), (iv) and (v) (to the extent of amounts deposited into
        the
        Distribution Account) and declares that it holds (or the Custodian on its
        behalf
        holds) and will hold such documents and the other documents delivered to
        it
        constituting a Mortgage Loan Document, and that it holds (or the Custodian
        on
        its behalf holds) or will hold all such assets and such other assets included
        in
        the definition of “REMIC I” in trust for the exclusive use and benefit of all
        present and future Certificateholders.

       

      SECTION
        2.03. Repurchase
        or Substitution of Mortgage Loans.

       

      (a) Upon
        discovery or receipt of notice of any materially defective document in, or
        that
        a document is missing from, a Mortgage File or of a breach by the Sponsor
        of any
        representation, warranty or covenant under the Mortgage Loan Purchase Agreement
        in respect of any Mortgage Loan that materially and adversely affects the
        value
        of such Mortgage Loan or the interest therein of the Certificateholders,
        the
        Trustee shall promptly notify the Sponsor and the Servicer of such defect,
        missing document or breach and request that the Sponsor deliver such missing
        document, cure such defect or breach within sixty (60) days from the date
        the
        Sponsor was notified of such missing document, defect or breach, and if the
        Sponsor does not deliver such missing document or cure such defect or breach
        in
        all material respects during such period, the Trustee shall enforce the
        obligations of the Sponsor under the Mortgage Loan Purchase Agreement to
        repurchase such Mortgage Loan from REMIC I at the Purchase Price within ninety
        (90) days after the date on which the Sponsor was notified of such missing
        document, defect or breach, if and to the extent that the Sponsor is obligated
        to do so under the Mortgage Loan Purchase Agreement. The Purchase Price for
        the
        repurchased Mortgage Loan shall be remitted to the Servicer for deposit in
        the
        Collection Account, and the Trustee, upon receipt of written certification
        from
        the Servicer of such deposit, shall release or cause the Custodian (upon
        receipt
        of a request for release in the form attached to the Custodial Agreement)
        to
        release to the Sponsor the related Mortgage File and the Trustee shall execute
        and deliver such instruments of transfer or assignment, in each case without
        recourse, representation or warranty, as the Sponsor shall furnish to it
        and as
        shall be necessary to vest in the Sponsor any Mortgage Loan released pursuant
        hereto, and the Trustee shall not have any further responsibility with regard
        to
        such Mortgage File. In lieu of repurchasing any such Mortgage Loan as provided
        above, if so provided in the Mortgage Loan Purchase Agreement, the Sponsor
        may
        cause such Mortgage Loan to be removed from REMIC I (in which case it shall
        become a Deleted Mortgage Loan) and substitute one or more Qualified Substitute
        Mortgage Loans in the manner and subject to the limitations set forth in
        Section 2.03(b) of this Agreement. It is understood and agreed that the
        obligation of the Sponsor to cure or to repurchase (or to substitute for)
        any
        Mortgage Loan as to which a document is missing, a material defect in a
        constituent document exists or as to which such a breach has occurred and
        is
        continuing shall constitute the sole remedy respecting such omission, defect
        or
        breach available to the Trustee and the Certificateholders. Notwithstanding
        anything to the contrary contained herein, any breach of a representation
        or
        warranty contained in clauses (viii), (xxxv), (xxxviii), (xxxix), (xl), (xli),
        (xlvi), (xlvii), (lvi), (lxi), (lxiv), (lxvii), (lxix) and/or (lxx) of
        Section 6 of the Mortgage Loan Purchase Agreement shall be automatically
        deemed to affect materially and adversely the interests of the
        Certificateholders.

       

      
        
          
          

        

        
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      (b) Any
        substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage
        Loans
        made pursuant to Section 2.03(a) of this Agreement must be effected prior
        to the date which is two years after the Startup Day for REMIC I.

       

      As
        to any
        Deleted Mortgage Loan for which the Sponsor substitutes a Qualified Substitute
        Mortgage Loan or Loans, such substitution shall be effected by the Sponsor
        delivering to the Trustee or the Custodian on behalf of the Trustee, for
        such
        Qualified Substitute Mortgage Loan or Loans, the Mortgage Note, the Mortgage,
        the Assignment to the Trustee, and such other documents and agreements, with
        all
        necessary endorsements thereon, as are required by Section 2 of the
        Custodial Agreement, as applicable, together with an Officers’ Certificate
        providing that each such Qualified Substitute Mortgage Loan satisfies the
        definition thereof and specifying the Substitution Shortfall Amount (as
        described below), if any, in connection with such substitution. The Custodian
        on
        behalf of the Trustee shall acknowledge receipt of such Qualified Substitute
        Mortgage Loan or Loans and, within ten (10) Business Days thereafter, review
        such documents and deliver to the Depositor, the Trustee and the Servicer,
        with
        respect to such Qualified Substitute Mortgage Loan or Loans, an initial
        certification pursuant to the Custodial Agreement, with any applicable
        exceptions noted thereon. Within one year of the date of substitution, the
        Custodian on behalf of the Trustee shall deliver to the Depositor, the Trustee
        and the Servicer a final certification pursuant to the Custodial Agreement
        with
        respect to such Qualified Substitute Mortgage Loan or Loans, with any applicable
        exceptions noted thereon. Monthly Payments due with respect to Qualified
        Substitute Mortgage Loans in the month of substitution are not part of REMIC
        I
        and will be retained by the Sponsor. For the month of substitution,
        distributions to Certificateholders will reflect the Monthly Payment due
        on such
        Deleted Mortgage Loan on or before the Due Date in the month of substitution,
        and the Sponsor shall thereafter be entitled to retain all amounts subsequently
        received in respect of such Deleted Mortgage Loan. The Depositor shall give
        or
        cause to be given written notice to the Certificateholders that such
        substitution has taken place, shall amend the Mortgage Loan Schedule to reflect
        the removal of such Deleted Mortgage Loan from the terms of this Agreement
        and
        the substitution of the Qualified Substitute Mortgage Loan or Loans and shall
        deliver a copy of such amended Mortgage Loan Schedule to the Trustee and
        the
        Servicer. Upon such substitution, such Qualified Substitute Mortgage Loan
        or
        Loans shall constitute part of the Trust Fund and shall be subject in all
        respects to the terms of this Agreement and the Mortgage Loan Purchase
        Agreement, including all applicable representations and warranties thereof
        included herein or in the Mortgage Loan Purchase Agreement.

       

      
        
          
          

        

        
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      For
        any
        month in which the Sponsor substitutes one or more Qualified Substitute Mortgage
        Loans for one or more Deleted Mortgage Loans, the Servicer will determine
        the
        amount (the “Substitution Shortfall Amount”), if any, by which the aggregate
        Purchase Price of all such Deleted Mortgage Loans exceeds the aggregate of,
        as
        to each such Qualified Substitute Mortgage Loan, the Scheduled Principal
        Balance
        thereof as of the date of substitution, together with one month’s interest on
        such Scheduled Principal Balance at the applicable Net Mortgage Rate, plus
        all
        outstanding P&I Advances and Servicing Advances (including Nonrecoverable
        P&I Advances and Nonrecoverable Servicing Advances) related thereto. On the
        date of such substitution, the Sponsor will deliver or cause to be delivered
        to
        the Servicer for deposit in the Collection Account an amount equal to the
        Substitution Shortfall Amount, if any, and the Trustee or the Custodian on
        behalf of the Trustee, upon receipt of the related Qualified Substitute Mortgage
        Loan or Loans, upon receipt of a request for release in the form attached
        to the
        Custodial Agreement and certification by the Servicer of such deposit, shall
        release to the Sponsor the related Mortgage File or Files and the Trustee
        shall
        execute and deliver such instruments of transfer or assignment, in each case
        without recourse, representation or warranty, as the Sponsor shall deliver
        to it
        and as shall be necessary to vest therein any Deleted Mortgage Loan released
        pursuant hereto.

       

      In
        addition, the Sponsor shall obtain at its own expense and deliver to the
        Trustee
        an Opinion of Counsel to the effect that such substitution will not cause
        (a)
        any federal tax to be imposed on any Trust REMIC, including without limitation,
        any federal tax imposed on “prohibited transactions” under
        Section 860F(a)(1) of the Code or on “contributions after the startup date”
under Section 860G(d)(1) of the Code, or (b) any Trust REMIC to fail to
        qualify as a REMIC at any time that any Certificate is outstanding.

       

      (c) Upon
        discovery by the Depositor, the Sponsor, the Servicer or the Trustee that
        any
        Mortgage Loan does not constitute a “qualified mortgage” within the meaning of
        Section 860G(a)(3) of the Code, the party discovering such fact shall
        within two (2) Business Days give written notice thereof to the other parties.
        In connection therewith, the Sponsor shall repurchase or substitute one or
        more
        Qualified Substitute Mortgage Loans for the affected Mortgage Loan within
        ninety
        (90) days of the earlier of discovery or receipt of such notice with respect
        to
        such affected Mortgage Loan. Such repurchase or substitution shall be made
        by
        (i) the Sponsor if the affected Mortgage Loan’s status as a non-qualified
        mortgage is or results from a breach of any representation, warranty or covenant
        made by the Sponsor under the Mortgage Loan Purchase Agreement or (ii) the
        Depositor, if the affected Mortgage Loan’s status as a non-qualified mortgage
        does not result from a breach of a representation or warranty. Any such
        repurchase or substitution shall be made in the same manner as set forth
        in
        Section 2.03(a) of this Agreement. The Trustee shall reconvey to the
        Sponsor the Mortgage Loan to be released pursuant hereto in the same manner,
        and
        on the same terms and conditions, as it would a Mortgage Loan repurchased
        for
        breach of a representation or warranty.

       

      
        
          
          

        

        
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      (d) With
        respect to a breach of the representations made pursuant to Section 5(xii)
        of the Mortgage Loan Purchase Agreement that materially and adversely affects
        the value of such Mortgage Loan or the interest therein of the
        Certificateholders, the Sponsor shall be required to take the actions set
        forth
        in the Mortgage Loan Purchase Agreement.

       

      SECTION
        2.04. Representations
        and Warranties of the Master Servicer.

       

      The
        Master Servicer hereby represents, warrants and covenants to the Depositor
        and
        the Trustee, for the benefit of each of the Trustee and the Certificateholders,
        that as of the Closing Date or as of such date specifically provided
        herein:

       

      (i) The
        Master Servicer is a national banking association duly formed, validly existing
        and in good standing under the laws of the United States of America and is
        duly
        authorized and qualified to transact any and all business contemplated by
        this
        Agreement to be conducted by the Master Servicer;

       

      (ii) The
        Master Servicer has the full power and authority to conduct its business
        as
        presently conducted by it and to execute, deliver and perform, and to enter
        into
        and consummate, all transactions contemplated by this Agreement. The Master
        Servicer has duly authorized the execution, delivery and performance of this
        Agreement, has duly executed and delivered this Agreement, and this Agreement,
        assuming due authorization, execution and delivery by the other parties hereto,
        constitutes a legal, valid and binding obligation of the Master Servicer,
        enforceable against it in accordance with its terms except as the enforceability
        thereof may be limited by bankruptcy, insolvency, reorganization or similar
        laws
        affecting the enforcement of creditors’ rights generally and by general
        principles of equity;

       

      (iii) The
        execution and delivery of this Agreement by the Master Servicer, the
        consummation by the Master Servicer of any other of the transactions herein
        contemplated, and the fulfillment of or compliance with the terms hereof
        are in
        the ordinary course of business of the Master Servicer and will not (A) result
        in a breach of any term or provision of the charter and by-laws of the Master
        Servicer or (B) conflict with, result in a breach, violation or acceleration
        of,
        or result in a default under, the terms of any other material agreement or
        instrument to which the Master Servicer is a party or by which it may be
        bound,
        or any statute, order or regulation applicable to the Master Servicer of
        any
        court, regulatory body, administrative agency or governmental body having
        jurisdiction over the Master Servicer; and the Master Servicer is not a party
        to, bound by, or in breach or violation of any indenture or other agreement
        or
        instrument, or subject to or in violation of any statute, order or regulation
        of
        any court, regulatory body, administrative agency or governmental body having
        jurisdiction over it, which materially and adversely affects or, to the Master
        Servicer’s knowledge, would in the future materially and adversely affect, (x)
        the ability of the Master Servicer to perform its obligations under this
        Agreement or (y) the business, operations, financial condition, properties
        or
        assets of the Master Servicer taken as a whole;

       

      
        
          
          

        

        
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      (iv) The
        Master Servicer does not believe, nor does it have any reason or cause to
        believe, that it cannot perform each and every covenant made by it and contained
        in this Agreement;

       

      (v) No
        litigation is pending against the Master Servicer that would materially and
        adversely affect the execution, delivery or enforceability of this Agreement
        or
        the ability of the Master Servicer to perform any of its other obligations
        hereunder in accordance with the terms hereof;

       

      (vi) There
        are
        no actions or proceedings against, or investigations known to it of, the
        Master
        Servicer before any court, administrative or other tribunal (A) that might
        prohibit its entering into this Agreement, (B) seeking to prevent the
        consummation of the transactions contemplated by this Agreement or (C) that
        might prohibit or materially and adversely affect the performance by the
        Master
        Servicer of its obligations under, or validity or enforceability of, this
        Agreement;

       

      (vii) No
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Master
        Servicer of, or compliance by the Master Servicer with, this Agreement or
        the
        consummation by it of the transactions contemplated by this Agreement, except
        for such consents, approvals, authorizations or orders, if any, that have
        been
        obtained prior to the Closing Date;

       

      (viii) There
        are
        no affiliations, relationships or transactions relating to the Master Servicer
        of a type that are described under Item 1119 of Regulation AB with the
        Depositor, the Sponsor, the Servicer, the Credit Risk Manager, the Cap
        Counterparty, the Swap Provider, the Trustee or the Originator.

       

      It
        is
        understood and agreed that the representations, warranties and covenants
        set
        forth in this Section 2.04 shall survive the resignation or termination of
        the parties hereto and the termination of this Agreement and shall inure
        to the
        benefit of the Trustee, the Depositor and the Certificateholders.

       

      
        
          
          

        

        
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      SECTION
        2.05. [Reserved]

       

      SECTION
        2.06. Issuance
        of the REMIC I Regular Interests and the Class R-I Interest.

       

      The
        Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
        to the Custodian on its behalf of the Mortgage Loan Documents, subject to
        the
        provisions of Section 2.01 and Section 2.02 hereof and Section 2
        of the Custodial Agreement, together with the assignment to it of all other
        assets included in REMIC I, the receipt of which is hereby acknowledged.
        The
        interests evidenced by the Class R-I Interest, together with the REMIC I
        Regular
        Interests, constitute the entire beneficial ownership interest in REMIC I.
        The
        rights of the Holders of the Class R-I Interest and REMIC I (as holder of
        the
        REMIC I Regular Interests) to receive distributions from the proceeds of
        REMIC I
        in respect of the Class R-I Interest and the REMIC I Regular Interests,
        respectively, and all ownership interests evidenced or constituted by the
        Class
        R-I Interest and the REMIC I Regular Interests, shall be as set forth in
        this
        Agreement.

       

      SECTION
        2.07. Conveyance
        of the REMIC I Regular Interests; Acceptance of REMIC II and REMIC III by
        the
        Trustee.

       

      The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey to the Trustee, without recourse
        all the right, title and interest of the Depositor in and to the REMIC I
        Regular
        Interests for the benefit of the Class R-II Interest and REMIC II (as holder
        of
        the REMIC I Regular Interests). The Trustee acknowledges receipt of the REMIC
        I
        Regular Interests and declares that it holds and will hold the same in trust
        for
        the exclusive use and benefit of all present and future Holders of the Class
        R-II Interest and REMIC II (as holder of the REMIC I Regular Interests).
        The
        rights of the Holder of the Class R-II Interest and REMIC II (as holder of
        the
        REMIC I Regular Interests) to receive distributions from the proceeds of
        REMIC
        II in respect of the Class R-II Interest and the REMIC II Regular Interests,
        respectively, and all ownership interests evidenced or constituted by the
        Class
        R-II Interest and the REMIC II Regular Interests, shall be as set forth in
        this
        Agreement. The Class R-II Interest and the REMIC II Regular Interests shall
        constitute the entire beneficial ownership interest in REMIC II. The Trustee
        acknowledges receipt of the REMIC II Regular Interests and declares that
        it
        holds and will hold the same in trust for the exclusive use and benefit of
        all
        present and future Holders of the Class R-III Interest and REMIC III (as
        holder
        of the REMIC II Regular Interests). The rights of the Holder of the Class
        R-III
        Interest and REMIC III (as holder of the REMIC II Regular Interests) to receive
        distributions from the proceeds of REMIC III in respect of the Class R-III
        Interest, the Class IO Interest and the Regular Certificates, respectively,
        and
        all ownership interests evidenced or constituted by the Class R-III Interest,
        the Class IO Interest and the Regular Certificates, shall be as set forth
        in
        this Agreement. The Class R-III Interest, the Class IO Interest and the Regular
        Certificates shall constitute the entire beneficial ownership interest in
        REMIC
        III.

       

      SECTION
        2.08. Issuance
        of the Residual Certificates.

       

      The
        Trustee acknowledges the assignment to it of the REMIC I Regular Interests
        and,
        concurrently therewith and in exchange therefor, pursuant to the written
        request
        of the Depositor executed by an officer of the Depositor, the Securities
        Administrator has executed and authenticated and the Trustee has delivered
        to or
        upon the order of the Depositor, the Class R Certificates in authorized
        denominations. The Class R Certificates evidence ownership in the Class R-I
        Interest, the Class R-II Interest and the Class R-III Interest.

       

      
        
          
          

        

        
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      SECTION
        2.09. Establishment
        of the Trust.

       

      The
        Depositor does hereby establish, pursuant to the further provisions of this
        Agreement and the laws of the State of New York, an express trust to be known,
        for convenience, as “ACE Securities Corp., Home Equity Loan Trust, Series
        2006-CW1” and does hereby appoint HSBC Bank USA, National Association as Trustee
        in accordance with the provisions of this Agreement.

       

      SECTION
        2.10. Purpose
        and Powers of the Trust.

       

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

       

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

       

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

       

      (c) to
        make
        payments on the Certificates;

       

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

       

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

       

      The
        trust
        is hereby authorized to engage in the foregoing activities. The Trustee shall
        not cause the trust to engage in any activity other than in connection with
        the
        foregoing or other than as required or authorized by the terms of this Agreement
        (or those ancillary thereto) while any Certificate is outstanding, and this
        Section 2.10 may not be amended, without the consent of the Certificateholders
        evidencing 51% or more of the aggregate voting rights of the
        Certificates.

       

      SECTION
        2.11. Representations
        and Warranties of the Trustee.

       

      The
        Trustee hereby represents and warrants to the Sponsor and the Depositor,
        for the
        benefit of each of the Certificateholders, that as of the Closing
        Date:

       

      (a) There
        are
        no affiliations relating to the Trustee of a type that are described under
        Item
        1119(a) of Regulation AB; and

       

      (b) There
        are
        no legal proceedings pending or contemplated, including legal proceedings
        pending or contemplated by governmental authorities, against the Trustee
        that
        could be material to the Certificateholders.

      
        
          
          

        

        
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      ARTICLE
        III

      ADMINISTRATION
        OF THE MORTGAGE LOANS; ACCOUNTS

       

      SECTION
        3.01. The
        Distribution Account.

       

      (a) On
        behalf
        of the Trust Fund, the Securities Administrator shall establish and maintain
        one
        or more accounts (such account or accounts, the “Distribution Account”), held in
        trust for the benefit of the Trustee, the Trust Fund and the Certificateholders.
        On behalf of the Trust Fund, the Servicer will deliver to the Securities
        Administrator in immediately available funds for deposit in the Distribution
        Account on the Servicer Remittance Date, that portion of the Available
        Distribution Amount (calculated without regard to the references in clause
        (2)
        of the definition thereof to amounts that may be withdrawn from the Distribution
        Account) then on deposit in the Collection Account and the amount of all
        Prepayment Charges collected by the Servicer in connection with the Principal
        Prepayment of any of the Mortgage Loans then on deposit in the Collection
        Account.

       

      With
        respect to any remittance received by the Securities Administrator on or
        after
        the first Business Day following the Business Day on which such payment was
        due,
        the Securities Administrator shall send written notice thereof to the Servicer.
        The Servicer shall pay to the Securities Administrator interest on any such
        late
        payment in accordance with the terms of the Servicing Agreement.

       

      (b) Funds
        in
        the Collection Account may be invested in permitted investments in accordance
        with the terms of the Servicing Agreement. Funds in the Distribution Account
        may
        be invested in Permitted Investments in accordance with the provisions set
        forth
        in Section 3.03 of this Agreement. The Securities Administrator shall give
        notice to the Servicer and the Depositor of the location of the Distribution
        Account when established and prior to any change thereof.

       

      SECTION
        3.02. Withdrawals
        from the Distribution Account.

       

      The
        Securities Administrator shall, from time to time, make withdrawals from
        the
        Distribution Account, for any of the following purposes, without
        priority:

       

      (i) to
        make
        distributions to Certificateholders in accordance with Section 5.01 of this
        Agreement;

       

      (ii) to
        pay to
        itself, the Custodian and the Master Servicer amounts to which it is entitled
        pursuant to Section 9.05 of this Agreement or any other provision of this
        Agreement and any Extraordinary Trust Fund Expenses;

       

      (iii) to
        reimburse itself or the Master Servicer pursuant to Section 8.02 of this
        Agreement;

       

      (iv) to
        pay
        any Net Swap Payment or Swap Termination Payment payable to the Supplemental
        Interest Trust (unless the Swap Provider is the sole Defaulting Party or
        the
        sole Affected Party (as defined in the Swap Agreement)) owed to the Swap
        Provider;

       

      
        
          
          

        

        
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      (v) to
        pay
        any amounts in respect of taxes pursuant to Section 11.01(g)(v) of this
        Agreement;

       

      (vi) to
        pay
        the Credit Risk Management Fee to the Credit Risk Manager; and

       

      (vii) to
        clear
        and terminate the Distribution Account pursuant to Section 10.01 of this
        Agreement.

       

      SECTION
        3.03. Investment
        of Funds in the Investment Accounts.

       

      (a) Amounts
        in the Distribution Account may be invested in Permitted Investments as directed
        in writing by the Master Servicer (for purposes of this Section 3.03, an
“Investment Account”) and maturing, unless payable on demand, (i) no later than
        the Business Day immediately preceding the date on which such funds are required
        to be withdrawn from such account pursuant to this Agreement, if a Person
        other
        than the Securities Administrator is the obligor thereon, and (ii) no later
        than
        the date on which such funds are required to be withdrawn from such account
        pursuant to this Agreement, if the Securities Administrator is the obligor
        thereon. All such Permitted Investments shall be held to maturity, unless
        payable on demand. Any investment of funds shall be made in the name of the
        Trustee (in its capacity as such) or in the name of a nominee of the Trustee.
        The Securities Administrator shall be entitled to sole possession over each
        investment in the Distribution Account and, subject to subsection (b) below,
        the
        income thereon, and any certificate or other instrument evidencing any such
        investment shall be delivered directly to the Securities Administrator or
        its
        agent, together with any document of transfer necessary to transfer title
        to
        such investment to the Trustee or its nominee. 

       

      (b) All
        earnings and gain realized from the investment of funds deposited in the
        Distribution Account shall be for the benefit of the Master Servicer. The
        Master
        Servicer shall remit from its own funds for deposit into the Distribution
        Account the amount of any loss incurred on Permitted Investments in the
        Distribution Account.

       

      (c) Except
        as
        otherwise expressly provided in this Agreement, if any default occurs in
        the
        making of a payment due under any Permitted Investment, or if a default occurs
        in any other performance required under any Permitted Investment, the Trustee
        may and, subject to Section 9.01 and Section 9.02(a)(v), shall, at the written
        direction of the Master Servicer, take such action as may be appropriate
        to
        enforce such payment or performance, including the institution and prosecution
        of appropriate proceedings.

       

      (d) The
        Trustee, the Master Servicer or their respective Affiliates are permitted
        to
        receive additional compensation that could be deemed to be in the Trustee’s or
        the Master Servicer’s economic self-interest for (i) serving as investment
        adviser, administrator, shareholder servicing agent, custodian or sub-custodian
        with respect to certain of the Permitted Investments, (ii) using Affiliates
        to
        effect transactions in certain Permitted Investments and (iii) effecting
        transactions in certain Permitted Investments. Such compensation shall not
        be
        considered an amount that is reimbursable or payable to the Trustee or the
        Master Servicer pursuant to Section 3.02 or this Section 3.03 or otherwise
        payable in respect of Extraordinary Trust Fund Expenses. Such additional
        compensation shall not be an expense of the Trust Fund.

       

      
        
          
          

        

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

       

      (a) Upon
        becoming aware of the payment in full of any Mortgage Loan, or the receipt
        by
        the 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 promptly furnish to the Custodian, on
        behalf of the Trustee, a request for release in accordance with the Custodial
        Agreement, and which shall be substantially in the form attached to the
        Custodial Agreement 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 Collection Account have been or will be so deposited)
        and
        shall request that the Custodian, on behalf of the Trustee, deliver to the
        Servicer the related Mortgage File. Upon receipt of such certification and
        request, the Custodian, on behalf of the Trustee, shall within five (5) Business
        Days release the related Mortgage File to the Servicer and the Trustee and
        the
        Custodian shall have no further responsibility with regard to such Mortgage
        File. Upon any such payment in full, the Servicer is authorized under the
        Custodial Agreement and Servicing Agreement, 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 Collection Account, unless it shall represent a Servicing
        Advance.

       

      (b) From
        time
        to time and as appropriate for the servicing or foreclosure of any Mortgage
        Loan, the Trustee shall execute such documents as shall be prepared and
        furnished to the Trustee by the Servicer (in form reasonably acceptable to
        the
        Trustee) and as are necessary to the prosecution of any such proceedings.
        The
        Custodian, on behalf of the Trustee, shall, upon the request of the 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
        attached to the Custodial Agreement (or in a mutually agreeable electronic
        format which will, in lieu of a signature on its face, originate from a
        Servicing Officer), release within five (5) Business Days the related Mortgage
        File held in its possession or control to the Servicer. Such trust receipt
        shall
        obligate the Servicer to return the Mortgage File to the Custodian on behalf
        of
        the Trustee, when the need therefor by the 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.

       

      Notwithstanding
        the foregoing, in connection with a Principal Prepayment in full of any Mortgage
        Loan, the Master Servicer may request release of the related Mortgage File
        from
        the Custodian, in accordance with the provisions of the Custodial Agreement,
        in
        the event the Servicer fails to do so.

       

      
        
          
          

        

        
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      Upon
        written certification of a Servicing Officer, the Trustee shall execute and
        deliver to the Servicer, any court pleadings, requests for trustee’s sale or
        other documents prepared and delivered to the Trustee and reasonably acceptable
        to it and necessary to the foreclosure or trustee’s sale in respect of a
        Mortgaged Property or to any legal action brought to obtain judgment against
        any
        Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency judgment,
        or to enforce any other remedies or rights provided by the Mortgage Note
        or
        Mortgage or otherwise available at law or in equity. Each such certification
        shall include a request that such pleadings or documents be executed by the
        Trustee and a statement as to the reason such documents or pleadings are
        required and that the execution and delivery thereof by the Trustee will
        not
        invalidate or otherwise affect the lien of the Mortgage, except for the
        termination of such a lien upon completion of the foreclosure or trustee’s sale.
        So long as no Servicer Event of Default shall have occurred and be continuing,
        the Servicer shall have the right to execute any and all such court pleadings,
        requests and other documents as attorney-in-fact for, and on behalf of the
        Trustee. Notwithstanding the preceding sentence, the Trustee shall in no
        way be
        liable or responsible for the willful malfeasance of the Servicer, or for
        any
        wrongful or negligent actions taken by the Servicer, while the Servicer is
        acting in its capacity as attorney in fact for and on behalf of the
        Trustee.

       

      SECTION
        3.05. Reserve
        Fund.

       

      (a) No
        later
        than the Closing Date, the Securities Administrator shall establish and maintain
        a separate, segregated trust account entitled, “Reserve Fund, Wells Fargo Bank,
        N.A., in trust for the registered holders of ACE Securities Corp. Home Equity
        Loan Trust, Series 2006-CW1, Asset Backed Pass-Through Certificates.” On the
        Closing Date, the Depositor will deposit, or cause to be deposited, into
        the
        Reserve Fund $1,000. In addition, the amount deposited in the Reserve Fund
        shall
        be increased by any payments received by the Securities Administrator under
        the
        Group I Cap Contract and deposited into the Reserve Fund for the benefit
        of the
        Class A-1 Certificates and the Mezzanine Certificates and under the Group
        II Cap
        Contract and deposited in the Reserve Fund for the benefit of the Class A-2
        Certificates and the Mezzanine Certificates. 

       

      (b) On
        each
        Distribution Date, the Securities Administrator shall deposit into the Reserve
        Fund the amounts described in Section 5.01(c)(7)(vi), rather than
        distributing such amounts to the Class CE Certificateholders pursuant to
        Section 5.01(c)(7)(vii). On each such Distribution Date, the Securities
        Administrator shall hold all such amounts for the benefit of the Holders
        of the
        Class A Certificates and the Mezzanine Certificates and will distribute such
        amounts to the Holders of the Class A Certificates and the Mezzanine
        Certificates, in the amounts and priorities set forth in Section 5.01(a).
        If no Net WAC Rate Carryover Amounts are payable on a Distribution Date,
        the
        Securities Administrator shall deposit, into the Reserve Fund on behalf of
        the
        Class CE Certificateholders, from amounts otherwise distributable to the
        Class
        CE Certificateholders, an amount such that when added to other amounts already
        on deposit in the Reserve Fund, the aggregate amount on deposit therein is
        equal
        to $1,000.

       

      
        
          
          

        

        
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      (c) It
        is the
        intention of the parties hereto that, for federal and state income and state
        and
        local franchise tax purposes, the Reserve Fund be disregarded as an entity
        separate from the Holder of the Class CE Certificates unless and until the
        date
        when either (a) there is more than one Class CE Certificateholder or (b)
        any
        Class of Certificates in addition to the Class CE Certificates is
        recharacterized as an equity interest in the Reserve Fund for federal income
        tax
        purposes, in which case it is the intention of the parties hereto that, for
        federal and state income and state and local franchise tax purposes, the
        Reserve
        Fund be treated as a partnership. The Master Servicer shall not be required
        to
        prepare and file partnership tax returns in respect of such partnership unless
        it receives additional reasonable compensation (not to exceed $10,000 per
        year)
        for the preparation of such filings, written notification recognizing the
        creation of a partnership agreement or comparable documentation evidencing
        the
        partnership. All amounts deposited into the Reserve Fund (other than the
        initial
        deposit therein of $1,000 and any amounts paid to the Reserve Fund from the
        Cap
        Contracts) shall be treated as amounts distributed by REMIC III to the Holders
        of the Class CE Certificates. Upon the termination of the Trust Fund, or
        the
        payment in full of the Class A Certificates and the Mezzanine Certificates,
        all
        amounts remaining on deposit in the Reserve Fund will be released by the
        Trust
        Fund and distributed to the Class CE Certificateholders or their designees.
        The
        Reserve Fund constitutes an “outside reserve fund” within the meaning of
        Treasury Regulation § 1.860G-2(h). The Reserve Fund will be part of the Trust
        Fund but not part of any REMIC and any payments to the Holders of the Class
        A
        Certificates or the Mezzanine Certificates of Net WAC Rate Carryover Amounts
        will not be payments with respect to a “regular interest” in a REMIC within the
        meaning of Code Section 860(G)(a)(1).

       

      (d) By
        accepting a Class CE Certificate, each Class CE Certificateholder hereby
        agrees
        that the Securities Administrator will deposit into the Reserve Fund the
        amounts
        described above on each Distribution Date rather than distributing such amounts
        to the Class CE Certificateholders. By accepting a Class CE Certificate,
        each
        Class CE Certificateholder further agrees that its agreement to such action
        by
        the Securities Administrator is given for good and valuable consideration,
        the
        receipt and sufficiency of which is acknowledged by such
        acceptance.

       

      (e) At
        the
        direction of the Holders of a majority in Percentage Interest in the Class
        CE
        Certificates, the Securities Administrator shall direct any depository
        institution maintaining the Reserve Fund to invest the funds in such account
        in
        one or more Permitted Investments bearing interest or sold at a discount,
        and
        maturing, unless payable on demand, (i) no later than the Business Day
        immediately preceding the date on which such funds are required to be withdrawn
        from such account pursuant to this Agreement, if a Person other than the
        Securities Administrator or an Affiliate manages or advises such investment,
        and
        (ii) no later than the date on which such funds are required to be withdrawn
        from such account pursuant to this Agreement, if the Securities Administrator
        or
        an Affiliate manages or advises such investment. All income and gain earned
        upon
        such investment shall be deposited into the Reserve Fund. In no event shall
        the
        Securities Administrator be liable for any investments made pursuant to this
        clause (e). If the Holders of a majority in Percentage Interest in the Class
        CE
        Certificates fail to provide investment instructions, funds on deposit in
        the
        Reserve Fund shall be held uninvested by the Securities Administrator without
        liability for interest or compensation.

       

      
        
          
          

        

        
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      (f) For
        federal tax return and information reporting, the right of the Class A
        Certificateholders and the Mezzanine Certificateholders to receive payments
        from
        the Reserve Fund in respect of any Net WAC Rate Carryover Amount shall be
        assigned a value of $1,000.

      
        
          
          

        

        
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      ARTICLE
        IV

      ADMINISTRATION
        AND MASTER SERVICING

      OF
        THE
        MORTGAGE LOANS BY THE MASTER SERVICER

       

      SECTION
        4.01. Master
        Servicer.

       

      The
        Master Servicer shall, from and after the Closing Date supervise, monitor
        and
        oversee the obligations of the Servicer under the Servicing Agreement to
        service
        and administer the related Mortgage Loans in accordance with the terms of
        the
        Servicing Agreement, and shall have full power and authority to do any and
        all
        things which it may deem necessary or desirable in connection with such master
        servicing and administration. In performing its obligations hereunder, the
        Master Servicer shall act in a manner consistent with Accepted Master Servicing
        Practices. Furthermore, the Master Servicer shall oversee and consult with
        the
        Servicer as necessary from time-to-time to carry out the Master Servicer’s
        obligations hereunder, shall receive, review and evaluate all reports,
        information and other data provided to the Master Servicer by the Servicer
        and
        shall cause the Servicer to perform and observe the covenants, obligations
        and
        conditions to be performed or observed by the Servicer under the 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
        Servicer’s and Master Servicer’s records, and based on such reconciled and
        corrected information, prepare the statements specified in Section 5.02 and
        any
        other information and statements required to be provided by the Master Servicer
        hereunder. The Master Servicer shall reconcile the results of its Mortgage
        Loan
        monitoring with the actual remittances of the Servicer to the Distribution
        Account pursuant to the terms of the Servicing Agreement based on information
        provided to the Master Servicer by the Servicer.

       

      The
        Trustee shall furnish the Servicer and the Master Servicer with any limited
        powers of attorney and other documents in form acceptable to it necessary
        or
        appropriate to enable the Servicer and the Master Servicer to service and
        administer the Mortgage Loans and REO Properties. The Trustee shall have
        no
        responsibility for any action of the Master Servicer or the Servicer pursuant
        to
        any such limited power of attorney and shall be indemnified by the Master
        Servicer or the Servicer, as applicable, for any cost, liability or expense
        incurred by the Trustee in connection with such Person’s misuse of any such
        power of attorney.

       

      The
        Trustee, the Custodian and the Securities Administrator shall provide access
        to
        the records and documentation in possession of the Trustee, the Custodian
        or the
        Securities Administrator regarding the Mortgage Loans and REO Property and
        the
        servicing thereof to the Certificateholders, the FDIC, and the supervisory
        agents and examiners of the FDIC, such access being afforded only upon
        reasonable prior written request and during normal business hours at the
        office
        of the Trustee, the Custodian or the Securities Administrator; provided,
        however, that, unless otherwise required by law, none of the Trustee, the
        Custodian or the Securities Administrator shall be required to provide access
        to
        such records and documentation if the provision thereof would violate the
        legal
        right to privacy of any Mortgagor. The Trustee, the Custodian and the Securities
        Administrator shall allow representatives of the above entities to photocopy
        any
        of the records and documentation and shall provide equipment for that purpose
        at
        a charge that covers the Trustee’s, the Custodian’s or the Securities
        Administrator’s actual costs.

       

      
        
          
          

        

        
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      The
        Trustee shall execute and deliver to the Servicer or the Master Servicer
        upon
        request any court pleadings, requests for trustee’s sale or other 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 any other Mortgage Loan Document; (iii)
        obtain a deficiency judgment against the Mortgagor; or (iv) enforce any other
        rights or remedies provided by the Mortgage Note or any other Mortgage Loan
        Document or otherwise available at law or equity.

       

      SECTION
        4.02. REMIC-Related
        Covenants.

       

      For
        as
        long as each REMIC shall exist, the Trustee and the Securities Administrator
        shall act in accordance herewith to treat such REMIC as a REMIC, and the
        Trustee
        and the Securities Administrator shall comply with any directions of the
        Sponsor, the Servicer or the Master Servicer to assure such continuing
        treatment. In particular, the Trustee shall not (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 prepared
        at the expense of the Trust Fund; and (b) other than with respect to a
        substitution pursuant to the Mortgage Loan Purchase Agreement or
        Section 2.03 of this Agreement, as applicable, accept any contribution to
        any REMIC after the Startup Day without receipt of an Opinion of Counsel
        stating
        that such contribution will not result in an Adverse REMIC Event as defined
        in
        Section 11.01(f).

       

      SECTION
        4.03. Monitoring
        of Servicer.

       

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

       

      (b) The
        Master Servicer, for the benefit of the Trustee and the Certificateholders,
        shall enforce the obligations of the Servicer under the Servicing Agreement
        and
        shall, in the event that the Servicer fails to perform its obligations in
        accordance with the Servicing Agreement, subject to this Section and Article
        VIII, notify the Trustee and the Trustee shall terminate the rights and
        obligations of the Servicer thereunder in accordance with the provisions
        of
        Article VIII. In the event the rights and obligations of the Servicer (or
        any
        successor thereto) are terminated, the Master Servicer shall act as servicer
        of
        the Mortgage Loans or a successor servicer shall be appointed in accordance
        with
        the provisions of Article VIII. Such enforcement, including, without limitation,
        the legal prosecution of claims and the pursuit of other appropriate remedies,
        shall be in such form and carried out to such an extent and at such time
        as the
        Master Servicer, in its good faith business judgment, would require were
        it the
        owner of the related Mortgage Loans. The Master Servicer shall pay the costs
        of
        such enforcement at its own expense, 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.

       

      
        
          
          

        

        
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      (c) The
        Master Servicer shall be entitled to be reimbursed by the Servicer (or from
        amounts on deposit in the Distribution Account if the Servicer is unable
        to
        fulfill its obligations hereunder) for all reasonable out-of-pocket or third
        party costs associated with the transfer of servicing from the predecessor
        Servicer (or if the predecessor Servicer is the Master Servicer, from the
        Servicer immediately preceding the Master Servicer), including without
        limitation, any reasonable out-of-pocket or third party costs or expenses
        associated with the complete transfer of all servicing data and the completion,
        correction or manipulation of such servicing data as may be required by the
        successor servicer to correct any errors or insufficiencies in the servicing
        data or otherwise to enable the successor servicer to service the Mortgage
        Loans
        properly and effectively, upon presentation of reasonable documentation of
        such
        costs and expenses.

       

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

       

      (e) If
        the
        Master Servicer acts as successor to the Servicer, it will not assume any
        liability for the representations and warranties of the terminated
        Servicer.

       

      SECTION
        4.04. Fidelity
        Bond.

       

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

       

      SECTION
        4.05. Power
        to
        Act; Procedures.

       

      The
        Master Servicer shall master service the Mortgage Loans and shall have full
        power and authority, subject to the REMIC Provisions and the provisions of
        Article XI, to do any and all things that it may deem necessary or desirable
        in
        connection with the master servicing and administration of the Mortgage Loans,
        including but not limited to the power and authority (i) to execute and deliver,
        on behalf of the Certificateholders and the Trustee, customary consents or
        waivers and other instruments and documents, (ii) to consent to transfers
        of any
        Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages,
        (iii) to collect any Insurance Proceeds and Liquidation Proceeds, and (iv)
        to
        effectuate foreclosure or other conversion of the ownership of the Mortgaged
        Property securing any Mortgage Loan, in each case, in accordance with the
        provisions of this Agreement; provided, however, that the Master Servicer
        shall
        not (and, consistent with its responsibilities under Section 4.03, shall
        not
        permit the Servicer to) knowingly or intentionally take any action, or fail
        to
        take (or fail to cause to be taken) any action reasonably within its control
        and
        the scope of duties more specifically set forth herein, that, under the REMIC
        Provisions, if taken or not taken, as the case may be, would cause REMIC
        I,
        REMIC II or REMIC III to fail to qualify as a REMIC or result in the imposition
        of a tax upon the Trust Fund (including but not limited to the tax on prohibited
        transactions as defined in Section 860F(a)(2) of the Code and the tax on
        contributions to a REMIC set forth in Section 860G(d) of the Code) unless
        the
        Master Servicer has received an Opinion of Counsel (but not at the expense
        of
        the Master Servicer) to the effect that the contemplated action will not
        cause
        REMIC I, REMIC II or REMIC III to fail to qualify as a REMIC or result in
        the
        imposition of a tax upon REMIC I, REMIC II or REMIC III, as the case may
        be. The
        Trustee shall furnish the Master Servicer, upon written request from a Servicing
        Officer, with any powers of attorney prepared and delivered to it and reasonably
        acceptable to it by empowering the Master Servicer or 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 this Agreement
        and
        the Trustee shall execute and deliver such other documents prepared and
        delivered to it and reasonably acceptable to it, as the Master Servicer,
        the
        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 the Servicer and shall be indemnified by the Master Servicer
        or the
        Servicer, as applicable, for any cost, liability or expense incurred by the
        Trustee in connection with such Person’s use or misuse of any such power of
        attorney). 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 9.10. In the performance
        of
        its duties hereunder, the Master Servicer shall be an independent contractor
        and
        shall not, except in those instances where it is taking action in the name
        of
        the Trustee, be deemed to be the agent of the Trustee.

       

      
        
          
          

        

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

       

      To
        the
        extent Mortgage Loans contain enforceable due-on-sale clauses, the Master
        Servicer shall cause the Servicer to enforce such clauses in accordance with
        the
        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 Servicing Agreement and, as a consequence, a Mortgage Loan is assumed,
        the
        original Mortgagor may be released from liability in accordance with the
        Servicing Agreement.

       

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

       

      (a) The
        Master Servicer shall transmit to the Trustee or the Custodian such documents
        and instruments coming into the possession of the Master Servicer from time
        to
        time as are required by the terms hereof to be delivered to the Trustee or
        the
        Custodian. Any funds received by the Master Servicer in respect of any Mortgage
        Loan or which otherwise are collected by the Master Servicer as Liquidation
        Proceeds or Insurance Proceeds in respect of any Mortgage Loan shall be remitted
        to the Securities Administrator for deposit in the Distribution Account.
        The
        Master Servicer shall, and, subject to the provisions of the Servicing
        Agreement, shall cause the Servicer to 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, and to Certificateholders that are savings and loan associations,
        banks
        or insurance companies, the Office of Thrift Supervision, the FDIC and the
        supervisory agents and examiners of such Office and Corporation or examiners
        of
        any other federal or state banking or insurance regulatory authority if so
        required by applicable regulations of the Office of Thrift Supervision or
        other
        regulatory authority, such access to be afforded without charge but only
        upon
        reasonable request in writing and during normal business hours at the offices
        of
        the Master Servicer designated by it. In fulfilling such a request the Master
        Servicer shall not be responsible for determining the sufficiency of such
        information.

       

      (b) All
        Mortgage Files and funds collected or held by, or under the control of, the
        Master Servicer, in respect of any Mortgage Loans, whether from the collection
        of principal and interest payments or from Liquidation Proceeds or Insurance
        Proceeds, shall be remitted to the Securities Administrator for deposit in
        the
        Distribution Account.

       

      SECTION
        4.08. Standard
        Hazard Insurance and Flood Insurance Policies.

       

      For
        each
        Mortgage Loan, the Master Servicer shall enforce the obligation of the Servicer
        under the 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 Servicing Agreement. It is understood
        and
        agreed that such insurance shall be with insurers meeting the eligibility
        requirements set forth in the 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.

       

      SECTION
        4.09. Presentment
        of Claims and Collection of Proceeds.

       

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

       

      
        
          
          

        

        
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    SECTION
      4.10. Maintenance
      of Primary Mortgage Insurance Policies.

     

    (a) The
      Master Servicer shall not take, or permit the Servicer to take (to the extent
      such action is prohibited by the Servicing Agreement), any action that would
      result in noncoverage under any primary mortgage insurance policy of any loss
      which, but for the actions of the Master Servicer, the Servicer would have
      been
      covered thereunder. The Master Servicer shall use its best reasonable efforts
      to
      cause the Servicer 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
      the Servicing Agreement. The Master Servicer shall not, and shall not permit
      the
      Servicer to, cancel or refuse to renew any 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 the Servicing Agreement.

     

    (b) The
      Master Servicer agrees to cause the Servicer 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.

     

    SECTION
      4.11. Trustee
      to Retain Possession of Certain Insurance Policies and Documents.

     

    The
      Trustee or the Custodian, 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 and the Servicer have otherwise
      fulfilled their respective obligations under this Agreement and the Servicing
      Agreement, the Trustee or the Custodian shall also retain possession and custody
      of each Mortgage File in accordance with and subject to the terms and conditions
      of this Agreement and the Custodial Agreement. The Master Servicer shall
      promptly deliver or cause to be delivered to the Trustee or the Custodian,
      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 Mortgage Loan Documents that come into the possession of the
      Master Servicer from time to time.

     

    SECTION
      4.12. Realization
      Upon Defaulted Mortgage Loans.

     

    The
      Master Servicer shall cause the Servicer 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 Servicing Agreement.

     

    SECTION
      4.13. Compensation
      for the Master Servicer.

     

    As
      compensation for the activities of the Master Servicer hereunder, the Master
      Servicer shall be entitled to the Master Servicing Fee and the income from
      investment of or earnings on the funds from time to time in the Distribution
      Account, as provided in Section 3.03. The compensation payable to the
      Master Servicer in respect of any Distribution Date shall be reduced in
      accordance with Section 4.19. 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.

    

    
      
        
          
          

        

        
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    SECTION
      4.14. REO
      Property.

     

    (a) In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      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 cause the Servicer to sell, any REO Property as expeditiously
      as
      possible and in accordance with the provisions of the Servicing Agreement or.
      Further, the Master Servicer shall cause the Servicer to sell any REO Property
      prior to three years after the end of the calendar year of its acquisition
      by
      REMIC I unless (i) the Trustee shall have been supplied by the Servicer with
      an
      Opinion of Counsel to the effect that the holding by the Trust Fund of such
      REO
      Property subsequent to such three-year period will not result in the imposition
      of taxes on “prohibited transactions” of any REMIC hereunder as defined in
      section 860F of the Code or cause any REMIC hereunder to fail to qualify as
      a
      REMIC at any time that any Certificates are outstanding, in which case the
      Trust
      Fund may continue to hold such Mortgaged Property (subject to any conditions
      contained in such Opinion of Counsel) or (ii) 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
      extension period. The Master Servicer shall cause the Servicer to protect and
      conserve, such REO Property in the manner and to the extent required by the
      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 cause the Servicer to deposit all funds collected and
      received in connection with the operation of any REO Property in the REO Account
      to the extent required by the Servicing Agreement.

     

    SECTION
      4.15. Master
      Servicer Annual Statement of Compliance.

     

    (a) The
      Master Servicer and the Securities Administrator shall deliver (or otherwise
      make available) (and the Master Servicer and Securities Administrator shall
      cause any Additional Servicer or Servicing Function Participant engaged by
      it to
      deliver) to the Depositor and the Securities Administrator, and in the case
      of
      the Master Servicer, to the Trustee, on or before March 15 of each year,
      commencing in March 2007, an Officer’s Certificate stating, as to the signer
      thereof, that (A) a review of such party’s activities during the preceding
      calendar year or portion thereof and of such party’s performance under this
      Agreement, or such other applicable agreement in the case of an Additional
      Servicer or Servicing Function Participant, has been made under such officer’s
      supervision and (B) to the best of such officer’s knowledge, based on such
      review, such party has fulfilled all its obligations under this Agreement,
      or
      such other applicable agreement in the case of an Additional Servicer or
      Servicing Function Participant, in all material respects throughout such year
      or
      portion thereof, 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 thereof. 

     

    
      
        
          
          

        

        
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    (b) The
      Master Servicer shall include all annual statements of compliance received
      by it
      from the Servicer with its own annual statement of compliance to be submitted
      to
      the Securities Administrator pursuant to this Section.

     

    (c) In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by such parties is terminated, assigns its rights
      and obligations under or resigns pursuant to the terms of this Agreement, or
      any
      applicable agreement in the case of a Servicing Function Participant, as the
      case may be, such party shall provide an Officer’s Certificate pursuant to this
      Section 4.15(c) or to such other applicable agreement, as the case may be,
      notwithstanding any such termination, assignment or resignation.

     

    (d) Failure
      of the Master Servicer to comply timely with this Section 4.15 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all 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. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    (e) Copies
      of
      such Master Servicer annual statements of compliance shall be provided to any
      Certificateholder upon request, by the Master Servicer or by the Trustee at
      the
      Master Servicer’s expense if the Master Servicer failed to provide such copies
      (unless (i) the Master Servicer shall have failed to provide the Trustee with
      such statement or (ii) the Trustee shall be unaware of the Master Servicer’s
      failure to provide such statement).

     

    SECTION
      4.16. Master
      Servicer Assessments of Compliance.

     

    (a) By
      March
      15 of each year, commencing in March 2007, the Master Servicer and the
      Securities Administrator, each at its own expense, shall furnish, or otherwise
      make available, and each such party shall cause any Servicing Function
      Participant engaged by it to furnish, each at its own expense, to the Securities
      Administrator and the Depositor, a report on an assessment of compliance with
      the Relevant Servicing Criteria that contains (A) a statement by such party
      of
      its responsibility for assessing compliance with the Relevant Servicing
      Criteria, (B) a statement that such party used the Relevant Servicing Criteria
      to assess compliance with the Relevant Servicing Criteria, (C) such party’s
      assessment of compliance with the Relevant Servicing Criteria as of and for
      the
      fiscal year covered by the Form 10-K required to be filed pursuant to Section
      5.06(d), including, if there has been any material instance of noncompliance
      with the Relevant Servicing Criteria, a discussion of each such failure and
      the
      nature and status thereof, and (D) a statement that a registered public
      accounting firm has issued an attestation report on such party’s assessment of
      compliance with the Relevant Servicing Criteria as of and for such period.
      

     

    
      
        
          
          

        

        
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    (b) No
      later
      than the end of each fiscal year for the Trust for which a 10-K is required
      to
      be filed, the Master Servicer shall forward to the Securities Administrator
      and
      the Depositor the name of each Servicing Function Participant engaged by it
      and
      what Relevant Servicing Criteria will be addressed in the report on assessment
      of compliance prepared by such Servicing Function Participant (provided,
      however,
      that
      the Master Servicer need not provide such information to the Securities
      Administrator so long as the Master Servicer and the Securities Administer
      are
      the same Person). When the Master Servicer and the Securities Administrator
      (or
      any Servicing Function Participant engaged by them) submit their assessments
      to
      the Securities Administrator, such parties will also at such time include the
      assessment (and attestation pursuant to Section 4.17) of each Servicing Function
      Participant engaged by it. 

     

    (c) Promptly
      after receipt of each such report on assessment of compliance, (i) the Depositor
      shall review each such report and, if applicable, consult with the Master
      Servicer, the Securities Administrator and any Servicing Function Participant
      engaged by such parties as to the nature of any material instance of
      noncompliance with the Relevant Servicing Criteria by each such party, and
      (ii)
      the Securities Administrator shall confirm that the assessments, taken as a
      whole, address all of the Servicing Criteria and taken individually address
      the
      Relevant Servicing Criteria for each party as set forth on Exhibit
      E
      and on
      any similar exhibit set forth in each servicing agreement in respect of the
      Servicer and notify the Depositor of any exceptions. 

     

    (d) The
      Master Servicer shall include all annual reports on assessment of compliance
      received by it from the Servicer with its own assessment of compliance to be
      submitted to the Securities Administrator pursuant to this Section.

     

    (e) In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by such parties is terminated, assigns its rights
      and obligations under, or resigns pursuant to the terms of this Agreement,
      or
      any applicable agreement in the case of a Servicing Function Participant, as
      the
      case may be, such party shall provide a report on assessment of compliance
      pursuant to this Section 4.16(e) or to such other applicable agreement,
      notwithstanding any such termination, assignment or resignation.

     

    (f) Failure
      of the Master Servicer to comply timely with this Section 4.16 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all 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. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    (g) Delivery
      under this Section 4.16 of such reports, information and documents to the
      Trustee is for informational purposes only, and the Trustee’s receipt of such
      shall not constitute constructive notice of any information contained therein
      or
      determinable from information contained therein, including the Master Servicer’s
      compliance with any of its covenants hereunder (as to which the Trustee is
      entitled to conclusively rely exclusively on an Officer’s
      Certificate).

    

    
      
        
          
          

        

        
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    SECTION
      4.17. Master
      Servicer Attestation Reports.

     

    (a) By
      March
      15 of each year, commencing in March 2007, the Master Servicer and the
      Securities Administrator, each at its own expense, shall cause, and each such
      party shall cause any Servicing Function Participant engaged by it to cause,
      each at its own expense, a registered public accounting firm (which may also
      render other services to the Master Servicer, the Securities Administrator,
      or
      such other Servicing Function Participants, as the case may be) and that is
      a
      member of the American Institute of Certified Public Accountants to furnish
      an
      attestation report to the Securities Administrator and the Depositor, to the
      effect that (i) it has obtained a representation regarding certain matters
      from
      the management of such party, which includes an assertion that such party has
      complied with the Relevant Servicing Criteria, and (ii) on the basis of an
      examination conducted by such firm in accordance with standards for attestation
      engagements issued or adopted by the PCAOB, it is expressing an opinion as
      to
      whether such party’s compliance with the Relevant Servicing Criteria was fairly
      stated in all material respects, or it cannot express an overall opinion
      regarding such party’s assessment of compliance with the Relevant Servicing
      Criteria. In the event that an overall opinion cannot be expressed, such
      registered public accounting firm shall state in such report why it was unable
      to express such an opinion. Such report must be available for general use and
      not contain restricted use language. 

     

    (b) Promptly
      after receipt of such assessment of compliance and attestation report from
      the
      Master Servicer, the Securities Administrator or any Servicing Function
      Participant engaged by such parties, the Securities Administrator shall confirm
      that each assessment submitted pursuant to Section 4.16 is coupled with an
      attestation meeting the requirements of this Section and notify the Depositor
      of
      any exceptions. 

     

    (c) The
      Master Servicer shall include each such attestation furnished to it from the
      Servicer with its own attestation to be submitted to the Securities
      Administrator pursuant to this Section.

     

    (d) In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by such parties is terminated, assigns its rights
      and duties under, or resigns pursuant to the terms of this Agreement, or any
      custodial agreement or servicing or sub-servicing agreement in the case of
      a
      Servicing Function Participant, as the case may be, such party shall cause
      a
      registered public accounting firm to provide an attestation pursuant to this
      Section 4.17 or such other applicable agreement notwithstanding any such
      termination, assignment or resignation.

     

    (e) Failure
      of the Master Servicer to comply timely with this Section 4.17 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all 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. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    
      
        
          
          

        

        
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    SECTION
      4.18. Annual
      Certification.

     

    Each
      Form
      10-K required to be filed for the Trust pursuant to Section 5.06 shall include
      a
      certification (the “Sarbanes-Oxley
      Certification”)
      required to be included therewith pursuant to the Sarbanes-Oxley Act. Each
      of
      the Master Servicer and the Securities Administrator shall provide, and shall
      cause any Servicing Function Participant engaged by it to, provide to the Person
      who signs the Sarbanes-Oxley Certification (the “Certifying
      Person”),
      by
      March 15 of each year in which the Trust is subject to the reporting
      requirements of the Exchange Act and otherwise within a reasonable period of
      time upon request, a certification (each, a “Back-Up
      Certification”),
      in
      the form attached hereto as Exhibit
      C,
      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. The officer of the Master Servicer in charge of the master
      servicing function shall serve as the senior Certifying Person on behalf of
      the
      Trust. Such officer of the Certifying Person can be contacted by e-mail at
      cts.sec.notifications@wellsfargo.com or by facsimile at 410-715-2380. In the
      event any such party or any Servicing Function Participant engaged by such
      party
      is terminated, assigns its rights or duties under, or resigns pursuant to the
      terms of this Agreement, or any applicable sub-servicing agreement, as the
      case
      may be, such party shall provide a Back-Up Certification to the Certifying
      Person pursuant to this Section 4.18 with respect to the period of time it
      was
      subject to this Agreement or any applicable sub-servicing agreement, as the
      case
      may be. Notwithstanding the foregoing, (i) the Master Servicer and the
      Securities Administrator shall not be required to deliver a Back-Up
      Certification to each other if both are the same Person and the Master Servicer
      is the Certifying Person and (ii) the Master Servicer shall not be obligated
      to
      sign the Sarbanes-Oxley Certification in the event that it does not receive
      any
      Back-Up Certification required to be furnished to it pursuant to this section.
      

     

    SECTION
      4.19. Obligation
      of the Master Servicer in Respect of Prepayment Interest
      Shortfalls.

     

    In
      the
      event of any Prepayment Interest Shortfalls, the Master Servicer shall deposit
      into the Distribution Account not later than the related Distribution Date
      an
      amount equal to the lesser of (i) the aggregate amounts required to be paid
      by
      the Servicer with respect to Prepayment Interest Shortfalls attributable to
      Principal Prepayments in full on the Mortgage Loans for the related Distribution
      Date, and not so paid by the Servicer and (ii) the aggregate amount of the
      compensation payable to the Master Servicer for such Distribution Date in
      accordance with Section 4.13, without reimbursement therefor.

    

    
      
        
          
          

        

        
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    ARTICLE
      V

     

    PAYMENTS
      TO CERTIFICATEHOLDERS

     

    SECTION
      5.01. Distributions.

     

    On
      each
      Distribution Date, the following amounts, in the following order of priority,
      shall be distributed by REMIC I to REMIC II on account of the REMIC I Regular
      Interests and distributed to the holders of the Class R Certificates (in respect
      of the Class R-I Interest), as the case may be:

     

    (a) (1) With
      respect to the Group I Mortgage Loans:

     

    (i) to
      Holders of REMIC I Regular Interest I, and each of REMIC I Regular Interest
      I-1-A through I-46-B, pro
      rata,
      in an
      amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests
      for such Distribution Date, plus (B) any amounts payable in respect thereof
      remaining unpaid from previous Distribution Dates;

     

    (ii) to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      above, to the Holders of REMIC I Regular Interest I, an amount of principal
      shall be distributed to such Holders until the Uncertificated Balance of REMIC
      I
      Regular Interest I is reduced to zero; and

     

    (iii) to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      and (ii) above, payments of principal shall be allocated to REMIC I Regular
      interests I-1-A through I-46-B starting with the lowest numerical denomination
      until the Uncertificated Balance of each such REMIC I Regular Interest is
      reduced to zero, provided that, for REMIC I Regular Interests with the same
      numerical denomination, such payments of principal shall be allocated
pro
      rata
      between
      such REMIC I Regular Interests.

     

    (2) With
      respect to the Group II Mortgage Loans:

     

    (i) to
      Holders of REMIC I Regular Interest II and each of REMIC I Regular Interest
      II-1-A through II-46-B, pro
      rata,
      in an
      amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests
      for such Distribution Date, plus (B) any amounts payable in respect thereof
      remaining unpaid from previous Distribution Dates.

     

    (ii) to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      above, to the Holders of REMIC I Regular Interest II, an amount of principal
      shall be distributed to such Holders until the Uncertificated Balance of REMIC
      I
      Regular Interest II is reduced to zero; and

     

    (iii) to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      and (ii) above, payments of principal shall be allocated to REMIC I Regular
      interests II-1-A through II-46-B starting with the lowest numerical denomination
      until the Uncertificated Balance of each such REMIC I Regular Interest is
      reduced to zero, provided that, for REMIC I Regular Interests with the same
      numerical denomination, such payments of principal shall be allocated
pro
      rata
      between
      such REMIC I Regular Interests.

     

    
      
        
          
          

        

        
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    (b) to
      the
      Holders of REMIC I Regular Interest P, (A) all amounts representing Prepayment
      Charges in respect of the Mortgage Loans received during the related Prepayment
      Period and (B) on the Distribution Date immediately following the expiration
      of
      the latest Prepayment Charge as identified on the Prepayment Charge Schedule
      or
      any Distribution Date thereafter until $100 has been distributed pursuant to
      this clause. 

     

    (c) (1)
      On
      each Distribution Date, the following amounts, in the following order of
      priority, shall be distributed by REMIC II to REMIC III on account of the REMIC
      II Regular Interests or withdrawn from the Distribution Account and distributed
      to the Holders of the Class R Certificates (in respect of the Class R-II
      Interest), as the case may be:

     

    (i) first
      to
      the Holders of REMIC II Regular Interest IO, in an amount equal to (A)
      Uncertificated Interest for such REMIC II Regular Interest for such Distribution
      Date, plus (B) any amounts in respect thereof remaining unpaid from previous
      Distribution Dates and second, to the Holders of REMIC II Regular Interest
      AA,
      REMIC II Regular Interest A-1, REMIC II Regular Interest A-2A, REMIC II Regular
      Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D,
      REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular
      Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5,
      REMIC II Regular Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular
      Interest M-8, REMIC II Regular Interest M-9, REMIC II Regular Interest M-10,
      REMIC II Regular Interest M-11 and REMIC II Regular Interest ZZ, pro
      rata,
      in an
      amount equal to (A) the Uncertificated Interest for such Distribution Date,
      plus
      (B) any amounts in respect thereof remaining unpaid from previous Distribution
      Dates. Amounts payable as Uncertificated Interest in respect of REMIC II Regular
      Interest ZZ shall be reduced when the REMIC II Overcollateralization Amount
      is
      less than the REMIC II Required Overcollateralization Amount, by the lesser
      of
      (x) the amount of such difference and (y) the Maximum ZZ Uncertificated Interest
      Deferral Amount and such amount will be payable to the Holders of REMIC II
      Regular Interest A-1, REMIC II Regular Interest A-2A, REMIC II Regular Interest
      A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC
      II
      Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest
      M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II
      Regular Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest
      M-8, REMIC II Regular Interest M-9, REMIC II Regular Interest M-10 and REMIC
      II
      Regular Interest M-11 in the same proportion as the Overcollateralization
      Increase Amount is allocated to the Corresponding Certificates and the
      Uncertificated Balance of REMIC II Regular Interest ZZ shall be increased by
      such amount;

     

    (ii) to
      Holders of REMIC II Regular Interest I-SUB, REMIC II Regular Interest I-GRP,
      REMIC II Regular Interest II-SUB, REMIC II Regular Interest II-GRP, and REMIC
      II
      Regular Interest XX, pro
      rata,
      in an
      amount equal to (A) the Uncertificated Interest for such Distribution Date,
      plus
      (B) any amounts in respect thereof remaining unpaid from previous Distribution
      Dates;

    

    
      
        
          
          

        

        
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    (iii) to
      the
      Holders of REMIC II Regular Interests, in an amount equal to the remainder
      of
      the REMIC II Marker Allocation Percentage of the available funds for such
      Distribution Date after the distributions made pursuant to clause (i) above,
      allocated as follows:

     

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

     

    (B) 2.00%
      of
      such remainder, first, to the Holders of REMIC II Regular Interest A-1, REMIC
      II
      Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest
      A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC
      II
      Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest
      M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II
      Regular Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest
      M-9, REMIC II Regular Interest M-10 and REMIC II Regular Interest M-11, 1%
      of
      and in the same proportion as principal payments are allocated to the
      Corresponding Certificates, until the Uncertificated Balances of such REMIC
      II
      Regular Interests are reduced to zero and second to the Holders of REMIC II
      Regular Interest ZZ, until the Uncertificated Balance of such REMIC II Regular
      Interest is reduced to zero;

     

    (C) to
      the
      Holders of REMIC II Regular Interest P, 100% of the amounts deemed distributed
      on REMIC I Regular Interest P; then

     

    (D) any
      remaining amount to the Holders of the Class R Certificate, in respect of the
      Class R-II Interest;

     

    provided,
      however, that 98.00% and 2.00% of any principal payments that are attributable
      to an Overcollateralization Reduction Amount shall be allocated to Holders
      of
      REMIC II Regular Interest AA and REMIC II Regular Interest ZZ,
      respectively.

     

    (iv) to
      the
      Holders of REMIC II Regular Interests, in an amount equal to the remainder
      of
      the REMIC II Sub WAC Allocation Percentage of available funds for such
      Distribution Date after the distributions made pursuant to clause (ii) above,
      such that distributions of principal shall be deemed to be made to the REMIC
      II
      Regular Interests first, so as to keep the Uncertificated Balance of each REMIC
      II Regular Interest ending with the designation “GRP” equal to 0.01% of the
      aggregate Stated Principal Balance of the Mortgage Loans in the related loan
      group; second, to each REMIC II Regular Interest ending with the designation
      “SUB,” so that the Uncertificated Balance of each such REMIC II Regular Interest
      is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance
      of
      the Mortgage Loans in the related loan group over (y) the current Certificate
      Principal Balance of the Class A Certificate in the related loan group (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 II
      Regular Interests such that the REMIC II Subordinated Balance Ratio is
      maintained); and third, any remaining principal to REMIC II Regular Interest
      XX.

    

    
      
        
          
          

        

        
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    (v) Notwithstanding
      the distributions described in Section 5.01(c)(1), distributions of funds shall
      be made to Certificateholders only in accordance with Section 5.01(c)(2) through
      (7).

     

    (2) On
      each
      Distribution Date, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Group I Interest Remittance Amount and make the following disbursements and
      transfers in the order of priority described below, in each case to the extent
      of the Group I Interest Remittance Amount remaining for such Distribution
      Date:

     

    first,
      commencing on the Distribution Date in February 2007, to the Supplemental
      Interest Trust, an amount equal to the Group I Allocation Percentage of (i)
      any
      Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment
      owed to the Swap Provider not due to a Swap Provider Trigger Event;

     

    second,
      to the
      Holders of the Class A-1 Certificates, the Senior Interest Distribution Amount
      allocable to the Class A-1 Certificates; and

     

    third,
      concurrently, to the Holders of the Class A-2A, Class A-2B, Class A-2C and
      Class
      A-2D Certificates, the Senior Interest Distribution Amount allocable to each
      such Class, to the extent remaining unpaid after the distribution of the Group
      II Interest Remittance Amount as set forth in Section 5.01(c)(3) below on a
      pro
      rata basis, based on the entitlement of each such Class.

     

    (3) On
      each
      Distribution Date, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Group II Interest Remittance Amount and make the following disbursements and
      transfers in the order of priority described below, in each case to the extent
      of the Group II Interest Remittance Amount remaining for such Distribution
      Date:

     

    first,
      commencing on the Distribution Date in February 2007, to the Supplemental
      Interest Trust, an amount equal to the Group II Allocation Percentage of (i)
      any
      Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment
      owed to the Swap Provider not due to a Swap Provider Trigger Event;

     

    second, concurrently,
      to the Holders of the Class A-2A, Class A-2B, Class A-2C and Class A-2D
      Certificates, the Senior Interest Distribution Amount allocable to each such
      Class, on a pro rata basis, based on the entitlement of each such Class;
      and

     

    third,
      to the
      Holders of the Class A-1 Certificates, the Senior Interest Distribution Amount
      allocable to the Class A-1 Certificates, to the extent remaining unpaid after
      the distribution of the Group I Interest Remittance Amount as set forth in
      Section 5.01(c)(2) above.

    

    
      
        
          
          

        

        
          113

          
            

          

        

         

      

    

     

    (4) On
      each
      Distribution Date, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Group I Interest Remittance Amount and the Group II Interest Remittance Amount
      remaining after the distributions required by clauses (2) and (3) above and
      make
      the following disbursements and transfers in the order of priority described
      below, in each case to the extent of the Group I Interest Remittance Amount
      and
      Group II Interest Remittance Amount remaining for such Distribution
      Date:

     

    sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, to the extent of the Interest Distribution Amount
      allocable to each such Class.

     

    (5) On
      each
      Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger
      Event
      is in effect, the Securities Administrator shall withdraw from the Distribution
      Account to the extent on deposit therein an amount equal to the Group I
      Principal Distribution Amount and the Group II Principal Distribution Amount
      and
      distribute to the Certificateholders the following amounts, in the following
      order of priority:

     

    (i) The
      Group
      I Principal Distribution Amount shall be distributed in the following order
      of
      priority:

     

    first,
      commencing on the Distribution Date in February 2007, to the Supplemental
      Interest Trust, an amount equal to the Group I Allocation Percentage of (i)
      any
      Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment
      owed to the Swap Provider not due to a Swap Provider Trigger Event to the extent
      not paid from the Interest Remittance Amount on such Distribution
      Date;

     

    second,
      to the
      Holders of the Class A-1 Certificates until the Certificate Principal Balance
      of
      the Class A-1 Certificates has been reduced to zero; and

     

    third,
      sequentially, to the Holders of the Class A-2A, Class A-2B, Class A-2C and
      Class
      A-2D Certificates, in that order, after taking into account the distribution
      of
      the Group II Principal Distribution Amount as described in Section
      5.01(c)(5)(ii) below, until the Certificate Principal Balance of each such
      Class
      has been reduced to zero. 

     

    (ii) The
      Group
      II Principal Distribution Amount shall be distributed in the following order
      of
      priority:

     

    first,
      commencing on the Distribution Date in February 2007, to the Supplemental
      Interest Trust, an amount equal to the Group II Allocation Percentage of (i)
      any
      Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment
      owed to the Swap Provider not due to a Swap Provider Trigger Event to the extent
      not paid from the Interest Remittance Amount on such Distribution
      Date;

    

    
      
        
          
          

        

        
          114

          
            

          

        

         

      

    

    

    second,
      sequentially, to the Holders of the Class A-2A Class A-2B, Class A-2C and Class
      A-2D Certificates, in that order, until the Certificate Principal Balance of
      each such Class has been reduced to zero; and

     

    third,
      to the
      Holders of the Class A-1 Certificates after taking into account the distribution
      of the Group I Principal Distribution Amount as described in Section
      5.01(c)(5)(i) above, until the Certificate Principal Balance of such Class
      has
      been reduced to zero.

     

    (iii) The
      Group
      I Principal Distribution Amount and Group II Principal Distribution Amount
      remaining after distributions pursuant to Sections 5.01(c)(5)(i) and (ii) above
      shall be distributed in the following order of priority:

     

    sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, until the Certificate Principal Balance of each
      such Class has been reduced to zero.

     

    (6) On
      each
      Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger
      Event is not in effect, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Group I Principal Distribution Amount and the Group II Principal Distribution
      Amount and distribute to the Certificateholders the following amounts, in the
      following order of priority:

     

    (i) The
      Group
      I Principal Distribution Amount shall be distributed in the following order
      of
      priority:

     

    first,
      commencing on the Distribution Date in February 2007, to the Supplemental
      Interest Trust, an amount equal to the Group I Allocation Percentage of (i)
      any
      Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment
      owed to the Swap Provider not due to a Swap Provider Trigger Event to the extent
      not paid from the Interest Remittance Amount on such Distribution
      Date;

     

    second,
      to the
      Holders of the Class A-1 Certificates, the Class A-1 Principal Distribution
      Amount, until the Certificate Principal Balance of such Class has been reduced
      to zero; and 

     

    third,
      sequentially, to the Holders of the Class A-2A, Class A-2B, Class A-2C and
      Class
      A-2D Certificates, in that order, after taking into account the distribution
      of
      the Group II Principal Distribution Amount pursuant to Section 5.01(c)(6)(ii)
      below, up to an amount equal to the amount, if any, of the Class A-2 Principal
      Distribution Amount remaining unpaid on such Distribution Date, until the
      Certificate Principal Balance of each such Class has been reduced to
      zero.

    

    
      
        
          
          

        

        
          115

          
            

          

        

         

      

    

     

    (ii) The
      Group
      II Principal Distribution Amount shall be distributed in the following order
      of
      priority:

     

    first,
      commencing
      on the Distribution Date in February 2007,
      to the
      Supplemental Interest Trust, an amount equal to the Group II Allocation
      Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any
      Swap Termination Payment owed to the Swap Provider not due to a Swap Provider
      Trigger Event to the extent not paid from the Interest Remittance Amount on
      such
      Distribution Date;

     

    second,
      sequentially, to the Holders of the Class A-2A, Class A-2B, Class A-2C and
      Class
      A-2D Certificates, in that order, the Class A-2 Principal Distribution Amount,
      until the Certificate Principal Balance of each such Class has been reduced
      to
      zero; and

     

    third,
      to the
      Holders of the Class A-1 Certificates, after taking into account the
      distribution of the Group I Principal Distribution Amount pursuant to Section
      5.01(c)(6)(i) above, up to an amount equal to the amount, if any, of the Class
      A-1 Principal Distribution Amount remaining unpaid on such Distribution Date,
      until the Certificate Principal Balance of the Class A-1 Certificates has been
      reduced to zero.

     

    (iii) The
      Principal Distribution Amount remaining after distributions pursuant to Sections
      5.01(c)(6)(i) and (ii) above shall be distributed in the following order of
      priority:

     

    first,
      sequentially, to the Holders of the Class M-1 Certificates, Class M-2
      Certificates and Class M-3 Certificates, in that order, the lesser of (x) the
      remaining Principal Distribution Amount and (y) the Class M-1/M-2/M-3 Principal
      Distribution Amount, until the Certificate Principal Balance of each such Class
      has been reduced to zero;

     

    second,
      to the
      Holders of the Class M-4 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates, Class M-2 Certificates
      and the Class M-3 Certificates under clause first
      above,
      and (y) the Class M-4 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-4 Certificates has been reduced to
      zero;

     

    third,
      to the
      Holders of the Class M-5 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates, Class M-2 Certificates
      and Class M-3 Certificates under clause first
      above
      and to the Holders of the Class M-4 Certificates under clause second
      above,
      and (y) the Class M-5 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-5 Certificates has been reduced to
      zero;

     

    fourth,
      to the
      Holders of the Class M-6 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates, Class M-2 Certificates
      and Class M-3 Certificates under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above
      and to the Holders of the Class M-5 Certificates under clause third
      above,
      and (y) the Class M-6 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-6 Certificates has been reduced to zero;

    

    
      
        
          
          

        

        
          116

          
            

          

        

         

      

    

     

    fifth,
      to the
      Holders of the Class M-7 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates, Class M-2 Certificates
      and Class M-3 Certificates under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above,
      to the Holders of the Class M-5 Certificates under clause third
      above
      and to the Holders of the Class M-6 Certificates under clause fourth
      above,
      and (y) the Class M-7 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-7 Certificates has been reduced to
      zero;

     

    sixth,
      to the
      Holders of the Class M-8 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates, Class M-2 Certificates
      and Class M-3 Certificates under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above,
      to the Holders of the Class M-5 Certificates under clause third
      above,
      to the Holders of the Class M-6 Certificates under clause fourth
      above
      and to the Holders of the Class M-7 Certificates under clause fifth
      above,
      and (y) the Class M-8 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-8 Certificates has been reduced to zero;

     

    seventh,
      to the
      Holders of the Class M-9 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates, Class M-2 Certificates
      and Class M-3 Certificates under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above,
      to the Holders of the Class M-5 Certificates under clause third
      above,
      to the Holders of the Class M-6 Certificates under clause fourth
      above,
      to the Holders of the Class M-7 Certificates under clause fifth
      above
      and to the Holders of the Class M-8 Certificates under clause sixth
      above,
      and (y) the Class M-9 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-9 Certificates has been reduced to
      zero;

     

    eighth,
      to the
      Holders of the Class M-10 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates, Class M-2 Certificates
      and Class M-3 Certificates under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above,
      to the Holders of the Class M-5 Certificates under clause third
      above,
      to the Holders of the Class M-6 Certificates under clause fourth
      above,
      to the Holders of the Class M-7 Certificates under clause fifth
      above,
      to the Holders of the Class M-8 Certificates under clause sixth
      above
      and to the Holders of the Class M-9 Certificates under clause seventh
      above,
      and (y) the Class M-10 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-10 Certificates has been reduced to
      zero;
      and

    

    
      
        
          
          

        

        
          117

          
            

          

        

         

      

    

    

     

    ninth,
      to the
      Holders of the Class M-11 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates, Class M-2 Certificates
      and Class M-3 Certificates under clause first
      above,
      to the Holders of the Class M-4 Certificates under clause second
      above,
      to the Holders of the Class M-5 Certificates under clause third
      above,
      to the Holders of the Class M-6 Certificates under clause fourth
      above,
      to the Holders of the Class M-7 Certificates under clause fifth
      above,
      to the Holders of the Class M-8 Certificates under clause sixth
      above,
      to the Holders of the Class M-9 Certificates under clause seventh
      above
      and to the Holders of the Class M-10 Certificates under clause eighth
      above,
      and (y) the Class M-11 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-11 Certificates has been reduced to
      zero.

     

    Notwithstanding
      the priority of distributions described in this Section 5.01(c) with respect
      to
      the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, on any
      Distribution Date which occurs after the Certificate Principal Balances of
      the
      Mezzanine Certificates have been reduced to zero distributions in respect of
      principal to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates
      will be made on a pro rata basis, based on the Certificate Principal Balance
      of
      each such Class, until the Certificate Principal Balance of each such Class
      has
      been reduced to zero.

     

    (7) On
      each
      Distribution Date, the Net Monthly Excess Cashflow (or, in the case of clause
      (i) below, the Net Monthly Excess Cashflow exclusive of any
      Overcollateralization Reduction Amount) shall be distributed as
      follows:

     

    (i) to
      the
      Holders of the Class or Classes of Certificates then entitled to receive
      distributions in respect of principal, in an amount equal to the
      Overcollateralization Increase Amount, payable to such Holders in accordance
      with the priorities set forth in Section 5.01(c)(5) and (6) above;

     

    (ii) sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, in an amount equal to the Interest Carry Forward
      Amount allocable to each such Class;

     

    (iii) sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, in an amount equal to the Allocated Realized Loss
      Amount allocable to each such Class;

     

    (iv) concurrently,
      to the Holders of the Class A Certificates, in an amount equal to such
      Certificates’ allocated share of any Prepayment Interest Shortfalls on the
      Mortgage Loans to the extent not covered by compensating interest payments
      made
      by the Servicer pursuant to the Servicing Agreement or by the Master Servicer
      pursuant to 4.18 of this Agreement and any shortfalls resulting from the
      application of the Relief Act or similar state or local law or the bankruptcy
      code with respect to the Mortgage Loans to the extent not previously reimbursed
      pursuant to Section 1.02;

    

    
      
        
          
          

        

        
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    (v) sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, in an amount equal to such certificates’ share of
      any Prepayment Interest Shortfalls on the Mortgage Loans to the extent not
      covered by payments pursuant to Sections 3.22 or Section 4.19 of this Agreement
      and any Relief Act Interest Shortfall, in each case that were allocated to
      such
      Class for such Distribution Date and for any prior Distribution Date, to the
      extent not previously reimbursed pursuant to Section 1.02;

     

    (vi) to
      the
      Reserve Fund, the amount by which the Net WAC Rate Carryover Amounts, if any,
      with respect to the Class A Certificates and Class M Certificates exceeds the
      sum of any amounts received by the Securities Administrator with respect to
      the
      Cap Contracts since the prior Distribution Date and any amount in the Reserve
      Fund that was not distributed on prior Distribution Dates;

     

    (vii) commencing
      on the Distribution Date in February 2007, to the Supplemental Interest Trust,
      an amount equal to any Swap Termination Payment owed to the Swap Provider due
      to
      a Swap Provider Trigger Event pursuant to the Swap Agreement; 

     

    (viii) 
      to the
      Holders of the Class CE Certificates the Interest Distribution Amount and any
      Overcollateralization Reduction Amount for such Distribution Date;
      and

     

    (ix) to
      the
      Holders of the Class R Certificates, in respect of the Class R-III Interest,
      any
      remaining amounts; provided that if such Distribution Date is the Distribution
      Date immediately following the expiration of the latest Prepayment Charge term
      as identified on the Mortgage Loan Schedule or any Distribution Date thereafter,
      then any such remaining amounts will be distributed first, to the Holders of
      the
      Class P Certificates, until the Certificate Principal Balance thereof has been
      reduced to zero and second, to the Holders of the Class R
      Certificates.

     

    The
      Class
      CE Certificates are intended to receive all principal and interest received
      by
      the Trust on the Mortgage Loans that is not otherwise distributable to any
      other
      Class of Regular Certificates or REMIC Regular Interests. If the Securities
      Administrator determines that the Residual Certificates are entitled to any
      distributions on any Distribution Date other than the final Distribution Date,
      the Securities Administrator, prior to any such distribution to any Residual
      Certificate, shall notify the Depositor of such impending distribution. Upon
      such notification, the Depositor will prepare and request that the other parties
      hereto enter into an amendment to the Pooling and Servicing Agreement pursuant
      to Section 12.01, to revise such mistake in the distribution
      provisions.

    

    
      
        
          
          

        

        
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    On
      the
      day prior to each Distribution Date, the Securities Administrator shall deposit
      all amounts received with respect to the Cap Contracts into the Reserve Fund.
      On
      each Distribution Date, after making the distributions of the Available
      Distribution Amount as set forth above, the Securities Administrator will first,
      withdraw from the Reserve Fund all income from the investment of funds in the
      Reserve Fund and distribute such amount to the Holders of the Class CE
      Certificates, and second, withdraw from the Reserve Fund, to the extent of
      amounts remaining on deposit therein (which shall include any payments received
      under the Cap Contracts), the amount of any Net WAC Rate Carryover Amount for
      such Distribution Date and distribute such amount first, with respect to any
      amounts received by the Securities Administrator on account of the Group I
      Cap
      Contract to the Holders of the Class A-1 Certificates and with respect to any
      amounts received by the Securities Administrator on account of the Group II
      Cap
      Contract concurrently to the Holders of the Class A-2 Certificates on a
pro
      rata
      basis,
      based on the entitlement of each such Class; and, with respect to any amounts
      remaining undistributed paid pursuant to both Cap Contracts, second, to the
      Class M-1 Certificates, third, to the Class M-2 Certificates, fourth, to the
      Class M-3 Certificates, fifth, to the Class M-4 Certificates, sixth, to the
      Class M-5 Certificates, seventh, to the Class M-6 Certificates, eighth, to
      the
      Class M-7 Certificates, ninth, to the Class M-8 Certificates, tenth, to the
      Class M-9 Certificates, eleventh, to the Class M-10 Certificates and twelfth,
      to
      the Class M-11 Certificates, in each case to the extent to the extent any Net
      WAC Rate Carryover Amount is allocable to each such Class.

     

    With
      respect to any amounts deposited in the Reserve Fund from the Net Monthly Excess
      Cashflow under Section 5.01(c)(7)(vi) above and not distributed pursuant to
      the
      preceding paragraph, first, concurrently, (i) to the Holders of the Class A-1
      Certificates, the related Net WAC Rate Carryover Amount remaining unpaid for
      such Distribution Date and (ii) to the Holders of the Class A-2A, Class A-2B,
      Class A-2C and Class A-2D Certificates, the related Net WAC Rate Carryover
      Amount remaining unpaid for such Distribution Date, on a pro
      rata
      basis,
      based on the entitlement of each such Class; second, to the Holders of the
      Class
      M-1 Certificates,
      Class
      M-2 Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5
      Certificates, Class M-6 Certificates, Class M-7 Certificates, Class M-8
      Certificates, Class M-9 Certificates, Class M-10 Certificates and Class M-11
      Certificates, in that order, in respect of the related Net WAC Rate Carryover
      Amount remaining unpaid for each such Class for such Distribution Date and
      third
      to the Class CE Certificates.

     

    (d) As
      described in Section 5.01(c)(2), (3), (5) and (6) above, Net Swap Payments
      and Swap Termination Payments (other than Swap Termination Payments resulting
      from a Swap Provider Trigger Event) payable by the Supplemental Interest Trust
      to the Swap Provider pursuant to the Swap Agreement shall be deducted from
      the
      Interest Remittance Amount, and to the extent of any such remaining amounts
      due,
      from the Principal Remittance Amount, prior to any distributions to the
      Certificateholders. On each Distribution Date, such amounts will be remitted
      to
      the Supplemental Interest Trust, first to make any Net Swap Payment owed to
      the
      Swap Provider pursuant to the Swap Agreement for such Distribution Date, and
      second to make any Swap Termination Payment (not due to a Swap Provider Trigger
      Event) owed to the Swap Provider pursuant to the Swap Agreement for such
      Distribution Date. Any Swap Termination Payment triggered by a Swap Provider
      Trigger Event owed to the Swap Provider pursuant to the Swap Agreement will
      be
      subordinated to distributions to the Holders of the Class A Certificates and
      Mezzanine Certificates and shall be paid pursuant to Section
      5.01(c)(7)(vii).

    

    
      
        
          
          

        

        
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    (e) On
      each
      Distribution Date, to the extent required, following the distribution of the
      Net
      Monthly Excess Cashflow and withdrawals from the Reserve Fund, the Securities
      Administrator will withdraw any amounts in the Supplemental Interest Trust
      and
      distribute such amounts in the following order of priority: 

     

    first,
      to the
      Swap Provider, any Net Swap Payment owed to the Swap Provider pursuant to the
      Swap Agreement for such Distribution Date;

     

    second,
      to the
      Swap Provider, any Swap Termination Payment owed to the Swap Provider not due
      to
      a Swap Provider Trigger Event pursuant to the Swap Agreement;

     

    third,
      concurrently, to each Class of Class A Certificates, the related Senior Interest
      Distribution Amount remaining undistributed after the distributions of the
      Group
      I Interest Remittance Amount and the Group II Interest Remittance Amount, on
      a
pro
      rata
      basis
      based on such respective remaining Senior Interest Distribution
      Amounts;

     

    fourth,
      sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
      Certificates, in that order, the related Interest Distribution Amount and
      Interest Carry Forward Amount, to the extent remaining undistributed after
      the
      distributions of the Group I Interest Remittance Amount, the Group II Interest
      Remittance Amount and the Net Monthly Excess Cashflow;

     

    fifth,
      sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class
      M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates,
      in
      that order, in each case up to the related Allocated Realized Loss Amount
      related to such Certificates for such Distribution Date remaining undistributed
      after distribution of the Net Monthly Excess Cashflow;

     

    sixth,
      to the
      holders of the Class or Classes of Certificates then entitled to receive
      distributions in respect of principal, in an amount necessary to maintain the
      Required Overcollateralization Amount after taking into account distributions
      made pursuant to Section 5.01(c)(7)(i) above

     

    seventh,
      concurrently, to each Class of Class A Certificates, the related Net WAC Rate
      Carryover Amount, to the extent remaining undistributed after distributions
      of
      Net Monthly Excess Cashflow on deposit in the Reserve Fund, on a pro
      rata
      basis
      based on such respective Net WAC Rate Carryover Amounts remaining
      unpaid;

     

    eighth,
      sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
      M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates, in that
      order, the related Net WAC Rate Carryover Amount, to the extent remaining
      undistributed after distributions are made from the Reserve Fund;

    

    
      
        
          
          

        

        
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    ninth,
      to the
      Swap Provider, an amount equal to any Swap Termination Payment owed to the
      Swap
      Provider due to a Swap Provider Trigger Event pursuant to the Swap Agreement;
      and

     

    tenth,
      to the
      Class CE Certificates, any remaining amounts.

     

    (f) On
      each
      Distribution Date, the Securities Administrator shall withdraw any amounts
      then
      on deposit in the Distribution Account that represent Prepayment Charges and
      shall distribute such amounts to the Class P Certificateholders as described
      above.

     

    (g) All
      distributions made with respect to each Class of Certificates on each
      Distribution Date shall be allocated pro
      rata
      among
      the outstanding Certificates in such Class based on their respective Percentage
      Interests. Payments in respect of each Class of Certificates on each
      Distribution Date will be made to the Holders of the respective Class of record
      on the related Record Date (except as otherwise provided in Section 5.01(i)
      or
      Section 10.01 respecting the final distribution on such Class), based on the
      aggregate Percentage Interest represented by their respective Certificates,
      and
      shall be made by wire transfer of immediately available funds to the account
      of
      any such Holder at a bank or other entity having appropriate facilities
      therefor, if such Holder shall have so notified the Securities Administrator
      in
      writing at least five (5) Business Days prior to the Record Date immediately
      prior to such Distribution Date and is the registered owner of Certificates
      having an initial aggregate Certificate Principal Balance that is in excess
      of
      the lesser of (i) $5,000,000 or (ii) two-thirds of the initial Certificate
      Principal Balance of such Class of Certificates, or otherwise by check mailed
      by
      first class mail to the address of such Holder appearing in the Certificate
      Register. The final distribution on each Certificate will be made in like
      manner, but only upon presentment and surrender of such Certificate at the
      Corporate Trust Office of the Securities Administrator or such other location
      specified in the notice to Certificateholders of such final
      distribution.

     

    Each
      distribution with respect to a Book-Entry Certificate shall be paid to the
      Depository, as Holder thereof, and the Depository shall be responsible for
      crediting the amount of such distribution to the accounts of its Depository
      Participants in accordance with its normal procedures. Each Depository
      Participant shall be responsible for disbursing such distribution to the
      Certificate Owners that it represents and to each indirect participating
      brokerage firm (a “brokerage firm” or “indirect participating firm”) for which
      it acts as agent. Each brokerage firm shall be responsible for disbursing funds
      to the Certificate Owners that it represents. None of the Trustee, the
      Depositor, the Servicer, the Securities Administrator or the Master Servicer
      shall have any responsibility therefor except as otherwise provided by this
      Agreement or applicable law.

     

    (h) The
      rights of the Certificateholders to receive distributions in respect of the
      Certificates, and all interests of the Certificateholders in such distributions,
      shall be as set forth in this Agreement. None of the Holders of any Class of
      Certificates, the Trustee, the Servicer, the Securities Administrator or the
      Master Servicer shall in any way be responsible or liable to the Holders of
      any
      other Class of Certificates in respect of amounts properly previously
      distributed on the Certificates.

    

    
      
        
          
          

        

        
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    (i) Except
      as
      otherwise provided in Section 10.01, whenever the Securities Administrator
      expects that the final distribution with respect to any Class of Certificates
      will be made on the next Distribution Date, the Securities Administrator shall,
      no later than three (3) days before the related Distribution Date, mail to
      each
      Holder on such date of such Class of Certificates a notice to the effect
      that:

     

    
      	 	
              (i)

            	
              the
                Securities Administrator expects that the final distribution with
                respect
                to such Class of Certificates will be made on such Distribution Date
                but
                only upon presentation and surrender of such Certificates at the
                office of
                the Securities Administrator therein specified,
                and

            

    

     

    
      	 	
              (ii)

            	
              no
                interest shall accrue on such Certificates from and after the end
                of the
                related Interest Accrual Period.

            

    

     

    Any
      funds
      not distributed to any Holder or Holders of Certificates of such Class on such
      Distribution Date because of the failure of such Holder or Holders to tender
      their Certificates shall, on such date, be set aside and held in trust by the
      Securities Administrator and credited to the account of the appropriate
      non-tendering Holder or Holders. If any Certificates as to which notice has
      been
      given pursuant to this Section 5.01(i) shall not have been surrendered for
      cancellation within six months after the time specified in such notice, the
      Securities Administrator shall mail a second notice to the remaining
      non-tendering Certificateholders to surrender their Certificates for
      cancellation in order to receive the final distribution with respect thereto.
      If
      within one year after the second notice all such Certificates shall not have
      been surrendered for cancellation, the Securities Administrator shall, directly
      or through an agent, mail a final notice to the remaining non-tendering
      Certificateholders concerning surrender of their Certificates but shall continue
      to hold any remaining funds for the benefit of non-tendering Certificateholders.
      The costs and expenses of maintaining the funds in trust and of contacting
      such
      Certificateholders shall be paid out of the assets remaining in such trust
      fund.
      If within one year after the final notice any such Certificates shall not have
      been surrendered for cancellation, the Securities Administrator shall pay to
      the
      Depositor all such amounts, and all rights of non-tendering Certificateholders
      in or to such amounts shall thereupon cease. No interest shall accrue or be
      payable to any Certificateholder on any amount held in trust by the Securities
      Administrator as a result of such Certificateholder’s failure to surrender its
      Certificate(s) on the final Distribution Date for final payment thereof in
      accordance with this Section 5.01(i). Any such amounts held in trust by the
      Securities Administrator shall be held uninvested in an Eligible
      Account.

     

    (j) Notwithstanding
      anything to the contrary herein, (i) in no event shall the Certificate Principal
      Balance of a Class A Certificate or a Mezzanine Certificate be reduced more
      than
      once in respect of any particular amount both (a) allocated to such Certificate
      in respect of Realized Losses pursuant to Section 5.04 and (b) distributed
      to
      the Holder of such Certificate in reduction of the Certificate Principal Balance
      thereof pursuant to this Section 5.01 from Net Monthly Excess Cashflow and
      (ii)
      in no event shall the Uncertificated Balance of a REMIC Regular Interest be
      reduced more than once in respect of any particular amount both (a) allocated
      to
      such REMIC Regular Interest in respect of Realized Losses pursuant to Section
      5.04 and (b) distributed on such REMIC Regular Interest in reduction of the
      Uncertificated Balance thereof pursuant to this Section 5.01.

    

    
      
        
          
          

        

        
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    SECTION
      5.02. Statements
      to Certificateholders.

     

    On
      each
      Distribution Date, the Securities Administrator (based on the information set
      forth in the Servicer Reports for such Distribution Date, information provided
      by the Swap Provider under the Swap Agreement with respect to payments made
      pursuant to the Swap Agreement and information provided by the Cap Counterparty
      with respect to payments made pursuant to the Cap Contracts) shall make
      available to each Holder of the Certificates and the Credit Risk Manager, a
      statement as to the distributions made on such Distribution Date setting
      forth:

     

    (i) applicable
      Interest Accrual Periods and general Distribution Dates;

     

    (ii) with
      respect to each loan group, the total cash flows received and the general
      sources thereof; 

     

    (iii) the
      aggregate Servicing Fee received by the Servicer during the related Due
      Period;

     

    (iv) the
      amount, if any, of other fees or expenses accrued and paid, with an
      identification of the payee and the general purpose of such fees; 

     

    (v) with
      respect to each loan group, the amount of the related distribution to Holders
      of
      the Certificates (by class) allocable to principal, separately identifying
      (A)
      the aggregate amount of any Principal Prepayments included therein, (B) the
      aggregate of all scheduled payments of principal included therein and (C) any
      Overcollateralization Increase Amount included therein;

     

    (vi) with
      respect to each loan group, the amount of such distribution to Holders of the
      Certificates (by class) allocable to interest and the portion thereof, if any,
      provided by the Swap Agreement;

     

    (vii) with
      respect to each loan group, the Interest Carry Forward Amounts and any Net
      WAC
      Rate Carryover Amounts for the related Certificates (if any);

     

    (viii) the
      aggregate amount of Advances included in the distributions on the Distribution
      Date (including the general purpose of such Advances);

     

    (ix) with
      respect to each loan group, the number and aggregate principal balance of any
      Mortgage Loans (not including any Liquidated Mortgage Loans as of the end of
      the
      Prepayment Period) that were (A) delinquent (exclusive of Mortgage Loans in
      foreclosure) using the “OTS” method (1) one scheduled payment is delinquent, (2)
      two scheduled payments are delinquent, (3) three scheduled payments are
      delinquent and (4) foreclosure proceedings have been commenced, and loss
      information for the period;

    

    
      
        
          
          

        

        
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    (x) the
      number, aggregate principal balance, weighted average remaining term to maturity
      and weighted average Mortgage Rate of the Mortgage Loans as of the related
      Due
      Date;

     

    (xi) with
      respect to each loan group and any Mortgage Loan that was liquidated during
      the
      preceding calendar month, the loan number and Scheduled Principal Balance of,
      and Realized Loss on, such Mortgage Loan as of the end of the related Prepayment
      Period;

     

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

     

    (xiii) with
      respect to each loan group, whether the Stepdown Date has occurred and whether
      Trigger Event is in effect;

     

    (xiv) with
      respect to each loan group, the cumulative Realized Losses through the end
      of
      the preceding month;

     

    (xv) the
      aggregate amount of Extraordinary Trust Fund Expenses withdrawn from the
      Distribution Account for such Distribution Date;

     

    (xvi) with
      respect to each loan group, the Certificate Principal Balance of the related
      Certificates before and after giving effect to the distribution of principal
      and
      allocation of Allocated Realized Loss Amounts on such Distribution Date, and
      the
      Certificate Principal Balance of the Class CE Certificates before and after
      giving effect to the distribution of principal and allocation of Allocated
      Realized Loss Amounts on such Distribution Date;

     

    (xvii) with
      respect to each loan group, the number and Scheduled Principal Balance of all
      the Mortgage Loans for the following Distribution Date;

     

    (xviii) with
      respect to each loan group, the three-month rolling average of the percent
      equivalent of a fraction, the numerator of which is the aggregate Scheduled
      Principal Balance of the Mortgage Loans in such loan group that are 60 days
      or
      more delinquent or are in bankruptcy or foreclosure or are REO Properties,
      and
      the denominator of which is the Scheduled Principal Balances of all of the
      Mortgage Loans in such loan group;

     

    (xix) the
      Certificate Factor for each such Class of Certificates applicable to such
      Distribution Date;

     

    (xx) the
      Interest Distribution Amount in respect of the Class A Certificates, the
      Mezzanine Certificates and the Class CE Certificates for such Distribution
      Date
      and the Interest Carry Forward Amount, if any, with respect to the Class A
      Certificates and the Mezzanine Certificates on such Distribution Date, and
      in
      the case of the Class A Certificates and the Mezzanine Certificates separately
      identifying any reduction thereof due to allocations of Prepayment Interest
      Shortfalls and interest shortfalls including the following Realized Losses:
      Relief Act Interest Shortfalls and Net WAC Rate Carryover Amounts;

    

    
      
        
          
          

        

        
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    (xxi) the
      aggregate amount of any Prepayment Interest Shortfall for such Distribution
      Date, to the extent not covered by compensating interest payments made by the
      Servicer pursuant to the Servicing Agreement and the Master Servicer pursuant
      to
      Section 4.19 of this Agreement; 

     

    (xxii) the
      aggregate amount of Relief Act Interest Shortfalls for such Distribution
      Date;

     

    (xxiii) the
      amount of, if any, of Net Monthly Excess Cashflow or excess spread and the
      application of such Net Monthly Excess Cashflow;

     

    (xxiv) the
      Required Overcollateralization Amount and the Credit Enhancement Percentage
      for
      such Distribution Date;

     

    (xxv) the
      Overcollateralization Increase Amount, if any, for such Distribution
      Date;

     

    (xxvi) the
      Overcollateralization Reduction Amount, if any, for such Distribution
      Date;

     

    (xxvii) the
      Pass-Through Rate for each class of Certificates for such Distribution
      Date;

     

    (xxviii) the
      amount of any deposit to the Reserve Fund contemplated by
      Section 3.05(b);

     

    (xxix) the
      balance of the Reserve Fund prior to the deposit or withdrawal of any amounts
      on
      such Distribution Date;

     

    (xxx) the
      amount of any deposit to the Reserve Fund pursuant to
      Section 5.01(c)(7)(vi);

     

    (xxxi) the
      Loss
      Severity Percentage with respect to each Mortgage Loan;

     

    (xxxii) the
      Aggregate Loss Severity Percentage;

     

    (xxxiii) with
      respect to each loan group, the amount of the Prepayment Charges remitted by
      the
      Servicer; 

     

    (xxxiv) the
      amount of any Net Swap Payment payable to the Trust, any related Net Swap
      Payment payable to the Swap Provider, any Swap Termination Payment payable
      to
      the Trust and any related Swap Termination Payment payable to the Swap Provider;
      and

    

    
      
        
          
          

        

        
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    (xxxv) the
      amounts received under the Cap Contracts.

     

    The
      Securities Administrator will make such statement (and, at its option, any
      additional files containing the same information in an alternative format)
      available each month to the Certificateholders and the Rating Agencies via
      the
      Securities Administrator’s internet website. The Securities Administrator’s
      internet website shall initially be located at http:\\www.ctslink.com and
      assistance in using the website can be obtained by calling the Securities
      Administrator’s customer service desk at 1-301-815-6600. Parties that are unable
      to use the above distribution options are entitled to have a paper copy mailed
      to them via first class mail by calling the customer service desk and indicating
      such. The Securities Administrator shall have the right to change the way such
      statements are distributed in order to make such distribution more convenient
      and/or more accessible to the above parties and the Securities Administrator
      shall provide timely and adequate notification to all above parties regarding
      any such changes.

     

    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) above, the
      amounts shall be expressed as a dollar amount per Single Certificate of the
      relevant Class.

     

    Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall furnish upon request to each Person who at any time during
      the calendar year was a Holder of a Regular Certificate a statement containing
      the information set forth in subclauses (i) through (iii) above, aggregated
      for
      such calendar year or applicable portion thereof during which such person was
      a
      Certificateholder. Such obligation of the Securities Administrator shall be
      deemed to have been satisfied to the extent that substantially comparable
      information shall be provided by the Securities Administrator pursuant to any
      requirements of the Code as from time to time are in force.

     

    Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall furnish upon request to each Person who at any time during
      the calendar year was a Holder of a Residual Certificate a statement setting
      forth the amount, if any, actually distributed with respect to the Residual
      Certificates, as appropriate, aggregated for such calendar year or applicable
      portion thereof during which such Person was a Certificateholder.

     

    The
      Securities Administrator shall, upon request, furnish to each Certificateholder
      during the term of this Agreement, such periodic, special, or other reports
      or
      information, whether or not provided for herein, as shall be reasonable with
      respect to the Certificateholder, or otherwise with respect to the purposes
      of
      this Agreement, all such reports or information to be provided at the expense
      of
      the Certificateholder, in accordance with such reasonable and explicit
      instructions and directions as the Certificateholder may provide.

     

    On
      each
      Distribution Date the Securities Administrator shall provide Bloomberg Financial
      Markets, L.P. (“Bloomberg”) CUSIP level factors for each Class of Certificates
      as of such Distribution Date, using a format and media mutually acceptable
      to
      the Securities Administrator and Bloomberg.

    

    
      
        
          
          

        

        
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    SECTION
      5.03. Servicer
      Reports; P&I Advances.

     

    (a) On
      or
      before the date set forth in the Servicing Agreement, the Servicer shall deliver
      to the Master Servicer and the Securities Administrator by telecopy or
      electronic mail (or by such other means as the Servicer, the Master Servicer
      and
      the Securities Administrator may agree from time to time) a remittance report
      containing such information with respect to the related Mortgage Loans and
      the
      related Distribution Date as is required pursuant to the Servicing
      Agreement.

     

    (b) If
      a
      Monthly Payment on a Mortgage Loan or a portion thereof is delinquent as of
      its
      Due Date, other than as a result of interest shortfalls due to bankruptcy
      proceedings or application of the Relief Act, and the Servicer fails to make
      a
      P&I Advance required pursuant to the Servicing Agreement, the Master
      Servicer (in its capacity as successor to the Servicer) will be required to
      make
      such P&I Advance on the Distribution Date on which the Servicer was required
      to make such P&I Advance, subject to its determination of
      recoverability..

     

    SECTION
      5.04. Allocation
      of Realized Losses.

     

    (a) Prior
      to
      the Determination Date, the Servicer shall determine as to each Mortgage Loan
      serviced by the Servicer and any related REO Property and include in the monthly
      remittance report provided to the Master Servicer and the Securities
      Administrator pursuant to the Servicing Agreement such information as is
      reasonably available to the Servicer as the Master Servicer or the Securities
      Administrator may reasonably require so as to enable the Master Servicer to
      master service the Mortgage Loans and oversee the servicing by the Servicer
      and
      the Securities Administrator to fulfill its obligations hereunder with respect
      to securities and tax reporting, which shall include, but not be limited to:
      (i)
      the total amount of Realized Losses, if any, incurred in connection with any
      Final Recovery Determinations made during the related Prepayment Period; and
      (ii) the respective portions of such Realized Losses allocable to interest
      and
      allocable to principal. Prior to each Determination Date, the Servicer shall
      also determine as to each Mortgage Loan: (i) the total amount of Realized
      Losses, if any, incurred in connection with any Deficient Valuations made during
      the related Prepayment Period; and (ii) the total amount of Realized Losses,
      if
      any, incurred in connection with Debt Service Reductions in respect of Monthly
      Payments due during the related Due Period.

     

    (b) All
      Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest
      pursuant to Section 5.04(c) on the Mortgage Loans shall be allocated by the
      Securities Administrator on each Distribution Date as follows: first,
      to Net
      Monthly Excess Cashflow and to Net Swap Payments received from the Swap Provider
      under the Swap Agreement for that purpose; second,
      to the
      Class CE Certificates; third,
      to the
      Class M-11 Certificates, until the Certificate Principal Balance of the Class
      M-11 Certificates has been reduced to zero; fourth,
      to the
      Class M-10 Certificates, until the Certificate Principal Balance of the Class
      M-10 Certificates has been reduced to zero; fifth,
      to the
      Class M-9 Certificates, until the Certificate Principal Balance of the Class
      M-9
      Certificates has been reduced to zero; sixth,
      to the
      Class M-8 Certificates, until the Certificate Principal Balance of the Class
      M-8
      Certificates has been reduced to zero; seventh,
      to the
      Class M-7 Certificates, until the Certificate Principal Balance of the Class
      M-7
      Certificates has been reduced to zero; eighth,
      to the
      Class M-6 Certificates, until the Certificate Principal Balance of the Class
      M-6
      Certificates has been reduced to zero; ninth,
      to the
      Class M-5 Certificates, until the Certificate Principal Balance of the Class
      M-5
      Certificates has been reduced to zero; tenth,
      to the
      Class M-4 Certificates, until the Certificate Principal Balance of the Class
      M-4
      Certificates has been reduced to zero; eleventh,
      to the
      Class M-3 Certificates, until the Certificate Principal Balance of the Class
      M-3
      Certificates has been reduced to zero, twelfth,
      to the
      Class M-2 Certificates, until the Certificate Principal Balance of the Class
      M-2
      Certificates has been reduced to zero; and thirteenth,
      to the
      Class M-1 Certificates, until the Certificate Principal Balance of the Class
      M-1
      Certificates has been reduced to zero. All Realized Losses to be allocated
      to
      the Certificate Principal Balances of all Classes on any Distribution Date
      shall
      be so allocated after the actual distributions to be made on such date as
      provided above. All references above to the Certificate Principal Balance of
      any
      Class of Certificates shall be to the Certificate Principal Balance of such
      Class immediately prior to the relevant Distribution Date, before reduction
      thereof by any Realized Losses, in each case to be allocated to such Class
      of
      Certificates, on such Distribution Date.

     

    
      
        
          
          

        

        
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    Any
      allocation of Realized Losses to a Mezzanine Certificate on any Distribution
      Date shall be made by reducing the Certificate Principal Balance thereof by
      the
      amount so allocated; any allocation of Realized Losses to a Class CE Certificate
      shall be made by reducing the amount otherwise payable in respect thereof
      pursuant to Section 5.01(c)(7)(viii). No allocations of any Realized Losses
      shall be made to the Certificate Principal Balances of the Class A Certificates
      or Class P Certificates.

     

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

     

    In
      addition, in the event that the Servicer receives any Subsequent Recoveries
      with
      respect to a Mortgage Loan serviced by it, the Servicer shall deposit such
      funds
      into the Collection Account pursuant to the Servicing Agreement. 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 Certificate Principal Balance of the 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 this Section 5.04 and not
      previously reimbursed to such Class of Subordinate Certificates with Net Monthly
      Excess Cashflow pursuant to Section 5.01(c)(7). The amount of any remaining
      Subsequent Recoveries will be applied to sequentially increase the Certificate
      Principal Balance of the Subordinate Certificates, beginning with the Class
      of
      Subordinate Certificates with the next highest payment priority, up to the
      amount of such Realized Losses previously allocated to such Class of Subordinate
      Certificates pursuant to this Section 5.04 and not previously reimbursed to
      such
      Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant
      to
      Section 5.01(c)(7)(iii). 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 Certificate
      Principal Balance of each Subordinate Certificate of such Class in accordance
      with its respective Percentage Interest.

     

    
      
        
          
          

        

        
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    (c)(i) Realized
      Losses on the Group I Mortgage Loans shall be allocated on each Distribution
      Date first, to REMIC I Regular Interest I until the Uncertificated Balance
      of
      such REMIC I Regular Interest has been reduced to zero and second, to REMIC
      I
      Regular Interest I-1-A through REMIC I Regular Interest I-46-B, starting with
      the lowest numerical denomination until such REMIC I Regular Interest has been
      reduced to zero, provided that, for REMIC I Regular Interests with the same
      numerical denomination, such Realized Losses shall be allocated pro
      rata
      between
      such REMIC I Regular Interests. All Realized Losses on the Group II Mortgage
      Loans shall be allocated on each Distribution Date first, to REMIC I Regular
      Interest II until the Uncertificated Balance of such REMIC I Regular Interest
      has been reduced to zero and second, to REMIC I Regular Interest II-1-A through
      REMIC I Regular Interest II-46-B, starting with the lowest numerical
      denomination until such REMIC I Regular Interest has been reduced to zero,
      provided that, for REMIC I Regular Interests with the same numerical
      denomination, such Realized Losses shall be allocated pro
      rata
      between
      such REMIC I Regular Interests. 

     

    (ii) REMIC
      II
      Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall
      be allocated by the Securities Administrator on each Distribution Date to the
      following REMIC II Regular Interests in the specified percentages, as follows:
      first, to Uncertificated Interest payable to the REMIC II Regular Interest
      AA
      and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC
      II
      Interest Loss Allocation Amount, 98.00% and 2.00%, respectively; second, to
      the
      Uncertificated Balances of the REMIC II Regular Interest AA and REMIC II Regular
      Interest ZZ up to an aggregate amount equal to the REMIC II Principal Loss
      Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated
      Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-11 and
      REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until
      the
      Uncertificated Balance of REMIC II Regular Interest M-11 has been reduced to
      zero; fourth, to the Uncertificated Balances of REMIC II Regular Interest AA,
      REMIC II Regular Interest M-10 and REMIC II Regular Interest ZZ, 98.00%, 1.00%
      and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular
      Interest M-10 has been reduced to zero; fifth, to the Uncertificated Balances
      of
      REMIC II Regular Interest AA, REMIC II Regular Interest M-9 and REMIC II Regular
      Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated
      Balance of REMIC II Regular Interest M-9 has been reduced to zero; sixth, to
      the
      Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
      Interest M-8 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC II Regular Interest
      M-8
      has been reduced to zero; seventh, to the Uncertificated Balances of REMIC
      II
      Regular Interest AA, REMIC II Regular Interest M-7 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance
      of
      REMIC II Regular Interest M-7 has been reduced to zero; eighth, to the
      Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
      Interest M-6 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC II Regular Interest
      M-6
      has been reduced to zero; ninth, to the Uncertificated Balances of REMIC II
      Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance
      of
      REMIC II Regular Interest M-5 has been reduced to zero; tenth, to the
      Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
      Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC II Regular Interest
      M-4
      has been reduced to zero; eleventh, to the Uncertificated Balances of REMIC
      II
      Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance
      of
      REMIC II Regular Interest M-3 has been reduced to zero; twelfth, to the
      Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
      Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC II Regular Interest
      M-2
      has been reduced to zero; and thirteenth, to the Uncertificated Balances of
      REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular
      Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated
      Balance of REMIC II Regular Interest M-1 has been reduced to zero.

    

    
      
        
          
          

        

        
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    (iii) The
      REMIC
      II Sub WAC Allocation Percentage of all Realized Losses shall be applied after
      all distributions have been made on each Distribution Date first, so as to
      keep
      the Uncertificated Balance of each REMIC II Regular Interest ending with the
      designation “GRP” equal to 0.01% of the aggregate Stated Principal Balance of
      the Mortgage Loans in the related loan group; second, to each REMIC II Regular
      Interest ending with the designation “SUB,” so that the Uncertificated Balance
      of each such REMIC II Regular Interest is equal to 0.01% of the excess of (x)
      the aggregate Stated Principal Balance of the Mortgage Loans in the related
      loan
      group over (y) the current Certificate Principal Balance of the Class A
      Certificate in the related loan group (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 II Regular Interests such that
      the REMIC II Subordinated Balance Ratio is maintained); and third, any remaining
      Realized Losses shall be allocated to REMIC II Regular Interest XX.

     

    SECTION
      5.05. Compliance
      with Withholding Requirements.

     

    Notwithstanding
      any other provision of this Agreement, the Trustee and the Securities
      Administrator shall comply with all federal withholding requirements respecting
      payments to Certificateholders of interest or original issue discount 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
      Securities Administrator does withhold any amount from interest or original
      issue discount payments or advances thereof to any Certificateholder pursuant
      to
      federal withholding requirements, the Securities Administrator shall indicate
      the amount withheld to such Certificateholders.

     

    SECTION
      5.06. Reports
      Filed with Securities and Exchange Commission.

     

    (a) i) Within
      15
      days after each Distribution Date (subject to permitted extensions under the
      Exchange Act), the Securities Administrator shall prepare and file on behalf
      of
      the Trust any Form 10-D required by the Exchange Act, in form and substance
      as
      required by the Exchange Act. The Securities Administrator shall file each
      Form
      10-D with a copy of the related Monthly Statement attached thereto. Any
      disclosure in addition to the Monthly Statement that is required to be included
      on Form 10-D (“Additional Form 10-D Disclosure”) shall be reported by the
      parties set forth on Exhibit G to the Depositor and the Securities Administrator
      and directed and approved by the Depositor pursuant to the following paragraph,
      and the Securities Administrator will have no duty or liability for any failure
      hereunder to determine or prepare any Additional Form 10-D Disclosure, except
      as
      set forth in the next paragraph. 

    

    
      
        
          
          

        

        
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    (ii) As
      set
      forth on Exhibit G hereto, within 5 calendar days after the related Distribution
      Date, (A) certain parties to the ACE Securities Corp., Home Equity Loan Trust,
      Series 2006-CW1 transaction shall be required to provide to the Securities
      Administrator and the Depositor, to the extent known by a responsible officer
      thereof, in EDGAR-compatible form, or in such other form as otherwise agreed
      upon by the Securities Administrator and such party, the form and substance
      of
      any Additional Form 10-D Disclosure, if applicable, together with an Additional
      Disclosure Notification in the form of Exhibit H hereto (an “Additional
      Disclosure Notification”) and (B) the Depositor will approve, as to form and
      substance, or disapprove, as the case may be, the inclusion of the Additional
      Form 10-D Disclosure on Form 10-D. The Depositor will be responsible for any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-D Disclosure
      on Form 10-D pursuant to this paragraph. 

     

    (iii) After
      preparing the Form 10-D, the Securities Administrator shall forward
      electronically a copy of the Form 10-D to the Depositor (provided that such
      Form
      10-D includes any Additional Form 10-D Disclosure). Within two Business Days
      after receipt of such copy, but no later than the 12th calendar day after the
      Distribution Date, the Depositor shall notify the Securities Administrator
      in
      writing (which may be furnished electronically) of any changes to or approval
      of
      such Form 10-D. In the absence of receipt of any written changes or approval
      by
      the due date specified herein, or if the Depositor does not request a copy
      of a
      Form 10-D, the Securities Administrator shall be entitled to assume that such
      Form 10-D is in final form and the Securities Administrator may proceed with
      the
      execution and filing of the Form 10-D. A duly authorized representative of
      the
      Master Servicer shall sign each Form 10-D. If a Form 10-D cannot be filed on
      time or if a previously filed Form 10-D needs to be amended, the Securities
      Administrator will follow the procedures set forth in Section 5.06(c)(ii).
      Promptly (but no later than 1 Business Day) after filing with the Commission,
      the Securities Administrator will make available on its internet website a
      final
      executed copy of each Form 10-D filed by the Securities Administrator. Each
      party to this Agreement acknowledges that the performance by the Securities
      Administrator and the Master Servicer of their duties under this Section 5.06(a)
      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 as set forth in this Agreement. Neither the
      Securities Administrator nor the Master Servicer 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 the Securities Administrator’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-D, not resulting from
      its
      own negligence, bad faith or willful misconduct.

     

    (b) (i) Within
      four (4) Business Days after the occurrence of an event requiring disclosure
      on
      Form 8-K (each such event, a “Reportable Event”), and if requested by the
      Depositor, the Securities Administrator shall prepare and file on behalf of
      the
      Trust a 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 other than the initial
      Form 8K (“Form 8-K Disclosure Information”) shall be reported by the parties set
      forth on Exhibit G to the Depositor and the Securities Administrator and
      directed and approved by the Depositor pursuant to the following paragraph,
      and
      the Securities Administrator will have no duty or liability for any failure
      hereunder to determine or prepare any Form 8-K Disclosure Information or any
      Form 8-K, except as set forth in the next paragraph. 

    

    
      
        
          
          

        

        
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    (ii) As
      set
      forth on Exhibit G hereto, for so long as the Trust is subject to the Exchange
      Act reporting requirements, no later than the close of business New York City
      time on the 2nd Business Day after the occurrence of a Reportable Event (i)
      the
      parties to the ACE Securities Corp., Home Equity Loan Trust, Series 2006-CW1
      transaction shall be required to provide to the Securities Administrator and
      the
      Depositor, to the extent known by a responsible officer thereof, in
      EDGAR-compatible form, or in such other form as otherwise agreed upon by the
      Securities Administrator and such party, the form and substance of any Form
      8-K
      Disclosure Information, if applicable, together with an Additional Disclosure
      Notification, and (ii) the Depositor will approve, as to form and substance,
      or
      disapprove, as the case may be, the inclusion of the Form 8-K Disclosure
      Information. The Depositor will be responsible for any reasonable fees and
      expenses assessed or incurred by the Securities Administrator in connection
      with
      including any Form 8-K Disclosure Information on Form 8-K pursuant to this
      paragraph. 

     

    (iii) After
      preparing the Form 8-K, the Securities Administrator shall, upon request,
      forward electronically a copy of the Form 8-K to the Depositor. Promptly, but
      no
      later than the close of business on the third Business Day after the Reportable
      Event, the Depositor shall notify the Securities Administrator in writing (which
      may be furnished electronically) of any changes to or approval of such Form
      8-K.
      In the absence of receipt of any written changes or approval by the third
      Business Day, or if the Depositor does not request a copy of a Form 8-K, the
      Securities Administrator shall be entitled to assume that such Form 8-K is
      in
      final form and the Securities Administrator may proceed with the execution
      and
      filing of the Form 8-K. A duly authorized representative of the Master Servicer
      shall sign each Form 8-K. If a Form 8-K cannot be filed on time or if a
      previously filed Form 8-K needs to be amended, the Securities Administrator
      will
      follow the procedures set forth in Section 5.06(c)(ii). Promptly (but no later
      than 1 Business Day) after filing with the Commission, the Securities
      Administrator will, make available on its internet website a final executed
      copy
      of each Form 8-K that has been prepared and filed by the Securities
      Administrator. The parties to this Agreement acknowledge that the performance
      by
      the Master Servicer and the Securities Administrator of their duties under
      this
      Section 5.06(b) 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 Agreement. Neither the Master
      Servicer nor the Securities Administrator shall have any liability for any
      loss,
      expense, damage, claim arising out of or with respect to any failure to properly
      prepare, execute and/or timely file such Form 8-K, where such failure results
      from the Securities Administrator’s inability or failure to receive, on a timely
      basis, any information from any other party hereto needed to prepare, execute
      or
      arrange for execution or file such Form 8-K, not resulting from its own
      negligence, bad faith or willful misconduct.

     

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

    

    
      
        
          
          

        

        
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    (ii) In
      the
      event that the Securities Administrator is unable to timely file with the
      Commission all or any required portion of any Form 8-K, 10-D or 10-K required
      to
      be filed by this Agreement because required disclosure information was either
      not delivered to it or delivered to it after the delivery deadlines set forth
      in
      this Agreement or for any other reason, the Securities Administrator will
      promptly electronically notify the Depositor. In the case of Form 10-D and
      10-K,
      the parties to this Agreement will cooperate to prepare and file a Form 12b-25
      and a 10-DA and 10-KA, as applicable, pursuant to Rule 12b-25 of the Exchange
      Act. In the case of Form 8-K, the Securities Administrator will, upon receipt
      of
      all required Form 8-K Disclosure Information and upon the approval and direction
      of the Depositor, include such disclosure information on the next Form 10-D.
      In
      the event that any previously filed Form 8-K, 10-D or 10-K needs to be amended
      and such amendment includes any Additional Form 10-D Disclosure (other than
      for
      the purposes of restating any Monthly Report), any Additional Form 10-K
      Disclosure or any Form 8-K Disclosure Information or any amendment to such
      disclosure, the Securities Administrator will electronically notify the
      Depositor only if the amendment pertains to an additional reporting item being
      revised and/or amended on such form, but not if an amendment is being filed
      as a
      result of a Remittance Report revision, and the Depositor will cooperate with
      the Securities Administrator in preparing any necessary 8-KA, 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 a duly authorized representative or senior officer in charge of master
      servicing, as applicable, of the Master Servicer. The parties to this Agreement
      acknowledge that the performance by the Securities Administrator and the Master
      Servicer of their duties under this Section 5.06(c) 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 each such party performing its duties
      under this Agreement. Neither the Master Servicer nor the Securities
      Administrator shall have any liability for any loss, expense, damage, claim
      arising out of or with respect to any failure to properly prepare, execute
      and/or timely file any such Form 15, Form 12b-25 or any amendments to Forms
      8-K,
      10-D or 10-K, where such failure results from the Securities Administrator’s
      inability or failure to receive, on a timely basis, any information from any
      other party hereto needed to prepare, execute or arrange for execution or file
      such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, not
      resulting from its own negligence, bad faith or willful misconduct.

     

    (d) (i) On
      or
      prior to the 90th day after the end of each fiscal year of the Trust or such
      earlier date as may be required by the Exchange Act (the “10-K Filing Deadline”)
      (it being understood that the fiscal year for the Trust ends on December 31st
      of
      each year), commencing in March 2007, the Securities Administrator shall prepare
      and file on behalf of the Trust a Form 10-K, in form and substance as required
      by the Exchange Act. Each such Form 10-K shall include the following items,
      in
      each case to the extent they have been delivered to the Securities Administrator
      within the applicable time frames set forth in this Agreement, the related
      servicing agreement and custodial agreements, (i) an annual compliance statement
      for each Servicer, each Additional Servicer, the Master Servicer, the Securities
      Administrator and any Servicing Function Participant engaged by such parties
      (each, a “Reporting Servicer”) as described under Section 4.15 and in such other
      agreements, (ii)(A) the annual reports on assessment of compliance with
      servicing criteria for each Reporting Servicer, as described under Section
      4.16
      and in such other agreements, and (B) if each Reporting Servicer’s report on
      assessment of compliance with servicing criteria described under Section 4.16
      identifies any material instance of noncompliance, disclosure identifying such
      instance of noncompliance, or if each Reporting Servicer’s report on assessment
      of compliance with servicing criteria described under Section 4.16 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 Reporting
      Servicer, as described under Section 4.17, and (B) if any registered public
      accounting firm attestation report described under Section 4.17 identifies
      any
      material instance of noncompliance, disclosure identifying such instance of
      noncompliance, or if any such registered public accounting firm attestation
      report is not included as an exhibit to such Form 10-K, disclosure that such
      report is not included and an explanation why such report is not included,
      and
      (iv) a Sarbanes-Oxley Certification (“Sarbanes-Oxley Certification”) as
      described in Section 4.18 (provided, however, that the Securities Administrator,
      at its discretion, may omit from the Form 10-K any annual compliance statement,
      assessment of compliance or attestation report that is not required to be filed
      with such Form 10-K pursuant to Regulation AB). Any disclosure or information
      in
      addition to (i) through (iv) above that is required to be included on Form
      10-K
      (“Additional Form 10-K Disclosure”) reported by the parties set forth on Exhibit
      G to the Depositor and the Securities Administrator and directed and approved
      by
      the Depositor pursuant to the following paragraph, and the Securities
      Administrator will have no duty or liability for any failure hereunder to
      determine or prepare any Additional Form 10-K Disclosure, except as set forth
      in
      the next paragraph. 

    

    
      
        
          
          

        

        
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    (ii) As
      set
      forth on Exhibit G hereto, no later than March 15 of each year that the Trust
      is
      subject to the Exchange Act reporting requirements, commencing in 2007, (i)
      the
      parties to the ACE Securities Corp., Home Equity Loan Trust, Series 2006-CW1
      transaction shall be required to provide to the Securities Administrator and
      the
      Depositor, to the extent known by a responsible officer thereof, in
      EDGAR-compatible form, or in such other form as otherwise agreed upon by the
      Securities Administrator and such party, the form and substance of any
      Additional Form 10-K Disclosure, if applicable, together with an Additional
      Disclosure Notification, 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 will be responsible for any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-K Disclosure
      on Form 10-K pursuant to this paragraph.

     

    (iii) After
      preparing the Form 10-K, the Securities Administrator shall, upon request,
      forward electronically a copy of the Form 10-K to the Depositor. Within three
      Business Days after receipt of such copy, but in no event later than March
      25th
      of each year that the Trust is subject to Exchange Act reporting requirements,
      the Depositor shall notify the Securities Administrator in writing (which may
      be
      furnished electronically) of any changes to or approval of such Form 10-K.
      In
      the absence of receipt of any written changes or approval by March 25th, or
      if
      the Depositor does not request a copy of a Form 10-K, the Securities
      Administrator shall be entitled to assume that such Form 10-K is in final form
      and the Securities Administrator may proceed with the execution and filing
      of
      the Form 10-K. A senior officer of the Master Servicer in charge of the master
      servicing function shall sign the Form 10-K. If a Form 10-K cannot be filed
      on
      time or if a previously filed Form 10-K needs to be amended, the Securities
      Administrator will follow the procedures set forth in Section 5.06(c)(ii).
      Promptly (but no later than 1 Business Day) after filing with the Commission,
      the Securities Administrator will make available on its internet website a
      final
      executed copy of each Form 10-K filed by the Securities Administrator. The
      parties to this Agreement acknowledge that the performance by the Master
      Servicer and the Securities Administrator of their respective duties under
      the
      Servicing Agreement, this Section 5.06(d) related to the timely preparation,
      execution and filing of Form 10-K is contingent upon such parties (and any
      Additional Servicer or Servicing Function Participant) strictly observing all
      applicable deadlines in the performance of their duties under this Section
      5.06(d) and Section 4.16, Section 4.17 and Section 4.18 of this Agreement.
      Neither the Master Servicer nor the Securities Administrator 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 such Form 10-K,
      where such failure results from the Securities Administrator’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.

     

    
      
        
          
          

        

        
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    (e) Each
      of
      Form 10-D and 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 hereby
      represents to the Securities Administrator that the Depositor has filed all
      such
      required reports during the preceding 12 months and that it has been subject
      to
      such filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than the fifth calendar day after
      the related Distribution Date with respect to the filing of a report on Form
      10-D and no later than March 15th
      with
      respect to the filing of a report on Form 10-K, if the answer to the question
      should be “no” as a result of filings that relate to other securitization
      transactions of the Depositor for which the Securities Administrator does not
      have the obligation to prepare and file Exchange Act reports.

     

    (f) The
      Securities Administrator shall indemnify and hold harmless the Depositor, the
      Trustee and their respective officers, directors and Affiliates from and against
      any losses, damages, penalties, fines, forfeitures, reasonable and necessary
      legal fees and related costs, judgments and other costs and expenses arising
      out
      of or based upon a breach of the Master Servicer’s obligations under this
      Section 5.06 or the Master Servicer’s negligence, bad faith or willful
      misconduct in connection therewith. 

     

    (g) Notwithstanding
      the provisions of Section 12.01, this Section 5.06 may be amended without the
      consent of the Certificateholders.

     

    SECTION
      5.07. Supplemental
      Interest Trust.

     

    (a) On
      the
      Closing Date, the Securities Administrator shall establish and maintain in
      the
      name of the Trustee a separate account for the benefit of the holders of the
      Class A Certificates and Mezzanine Certificates (the “Supplemental Interest
      Trust”). The Supplemental Interest Trust shall be an Eligible Account, and funds
      on deposit therein shall be held separate and apart from, and shall not be
      commingled with, any other moneys, including, without limitation, other moneys
      of the Trustee or of the Securities Administrator held pursuant to this
      Agreement. 

     

    (b) On
      each
      Distribution Date, the Securities Administrator shall deposit into the
      Supplemental Interest Trust amounts distributable to the Swap Provider by the
      Supplemental Interest Trust pursuant to Section 5.01(c)(2), (3), (5) and
      (6) and Section 5.01(c)(7)(vii)
      of this
      Agreement. On each Distribution Date, the Securities Administrator shall
      distribute any such amounts to the Swap Provider pursuant to the Swap Agreement,
      first to pay any Net Swap Payment owed to the Swap Provider for such
      Distribution Date, and second to pay any Swap Termination Payment owed to the
      Swap Provider not due to a Swap Provider Trigger Event.

    

    
      
        
          
          

        

        
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    (c) The
      Supplemental Interest Trust constitutes an “outside reserve fund” within the
      meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC.
      The Holders of the Class CE Certificates shall be the beneficial owner of the
      Supplemental Interest Trust, subject to the power of the Securities
      Administrator to transfer amounts under this Agreement. The Securities
      Administrator shall keep records that accurately reflect the funds on deposit
      in
      the Supplemental Interest Trust. The Securities Administrator shall, at the
      written direction of the majority of the Class CE Certificateholders, invest
      amounts on deposit in the Supplemental Interest Trust in Permitted Investments.
      In the absence of written direction to the Securities Administrator from the
      majority of the Class CE Certificateholders, all funds in the Supplemental
      Interest Trust shall remain uninvested. On each Distribution Date, the
      Securities Administrator shall distribute, not in respect of any REMIC, any
      interest earned on the Supplemental Interest Trust to the Holders of the Class
      CE Certificates.

     

    (d) For
      federal income tax purposes, amounts paid to the Supplemental Interest Trust
      on
      each Distribution Date pursuant to Section 5.01(c)(2), (3), (4), (6) and
      (7) and Section 5.01(c)(7)(vii) shall first be deemed paid to the
      Supplemental Interest Trust in respect of the Class IO Interest to the extent
      of
      the amount distributable on such Class IO Interest on such Distribution Date,
      and any remaining amount shall be deemed paid to the Supplemental Interest
      Trust
      in respect of a Class IO Distribution Amount. It is the intention of the parties
      hereto that, for federal and state income and state and local franchise tax
      purposes, the Supplemental Interest Trust be disregarded as an entity separate
      from the Holder of the Class CE Certificates unless and until the date when
      either (a) there is more than one Class CE Certificateholder or (b) any Class
      of
      Certificates in addition to the Class CE Certificates is recharacterized as
      an
      equity interest in the Supplemental Interest Trust for federal income tax
      purposes, in which case it is the intention of the parties hereto that, for
      federal and state income and state and local franchise tax purposes, the
      Supplemental Interest Trust be treated as a partnership. The Master Servicer
      shall not be required to prepare and file partnership tax returns in respect
      of
      such partnership unless it receives additional reasonable compensation (not
      to
      exceed $10,000 per year) for the preparation of such filings, written
      notification recognizing the creation of a partnership agreement or comparable
      documentation evidencing the partnership. 

     

    (e) The
      Securities Administrator shall treat the Holders of Certificates (other than
      the
      Class P, Class CE and Residual Certificates) as having entered into a notional
      principal contract with respect to the Holders of the Class CE Certificates.
      Pursuant to each such notional principal contract, all Holders of Certificates
      (other than the Class P, Class CE and Residual Certificates) shall be treated
      as
      having agreed to pay, on each Distribution Date, to the Holder of the Class
      CE
      Certificates an aggregate amount equal to the excess, if any, of (i) the amount
      payable on such Distribution Date on the Regular Interest ownership of which
      is
      represented by such Class of Certificates over (ii) the amount payable on such
      Class of Certificates on such Distribution Date (such excess, a “Class IO
      Distribution Amount”). A Class IO Distribution Amount payable from interest
      collections shall be allocated pro rata among such Certificates based on the
      amount of interest otherwise payable to such Certificates, and a Class IO
      Distribution Amount payable from principal collections shall be allocated to
      the
      most subordinate Class of such Certificates with an outstanding principal
      balance to the extent of such balance. In addition, pursuant to such notional
      principal contract, the Holder of the Class CE Certificates shall be treated
      as
      having agreed to pay Net WAC Rate Carryover Amounts to the Holders of the
      Certificates (other than the Class CE, Class P and Residual Certificates) in
      accordance with the terms of this Agreement. Any payments to such Certificates
      from amounts deemed received in respect of this notional principal contract
      shall not be payments with respect to a Regular Interest in a REMIC within
      the
      meaning of Code Section 860G(a)(1). However, any payment from the Certificates
      (other than the Class CE, Class P and Residual Certificates) of a Class IO
      Distribution Amount shall be treated for tax purposes as having been received
      by
      the Holders of such Certificates in respect of the Regular Interest ownership
      of
      which is represented by such Certificates, and as having been paid by such
      Holders to the Supplemental Interest Trust pursuant to the notional principal
      contract. Thus, each Certificate (other than the Class P Certificates and
      Residual Certificates) shall be treated as representing not only ownership
      of a
      Regular Interest in REMIC III, but also ownership of an interest in, and
      obligations with respect to, a notional principal contract.

    

    
      
        
          
          

        

        
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    (f) For
      federal tax return and information reporting, the right of the holders of the
      Class A Certificates and Mezzanine Certificates to receive payments from the
      Supplemental Interest Trust shall be assigned a value of $1,000.

     

    (g) In
      the
      event that the Swap Agreement is terminated prior to the Distribution Date
      in
      April 2010, the Sponsor shall use reasonable efforts to appoint a successor
      swap
      provider using any Swap Termination Payments paid by the Swap Provider. If
      the
      Sponsor is unable to locate a qualified successor swap provider, any such Swap
      Termination Payments will be remitted to the Securities Administrator for
      payment to the holders of the Class A Certificates and Mezzanine Certificates
      in
      accordance with Section 5.01(c).

     

    SECTION
      5.08. Tax
      Treatment of Swap Payments and Swap Termination Payments.

     

    For
      federal income tax purposes, each holder of an Class A Certificate and Mezzanine
      Certificate is deemed to own an undivided beneficial ownership interest in
      a
      REMIC regular interest and the right to receive payments from either the Reserve
      Fund or the Supplemental Interest Trust in respect of any Net WAC Rate Carryover
      Amounts or the obligation to make payments to the Supplemental Interest Trust.
      For federal income tax purposes, the Securities Administrator will account
      for
      payments to each Class A Certificate and Mezzanine Certificate as follows:
      each
      Class A Certificate and Mezzanine Certificate will be treated as receiving
      their
      entire payment from REMIC III (regardless of any Swap Termination Payment or
      obligation under the Swap Agreement) and subsequently paying their portion
      of
      any Swap Termination Payment in respect of each such Class’s obligation under
      the Swap Agreement. In the event that any such Class is resecuritized in a
      REMIC, the obligation under the Swap Agreement to pay any such Swap Termination
      Payment (or any shortfall in Net Swap Payment), will be made by one or more
      of
      the REMIC Regular Interests issued by the resecuritization REMIC subsequent
      to
      such REMIC Regular Interest receiving its full payment from any such Class
      A
      Certificate or Mezzanine Certificate. 

    

    
      
        
          
          

        

        
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    The
      REMIC
      Regular Interest corresponding to a Class A Certificate or Mezzanine Certificate
      will be entitled to receive interest and principal payments at the times and
      in
      the amounts equal to those made on the certificate to which it corresponds,
      except that (i) the maximum interest rate of that REMIC regular interest will
      equal the Net WAC Pass-Through Rate computed for this purpose by limiting the
      Swap Notional Amount of the Swap Agreement to the aggregate Stated Principal
      Balance of the Mortgage Loans and (ii) any Swap Termination Payment will be
      treated as being payable solely from amounts otherwise payable to the Class
      CE
      Certificates. As a result of the foregoing, the amount of distributions and
      taxable income on the REMIC Regular Interest corresponding to a Class A
      Certificate or Mezzanine Certificate may exceed the actual amount of
      distributions on the Class A Certificate or Mezzanine Certificate.

    

    
      
        
          
          

        

        
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    ARTICLE
      VI

     

    THE
      CERTIFICATES

     

    SECTION
      6.01. The
      Certificates.

     

    (a) The
      Certificates in the aggregate will represent the entire beneficial ownership
      interest in the Mortgage Loans and all other assets included in REMIC I, REMIC
      II and REMIC III.

     

    The
      Certificates will be substantially in the forms annexed hereto as Exhibits
      A-1
      through A-6. The Certificates of each Class will be issuable in registered
      form
      only, in denominations of authorized Percentage Interests as described in the
      definition thereof. Each Certificate will share ratably in all rights of the
      related Class.

     

    Upon
      original issue, the Certificates shall be executed and authenticated by the
      Securities Administrator and delivered by the Trustee to and upon the written
      order of the Depositor. The Certificates shall be executed by manual or
      facsimile signature on behalf of the Trust by the Securities Administrator
      by an
      authorized signatory. Certificates bearing the manual or facsimile signatures
      of
      individuals who were at any time the proper officers of the Securities
      Administrator shall bind the Trust, notwithstanding that such individuals or
      any
      of them have ceased to hold such offices prior to the authentication and
      delivery of such Certificates or did not hold such offices at the date of such
      Certificates. No Certificate shall be entitled to any benefit under this
      Agreement or be valid for any purpose, unless there appears on such Certificate
      a certificate of authentication substantially in the form provided herein
      executed by the Securities Administrator by manual signature, and such
      certificate of authentication shall be conclusive evidence, and the only
      evidence, that such Certificate has been duly authenticated and delivered
      hereunder. All Certificates shall be dated the date of their
      authentication.

     

    (b) The
      Class
      A Certificates and the Mezzanine Certificates shall initially be issued as
      one
      or more Certificates held by the Book-Entry Custodian or, if appointed to hold
      such Certificates as provided below, the Depository and registered in the name
      of the Depository or its nominee and, except as provided below, registration
      of
      such Certificates may not be transferred by the Securities Administrator except
      to another Depository that agrees to hold such Certificates for the respective
      Certificate Owners with Ownership Interests therein. The Certificate Owners
      shall hold their respective Ownership Interests in and to such Certificates
      through the book-entry facilities of the Depository and, except as provided
      below, shall not be entitled to definitive, fully registered Certificates
      (“Definitive Certificates”) in respect of such Ownership Interests. All
      transfers by Certificate Owners of their respective Ownership Interests in
      the
      Book-Entry Certificates shall be made in accordance with the procedures
      established by the Depository Participant or brokerage firm representing such
      Certificate Owner. Each Depository Participant shall only transfer the Ownership
      Interests in the 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. The Securities Administrator is hereby initially
      appointed as the Book-Entry Custodian and hereby agrees to act as such in
      accordance herewith and in accordance with the agreement that it has with the
      Depository authorizing it to act as such. The Book-Entry Custodian may, and,
      if
      it is no longer qualified to act as such, the Book-Entry Custodian shall,
      appoint, by a written instrument delivered to the Depositor, the Servicer and,
      if the Trustee is not the Book-Entry Custodian, the Trustee, any other transfer
      agent (including the Depository or any successor Depository) to act as
      Book-Entry Custodian under such conditions as the predecessor Book-Entry
      Custodian and the Depository or any successor Depository may prescribe, provided
      that the predecessor Book-Entry Custodian shall not be relieved of any of its
      duties or responsibilities by reason of any such appointment of other than
      the
      Depository. If the Securities Administrator resigns or is removed in accordance
      with the terms hereof, the successor Securities Administrator or, if it so
      elects, the Depository shall immediately succeed to its predecessor’s duties as
      Book-Entry Custodian. The Depositor shall have the right to inspect, and to
      obtain copies of, any Certificates held as Book-Entry Certificates by the
      Book-Entry Custodian.

    

    
      
        
          
          

        

        
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    (c) The
      Class
      M-10, Class M-11 and Class CE Certificates initially offered and sold in
      offshore transactions in reliance on Regulation S shall be issued in the form
      of
      a temporary global certificate in definitive, fully registered form (each,
      a
“Regulation S Temporary Global Certificate”), which shall be deposited with the
      Securities Administrator or an agent of the Securities Administrator as
      custodian for the Depository and registered in the name of Cede & Co. as
      nominee of the Depository for the account of designated agents holding on behalf
      of Euroclear or Clearstream. Beneficial interests in each Regulation S Temporary
      Global Certificate may be held only through Euroclear or Clearstream; provided,
      however, that such interests may be exchanged for interests in a Definitive
      Certificate in accordance with the requirements described in Section 6.02.
      After
      the expiration of the Release Date, a beneficial interest in a Regulation S
      Temporary Global Certificate may be exchanged for a beneficial interest in
      the
      related permanent global certificate of the same Class (each, a “Regulation S
      Permanent Global Certificate”), in accordance with the procedures set forth in
      Section 6.02. Each Regulation S Permanent Global Certificate shall be deposited
      with the Securities Administrator or an agent of the Securities Administrator
      as
      custodian for the Depository and registered in the name of Cede & Co. as
      nominee of the Depository.

     

    (d) The
      Class
      M-10 Certificates and Class M-11 Certificates offered and sold to Qualified
      Institutional Buyers (“QIBs”) in reliance on Rule 144A under the Securities Act
      (“Rule 144A”) or institutional investors that are accredited investors within
      the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
      Securities Act (“Institutional Accredited Investors”) will be issued in the form
      of Book-Entry Certificates.

     

    The
      Class
      CE Certificates and Class P Certificates offered and sold to QIBs in reliance
      on
      Rule 144A will be issued in the form of Definitive Certificates.

     

    (e) The
      Trustee, the Servicer, the Securities Administrator, the Master Servicer and
      the
      Depositor may for all purposes (including the making of payments due on the
      Book-Entry Certificates and Global Certificates) deal with the Depository as
      the
      authorized representative of the Certificate Owners with respect to the
      Book-Entry Certificates and Global Certificates for the purposes of exercising
      the rights of Certificateholders hereunder. The rights of Certificate Owners
      with respect to the Book-Entry Certificates and Global Certificates shall be
      limited to those established by law and agreements between such Certificate
      Owners and the Depository Participants and brokerage firms representing such
      Certificate Owners. Multiple requests and directions from, and votes of, the
      Depository as Holder of the Book-Entry Certificates and Global Certificates
      with
      respect to any particular matter shall not be deemed inconsistent if they are
      made with respect to different Certificate Owners. The Securities Administrator
      may establish a reasonable record date in connection with solicitations of
      consents from or voting by Certificateholders and shall give notice to the
      Depository of such record date.

    

    
      
        
          
          

        

        
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    If
      (i)(A)
      the Depositor advises the Securities Administrator 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, (ii) the Depositor at its option advises the Securities
      Administrator in writing that it elects to terminate the book-entry system
      through the Depository or (iii) after the occurrence of the Servicer Event
      of
      Default, Certificate Owners representing in the aggregate not less than 51%
      of
      the Ownership Interests of the Book-Entry Certificates advise the Securities
      Administrator through the Depository, in writing, that the continuation of
      a
      book-entry system through the Depository is no longer in the best interests
      of
      the Certificate Owners, the Securities Administrator shall notify all
      Certificate Owners, through the Depository, of the occurrence of any such event
      and of the availability of Definitive Certificates to Certificate Owners
      requesting the same. With respect to a Global Certificate, the related
      Certificate Owner (other than a Holder of a Regulation S Temporary Global
      Certificate) may request that its interest in a Global Certificate be exchanged
      for a Definitive Certificate. Upon surrender to the Securities Administrator
      of
      the Book-Entry Certificates by the Book-Entry Custodian or the Depository,
      as
      applicable, or the Global Certificates by the Depository accompanied by
      registration instructions from the Depository for registration of transfer,
      the
      Securities Administrator shall cause the Definitive Certificates to be issued.
      Such Definitive Certificates will be issued in minimum denominations of $10,000
      except that any beneficial ownership that was represented by a Book-Entry
      Certificate, or a Global Certificate, as applicable in an amount less than
      $10,000 immediately prior to the issuance of a Definitive Certificate shall
      be
      issued in a minimum denomination equal to the amount represented by such
      Book-Entry Certificate or a Global Certificate, as applicable. None of the
      Depositor, the Servicer, the Master Servicer, the Securities Administrator
      or
      the Trustee shall be liable for any delay in the delivery of such instructions
      and may conclusively rely on, and shall be protected in relying on, such
      instructions. Upon the issuance of Definitive Certificates all references herein
      to obligations imposed upon or to be performed by the Depository shall be deemed
      to be imposed upon and performed by the Securities Administrator, to the extent
      applicable with respect to such Definitive Certificates, and the Securities
      Administrator shall recognize the Holders of the Definitive Certificates as
      Certificateholders hereunder.

     

    SECTION
      6.02. Registration
      of Transfer and Exchange of Certificates.

     

    (a) The
      Securities Administrator shall cause to be kept at one of the offices or
      agencies to be appointed by the Securities Administrator in accordance with
      the
      provisions of Section 9.11, a Certificate Register for the Certificates in
      which, subject to such reasonable regulations as it may prescribe, the
      Securities Administrator shall provide for the registration of Certificates
      and
      of transfers and exchanges of Certificates as herein provided.

     

    (b) No
      transfer of any Class
      M-10 Certificate, Class M-11 Certificate,
      Class
      CE Certificate, Class P Certificate or Residual Certificate shall be made unless
      that transfer is made pursuant to an effective registration statement under
      the
      Securities Act, and effective registration or qualification under applicable
      state securities laws, or is made in a transaction that does not require such
      registration or qualification. In the event that such a transfer of a Class
      M-10
      Certificate, Class M-11 Certificate, Class CE Certificate, Class P Certificate
      or Residual Certificate is to be made without registration or qualification
      (other than in connection with the initial transfer of any such Certificate
      by
      the Depositor), the Securities Administrator shall require receipt of: (i)
      if
      such transfer is purportedly being made in reliance upon Rule 144A under the
      Securities Act, written certifications from the Certificateholder desiring
      to
      effect the transfer and from such Certificateholder’s prospective transferee,
      substantially in the form attached hereto as Exhibit B-1; (ii) if such transfer
      is purportedly being made in reliance upon Rule 501(a) under the Securities
      Act,
      written certifications from the Certificateholder desiring to effect the
      transfer and from such Certificateholder’s prospective transferee, substantially
      in the form attached hereto as Exhibit B-2, (iii) if such transfer is
      purportedly being made in reliance on Regulation S, a written certification
      from
      the prospective transferee, substantially in the form attached hereto as Exhibit
      B-1 and (iv) in all other cases, an Opinion of Counsel satisfactory to the
      Securities Administrator that such transfer may be made without such
      registration or qualification (which Opinion of Counsel shall not be an expense
      of the Trust Fund or of the Depositor, the Trustee, the Master Servicer, the
      Securities Administrator or the Servicer), together with copies of the written
      certification(s) of the Certificateholder desiring to effect the transfer and/or
      such Certificateholder’s prospective transferee upon which such Opinion of
      Counsel is based, if any. Neither of the Depositor nor the Securities
      Administrator is obligated to register or qualify any such Certificates under
      the Securities Act or any other securities laws or to take any action not
      otherwise required under this Agreement to permit the transfer of such
      Certificates without registration or qualification. Any Certificateholder
      desiring to effect the transfer of any such Certificate shall, and does hereby
      agree to, indemnify the Trustee, the Depositor, the Master Servicer, the
      Securities Administrator and the Servicer against any liability that may result
      if the transfer is not so exempt or is not made in accordance with such federal
      and state laws.

    

    
      
        
          
          

        

        
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    A
      holder
      of a beneficial interest in a Regulation S Temporary Global Certificate must
      provide Euroclear or Clearstream, as the case may be, with a certificate in
      the
      form of Annex A to Exhibit B-1 hereto certifying that the beneficial owner
      of
      the interest in such Global Certificate is not a U.S. Person (as defined in
      Regulation S), and Euroclear or Clearstream, as the case may be, must provide
      to
      the Trustee and Securities Administrator a certificate in the form of Exhibit
      B-1 hereto prior to (i) the payment of interest or principal with respect to
      such holder’s beneficial interest in the Regulation S Temporary Global
      Certificate and (ii) any exchange of such beneficial interest for a beneficial
      interest in a Regulation S Permanent Global Certificate.

    

    (c) No
      transfer of a Class M-10 Certificate, Class M-11 Certificate, Class CE
      Certificate, Class P Certificate or a Residual Certificate or any interest
      therein shall be made to any Plan subject to ERISA or Section 4975 of the
      Code, any Person acting, directly or indirectly, on behalf of any such Plan
      or
      any Person acquiring such Certificates with “Plan Assets” of a Plan within the
      meaning of the Department of Labor regulation promulgated at 29 C.F.R. §
2510.3-101 (“Plan Assets”) unless the Securities Administrator is provided with
      an Opinion of Counsel on which the Depositor, the Master Servicer, the
      Securities Administrator, the Trustee and the Servicer may rely, which
      establishes to the satisfaction of the Securities Administrator that the
      purchase of such Certificates is permissible under applicable law, will not
      constitute or result in any prohibited transaction under ERISA or
      Section 4975 of the Code and will not subject the Depositor, the Servicer,
      the Trustee, the Master Servicer, the Securities Administrator or the Trust
      Fund
      to any obligation or liability (including obligations or liabilities under
      ERISA
      or Section 4975 of the Code) in addition to those undertaken in this
      Agreement, which Opinion of Counsel shall not be an expense of the Depositor,
      the Servicer, the Trustee, the Master Servicer, the Securities Administrator
      or
      the Trust Fund. An Opinion of Counsel will not be required in connection with
      the initial transfer of any such Certificate by the Depositor to an affiliate
      of
      the Depositor (in which case, the Depositor or any affiliate thereof shall
      have
      deemed to have represented that such affiliate is not a Plan or a Person
      investing Plan Assets) and the Securities Administrator shall be entitled to
      conclusively rely upon a representation (which, upon the request of the
      Securities Administrator, shall be a written representation) from the Depositor
      of the status of such transferee as an affiliate of the Depositor.

     

    
      
        
          
          

        

        
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    For
      so
      long as the Supplemental Interest Trust is in existence, each beneficial owner
      of a Offered Certificate, Class M-10 Certificates, Class M-11 Certificates
      or
      any interest therein, shall be deemed to have represented, by virtue of its
      acquisition or holding of the Offered Certificate, or interest therein, that
      either (i) it is not a Plan or (ii)(A) it is an accredited investor within
      the
      meaning of Prohibited Transaction Exemption 2002-41, as amended from time to
      time (the “Exemption”) and (B) the acquisition and holding of such Certificate
      and the separate right to receive payments from the Supplemental Interest Trust
      are eligible for the exemptive relief available under Prohibited Transaction
      Class Exemption (“PTCE”) 84-14 (for transactions by independent “qualified
      professional asset managers”), 91-38 (for transactions by bank collective
      investment funds), 90-1 (for transactions by insurance company pooled separate
      accounts), 95-60 (for transactions by insurance company general accounts) or
      96-23 (for transactions effected by “in-house asset managers”) in the case of an
      Offered Certificate or PTCE 95-60 in the case of a Class M-10
      Certificate.

     

    Each
      Transferee of a Mezzanine Certificate or any interest therein that is acquired
      after the termination of the Supplemental Interest Trust will be deemed to
      have
      represented by virtue of its purchase or holding of such Certificate (or
      interest therein) that either (a) such Transferee is not a Plan or purchasing
      such Certificate with Plan Assets, (b) it has acquired and is holding such
      Certificate in reliance on Prohibited Transaction Exemption (“PTE”) 94-84 or FAN
      97-03E, as amended by PTE 97-34, 62 Fed. Reg. 39021 (July 21, 1997), PTE
      2000-58, 65 Fed. Reg. 67765 (November 13, 2000) and PTE 2002-41, 67 Fed. Reg.
      54487 (August 22, 2002) (the “Exemption”), and that it understands that there
      are certain conditions to the availability of the Exemption including that
      such
      Certificate must be rated, at the time of purchase, not lower than “BBB-” (or
      its equivalent) by a Rating Agency or (c) the following conditions are
      satisfied: (i) such Transferee is an insurance company, (ii) the source of
      funds
      used to purchase or hold such Certificate (or interest therein) is an “insurance
      company general account” (as defined in PTCE 95-60, and (iii) the conditions set
      forth in Sections I and III of PTCE 95-60 have been satisfied.

     

    If
      any
      Certificate or any interest therein is acquired or held in violation of the
      conditions described in this Section 6.02(c), the next preceding permitted
      beneficial owner will be treated as the beneficial owner of that Certificate,
      retroactive to the date of transfer to the purported beneficial owner. Any
      purported beneficial owner whose acquisition or holding of any certificate
      or
      interest therein was effected in violation of the conditions described in this
      Section 6.02(c) shall indemnify and hold harmless the Depositor, the
      Trustee, the Servicer, the Master Servicer, the Securities Administrator and
      the
      Trust Fund from and against any and all liabilities, claims, costs or expenses
      incurred by those parties as a result of that acquisition or
      holding.

    

    
      
        
          
          

        

        
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    (d) (i)
      Each
      Person who has or who acquires any Ownership Interest in a Residual Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions and to have irrevocably
      authorized the Securities Administrator or its designee under clause (iii)(A)
      below to deliver payments to a Person other than such Person and to negotiate
      the terms of any mandatory sale under clause (iii)(B) below and to execute
      all
      instruments of Transfer and to do all other things necessary in connection
      with
      any such sale. The rights of each Person acquiring any Ownership Interest in
      a
      Residual Certificate are expressly subject to the following
      provisions:

     

    (A) Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall be a Permitted Transferee and shall promptly notify the Securities
      Administrator of any change or impending change in its status as a Permitted
      Transferee.

     

    (B) In
      connection with any proposed Transfer of any Ownership Interest in a Residual
      Certificate, the Securities Administrator shall require delivery to it, and
      shall not register the Transfer of any Residual Certificate until its receipt
      of, an affidavit and agreement (a “Transfer Affidavit and Agreement,” in the
      form attached hereto as Exhibit B-3) from the proposed Transferee, in form
      and
      substance satisfactory to the Securities Administrator, representing and
      warranting, among other things, that such Transferee is a Permitted Transferee,
      that it is not acquiring its Ownership Interest in the Residual Certificate
      that
      is the subject of the proposed Transfer as a nominee, trustee or agent for
      any
      Person that is not a Permitted Transferee, that for so long as it retains its
      Ownership Interest in a Residual Certificate, it will endeavor to remain a
      Permitted Transferee, and that it has reviewed the provisions of this
      Section 6.02(d) and agrees to be bound by them.

     

    (C) Notwithstanding
      the delivery of a Transfer Affidavit and Agreement by a proposed Transferee
      under clause (B) above, if an authorized officer of the Securities Administrator
      who is assigned to this transaction has actual knowledge that the proposed
      Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest
      in a Residual Certificate to such proposed Transferee shall be
      effected.

     

    (D) Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall agree (x) to require a Transfer Affidavit and Agreement from any other
      Person to whom such Person attempts to transfer its Ownership Interest in a
      Residual Certificate and (Y) not to transfer its Ownership Interest unless
      it
      provides a Transferor Affidavit (in the form attached hereto as Exhibit B-2)
      to
      the Securities Administrator stating that, among other things, it has no actual
      knowledge that such other Person is not a Permitted Transferee.

    

    
      
        
          
          

        

        
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    (E) Each
      Person holding or acquiring an Ownership Interest in a Residual Certificate,
      by
      purchasing an Ownership Interest in such Certificate, agrees to give the
      Securities Administrator written notice that it is a “pass-through interest
      holder” within the meaning of temporary Treasury regulation
      Section 1.67-3T(a)(2)(i)(A) immediately upon acquiring an Ownership
      Interest in a Residual Certificate, if it is, or is holding an Ownership
      Interest in a Residual Certificate on behalf of, a “pass-through interest
      holder.”

     

    (ii) The
      Securities Administrator will register the Transfer of any Residual Certificate
      only if it shall have received the Transfer Affidavit and Agreement and all
      of
      such other documents as shall have been reasonably required by the Securities
      Administrator as a condition to such registration. In addition, no Transfer
      of a
      Residual Certificate shall be made unless the Securities Administrator shall
      have received a representation letter from the Transferee of such Certificate
      to
      the effect that such Transferee is a Permitted Transferee.

     

    (iii) (A)
      If
      any purported Transferee shall become a Holder of a Residual Certificate in
      violation of the provisions of this Section 6.02(d), then the last
      preceding Permitted Transferee shall be restored, to the extent permitted by
      law, to all rights as holder thereof retroactive to the date of registration
      of
      such Transfer of such Residual Certificate. The Securities Administrator shall
      be under no liability to any Person for any registration of Transfer of a
      Residual Certificate that is in fact not permitted by this Section 6.02(d)
      or for making any payments due on such Certificate to the holder thereof or
      for
      taking any other action with respect to such holder under the provisions of
      this
      Agreement.

     

    (B) If
      any
      purported Transferee shall become a holder of a Residual Certificate in
      violation of the restrictions in this Section 6.02(d) and to the extent
      that the retroactive restoration of the rights of the holder of such Residual
      Certificate as described in clause (iii)(A) above shall be invalid, illegal
      or
      unenforceable, then the Securities Administrator shall have the right, without
      notice to the holder or any prior holder of such Residual Certificate, to sell
      such Residual Certificate to a purchaser selected by the Securities
      Administrator on such terms as the Securities Administrator may choose. Such
      purported Transferee shall promptly endorse and deliver each Residual
      Certificate in accordance with the instructions of the Securities Administrator.
      Such purchaser may be the Securities Administrator itself or any Affiliate
      of
      the Securities Administrator. The proceeds of such sale, net of the commissions
      (which may include commissions payable to the Securities Administrator or its
      Affiliates), expenses and taxes due, if any, will be remitted by the Securities
      Administrator to such purported Transferee. The terms and conditions of any
      sale
      under this clause (iii)(B) shall be determined in the sole discretion of the
      Securities Administrator, and the Securities Administrator shall not be liable
      to any Person having an Ownership Interest in a Residual Certificate as a result
      of its exercise of such discretion.

    

    
      
        
          
          

        

        
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    (iv) The
      Securities Administrator shall make available to the Internal Revenue Service
      and those Persons specified by the REMIC Provisions all information necessary
      to
      compute any tax imposed (A) as a result of the Transfer of an Ownership Interest
      in a Residual Certificate to any Person who is a Disqualified Organization,
      including the information described in Treasury regulations sections
      1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the “excess inclusions” of
      such Residual Certificate and (B) as a result of any regulated investment
      company, real estate investment trust, common trust fund, partnership, trust,
      estate or organization described in Section 1381 of the Code that holds an
      Ownership Interest in a Residual Certificate having as among its record holders
      at any time any Person which is a Disqualified Organization. Reasonable
      compensation for providing such information may be charged or collected by
      the
      Securities Administrator.

     

    (v) The
      provisions of this Section 6.02(d) set forth prior to this subsection (v)
      may be modified, added to or eliminated, provided that there shall have been
      delivered to the Securities Administrator at the expense of the party seeking
      to
      modify, add to or eliminate any such provision the following:

     

    (A) written
      notification from each Rating Agency to the effect that the modification,
      addition to or elimination of such provisions will not cause such Rating Agency
      to downgrade its then-current ratings of any Class of Certificates;
      and

     

    (B) an
      Opinion of Counsel, in form and substance satisfactory to the Securities
      Administrator, to the effect that such modification of, addition to or
      elimination of such provisions will not cause any Trust REMIC to cease to
      qualify as a REMIC and will not cause any Trust REMIC, as the case may be,
      to be
      subject to an entity-level tax caused by the Transfer of any Residual
      Certificate to a Person that is not a Permitted Transferee or a Person other
      than the prospective transferee to be subject to a REMIC-tax caused by the
      Transfer of a Residual Certificate to a Person that is not a Permitted
      Transferee.

     

    (e) Subject
      to the preceding subsections, upon surrender for registration of transfer of
      any
      Certificate at any office or agency of the Securities Administrator maintained
      for such purpose pursuant to Section 9.11, the Securities Administrator
      shall execute, authenticate and deliver, in the name of the designated
      Transferee or Transferees, one or more new Certificates of the same Class of
      a
      like aggregate Percentage Interest.

     

    (f) At
      the
      option of the Holder thereof, any Certificate may be exchanged for other
      Certificates of the same Class with authorized denominations and a like
      aggregate Percentage Interest, upon surrender of such Certificate to be
      exchanged at any office or agency of the Securities Administrator maintained
      for
      such purpose pursuant to Section 9.11. Whenever any Certificates are so
      surrendered for exchange, the Securities Administrator shall execute,
      authenticate and deliver, the Certificates which the Certificateholder making
      the exchange is entitled to receive. Every Certificate presented or surrendered
      for transfer or exchange shall (if so required by the Securities Administrator)
      be duly endorsed by, or be accompanied by a written instrument of transfer
      in
      the form satisfactory to the Securities Administrator duly executed by, the
      Holder thereof or his attorney duly authorized in writing. In addition, with
      respect to each Class R Certificate, the holder thereof may exchange, in the
      manner described above, such Class R Certificate for three separate
      certificates, each representing such holder's respective Percentage Interest
      in
      the Class R-I Interest, the Class R-II Interest and the Class R-III Interest,
      respectively, in each case that was evidenced by the Class R Certificate being
      exchanged.

    

    
      
        
          
          

        

        
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    (g) No
      service charge to the Certificateholders shall be made for any transfer or
      exchange of Certificates, but the Securities Administrator 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.

     

    (h) All
      Certificates surrendered for transfer and exchange shall be canceled and
      destroyed by the Securities Administrator in accordance with its customary
      procedures.

     

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

     

    If
      (i)
      any mutilated Certificate is surrendered to the Securities Administrator, or
      the
      Securities Administrator receives evidence to its satisfaction of the
      destruction, loss or theft of any Certificate and of the ownership thereof,
      and
      (ii) there is delivered to the Securities Administrator such security or
      indemnity as may be required by it to save it harmless, then, in the absence
      of
      actual knowledge by the Securities Administrator that such Certificate has
      been
      acquired by a protected purchaser, the Securities Administrator, shall execute,
      authenticate and deliver, in exchange for or in lieu of any such mutilated,
      destroyed, lost or stolen Certificate, a new Certificate of the same Class
      and
      of like denomination and Percentage Interest. Upon the issuance of any new
      Certificate under this Section, the Securities Administrator 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 Securities Administrator) connected therewith. Any
      replacement Certificate issued pursuant to this Section shall constitute
      complete and indefeasible evidence of ownership in the applicable REMIC created
      hereunder, as if originally issued, whether or not the lost, stolen or destroyed
      Certificate shall be found at any time.

     

    SECTION
      6.04. Persons
      Deemed Owners.

     

    The
      Depositor, the Servicer, the Trustee, the Master Servicer, the Securities
      Administrator and any agent of any of them 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 5.01 and for all other
      purposes whatsoever, and none of the Depositor, the Servicer, the Trustee,
      the
      Master Servicer, the Securities Administrator or any agent of any of them shall
      be affected by notice to the contrary.

     

    SECTION
      6.05. Certain
      Available Information.

     

    On
      or
      prior to the date of the first sale of any Class M-10 Certificate, Class M-11
      Certificate, Class CE Certificate, Class P Certificate or Residual Certificate
      to an Independent third party, the Depositor shall provide to the Securities
      Administrator ten copies of any private placement memorandum or other disclosure
      document used by the Depositor in connection with the offer and sale of such
      Certificate. In addition, if any such private placement memorandum or disclosure
      document is revised, amended or supplemented at any time following the delivery
      thereof to the Securities Administrator, the Depositor promptly shall inform
      the
      Securities Administrator of such event and shall deliver to the Securities
      Administrator ten copies of the private placement memorandum or disclosure
      document, as revised, amended or supplemented. The Securities Administrator
      shall maintain at its office as set forth in Section 12.05 hereof and shall
      make available free of charge during normal business hours for review by any
      Holder of a Certificate or any Person identified to the Securities Administrator
      as a prospective transferee of a Certificate, originals or copies of the
      following items: (i) in the case of a Holder or prospective transferee of a
      Class CE Certificate, Class P Certificate or Residual Certificate, the related
      private placement memorandum or other disclosure document relating to such
      Class
      of Certificates, in the form most recently provided to the Securities
      Administrator; and (ii) in all cases, (A) this Agreement and any amendments
      hereof entered into pursuant to Section 11.01, (B) all monthly statements
      required to be delivered to Certificateholders of the relevant Class pursuant
      to
      Section 5.02 since the Closing Date, and all other notices, reports,
      statements and written communications delivered to the Certificateholders of
      the
      relevant Class pursuant to this Agreement since the Closing Date and (C) any
      copies of all Officers’ Certificates of the Servicer since the Closing Date
      delivered to the Master Servicer to evidence such Person’s determination that
      any P&I Advance or Servicing Advance was, or if made, would be a
      Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance. Copies and
      mailing of any and all of the foregoing items will be available from the
      Securities Administrator upon request at the expense of the Person requesting
      the same.

    

    
      
        
          
          

        

        
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    ARTICLE
      VII

     

    THE
      DEPOSITOR AND THE MASTER SERVICER

     

    SECTION
      7.01. Liability
      of the Depositor and the Master Servicer.

     

    The
      Depositor and the Master Servicer each shall be liable in accordance herewith
      only to the extent of the obligations specifically imposed by this Agreement
      upon them in their respective capacities as Depositor and Master Servicer and
      undertaken hereunder by the Depositor and the Master Servicer
      herein.

     

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

     

    Subject
      to the following paragraph, the Depositor will keep in full effect its
      existence, rights and franchises as a corporation under the laws of the
      jurisdiction of its incorporation. Subject to the following paragraph, the
      Master Servicer will keep in full effect its existence, rights and franchises
      as
      a national banking association. The Depositor and the Master Servicer each
      will
      obtain and preserve its qualification to do business as a foreign entity 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 respective duties under this
      Agreement.

     

    The
      Depositor or the Master Servicer may be merged or consolidated with or into
      any
      Person, or transfer all or substantially all of its assets to any Person, in
      which case any Person resulting from any merger or consolidation to which the
      Depositor or the Master Servicer shall be a party, or any Person succeeding
      to
      the business of the Depositor or the Master Servicer, shall be the successor
      of
      the Depositor or the Master Servicer, as the case may be, hereunder, without
      the
      execution or filing of any paper or any further act on the part of any of the
      parties hereto, anything herein to the contrary notwithstanding; provided,
      however, that any successor to the Master Servicer shall meet the eligibility
      requirements set forth in clauses (i) and (iii) of the last paragraph of
      Section 8.02(a) or Section 7.06 of this Agreement.

     

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

     

    None
      of
      the Depositor, the Securities Administrator, the Master Servicer or any of
      the
      directors, officers, employees or agents of the Depositor, the Securities
      Administrator or the Master Servicer shall be under any liability to the Trust
      Fund or the Certificateholders for any action taken or for refraining from
      the
      taking of any action in good faith pursuant to this Agreement or the Servicing
      Agreement or for errors in judgment; provided, however, that this provision
      shall not protect the Depositor, the Securities Administrator, the Master
      Servicer or any such person against any breach of warranties, representations
      or
      covenants made herein or against any specific liability imposed on any such
      Person pursuant hereto or against any liability which would otherwise be imposed
      by reason of willful misfeasance, bad faith or gross negligence in the
      performance of duties or by reason of reckless disregard of obligations and
      duties hereunder or under the Servicing Agreement. The Depositor, the Securities
      Administrator, the Master Servicer and any director, officer, employee or agent
      of the Depositor, the Securities Administrator and the Master Servicer may
      rely
      in good faith on any document of any kind which, prima facie, is properly
      executed and submitted by any Person respecting any matters arising hereunder
      or
      under the Servicing Agreement. The Depositor, the Securities Administrator,
      the
      Master Servicer and any director, officer, employee or agent of the Depositor,
      the Securities Administrator or the Master Servicer shall be indemnified and
      held harmless by the Trust Fund against any loss, liability or expense incurred
      in connection with any legal action relating to this Agreement, the Servicing
      Agreement, the Certificates or any Credit Risk Management Agreement or any
      loss,
      liability or expense incurred other than by reason of willful misfeasance,
      bad
      faith or gross negligence in the performance of duties hereunder or thereunder,
      or by reason of reckless disregard of obligations and duties hereunder. None
      of
      the Depositor, the Securities Administrator or the Master Servicer shall be
      under any obligation to appear in, prosecute or defend any legal action unless
      such action is related to its respective duties under this Agreement or under
      the Servicing Agreement and, in its opinion, does not involve it in any expense
      or liability; provided, however, that each of the Depositor, the Securities
      Administrator and the Master Servicer may in its discretion undertake any such
      action which it may deem necessary or desirable with respect to this Agreement
      or the Servicing Agreement and the rights and duties of the parties hereto
      and
      the interests of the Certificateholders hereunder. In such event, the legal
      expenses and costs of such action and any liability resulting therefrom (except
      any loss, liability or expense incurred by reason of willful misfeasance, bad
      faith or gross negligence in the performance of duties hereunder or by reason
      of
      reckless disregard of obligations and duties hereunder) shall be expenses,
      costs
      and liabilities of the Trust Fund, and the Depositor, the Securities
      Administrator and the Master Servicer shall be entitled to be reimbursed
      therefor from the Distribution Account as and to the extent provided in Article
      III and Article IV, any such right of reimbursement being prior to the rights
      of
      the Certificateholders to receive any amount in the Distribution
      Account.

     

    
      
        
          
          

        

        
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    Notwithstanding
      anything to the contrary contained herein, the Servicer shall not be liable
      for
      any actions or inactions prior to the Cut-off Date of any prior servicer of
      the
      related Mortgage Loans and the Master Servicer shall not be liable for any
      action or inaction of the Servicer, except to the extent expressly provided
      herein, or the Credit Risk Management Agreement.

     

    SECTION
      7.04. Reserved.

     

    SECTION
      7.05. Limitation
      on Resignation of the Master Servicer.

     

    The
      Master Servicer shall not resign from the obligations and duties hereby imposed
      on it except upon determination that its duties hereunder are no longer
      permissible under applicable law. Any such determination pursuant to the
      preceding sentence permitting the resignation of the Master Servicer shall
      be
      evidenced by an Opinion of Counsel to such effect obtained at the expense of
      the
      Master Servicer and delivered to the Trustee and the Rating Agencies. No
      resignation of the Master Servicer shall become effective until the Trustee
      or a
      successor Master Servicer meeting the criteria specified in Section 7.06
      shall have assumed the Master Servicer’s responsibilities, duties, liabilities
      (other than those liabilities arising prior to the appointment of such
      successor) and obligations under this Agreement.

    

    
      
        
          
          

        

        
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    SECTION
      7.06. 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 accept in writing such assignment
      and delegation and assume the obligations of the Master Servicer hereunder
      (a)
      shall have a net worth of not less than $25,000,000 (unless otherwise approved
      by each Rating Agency pursuant to clause (ii) below); (b) shall be reasonably
      satisfactory to the Trustee (as evidenced in a writing signed by the Trustee);
      and (c) 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, 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 out of acts or omissions prior to the effective
      date
      thereof.

     

    SECTION
      7.07. Rights
      of
      the Depositor in Respect of the Master Servicer.

     

    The
      Master Servicer shall afford (and any Sub-Servicing or Sub-Contracting Agreement
      shall provide that each Sub-Servicer or Subcontractor, as applicable, shall
      afford) the Depositor and the Trustee, upon reasonable notice, during normal
      business hours, access to all records maintained by the Master Servicer (and
      any
      such Sub-Servicer or Subcontractor, as applicable) in respect of the Master
      Servicer’s rights and obligations hereunder and access to officers of the Master
      Servicer (and those of any such Sub-Servicer or Subcontractor, as applicable)
      responsible for such obligations. Upon request, the Master Servicer shall
      furnish to the Depositor and the Trustee its (and any such Sub-Servicer’s) most
      recent financial statements and such other information relating to the Master
      Servicer’s capacity to perform its obligations under this Agreement as it
      possesses (and that any such Sub-Servicer or Subcontractor possesses). To the
      extent the Depositor and the Trustee are informed that such information is
      not
      otherwise available to the public, the Depositor and the Trustee shall not
      disseminate any information obtained pursuant to the preceding two sentences
      without the Master Servicer’s written consent, except as required pursuant to
      this Agreement or to the extent that it is appropriate to do so (i) to its
      legal
      counsel, auditors, taxing authorities or other governmental agencies and the
      Certificateholders, (ii) pursuant to any law, rule, regulation, order, judgment,
      writ, injunction or decree of any court or governmental authority having
      jurisdiction over the Depositor and the Trustee or the Trust Fund, and in any
      case, the Depositor or the Trustee, (iii) disclosure of any and all information
      that is or becomes publicly known, or information obtained by the Trustee from
      sources other than the Depositor or the Master Servicer, (iv) disclosure as
      required pursuant to this Agreement or (v) disclosure of any and all information
      (A) in any preliminary or final offering circular, registration statement or
      contract or other document pertaining to the transactions contemplated by the
      Agreement approved in advance by the Depositor or the Master Servicer or (B)
      to
      any affiliate, independent or internal auditor, agent, employee or attorney
      of
      the Trustee having a need to know the same, provided that the Trustee advises
      such recipient of the confidential nature of the information being disclosed,
      shall use its best efforts to assure the confidentiality of any such
      disseminated non-public information. Nothing in this Section 7.07 shall
      limit the obligation of the Master Servicer to comply with any applicable law
      prohibiting disclosure of information regarding the Mortgagors and the failure
      of the Master Servicer to provide access as provided in this Section 7.07
      as a result of such obligation shall not constitute a breach of this Section.
      Nothing in this Section 7.07 shall require the Master Servicer to collect,
      create, collate or otherwise generate any information that it does not generate
      in its usual course of business. The Master Servicer shall not be required
      to
      make copies of or ship documents to any party unless provisions have been made
      for the reimbursement of the costs thereof. The Depositor may, but is not
      obligated to, enforce the obligations of the Master Servicer under this
      Agreement, and may, but is not obligated to, perform, or cause a designee to
      perform, any defaulted obligation of the Master Servicer under this Agreement,
      or exercise the rights of the Master Servicer under this Agreement; provided
      that the Master Servicer shall not be relieved of any of its obligations under
      this Agreement by virtue of such performance by the Depositor or its designee.
      The Depositor shall not have any responsibility or liability for any action
      or
      failure to act by the Master Servicer and is not obligated to supervise the
      performance of the Master Servicer under this Agreement or
      otherwise.

    

    
      
        
          
          

        

        
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    SECTION
      7.08. Duties
      of
      the Credit Risk Manager. 

     

    For
      and
      on behalf of the Depositor, the Credit Risk Manager will provide reports and
      recommendations concerning certain delinquent and defaulted Mortgage Loans,
      and
      as to the collection of any Prepayment Charges with respect to the Mortgage
      Loans. Such reports and recommendations will be based upon information provided
      to the Credit Risk Manager pursuant to the Credit Risk Management Agreements,
      and the Credit Risk Manager shall look solely to the Servicer and/or Master
      Servicer for all information and data (including loss and delinquency
      information and data) relating to the servicing of the related Mortgage Loans.
      Upon any termination of the Credit Risk Manager or the appointment of a
      successor Credit Risk Manager, the Depositor shall give written notice thereof
      to the Servicer, the Master Servicer, the Securities Administrator, the Trustee,
      and each Rating Agency. Notwithstanding the foregoing, the termination of the
      Credit Risk Manager pursuant to this Section shall not become effective
      until the appointment of a successor Credit Risk Manager. The Trustee is hereby
      authorized to enter into any Credit Risk Management Agreement necessary to
      effect the foregoing.

     

    SECTION
      7.09. Limitation
      Upon Liability of the Credit Risk Manager. 

     

    Neither
      the Credit Risk Manager, nor any of its directors, officers, employees, or
      agents shall be under any liability to the Trustee, the Certificateholders,
      or
      the Depositor for any action taken or for refraining from the taking of any
      action made in good faith pursuant to this Agreement, in reliance upon
      information provided by the Servicer under the related Credit Risk Management
      Agreement, or for errors in judgment; provided, however, that this provision
      shall not protect the Credit Risk Manager or any such person against liability
      that would otherwise be imposed by reason of willful malfeasance or bad faith
      in
      its performance of its duties. The Credit Risk Manager and any director,
      officer, employee, or agent of the Credit Risk Manager 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, and may rely in good faith
      upon
      the accuracy of information furnished by the Servicer pursuant to the related
      Credit Risk Management Agreement in the performance of its duties thereunder
      and
      hereunder.

    

    
      
        
          
          

        

        
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    SECTION
      7.10. Removal
      of the Credit Risk Manager. 

     

    The
      Credit Risk Manager may be removed as Credit Risk Manager by Certificateholders
      holding not less than 66 2/3% of the Voting Rights in the Trust Fund, in the
      exercise of its or their sole discretion. The Certificateholders shall provide
      written notice of the Credit Risk Manager’s removal to the Trustee. Upon receipt
      of such notice, the Trustee shall provide written notice to the Credit Risk
      Manager of its removal, which shall be effective upon receipt of such notice
      by
      the Credit Risk Manager, with a copy to the Securities Administrator and the
      Master Servicer.

    

    
      
        
          
          

        

        
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    ARTICLE
      VIII

     

    DEFAULT

     

    SECTION
      8.01. Servicer
      Events of Default.

     

    (a) If
      a
      Servicer Event of Default described in the Servicing Agreement shall occur,
      then, and in each and every such case, so long as the Servicer Event of Default
      shall not have been remedied, the Depositor or the Trustee may, and the Trustee
      shall (i) if the Servicer Event of Default occurs as a result of the Servicer’s
      failure to make a required P&I Advance, or (ii) at otherwise the written
      direction of the Holders of Certificates entitled to at least 51% of Voting
      Rights, by notice in writing to the defaulting Servicer (and to the Depositor
      if
      given by the Trustee or to the Trustee if given by the Depositor) with a copy
      to
      the Master Servicer and each Rating Agency, terminate all of the rights and
      obligations of the defaulting Servicer in its capacity as the Servicer under
      the
      Servicing Agreement, to the extent permitted by law, and in and to the related
      Mortgage Loans and the proceeds thereof. If the Servicer Event of Default occurs
      as a result of the Servicer’s failure to make a required P&I Advance which
      failure is not remedied within the time frame set forth in the Servicing
      Agreement, the Trustee shall, by notice in writing to the defaulting Servicer,
      the Depositor and the Master Servicer, terminate all of the rights and
      obligations of the defaulting Servicer in its capacity as the Servicer under
      the
      Servicing Agreement and in and to the related Mortgage Loans and the proceeds
      thereof. Subject to Section 8.02 of this Agreement, on or after the receipt
      by the defaulting Servicer of such written notice, all authority and power
      of
      the defaulting Servicer under the Servicing Agreement whether with respect
      to
      the Certificates (other than as a Holder of any Certificate) or the related
      Mortgage Loans or otherwise, shall pass to and be vested in the Master Servicer,
      pursuant to and under this Section, and, without limitation, the Master Servicer
      is hereby authorized and empowered, as attorney-in-fact or otherwise, to execute
      and deliver, on behalf of and at the expense of the defaulting Servicer, 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 related Mortgage Loans and related documents, or otherwise. The Servicer
      shall cooperate with the Master Servicer or other successor servicer in
      connection with the transfer of servicing to such successor servicer in
      accordance with the Servicing Agreement. The Servicer shall continue to be
      entitled to receive all amounts accrued or owing to it under the Servicing
      Agreement on or prior to the date of such termination, whether in respect of
      P&I Advances, Servicing Advances, accrued and unpaid Servicing Fees or
      otherwise, notwithstanding any such termination, with respect to events
      occurring prior to such termination). Reimbursement of unreimbursed P&I
      Advances, Servicing Advances and accrued and unpaid Servicing Fees shall be
      made
      on a first in, first out (“FIFO”) basis no later than the Servicer Remittance
      Date. For purposes of this Section 8.01(a), the Trustee shall not be deemed
      to have knowledge of the Servicer Event of Default unless a Responsible Officer
      of the Trustee assigned to and working in the Trustee’s Corporate Trust Office
      has actual knowledge thereof or unless written notice of any event which is
      in
      fact such the Servicer Event of Default is received by the Trustee at its
      Corporate Trust Office and such notice references the Certificates, the Trust
      or
      this Agreement. The Trustee shall promptly notify the Master Servicer and the
      Rating Agencies of the occurrence of the Servicer Event of Default of which
      it
      has knowledge as provided above.

    

    
      
        
          
          

        

        
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    The
      Master Servicer shall be entitled to be reimbursed by the defaulting Servicer
      (or from amounts on deposit in the Distribution Account if the defaulting
      Servicer is unable to fulfill its obligations hereunder) for all reasonable
      out-of-pocket or third party costs associated with the transfer of servicing
      from the defaulting Servicer, including without limitation, any reasonable
      out-of-pocket or third party costs or expenses associated with the complete
      transfer of all servicing data and the completion, correction or manipulation
      of
      such servicing data as may be required by the Master Servicer to correct any
      errors or insufficiencies in the servicing data or otherwise to enable the
      Master Servicer to service the related Mortgage Loans properly and effectively,
      upon presentation of reasonable documentation of such costs and
      expenses.

     

    (b) “Master
      Servicer Event of Default,” wherever used herein, means any one of the following
      events:

     

    (i) any
      failure on the part of the Master Servicer duly 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 the breach by the Master
      Servicer of any representation and warranty contained in Section 2.04,
      which continues unremedied for a period of 30 days after the date on which
      written notice of such failure, or as otherwise set forth in this Agreement
      requiring the same to be remedied, shall have been given to the Master Servicer
      by the Depositor or the Trustee or to the Master Servicer, the Depositor and
      the
      Trustee by the Holders of Certificates entitled to at least 25% of the Voting
      Rights; or

     

    (ii) a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises in an involuntary case under any present or future federal or
      state
      bankruptcy, insolvency or similar law or the appointment of a conservator or
      receiver or liquidator in any insolvency, readjustment of debt, marshalling
      of
      assets and liabilities or similar proceeding, or for the winding-up or
      liquidation of its affairs, shall have been entered against the Master Servicer
      and such decree or order shall have remained in force undischarged or unstayed
      for a period of ninety (90) days; or

     

    (iii) the
      Master Servicer shall consent to the appointment of a conservator or receiver
      or
      liquidator in any insolvency, readjustment of debt, marshalling of assets and
      liabilities or similar proceedings of or relating to it or of or relating to
      all
      or substantially all of its property; or

     

    (iv) the
      Master Servicer shall admit in writing its inability to pay its debts generally
      as they become due, file a petition to take advantage of any applicable
      insolvency or reorganization statute, make an assignment for the benefit of
      its
      creditors, or voluntarily suspend payment of its obligations; or

     

    (v) failure
      by the Master Servicer to duly perform, within the required time period, its
      obligations under Sections 4.15, 4.16, 4.17 or 4.18.

    

    
      
        
          
          

        

        
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    If
      a
      Master Servicer Event of Default shall occur, then, and in each and every such
      case, so long as such Master Servicer Event of Default shall not have been
      remedied, the Depositor or the Trustee may, and at the written direction of
      the
      Holders of Certificates entitled to at least 51% of Voting Rights, the Trustee
      shall, by notice in writing to the Master Servicer (and to the Depositor if
      given by the Trustee or to the Trustee if given by the Depositor) with a copy
      to
      each Rating Agency, terminate all of the rights and obligations of the Master
      Servicer in its capacity as Master Servicer under this Agreement, to the extent
      permitted by law, and in and to the Mortgage Loans and the proceeds thereof.
      On
      or after the receipt by the Master Servicer of such written notice, all
      authority and power of the Master Servicer under this Agreement, whether with
      respect to the Certificates (other than as a Holder of any Certificate) or
      the
      Mortgage Loans or otherwise including, without limitation, the compensation
      payable to the Master Servicer under this Agreement, shall pass to and be vested
      in the Trustee pursuant to and under this Section, and, without limitation,
      the
      Trustee is hereby authorized and empowered, as attorney-in-fact or otherwise,
      to
      execute and deliver, on behalf of and at the expense of the Master Servicer,
      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 promptly (and in any event no later than ten Business Days subsequent
      to
      such notice) to provide the Trustee with all documents and records requested
      by
      it to enable it to assume the Master Servicer’s functions under this Agreement,
      and to cooperate with the Trustee in effecting the termination of the Master
      Servicer’s responsibilities and rights under this Agreement (provided, however,
      that the Master Servicer shall continue to be entitled to receive all amounts
      accrued or owing to it under this Agreement on or prior to the date of such
      termination and shall continue to be entitled to the benefits of
      Section 7.03 of this Agreement, notwithstanding any such termination, with
      respect to events occurring prior to such termination). For purposes of this
      Section 8.01(b), the Trustee shall not be deemed to have knowledge of a
      Master Servicer Event of Default unless a Responsible Officer of the Trustee
      assigned to and working in the Trustee’s Corporate Trust Office has actual
      knowledge thereof or unless written notice of any event which is in fact such
      a
      Master Servicer Event of Default is received by the Trustee and such notice
      references the Certificates, the Trust or this Agreement. The Trustee shall
      promptly notify the Rating Agencies of the occurrence of a Master Servicer
      Event
      of Default of which it has knowledge as provided above.

     

    On
      and
      after the time the Master Servicer receives a notice of termination, the Trustee
      shall be the successor in all respects to the Master Servicer (and, if
      applicable, the Securities Administrator) in its capacity as Master Servicer
      (and, if applicable, the Securities Administrator) under this Agreement and
      the
      transactions set forth or provided for herein, and all the responsibilities,
      duties and liabilities relating thereto and arising thereafter shall be assumed
      by the Trustee (except for any representations or warranties of the Master
      Servicer under this Agreement, the responsibilities, duties and liabilities
      contained in Section 2.03 and the obligation to deposit amounts in respect
      of
      losses pursuant to Section 3.03) by the terms and provisions hereof
      including, without limitation, the Master Servicer’s obligations to make P&I
      Advances no later than each Distribution Date pursuant to Section 5.03;
      provided, however, that if the Trustee is prohibited by law or regulation from
      obligating itself to make advances regarding delinquent mortgage loans, then
      the
      Trustee shall not be obligated to make P&I Advances pursuant to Section
      5.03; and provided further, that any failure to perform such duties or
      responsibilities caused by the Master Servicer’s failure to provide information
      required by Section 8.01 shall not be considered a default by the Trustee as
      successor to the Master Servicer hereunder and neither the Trustee nor any
      other
      successor master servicer shall be liable for any acts or omissions of the
      terminated servicer. As compensation therefor, the Trustee shall be entitled
      to
      the Master Servicing Fee and all funds relating to the Loans, investment
      earnings on the Distribution Account and all other remuneration to which the
      Master Servicer would have been entitled if it had continued to act
      hereunder.

    

    
      
        
          
          

        

        
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    Notwithstanding
      the foregoing, the Trustee may, if it shall be unwilling to continue to act,
      or
      shall, if it is unable to so act, petition a court of competent jurisdiction
      to
      appoint, or appoint on its own behalf, any established housing and home finance
      institution servicer, master servicer, servicing or mortgage servicing
      institution having a net worth of not less than $25,000,000 and meeting such
      other standards for a successor master servicer as are set forth in this
      Agreement, as the successor to such Master Servicer in the assumption of all
      of
      the responsibilities, duties or liabilities of a master servicer.

     

    To
      the
      extent that the costs and expenses of the Trustee related to the termination
      of
      the Master Servicer, appointment of a successor Master Servicer or the transfer
      and assumption of the master servicing by the Trustee (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
      Master Servicer as a result of a Master Servicer Event of Default and (ii)
      all
      costs and expenses associated with the complete transfer of the master
      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 Master Servicer to correct any errors or insufficiencies in
      the
      servicing data or otherwise to enable the successor Master Servicer to master
      service the Mortgage Loans in accordance with this Agreement) are not fully
      and
      timely reimbursed by the terminated Master Servicer, the Trustee shall be
      entitled to reimbursement of such costs and expenses from the Distribution
      Account.

     

    Neither
      the Trustee nor any other successor master servicer shall be deemed to be in
      default hereunder by reason of any failure to make, or any delay in making,
      any
      distribution hereunder or any portion thereof or any failure to perform, or
      any
      delay in performing, any duties or responsibilities hereunder, in either case
      caused by the failure of the Master Servicer to deliver or provide, or any
      delay
      in delivering or providing, any cash, information, documents or records to
      it.

     

    SECTION
      8.02. Master
      Servicer to Act; Appointment of Successor.

     

    (a) On
      and
      after the time the Servicer receives a notice of termination, the Master
      Servicer shall be the successor in all respects to the Servicer in its capacity
      as the Servicer under this Agreement and the transactions set forth or provided
      for herein or therein, and all the responsibilities, duties and liabilities
      relating thereto and arising thereafter shall be assumed by the Master Servicer
      (except for any representations or warranties of the Servicer under this
      Agreement the responsibilities, duties and liabilities contained in Section
      2.03
      of this Agreement and the obligation to deposit amounts in respect of losses
      pursuant to Section 3.03(b) of this Agreement) by the terms and provisions
      hereof including, without limitation, the Servicer’s obligations to make P&I
      Advances pursuant to the Servicing Agreement; provided, however, that if the
      Master Servicer is prohibited by law or regulation from obligating itself to
      make advances regarding delinquent mortgage loans, then the Master Servicer
      shall not be obligated to make P&I Advances pursuant to Section 5.03 of this
      Agreement; and provided further, that any failure to perform such duties or
      responsibilities caused by the Servicer’s failure to provide information
      required by the Servicing Agreement shall not be considered a default by the
      Master Servicer as successor to the Servicer hereunder; provided, however,
      that
      (1) it is understood and acknowledged by the parties hereto that there will
      be a
      period of transition (not to exceed ninety (90) days) before the actual
      servicing functions can be fully transferred to the Master Servicer or any
      successor Servicer appointed in accordance with the following provisions and
      (2)
      any failure to perform such duties or responsibilities caused by the Servicer’s
      failure to provide information required by the Servicing Agreement shall not
      be
      considered a default by the Master Servicer as successor to the Servicer. As
      compensation therefor, the Master Servicer shall be entitled to the Servicing
      Fee and all funds relating to the related Mortgage Loans to which the terminated
      Servicer would have been entitled if it had continued to act hereunder.
      Notwithstanding the above and subject to the immediately following paragraph,
      the Master Servicer may, if it shall be unwilling to so act, or shall, if it
      is
      unable to so act promptly appoint or petition a court of competent jurisdiction
      to appoint, a Person that satisfies the eligibility criteria set forth below
      as
      the successor to the terminated Servicer under this Agreement in the assumption
      of all or any part of the responsibilities, duties or liabilities of the
      terminated Servicer under this Agreement.

    

    
      
        
          
          

        

        
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    Notwithstanding
      anything herein to the contrary, in no event shall the Trustee or the Master
      Servicer be liable for any Servicing Fee or for any differential in the amount
      of the Servicing Fee paid hereunder and the amount necessary to induce any
      successor Servicer to act as successor Servicer under this Agreement and the
      transactions set forth or provided for herein.

     

    Any
      successor Servicer appointed under this Agreement must (i) be an established
      mortgage loan servicing institution that is a Fannie Mae and Freddie Mac
      approved seller/servicer, (ii) be approved by each Rating Agency by a written
      confirmation from each Rating Agency that the appointment of such successor
      Servicer would not result in the reduction or withdrawal of the then current
      ratings of any outstanding Class of Certificates, (iii) have a net worth of
      not
      less than $25,000,000 and (iv) assume all the responsibilities, duties or
      liabilities of the Servicer (other than liabilities of the Servicer hereunder
      incurred prior to termination of the Servicer under Section 8.01 herein)
      under this Agreement as if originally named as a party to this
      Agreement.

     

    (b) 
      (1) All
      servicing transfer costs (including, without limitation, servicing transfer
      costs of the type described in Section 8.02(a) of this Agreement and
      incurred by the Trustee, the Master Servicer and any successor Servicer under
      paragraph (b)(2) below) in connection with the termination of the Servicer
      shall
      be paid by the terminated Servicer upon presentation of reasonable documentation
      of such costs, and if such predecessor or initial Servicer, as applicable,
      defaults in its obligation to pay such costs, the successor Servicer, the Master
      Servicer and the Trustee shall be entitled to reimbursement therefor from the
      assets of the Trust Fund.

     

    (2)
      No
      appointment of a successor to the Servicer under this Agreement shall be
      effective until the assumption by the successor of all of the Servicer’s
      responsibilities, duties and liabilities hereunder. In connection with such
      appointment and assumption described herein, the Trustee may make such
      arrangements for the compensation of such successor out of payments on the
      related Mortgage Loans as it and such successor shall agree; provided, however,
      that no such compensation shall be in excess of that permitted the Servicer
      as
      such hereunder. The Depositor, the Trustee and such successor shall take such
      action, consistent with this Agreement, as shall be necessary to effectuate
      any
      such succession. Pending appointment of a successor to the Servicer under this
      Agreement, the Master Servicer shall act in such capacity as hereinabove
      provided.

    

    
      
        
          
          

        

        
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    SECTION
      8.03. Notification
      to Certificateholders.

     

    (a) Upon
      any
      termination of the Master Servicer pursuant to Section 8.01 of this Agreement
      or
      the Servicer pursuant to the Servicing Agreement, or any appointment of a
      successor to the Master Servicer or the Servicer pursuant to Section 8.02
      of this Agreement, the Trustee shall give prompt written notice thereof to
      the
      Certificateholders at their respective addresses appearing in the Certificate
      Register.

     

    (b) Not
      later
      than the later of sixty (60) days after the occurrence of any event, which
      constitutes or which, with notice or lapse of time or both, would constitute
      a
      Servicer Event of Default or a Master Servicer Event of Default or five (5)
      days
      after a Responsible Officer of the Trustee becomes aware of the occurrence
      of
      such an event, the Trustee shall transmit by mail to all Holders of Certificates
      notice of each such occurrence, unless such default or Servicer Event of Default
      or Master Servicer Event of Default shall have been cured or
      waived.

     

    SECTION
      8.04. Waiver
      of
      Servicer Events of Default.

     

    The
      Holders representing at least 66% of the Voting Rights evidenced by all Classes
      of Certificates affected by any default, Servicer Event of Default or Master
      Servicer Event of Default hereunder may waive such default, Servicer Event
      of
      Default or Master Servicer Event of Default; provided, however, that a Servicer
      Event of Default which occurs as a result of the Servicer’s failure to make any
      required P&I Advance may be waived only by all of the Holders of the Regular
      Certificates. Upon any such waiver of a default, Servicer Event of Default
      or
      Master Servicer Event of Default, such default, Servicer Event of Default or
      Master Servicer Event of Default shall cease to exist and shall be deemed to
      have been remedied for every purpose hereunder. No such waiver shall extend
      to
      any subsequent or other default, Servicer Event of Default or Master Servicer
      Event of Default or impair any right consequent thereon except to the extent
      expressly so waived.

    

    
      
        
          
          

        

        
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    ARTICLE
      IX

     

    CONCERNING
      THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

    SECTION
      9.01. Duties
      of
      Trustee and Securities Administrator.

     

    The
      Trustee, prior to the occurrence of a Master Servicer Event of Default and
      after
      the curing or waiver of all Master Servicer Events of Default which may have
      occurred, and the Securities Administrator each undertake to perform such duties
      and only such duties as are specifically set forth in this Agreement as duties
      of the Trustee and the Securities Administrator, respectively. During the
      continuance of a Master Servicer Event of Default, the Trustee shall exercise
      such of the rights and powers vested in it by this Agreement, and use the same
      degree of care and skill in its exercise as a prudent person would exercise
      or
      use under the circumstances in the conduct of such person’s own affairs. Any
      permissive right of the Trustee enumerated in this Agreement shall not be
      construed as a duty.

     

    Each
      of
      the Trustee and the Securities Administrator, upon receipt of all resolutions,
      certificates, statements, opinions, reports, documents, orders or other
      instruments furnished to it, which are specifically required to be furnished
      pursuant to any provision of this Agreement, shall examine them to determine
      whether they conform to the requirements of this Agreement. If any such
      instrument is found not to conform to the requirements of this Agreement in
      a
      material manner, the Trustee or the Securities Administrator, as the case may
      be, shall take such action as it deems appropriate to have the instrument
      corrected, and if the instrument is not corrected to its satisfaction, the
      Securities Administrator will provide notice to the Trustee thereof and the
      Trustee will provide notice to the Certificateholders.

     

    The
      Trustee shall promptly remit to the Servicer any complaint, claim, demand,
      notice or other document (collectively, the “Notices”) delivered to the Trustee
      as a consequence of the assignment of any Mortgage Loan hereunder and relating
      to the servicing of the Mortgage Loans; provided than any such notice (i) is
      delivered to the Trustee at its Corporate Trust Office, (ii) contains
      information sufficient to permit the Trustee to make a determination that the
      real property to which such document relates is a Mortgaged Property. The
      Trustee shall have no duty hereunder with respect to any Notice it may receive
      or which may be alleged to have been delivered to or served upon it unless
      such
      Notice is delivered to it or served upon it at its Corporate Trust Office and
      such Notice contains the information required pursuant to clause (ii) of the
      preceding sentence.

     

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

     

    (i) Prior
      to
      the occurrence of a Master Servicer Event of Default, and after the curing
      or
      waiver of all such Master Servicer Events of Default which may have occurred
      with respect to the Trustee and at all times with respect to the Securities
      Administrator, the duties and obligations of the Trustee shall be determined
      solely by the express provisions of this Agreement, neither the Trustee nor
      the
      Securities Administrator shall be liable except for the performance of such
      duties and obligations as are specifically set forth in this Agreement, no
      implied covenants or obligations shall be read into this Agreement against
      the
      Trustee or the Securities Administrator and, in the absence of bad faith on
      the
      part of the Trustee or the Securities Administrator, respectively, the Trustee
      or the Securities Administrator, respectively, may conclusively rely, as to
      the
      truth of the statements and the correctness of the opinions expressed therein,
      upon any certificates or opinions furnished to the Trustee or the Securities
      Administrator, respectively, that conform to the requirements of this
      Agreement;

    

    
      
        
          
          

        

        
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    (ii) Neither
      the Trustee nor the Securities Administrator shall be liable for an error of
      judgment made in good faith by a Responsible Officer or Responsible Officers
      of
      the Trustee or an officer or officers of the Securities Administrator,
      respectively, unless it shall be proved that the Trustee or the Securities
      Administrator, respectively, was negligent in ascertaining the pertinent facts;
      and

     

    (iii) Neither
      the Trustee nor the Securities Administrator shall be liable with respect to
      any
      action taken, suffered or omitted to be taken by it in good faith in accordance
      with the direction of the Holders of Certificates entitled to at least 25%
      of
      the Voting Rights relating to the time, method and place of conducting any
      proceeding for any remedy available to the Trustee or the Securities
      Administrator or exercising any trust or power conferred upon the Trustee or
      the
      Securities Administrator under this Agreement.

     

    SECTION
      9.02. Certain
      Matters Affecting Trustee and Securities Administrator.

     

    (a) Except
      as
      otherwise provided in Section 9.01 of this Agreement:

     

    (i) Before
      taking any action hereunder, the Trustee and the Securities Administrator may
      request and rely upon and shall be protected in acting or refraining from acting
      upon any resolution, Officers’ Certificate, certificate of auditors or any other
      certificate, statement, instrument, opinion, report, notice, request, consent,
      order, appraisal, bond or other paper or document reasonably believed by it
      to
      be genuine and to have been signed or presented by the proper party or
      parties;

     

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

     

    (iii) Neither
      the Trustee nor the Securities Administrator shall be under any obligation
      to
      exercise any of the trusts or powers vested in it by this Agreement or to
      institute, conduct or defend any litigation hereunder or in relation hereto
      at
      the request, order or direction of any of the Certificateholders, pursuant
      to
      the provisions of this Agreement, unless such Certificateholders shall have
      offered to the Trustee or the Securities Administrator, as the case may be,
      reasonable security or indemnity satisfactory to it 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 a Master Servicer Event of Default (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 or use under the circumstances in the conduct
      of
      such person’s own affairs;

    

    
      
        
          
          

        

        
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    (iv) Neither
      the Trustee nor the Securities Administrator shall 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) Prior
      to
      the occurrence of a Master Servicer Event of Default hereunder and after the
      curing or waiver of all Master Servicer Events of Default which may have
      occurred with respect to the Trustee and at all times with respect to the
      Securities Administrator, neither the Trustee nor the Securities Administrator
      shall be 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 the Holders of Certificates entitled to at
      least 25% of the Voting Rights; provided, however, that if the payment within
      a
      reasonable time to the Trustee or the Securities Administrator of the costs,
      expenses or liabilities likely to be incurred by it in the making of such
      investigation is, in the opinion of the Trustee or the Securities Administrator,
      as applicable, not reasonably assured to the Trustee or the Securities
      Administrator by such Certificateholders, the Trustee or the Securities
      Administrator, as applicable, may require reasonable indemnity satisfactory
      to
      it against such expense, or liability from such Certificateholders as a
      condition to taking any such action;

     

    (vi) The
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or by or through agents or attorneys and the Trustee
      shall not be responsible for any misconduct or negligence on the part of any
      agent or attorney appointed with due care by it hereunder;

     

    (vii) The
      Trustee shall not be liable for any loss resulting from (a) the investment
      of
      funds held in the Collection Account, (b) the investment of funds held in the
      Distribution Account, (c) the investment of funds held in the Reserve Fund
      or
      (d) the redemption or sale of any such investment as therein
      authorized;

     

    (viii) The
      Trustee shall not be deemed to have notice of any default, Master Servicer
      Event
      of Default or Servicer Event of Default unless a Responsible Officer of the
      Trustee has actual knowledge thereof or unless written notice of any event
      which
      is in fact such a default is received by a Responsible Officer of the Trustee
      at
      the Corporate Trust Office of the Trustee, and such notice references the
      Certificates and this Agreement; 

    

    
      
        
          
          

        

        
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    (ix) The
      rights, privileges, protections, immunities and benefits given to the Trustee,
      including, without limitation, its right to be indemnified, are extended to,
      and
      shall be enforceable by, each agent, custodian and other Person employed to
      act
      hereunder; and

     

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

     

    (b) All
      rights of action under this Agreement or under any of the Certificates,
      enforceable by the Trustee, may be enforced by it without the possession of
      any
      of the Certificates, or the production thereof at the trial or other proceeding
      relating thereto, and any such suit, action or proceeding instituted by the
      Trustee shall be brought in its name for the benefit of all the Holders of
      such
      Certificates, subject to the provisions of this Agreement.

     

    (c) The
      Depositor hereby directs the Trustee and the Trustee is hereby empowered under
      this Agreement to execute the Swap Agreement on behalf of the Supplemental
      Interest Trust in the form presented to it by the Swap Provider and shall have
      no responsibility for the contents of the Swap Agreement, including, without
      limitation, the representations and warranties contained therein. The Trustee
      hereby directs the Securities Administrator and the Securities Administrator
      is
      hereby empowered under this Agreement to act on behalf of the Supplemental
      Interest Trust Trustee. Any funds payable by the Securities Administrator in
      connection with its obligations as Supplemental Interest Trust Trustee and
      the
      Supplemental Interest Trust under the Swap Agreement shall be paid from funds
      of
      the Supplemental Interest Trust in accordance with the terms and provisions
      of
      the Swap Agreement. Notwithstanding anything to the contrary contained herein
      or
      in the Swap Agreement, neither the Supplemental Interest Trust Trustee nor
      the
      Securities Administrator shall be required to make any payments from its own
      funds to the counterparty under the Swap Agreement. The Trustee is hereby
      directed by the Depositor to execute the Cap Contracts on behalf of the Trust
      Fund in the form presented to it by the Depositor and shall have no
      responsibility for the contents of the Cap Contracts, including, without
      limitation, the representations and warranties contained therein. Any funds
      payable by the Trustee under the Cap Contracts at closing shall be paid by
      the
      Depositor. Notwithstanding anything to the contrary contained herein, the
      Trustee shall not be required to make any payments to the Cap Counterparty
      under
      the Cap Contracts unless otherwise set forth in the Cap Contracts.

     

    (d) None
      of
      the Securities Administrator, the Master Servicer, the Servicer, the Sponsor,
      the Depositor, the Custodian or the Trustee shall be responsible for the acts
      or
      omissions of the others or the Swap Provider, it being understood that this
      Agreement shall not be construed to render those partners joint venturers or
      agents of one another.

     

    
      
        
          
          

        

        
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    SECTION
      9.03. Trustee
      and Securities Administrator not Liable for Certificates or Mortgage
      Loans.

     

    The
      recitals contained herein and in the Certificates (other than the signature
      of
      the Securities Administrator, the authentication of the Securities Administrator
      on the Certificates, the acknowledgments of the Trustee contained in Article
      II
      and the representations and warranties of the Trustee in Section 9.12 of
      this Agreement) shall be taken as the statements of the Depositor and neither
      the Trustee nor the Securities Administrator assumes any responsibility for
      their correctness. Neither the Trustee nor the Securities Administrator makes
      any representations or warranties as to the validity or sufficiency of this
      Agreement (other than as specifically set forth in Section 9.12 of this
      Agreement), the Swap Agreement or of the Certificates (other than the signature
      of the Securities Administrator and authentication of the Securities
      Administrator on the Certificates) or of any Mortgage Loan or related document.
      The Trustee and the Securities Administrator 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 or the Master Servicer in respect of the Mortgage Loans or
      deposited in or withdrawn from the Collection Account by the Servicer, other
      than with respect to the Securities Administrator any funds held by it or on
      behalf of the Trustee in accordance with Section 3.05 of this
      Agreement.

     

    SECTION
      9.04. Trustee
      and Securities Administrator May Own Certificates.

     

    Each
      of
      the Trustee and the Securities Administrator in its individual capacity or
      any
      other capacity may become the owner or pledgee of Certificates and may transact
      business with other interested parties and their Affiliates with the same rights
      it would have if it were not Trustee or the Securities
      Administrator.

     

    SECTION
      9.05. Fees
      and
      Expenses of Trustee, Custodian and Securities Administrator.

     

    The
      fees
      of the Trustee and the Securities Administrator hereunder, of Wells Fargo as
      the
      Custodian under the Custodial Agreement shall be paid in accordance with a
      side
      letter agreement with the Master Servicer and at the sole expense of the Master
      Servicer. In addition, the Trustee, the Securities Administrator, the Custodian
      and any director, officer, employee or agent of the Trustee, the Securities
      Administrator and the Custodian shall be indemnified by the Trust and held
      harmless against any loss, liability or expense (including reasonable attorney’s
      fees and expenses) incurred by the Trustee, the Custodian or the Securities
      Administrator in connection with any claim or legal action or any pending or
      threatened claim or legal action arising out of or in connection with the
      acceptance or administration of its respective obligations and duties under
      this
      Agreement, including the Swap Agreement and any and all other agreements related
      hereto, other than any loss, liability or expense (i) solely with respect to
      the
      Trustee, for which the Trustee is indemnified by the Master Servicer or the
      Servicer, (ii) that constitutes a specific liability of the Trustee or the
      Securities Administrator, as applicable, pursuant to Section 11.01(g) of
      this Agreement or (iii) any loss, liability or expense incurred by reason of
      willful misfeasance, bad faith or negligence in the performance of duties
      hereunder by the Trustee or the Securities Administrator, as applicable, or
      by
      reason of reckless disregard of its obligations and duties hereunder. In no
      event shall the Trustee, Custodian, Master Servicer or the Securities
      Administrator be liable for special, indirect or consequential loss or damage
      of
      any kind whatsoever (including but not limited to lost profits), even if it
      has
      been advised of the likelihood of such loss or damage and regardless of the
      form
      of action. The Master Servicer agrees to indemnify the Trustee, from, and hold
      the Trustee harmless against, any loss, liability or expense (including
      reasonable attorney’s fees and expenses) incurred by the Trustee by reason of
      the Master Servicer’s willful misfeasance, bad faith or gross negligence in the
      performance of its duties under this Agreement or by reason of the Master
      Servicer’s reckless disregard of its obligations and duties under this
      Agreement. In addition, the Sponsor agrees to indemnify the Trustee for, and
      to
      hold the Trustee harmless against, any loss, liability or expense arising out
      of, or in connection with, the provisions set forth in the last paragraph of
      Section 2.01 of this Agreement, including, without limitation, all costs,
      liabilities and expenses (including reasonable legal fees and expenses) of
      investigating and defending itself against any claim, action or proceeding,
      pending or threatened, relating to the provisions of such paragraph. The
      indemnities in this Section 9.05 shall survive the termination or discharge
      of this Agreement and the resignation or removal of the Master Servicer, the
      Trustee, the Securities Administrator or the Custodian. Any payment under this
      Section 9.05 made by the Master Servicer to the Trustee in respect of the
      Trustee’s fees or the Master Servicer’s indemnification obligation to the
      Trustee shall be from the Master Servicer’s own funds, without reimbursement
      from REMIC I therefor.

    

    
      
        
          
          

        

        
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    SECTION
      9.06. Eligibility
      Requirements for Trustee and Securities Administrator.

     

    The
      Trustee and the Securities Administrator shall at all times be a corporation
      or
      an association (other than the Depositor, the Sponsor, the Master Servicer
      or
      any Affiliate of the foregoing) organized and doing business under the laws
      of
      any state or the United States of America, authorized under such laws to
      exercise corporate trust powers, having a combined capital and surplus of at
      least $50,000,000 (or a member of a bank holding company whose capital and
      surplus is at least $50,000,000) and subject to supervision or examination
      by
      federal or state authority. If such corporation or association publishes reports
      of conditions at least annually, pursuant to law or to the requirements of
      the
      aforesaid supervising or examining authority, then for the purposes of this
      Section the combined capital and surplus of such corporation or association
      shall be deemed to be its combined capital and surplus as set forth in its
      most
      recent report of conditions so published. In case at any time the Trustee or
      the
      Securities Administrator, as applicable, shall cease to be eligible in
      accordance with the provisions of this Section, the Trustee or the Securities
      Administrator, as applicable, shall resign immediately in the manner and with
      the effect specified in Section 9.07 of this Agreement.

     

    Additionally,
      the Securities Administrator (i) may not be an originator, Master Servicer,
      Servicer, the Depositor or an affiliate of the Depositor unless the Securities
      Administrator is in an institutional trust department, (ii) must be authorized
      to exercise corporate trust powers under the laws of its jurisdiction of
      organization, and (iii) must be rated at least "A/F1" by Fitch, if Fitch is
      a
      Rating Agency, or the equivalent rating by S&P (or such rating acceptable to
      Fitch pursuant to a rating confirmation). If no successor securities
      administrator shall have been appointed and shall have accepted appointment
      within 60 days after Wells Fargo Bank, National Association, as Securities
      Administrator, ceases to be the securities administrator pursuant to this
      Section 9.06, then the Trustee shall petition any court of competent
      jurisdiction, at the expense of the Trust, for the appointment of a successor
      securities administrator which satisfies the eligibility criteria set forth
      herein. The Trustee shall notify the Rating Agencies of any change of Securities
      Administrator.

     

    
      
        
          
          

        

        
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    SECTION
      9.07. Resignation
      and Removal of Trustee and Securities Administrator.

     

    The
      Trustee and the Securities Administrator may at any time resign and be
      discharged from the trust hereby created by giving written notice thereof to
      the
      Depositor, to the Master Servicer, to the Securities Administrator (or the
      Trustee, if the Securities Administrator resigns) and to the Certificateholders.
      Upon receiving such notice of resignation, the Depositor shall promptly appoint
      a successor trustee or successor securities administrator by written instrument,
      in duplicate, which instrument shall be delivered to the resigning Trustee
      or
      Securities Administrator, as applicable, and to the successor trustee or
      successor securities administrator, as applicable. A copy of such instrument
      shall be delivered to the Certificateholders, the Trustee, the Securities
      Administrator and the Master Servicer by the Depositor. If no successor trustee
      or successor securities administrator shall have been so appointed and have
      accepted appointment within thirty (30) days after the giving of such notice
      of
      resignation, the resigning Trustee or Securities Administrator, as the case
      may
      be, may, at the expense of the Trust Fund, petition any court of competent
      jurisdiction for the appointment of a successor trustee, successor securities
      administrator, Trustee or Securities Administrator, as applicable.

     

    If
      at any
      time the Trustee or the Securities Administrator shall cease to be eligible
      in
      accordance with the provisions of Section 9.06 of this Agreement and shall
      fail to resign after written request therefor by the Depositor, or if at any
      time the Trustee or the Securities Administrator shall become incapable of
      acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee
      or the Securities Administrator or of its property shall be appointed, or any
      public officer shall take charge or control of the Trustee or the Securities
      Administrator or of its property or affairs for the purpose of rehabilitation,
      conservation or liquidation, then the Depositor may remove the Trustee or the
      Securities Administrator, as applicable and appoint a successor trustee or
      successor securities administrator, as applicable, by written instrument, in
      duplicate, which instrument shall be delivered to the Trustee or the Securities
      Administrator so removed and to the successor trustee or successor securities
      administrator. A copy of such instrument shall be delivered to the
      Certificateholders, the Trustee, the Securities Administrator and the Master
      Servicer by the Depositor.

     

    The
      Holders of Certificates entitled to at least 51% of the Voting Rights may at
      any
      time remove the Trustee or the Securities Administrator and appoint a successor
      trustee or successor securities administrator by written instrument or
      instruments, in triplicate, signed by such Holders or their attorneys-in-fact
      duly authorized, one complete set of which instruments shall be delivered to
      the
      Depositor, one complete set to the Trustee or the Securities Administrator
      so
      removed and one complete set to the successor so appointed. A copy of such
      instrument shall be delivered to the Certificateholders, the Trustee (in the
      case of the removal of the Securities Administrator), the Securities
      Administrator (in the case of the removal of the Trustee) and the Master
      Servicer by the Depositor.

    

    
      
        
          
          

        

        
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    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor trustee or successor securities administrator
      pursuant to any of the provisions of this Section shall not become
      effective until acceptance of appointment by the successor trustee or successor
      securities administrator, as applicable, as provided in
      Section 9.08.

     

    Notwithstanding
      anything to the contrary contained herein, the Master Servicer and the
      Securities Administrator shall at all times be the same Person.

     

    SECTION
      9.08. Successor
      Trustee or Securities Administrator.

     

    Any
      successor trustee or successor securities administrator appointed as provided
      in
      Section 9.07 of this Agreement shall execute, acknowledge and deliver to
      the Depositor and its predecessor trustee or predecessor securities
      administrator an instrument accepting such appointment hereunder, and thereupon
      the resignation or removal of the predecessor trustee or predecessor securities
      administrator shall become effective and such successor trustee or successor
      securities administrator without any further act, deed or conveyance, shall
      become fully vested with all the rights, powers, duties and obligations of
      its
      predecessor hereunder, with the like effect as if originally named as trustee
      or
      securities administrator herein. The predecessor trustee or predecessor
      securities administrator shall deliver to the successor trustee or successor
      securities administrator all Mortgage Loan Documents and related documents
      and
      statements to the extent held by it hereunder, as well as all monies, held
      by it
      hereunder, and the Depositor and the predecessor trustee or predecessor
      securities administrator 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 or successor securities administrator
      all such rights, powers, duties and obligations.

     

    No
      successor trustee or successor securities administrator shall accept appointment
      as provided in this Section unless at the time of such acceptance such
      successor trustee or successor securities administrator shall be eligible under
      the provisions of Section 9.06 and the appointment of such successor
      trustee or successor securities administrator shall not result in a downgrading
      of any Class of Certificates by any Rating Agency, as evidenced by a letter
      from
      each Rating Agency.

     

    Upon
      acceptance of appointment by a successor trustee or successor securities
      administrator as provided in this Section, the Depositor shall mail notice
      of
      the succession of such trustee hereunder to all Holders of Certificates at
      their
      addresses as shown in the Certificate Register. If the Depositor fails to mail
      such notice within ten (10) days after acceptance of appointment by the
      successor trustee or successor securities administrator, the successor trustee
      or successor securities administrator shall cause such notice to be mailed
      at
      the expense of the Depositor.

     

    SECTION
      9.09. Merger
      or
      Consolidation of Trustee or Securities Administrator.

     

    Any
      corporation or association into which the Trustee or the Securities
      Administrator may be merged or converted or with which it may be consolidated
      or
      any corporation or association resulting from any merger, conversion or
      consolidation to which the Trustee or the Securities Administrator shall be
      a
      party, or any corporation or association succeeding to the business of the
      Trustee or the Securities Administrator shall be the successor of the Trustee
      or
      the Securities Administrator hereunder, provided such corporation or association
      shall be eligible under the provisions of Section 9.06 of this Agreement,
      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.

    

    
      
        
          
          

        

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

     

    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 REMIC I or property
      securing the same may at the time be located, the Trustee shall have the power
      and shall execute and deliver all instruments to appoint one or more Persons
      approved by the Trustee to act as co-trustee or co-trustees, jointly with the
      Trustee, or separate trustee or separate trustees, of all or any part of REMIC
      I, and to vest in such Person or Persons, in such capacity, and for the benefit
      of the Holders of the Certificates, such title to REMIC I, or any part thereof,
      and, subject to the other provisions of this Section 9.10, such powers,
      duties, obligations, rights and trusts as the Trustee may consider necessary
      or
      desirable. 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 Holders of Certificates of the appointment of
      co-trustee(s) or separate trustee(s) shall be required under Section 9.08
      hereof.

     

    In
      the
      case of any appointment of a co-trustee or separate trustee pursuant to this
      Section 9.10 all rights, powers, duties and obligations conferred or
      imposed upon the 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 by the Trustee (whether as Trustee hereunder or
      as
      successor to a defaulting 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 REMIC
      I 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.

     

    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 trust
      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.

     

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

    

    
      
        
          
          

        

        
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    SECTION
      9.11. Appointment
      of Office or Agency.

     

    The
      Certificates may be surrendered for registration of transfer or exchange at
      the
      Securities Administrator’s office located at Sixth Street and Marquette Avenue,
      Minneapolis, Minnesota 55479, and presented for final distribution at the
      Corporate Trust Office of the Securities Administrator where notices and demands
      to or upon the Securities Administrator in respect of the Certificates and
      this
      Agreement may be served.

     

    SECTION
      9.12. Representations
      and Warranties.

     

    The
      Trustee hereby represents and warrants to the Master Servicer, the Securities
      Administrator, the Servicer and the Depositor as applicable, as of the Closing
      Date, that:

     

    (i) It
      is a
      national banking association duly organized, validly existing and in good
      standing under the laws of the United States of America.

     

    (ii) The
      execution and delivery of this Agreement by it, and the performance and
      compliance with the terms of this Agreement by it, will not violate its articles
      of association or bylaws or constitute a default (or an event which, with notice
      or lapse of time, or both, would constitute a default) under, or result in
      the
      breach of, any material agreement or other instrument to which it is a party
      or
      which is applicable to it or any of its assets.

     

    (iii) It
      has
      the full power and authority to enter into and consummate all transactions
      contemplated by this Agreement, has duly authorized the execution, delivery
      and
      performance of this Agreement, and has duly executed and delivered this
      Agreement.

     

    (iv) This
      Agreement, assuming due authorization, execution and delivery by the other
      parties hereto, constitutes a valid, legal and binding obligation of it,
      enforceable against it in accordance with the terms hereof, subject to (A)
      applicable bankruptcy, insolvency, receivership, reorganization, moratorium
      and
      other laws affecting the enforcement of creditors’ rights generally, and (B)
      general principles of equity, regardless of whether such enforcement is
      considered in a proceeding in equity or at law.

     

    (v) It
      is not
      in violation of, and its execution and delivery of this Agreement and its
      performance and compliance with the terms of this Agreement will not constitute
      a violation of, any law, any order or decree of any court or arbiter, or any
      order, regulation or demand of any federal, state or local governmental or
      regulatory authority, which violation, in its good faith and reasonable
      judgment, is likely to affect materially and adversely either the ability of
      it
      to perform its obligations under this Agreement or its financial
      condition.

    

    
      
        
          
          

        

        
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    (vi) No
      litigation is pending or, to the best of its knowledge, threatened against
      it,
      which would prohibit it from entering into this Agreement or, in its good faith
      reasonable judgment, is likely to materially and adversely affect either the
      ability of it to perform its obligations under this Agreement or its financial
      condition.

    

    
      
        
          
          

        

        
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    ARTICLE
      X

     

    TERMINATION

    

    SECTION
      10.01. Termination
      Upon Repurchase or Liquidation of All Mortgage Loans.

     

    (a) Subject
      to Section 10.02 of this Agreement, the respective obligations and
      responsibilities under this Agreement of the Depositor, the Master Servicer,
      the
      Securities Administrator, the Servicer and the Trustee (other than the
      obligations of the Master Servicer to the Trustee pursuant to Section 9.05
      of this Agreement and of the Servicer to make remittances to the Securities
      Administrator and the Securities Administrator to make payments in respect
      of
      the REMIC I Regular Interests, REMIC II Regular Interests or the Classes of
      Certificates as hereinafter set forth) shall terminate upon payment to the
      Certificateholders and the deposit of all amounts held by or on behalf of the
      Trustee and required hereunder to be so paid or deposited on the Distribution
      Date coinciding with or following the earlier to occur of (i) the purchase
      by
      the Terminator (as defined below) of all Mortgage Loans and each REO Property
      remaining in REMIC I and (ii) the final payment or other liquidation (or any
      advance with respect thereto) of the last Mortgage Loan or REO Property
      remaining in REMIC I; provided, however, that in no event shall the trust
      created hereby continue beyond the earlier of (i) the expiration of 21 years
      from the death of the last survivor of the descendants of Joseph P. Kennedy,
      the
      late ambassador of the United States to the Court of St. James, living on the
      date hereof and (ii) the Last Scheduled Distribution Date. The purchase by
      the
      Terminator of all Mortgage Loans and each REO Property remaining in REMIC I
      shall be at a price (the “Termination Price”) equal to the sum of (i) the
      greater of (A) the aggregate Purchase Price of all the Mortgage Loans included
      in REMIC I, plus the appraised value of each REO Property, if any, included
      in
      REMIC I, such appraisal to be conducted by an appraiser mutually agreed upon
      by
      the Terminator and the Trustee in their reasonable discretion and (B) the
      aggregate fair market value of all of the assets of REMIC I (as determined
      by
      the Terminator and the Trustee, as of the close of business on the third
      Business Day next preceding the date upon which notice of any such termination
      is furnished to Certificateholders pursuant to the third paragraph of this
      Section 10.01), (ii) any amounts due and owing the Swap Provider under the
      Swap Agreement as of the termination date, plus (iii) any amounts due the
      Servicer and the Master Servicer in respect of unpaid Servicing Fees and
      outstanding P&I Advances and Servicing Advances. 

     

    (b) The
      Master Servicer or, if the Master Servicer fails to exercise such optional
      termination right within two years of the first Optional Termination Date,
      the
      Servicer (either the Master Servicer or the Servicer, the “Terminator”) shall
      have the right to purchase all of the Mortgage Loans and each REO Property
      remaining in REMIC I pursuant to clause (i) of the preceding paragraph no later
      than the Determination Date in the month immediately preceding the Distribution
      Date on which the Certificates will be retired; provided, however, that the
      Terminator may elect to purchase all of the Mortgage Loans and each REO Property
      remaining in REMIC I pursuant to clause (i) above only if the aggregate
      Scheduled Principal Balance of the Mortgage Loans and each REO Property
      remaining in the Trust Fund at the time of such election is reduced to less
      than
      or equal to 10% of the aggregate Scheduled Principal Balance of the Mortgage
      Loans as of the Cut-off Date. By acceptance of the Residual Certificates, the
      Holder of the Residual Certificates agrees, in connection with any termination
      hereunder, to assign and transfer any portion of the Termination Price in excess
      of par, and to the extent received in respect of such termination, to pay any
      such amounts to the Holders of the Class CE Certificates. Notwithstanding the
      foregoing, the optional termination right may only be exercised by the Servicer
      if (1) the Servicer receives written notification from the Master Servicer
      that
      the Master Servicer will not exercise such optional termination right or (2)
      the
      Servicer does not receive such written notification from the Master Servicer,
      and the Master Servicer fails to exercise its optional termination right within
      two years following the date such right became exercisable; provided, however,
      in no event shall the Servicer exercise its optional termination right under
      (1)
      or (2) above unless it first provides written notice to the Authorized Officers
      of the Sponsor that it intends to exercise such optional termination
      right.

    

    
      
        
          
          

        

        
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    (c) Notice
      of
      the liquidation of the Certificates shall be given promptly by the Securities
      Administrator by letter to the Certificateholders mailed (a) in the event such
      notice is given in connection with the purchase of the Mortgage Loans and each
      REO Property by the Master Servicer, not earlier than the 15th day and not
      later
      than the 25th day of the month next preceding the month of the final
      distribution on the Certificates or (b) otherwise during the month of such
      final
      distribution on or before the Determination Date in such month, in each case
      specifying (i) the Distribution Date upon which the Trust Fund will terminate
      and the final payment in respect of the REMIC I Regular Interests or the
      Certificates will be made upon presentation and surrender of the related
      Certificates at the office of the Securities Administrator therein designated,
      (ii) the amount of any such final payment, (iii) that no interest shall accrue
      in respect of the REMIC I Regular Interests or Certificates from and after
      the
      Interest Accrual Period relating to the final Distribution Date therefor and
      (iv) that the Record Date otherwise applicable to such Distribution Date is
      not
      applicable, payments being made only upon presentation and surrender of the
      Certificates at the office of the Securities Administrator. In the event such
      notice is given in connection with the purchase of all of the Mortgage Loans
      and
      each REO Property remaining in REMIC I by the Terminator, the Terminator shall
      deliver to the Securities Administrator for deposit in the Distribution Account
      not later than the Business Day prior to the Distribution Date on which the
      final distribution on the Certificates an amount in immediately available funds
      equal to the above-described Termination Price. The Securities Administrator
      shall remit to the Servicer, the Master Servicer, the Trustee and the Custodian
      from such funds deposited in the Distribution Account (i) any amounts which
      the
      Servicer would be permitted to withdraw and retain from the Collection Account
      pursuant to the terms of the Servicing Agreement, as applicable, as if such
      funds had been deposited therein (including all unpaid Servicing Fees and all
      outstanding P&I Advances and Servicing Advances) and (ii) any other amounts
      otherwise payable by the Securities Administrator to the Master Servicer, the
      Trustee, the Custodian, the Servicer and the Swap Provider from amounts on
      deposit in the Distribution Account pursuant to the terms of this Agreement
      prior to making any final distributions pursuant to Section 10.01(d) below.
      Upon certification to the Trustee by the Securities Administrator of the making
      of such final deposit, the Trustee shall promptly release or cause to be
      released to the Terminator the Mortgage Files for the remaining Mortgage Loans,
      and Trustee shall execute all assignments, endorsements and other instruments
      delivered to it and necessary to effectuate such transfer.

     

    (d) Upon
      presentation of the Certificates by the Certificateholders on the final
      Distribution Date, the Securities Administrator shall distribute to each
      Certificateholder so presenting and surrendering its Certificates the amount
      otherwise distributable on such Distribution Date in accordance with
      Section 5.01 in respect of the Certificates so presented and surrendered.
      Any funds not distributed to any Holder or Holders of Certificates being retired
      on such Distribution Date because of the failure of such Holder or Holders
      to
      tender their Certificates shall, on such date, be set aside and held in trust
      and credited to the account of the appropriate non-tendering Holder or Holders.
      If any Certificates as to which notice has been given pursuant to this
      Section 10.01 shall not have been surrendered for cancellation within six
      months after the time specified in such notice, the Securities Administrator
      shall mail a second notice to the remaining non-tendering Certificateholders
      to
      surrender their Certificates for cancellation in order to receive the final
      distribution with respect thereto. If within one year after the second notice
      all such Certificates shall not have been surrendered for cancellation, the
      Securities Administrator shall, directly or through an agent, mail a final
      notice to the remaining non-tendering Certificateholders concerning surrender
      of
      their Certificates. The costs and expenses of maintaining the funds in trust
      and
      of contacting such Certificateholders shall be paid out of the assets remaining
      in the trust funds. If within one (1) year after the final notice any such
      Certificates shall not have been surrendered for cancellation, the Securities
      Administrator shall pay to the Depositor all such amounts, and all rights of
      non-tendering Certificateholders in or to such amounts shall thereupon cease.
      No
      interest shall accrue or be payable to any Certificateholder on any amount
      held
      in trust by the Securities Administrator as a result of such Certificateholder’s
      failure to surrender its Certificate(s) on the final Distribution Date for
      final
      payment thereof in accordance with this Section 10.01. Any such amounts
      held in trust by the Securities Administrator shall be held uninvested in an
      Eligible Account.

    

    
      
        
          
          

        

        
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    SECTION
      10.02. Additional
      Termination Requirements.

     

    (a) In
      the
      event that the Terminator purchases all the Mortgage Loans and each REO Property
      or the final payment on or other liquidation of the last Mortgage Loan or REO
      Property remaining in REMIC I pursuant to Section 10.01, the Trust Fund
      shall be terminated in accordance with the following additional
      requirements:

     

    (i) The
      Securities Administrator shall specify the first day in the 90-day liquidation
      period in a statement attached to each Trust REMIC’s final Tax Return pursuant
      to Treasury regulation Section 1.860F-1 and shall satisfy all requirements
      of a qualified liquidation under Section 860F of the Code and any
      regulations thereunder, as evidenced by an Opinion of Counsel obtained by and
      at
      the expense of the Terminator;

     

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

     

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

    

    
      
        
          
          

        

        
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    (b) At
      the
      expense of the Terminator (or, if the Trust Fund is being terminated as a result
      of the occurrence of the event described in clause (ii) of the first paragraph
      of Section 10.01, at the expense of the Trust Fund), the Terminator shall
      prepare or cause to be prepared the documentation required in connection with
      the adoption of a plan of liquidation of each Trust REMIC pursuant to this
      Section 10.02.

     

    (c) By
      their
      acceptance of Certificates, the Holders thereof hereby agree to authorize the
      Securities Administrator to specify the 90-day liquidation period for each
      Trust
      REMIC, which authorization shall be binding upon all successor
      Certificateholders.

    

    
      
        
          
          

        

        
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    ARTICLE
      XI

     

    REMIC
      PROVISIONS

    

    SECTION
      11.01. REMIC
      Administration.

     

    (a) The
      Securities Administrator shall elect to treat each Trust REMIC as a REMIC under
      the Code and, if necessary, under applicable state law. Each such election
      will
      be made by the Securities Administrator on Form 1066 or other appropriate
      federal tax or information return or any appropriate state return for the
      taxable year ending on the last day of the calendar year in which the
      Certificates are issued. For the purposes of the REMIC election in respect
      of
      REMIC I, the REMIC I Regular Interests shall be designated as the Regular
      Interests in REMIC I and the Class R-I Interest shall be designated as the
      “residual interests” in REMIC I. For the purposes of the REMIC election in
      respect of REMIC II, the REMIC II Regular Interests shall be designated as
      the
      Regular Interests in REMIC II and the Class R-II Interest shall be designated
      as
      the “residual interests” in REMIC II. The Class A Certificates, the Mezzanine
      Certificates, the Class P Certificates, the Class IO Interest and the Class
      CE
      Certificates (exclusive of any right to receive payments from or obligation
      to
      make payments to the Reserve Fund or the Supplemental Interest Trust) shall
      be
      designated as the Regular Interests in REMIC III and the Class R-III Interest
      shall be designated as the Residual Interests in REMIC III. The Trustee shall
      not permit the creation of any “interests” in each Trust REMIC (within the
      meaning of Section 860G of the Code) other than the REMIC I Regular
      Interests, the REMIC II Regular Interests, the Class IO Interest and the
      interests represented by the Certificates.

     

    (b) The
      Closing Date is hereby designated as the “Startup Day” of each Trust REMIC
      within the meaning of Section 860G(a)(9) of the Code.

     

    (c) The
      Securities Administrator shall be reimbursed for any and all expenses relating
      to any tax audit of the Trust Fund (including, but not limited to, any
      professional fees or any administrative or judicial proceedings with respect
      to
      each Trust REMIC that involve the Internal Revenue Service or state tax
      authorities), including the expense of obtaining any tax related Opinion of
      Counsel except as specified herein. The Securities Administrator, as agent
      for
      each Trust REMIC’s tax matters person shall (i) act on behalf of the Trust Fund
      in relation to any tax matter or controversy involving any Trust REMIC and
      (ii)
      represent the Trust Fund in any administrative or judicial proceeding relating
      to an examination or audit by any governmental taxing authority with respect
      thereto. The holder of the largest Percentage Interest of each Class of Residual
      Certificates shall be designated, in the manner provided under Treasury
      regulations section 1.860F-4(d) and Treasury regulations section
      301.6231(a)(7)-1, as the tax matters person of the related REMIC created
      hereunder. By their acceptance thereof, the holder of the largest Percentage
      Interest of the Residual Certificates hereby agrees to irrevocably appoint
      the
      Securities Administrator or an Affiliate as its agent to perform all of the
      duties of the tax matters person for the Trust Fund.

     

    (d) The
      Securities Administrator shall prepare and file and the Trustee shall sign
      all
      of the Tax Returns in respect of each REMIC created hereunder. The expenses
      of
      preparing and filing such returns shall be borne by the Securities Administrator
      without any right of reimbursement therefor.

    

    
      
        
          
          

        

        
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    (e) The
      Securities Administrator shall perform on behalf of each Trust REMIC all
      reporting and other tax compliance duties that are the responsibility of such
      REMIC under the Code, the REMIC Provisions or other compliance guidance issued
      by the Internal Revenue Service or any state or local taxing authority. Among
      its other duties, as required by the Code, the REMIC Provisions or other such
      compliance guidance, the Securities Administrator shall provide (i) to any
      Transferor of a Residual Certificate such information as is necessary for the
      application of any tax relating to the transfer of a Residual Certificate to
      any
      Person who is not a Permitted Transferee upon receipt of additional reasonable
      compensation, (ii) to the Certificateholders such information or reports as
      are
      required by the Code or the REMIC Provisions including reports relating to
      interest, original issue discount and market discount or premium (using the
      Prepayment Assumption as required) and (iii) to the Internal Revenue Service
      the
      name, title, address and telephone number of the person who will serve as the
      representative of each Trust REMIC. The Depositor shall provide or cause to
      be
      provided to the Securities Administrator, within ten (10) days after the Closing
      Date, all information or data that the Securities Administrator reasonably
      determines to be relevant for tax purposes as to the valuations and issue prices
      of the Certificates, including, without limitation, the price, yield, prepayment
      assumption and projected cash flow of the Certificates.

     

    (f) To
      the
      extent in the control of the Trustee or the Securities Administrator, each
      such
      Person (i) shall take such action and shall cause each REMIC created hereunder
      to take such action as shall be necessary to create or maintain the status
      thereof as a REMIC under the REMIC Provisions, (ii) shall not take any action,
      cause the Trust Fund 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 (A) endanger the status of each Trust REMIC as a REMIC
      or
      (B) 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) (either such event, an “Adverse REMIC
      Event”) unless such action or inaction is permitted under this Agreement or the
      Trustee and the Securities Administrator have received an Opinion of Counsel,
      addressed to the them (at the expense of the party seeking to take such action
      but in no event at the expense of the Trustee or the Securities Administrator)
      to the effect that the contemplated action will not, with respect to any Trust
      REMIC, endanger such status or result in the imposition of such a tax, nor
      (iii)
      shall the Securities Administrator take or fail to take any action (whether
      or
      not authorized hereunder) as to which the Trustee has advised it in writing
      that
      it has received an Opinion of Counsel to the effect that an Adverse REMIC Event
      could occur with respect to such action; provided that the Securities
      Administrator may conclusively rely on such Opinion of Counsel and shall incur
      no liability for its action or failure to act in accordance with such Opinion
      of
      Counsel. In addition, prior to taking any action with respect to any Trust
      REMIC
      or the respective assets of each, or causing any Trust REMIC to take any action,
      which is not contemplated under the terms of this Agreement, the Securities
      Administrator will consult with the Trustee or its designee, in writing, with
      respect to whether such action could cause an Adverse REMIC Event to occur
      with
      respect to any Trust REMIC, and the Securities Administrator shall not take
      any
      such action or cause any Trust REMIC to take any such action as to which the
      Trustee has advised it in writing that an Adverse REMIC Event could occur.
      The
      Trustee may consult with counsel to make such written advice, and the cost
      of
      same shall be home by the party seeking to take the action not permitted by
      this
      Agreement, but in no event shall such cost be an expense of the
      Trustee.

    

    
      
        
          
          

        

        
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    (g) In
      the
      event that any tax is imposed on “prohibited transactions” of any REMIC created
      hereunder as defined in Section 860F(a)(2) of the Code, on the “net income
      from foreclosure property” of such REMIC as defined in Section 860G(c) of
      the Code, on any contributions to any such REMIC after the Startup Day therefor
      pursuant to Section 860G(d) of the Code, or any other tax is imposed by the
      Code or any applicable provisions of state or local tax laws, such tax shall
      be
      charged (i) to the Trustee pursuant to Section 11.03 of this Agreement, if
      such tax arises out of or results from a breach by the Trustee of any of its
      obligations under this Article XI, (ii) to the Securities Administrator pursuant
      to Section 11.03, if such tax arises out of or results from a breach by the
      Securities Administrator of any of its obligations under this Article XI, (iii)
      to the Master Servicer pursuant to Section 11.03 of this Agreement, if such
      tax arises out of or results from a breach by the Master Servicer of any of
      its
      obligations under Article IV or under this Article XI, (iv) to the Servicer
      pursuant to Section 11.03 of this Agreement, if such tax arises out of or
      results from a breach by the Servicer of any of its obligations under Article
      III or under this Article XI, or (v) in all other cases, against amounts on
      deposit in the Distribution Account and shall be paid by withdrawal
      therefrom.

     

    (h) The
      Securities Administrator shall, for federal income tax purposes, maintain books
      and records with respect to each Trust REMIC on a calendar year and on an
      accrual basis.

     

    (i) Following
      the Startup Day, neither the Securities Administrator nor the Trustee shall
      accept any contributions of assets to any Trust REMIC other than in connection
      with any Qualified Substitute Mortgage Loan delivered in accordance with
      Section 2.03 unless it shall have received an Opinion of Counsel to the
      effect that the inclusion of such assets in the Trust Fund will not cause the
      related REMIC to fail to qualify as a REMIC at any time that any Certificates
      are outstanding or subject such REMIC to any tax under the REMIC Provisions
      or
      other applicable provisions of federal, state and local law or
      ordinances.

     

    (j) Neither
      the Trustee nor the Securities Administrator shall knowingly enter into any
      arrangement by which any Trust REMIC will receive a fee or other compensation
      for services nor permit either 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.

     

    (k) The
      Securities Administrator shall apply for an employer identification number
      with
      the Internal Revenue Service via a Form SS-4 or other comparable method for
      each
      REMIC. In connection with the foregoing, the Securities Administrator 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 as required by IRS Form 8811.

     

    SECTION
      11.02. Prohibited
      Transactions and Activities.

     

    None
      of
      the Depositor, the Securities Administrator, the Master Servicer or the Trustee
      shall sell, dispose of or substitute for any of the Mortgage Loans (except
      in
      connection with (i) the foreclosure of a Mortgage Loan, including but not
      limited to, the acquisition or sale of a Mortgaged Property acquired by deed
      in
      lieu of foreclosure, (ii) the bankruptcy of REMIC I, (iii) the termination
      of
      REMIC I pursuant to Article X of this Agreement, (iv) a substitution pursuant
      to
      Article II of this Agreement or (v) a purchase of Mortgage Loans pursuant to
      Article II of this Agreement), nor acquire any assets for any Trust REMIC (other
      than REO Property acquired in respect of a defaulted Mortgage Loan), nor sell
      or
      dispose of any investments in the Collection Account or the Distribution Account
      for gain, nor accept any contributions to any Trust REMIC after the Closing
      Date
      (other than a Qualified Substitute Mortgage Loan delivered in accordance with
      Section 2.03), unless it has received an Opinion of Counsel, addressed to
      the Trustee and the Securities Administrator (at the expense of the party
      seeking to cause such sale, disposition, substitution, acquisition or
      contribution but in no event at the expense of the Trustee) that such sale,
      disposition, substitution, acquisition or contribution will not (a) affect
      adversely the status of any Trust REMIC as a REMIC or (b) cause any Trust REMIC
      to be subject to a tax on “prohibited transactions” or “contributions” pursuant
      to the REMIC Provisions.

    

    
      
        
          
          

        

        
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    SECTION
      11.03. Indemnification.

     

    (a) The
      Trustee agrees to be liable for any taxes and costs incurred by the Trust Fund,
      the Depositor, the Master Servicer or the Securities Administrator including,
      without limitation, any reasonable attorneys fees imposed on or incurred by
      the
      Trust Fund, the Depositor, the Master Servicer, the Securities Administrator
      or
      the Servicer as a result of the Trustee’s failure to perform its covenants set
      forth in this Article XI in accordance with the standard of care of the Trustee
      set forth in this Agreement.

     

    (b) The
      Master Servicer agrees to indemnify the Trust Fund, the Depositor or the Trustee
      for any taxes and costs including, without limitation, any reasonable attorneys’
fees imposed on or incurred by the Trust Fund, the Depositor, the Servicer
      or
      the Trustee, as a result of the Master Servicer’s failure to perform its
      covenants set forth in Article IV in accordance with the standard of care of
      the
      Master Servicer set forth in this Agreement.

     

    (c) The
      Securities Administrator agrees to be liable for any taxes and costs incurred
      by
      the Trust Fund, the Depositor or the Trustee including any reasonable attorneys’
fees imposed on or incurred by the Trust Fund, the Depositor, the Servicer
      or
      the Trustee as a result of the Securities Administrator’s failure to perform its
      covenants set forth in this Article XI in accordance with the standard of care
      of the Securities Administrator set forth in this Agreement.

    

    
      
        
          
          

        

        
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    ARTICLE
      XII

     

    MISCELLANEOUS
      PROVISIONS

    

    SECTION
      12.01. Amendment.

     

    This
      Agreement may be amended from time to time by the Depositor, the Servicer,
      the
      Master Servicer, the Securities Administrator and the Trustee, with the consent
      of the Swap Provider (which consent shall not be unreasonably withheld) but
      without the consent of any of the Certificateholders, (i) to cure any ambiguity
      or defect, (ii) to correct, modify or supplement any provisions herein
      (including to give effect to the expectations of Certificateholders), (iii) to
      ensure compliance with Regulation AB, or (iv) 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 and that such action shall
      not, as evidenced by an Opinion of Counsel delivered to the Trustee, adversely
      affect in any material respect the interests of any Certificateholder; provided
      that any such amendment shall be deemed not to adversely affect in any material
      respect the interests of the Certificateholders and no such Opinion of Counsel
      shall be required if the Person requesting such amendment obtains a letter
      from
      each Rating Agency stating that such amendment would not result in the
      downgrading or withdrawal of the respective ratings then assigned to the
      Certificates. No amendment shall be deemed to adversely affect in any material
      respect the interests of any Certificateholder who shall have consented thereto,
      and no Opinion of Counsel shall be required to address the effect of any such
      amendment on any such consenting Certificateholder.

     

    This
      Agreement may also be amended from time to time by the Depositor, the Servicer,
      the Master Servicer, the Securities Administrator and the Trustee with the
      consent of the Swap Provider (which consent shall not be unreasonably withheld)
      and the Holders of Certificates entitled to at least 66% of the Voting Rights
      for the purpose of adding any provisions to or changing in any manner or
      eliminating any of the provisions of this Agreement or of modifying in any
      manner the rights of the Holders of Certificates; provided, however, that no
      such amendment 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)
      adversely affect in any material respect the interests of the Holders of any
      Class of Certificates in a manner, other than as described in (i), without
      the
      consent of the Holders of Certificates of such Class evidencing at least 66%
      of
      the Voting Rights allocated to such Class, or (iii) modify the consents required
      by the immediately preceding clauses (i) and (ii) without the consent of the
      Holders of all Certificates then outstanding. Notwithstanding any other
      provision of this Agreement, for purposes of the giving or withholding of
      consents pursuant to this Section 12.01, Certificates registered in the
      name of the Depositor or the Servicer or any Affiliate thereof shall be entitled
      to Voting Rights with respect to matters affecting such Certificates. Without
      limiting the generality of the foregoing, any amendment to this Agreement
      required in connection with the compliance with or the clarification of any
      reporting obligations described in Section 5.06 hereof shall not require
      the consent of any Certificateholder and without the need for any Opinion of
      Counsel or Rating Agency confirmation.

    

    
      
        
          
          

        

        
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    Notwithstanding
      any contrary provision of this Agreement, the Trustee shall not consent to
      any
      amendment to this Agreement unless it shall have first received an Opinion
      of
      Counsel to the effect that such amendment is permitted hereunder and will not
      result in the imposition of any tax on any Trust REMIC pursuant to the REMIC
      Provisions or cause any Trust REMIC to fail to qualify as a REMIC at any time
      that any Certificates are outstanding and that such amendment is authorized
      or
      permitted by this Agreement.

     

    Promptly
      after the execution of any such amendment the Trustee shall furnish a copy
      of
      such amendment to each Certificateholder.

     

    It
      shall
      not be necessary for the consent of Certificateholders under this
      Section 12.01 to approve the particular form of any proposed amendment, but
      it shall be sufficient if such consent shall approve the substance thereof.
      The
      manner of obtaining such consents and of evidencing the authorization of the
      execution thereof by Certificateholders shall be subject to such reasonable
      regulations as the Trustee may prescribe.

     

    The
      cost
      of any Opinion of Counsel to be delivered pursuant to this Section 12.01
      shall be borne by the Person seeking the related amendment, but in no event
      shall such Opinion of Counsel be an expense of the Trustee.

     

    The
      Trustee may, but shall not be obligated to enter into any amendment pursuant
      to
      this Section that affects its rights, duties and immunities under this
      Agreement or otherwise.

     

    SECTION
      12.02. Recordation
      of Agreement; Counterparts.

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all 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 at the expense
      of
      the Certificateholders, but only upon direction of the Trustee accompanied
      by an
      Opinion of Counsel to the effect that such recordation materially and
      beneficially affects the interests of the Certificateholders.

     

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall constitute but one and the same
      instrument.

     

    SECTION
      12.03. Limitation
      on Rights of Certificateholders.

     

    The
      death
      or incapacity of any Certificateholder shall not operate to terminate this
      Agreement or the Trust Fund, nor entitle such Certificateholder’s legal
      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 Fund, nor
      otherwise affect the rights, obligations and liabilities of the parties hereto
      or any of them.

     

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

    

    
      
        
          
          

        

        
          180

          
            

          

        

         

      

    

     

    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
      or under or with respect to this Agreement, unless such Holder previously shall
      have given to the Trustee a written notice of default and of the continuance
      thereof, as hereinbefore provided, and unless also the Holders of Certificates
      entitled to at least 25% of the Voting Rights 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, expenses and liabilities to
      be
      incurred therein or thereby, and the Trustee, for 15 days after its receipt
      of
      such notice, request and offer of indemnity, shall have neglected or refused
      to
      institute any such action, suit or proceeding. It is understood and intended,
      and expressly covenanted by each Certificateholder with every other
      Certificateholder. and the Trustee, that no one or more Holders of Certificates
      shall have any right in any manner whatsoever by virtue of any provision of
      this
      Agreement to affect, disturb or prejudice the rights of the Holders of any
      other
      of such Certificates, or to obtain or seek to obtain priority over or preference
      to any other such Holder, or to enforce any right under this Agreement, except
      in the manner herein provided and for the equal, ratable and common benefit
      of
      all Certificateholders. For the protection and enforcement of the provisions
      of
      this Section, each and every Certificateholder and the Trustee shall be entitled
      to such relief as can be given either at law or in equity.

     

    SECTION
      12.04. 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 without regard to conflicts of laws
      principles thereof other than Section 5-1401 of the New York General Obligations
      Law which shall govern.

     

    SECTION
      12.05. Notices.

     

    All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given when received if sent by facsimile, receipt
      confirmed, if personally delivered at or mailed by first class mail, postage
      prepaid, or by express delivery service or delivered in any other manner
      specified herein, to (a) in the case of the Depositor, ACE Securities Corp.,
      AMACAR GROUP, 6525 Morrison Boulevard, Suite 318, Charlotte, North Carolina
      28211, Attention: Juliana Johnson (telecopy number: (704) 365-1362), with a
      copy
      to Deutsche Bank Securities, Inc., 60 Wall Street, New York, New York,
      Attention: Legal Department (telecopy number: (212) 797-4561),or such other
      address or telecopy number as may hereafter be furnished to the Servicer, the
      Master Servicer, the Securities Administrator and the Trustee in writing by
      the
      Depositor, (b) in the case of the Master Servicer and the Securities
      Administrator, P.O. Box 98, Columbia, Maryland 21046 and for overnight delivery
      to 9062 Old Annapolis Road, Columbia, Maryland 21045, Attention: Ace Securities
      Corp., 2006-CW1 (telecopy number: (410) 715-2380), or such other address or
      telecopy number as may hereafter be furnished to the Trustee, the Depositor
      and
      the Servicer in writing by the Master Servicer or the Securities Administrator
      and (c) in the case of the Trustee, at the Corporate Trust Office or such other
      address or telecopy number as the Trustee may hereafter be furnish to the
      Servicer, the Master Servicer, the Securities Administrator and the Depositor
      in
      writing by the Trustee. Any notice required or permitted to be given to a
      Certificateholder shall be given by first class mail, postage prepaid, at the
      address of such Holder 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. A copy of any notice required to be
      telecopied hereunder also shall be mailed to the appropriate party in the manner
      set forth above.

    

    
      
        
          
          

        

        
          181

          
            

          

        

         

      

    

     

    SECTION
      12.06. Severability
      of Provisions.

     

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

     

    SECTION
      12.07. Notice
      to
      Rating Agencies.

     

    The
      Trustee shall use its best efforts promptly to provide notice to the Rating
      Agencies with respect to each of the following of which a Responsible Officer
      has actual knowledge:

     

    1. Any
      material change or amendment to this Agreement;

     

    2. The
      occurrence of any Servicer Event of Default or Master Servicer Event of Default
      that has not been cured or waived;

     

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

     

    4. The
      repurchase or substitution of Mortgage Loans pursuant to or as contemplated
      by
      Section 2.03 of this Agreement;

     

    5. The
      final
      payment to the Holders of any Class of Certificates; and

     

    6. Any
      change in the location of the Distribution Account.

     

    In
      addition, the Securities Administrator shall promptly make available to each
      Rating Agency copies of each report to Certificateholders described in
      Section 5.02 of this Agreement.

     

    Any
      such
      notice pursuant to this Section 12.07 shall be in writing and shall be
      deemed to have been duly given if personally delivered at or mailed by first
      class mail, postage prepaid, or by express delivery service to Standard &
Poor’s, a division of the McGraw-Hill Companies, Inc., 55 Water Street, New
      York, New York 10041; and to Moody’s Investors Service, Inc., 99 Church Street,
      New York, New York 10007, or such other addresses as the Rating Agencies may
      designate in writing to the parties hereto.

     

    
      
        
          
          

        

        
          182

          
            

          

        

         

      

    

     

    SECTION
      12.08. Article
      and Section References.

     

    All
      article and section references used in this Agreement, unless otherwise
      provided, are to articles and sections in this Agreement.

     

    SECTION
      12.09. Grant
      of
      Security Interest.

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Loans
      by the Depositor to the Trustee, on behalf of the Trust and for the benefit
      of
      the Certificateholders, be, and be construed as, a sale of the Mortgage Loans
      by
      the Depositor and not a pledge of the Mortgage Loans to secure a debt or other
      obligation of the Depositor. However, in the event that, notwithstanding the
      aforementioned intent of the parties, the Mortgage Loans are held to be property
      of the Depositor, then, (a) it is the express intent of the parties that such
      conveyance be deemed a pledge of the Mortgage Loans by the Depositor to the
      Trustee, on behalf of the Trust and for the benefit of the Certificateholders,
      to secure a debt or other obligation of the Depositor and (b)(1) this Agreement
      shall also be deemed to be a security agreement within the meaning of Articles
      8
      and 9 of the Uniform Commercial Code as in effect from time to time in the
      State
      of New York; (2) the conveyance provided for in Section 2.01 shall be
      deemed to be a grant by the Depositor to the Trustee, on behalf of the Trust
      and
      for the benefit of the Certificateholders, of a security interest in all of
      the
      Depositor’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, including
      without limitation all amounts, other than investment earnings, from time to
      time held or invested in the Collection Account and the Distribution Account,
      whether in the form of cash, instruments, securities or other property; (3)
      the
      obligations secured by such security agreement shall be deemed to be all of
      the
      Depositor’s obligations under this Agreement, including the obligation to
      provide to the Certificateholders the benefits of this Agreement relating to
      the
      Mortgage Loans and the Trust Fund; and (4) notifications to persons holding
      such
      property, and acknowledgments, receipts or confirmations from persons holding
      such property, shall be deemed notifications to, or acknowledgments, receipts
      or
      confirmations from, financial intermediaries, bailees or agents (as applicable)
      of the Trustee for the purpose of perfecting such security interest under
      applicable law. Accordingly, the Depositor hereby grants to the Trustee, on
      behalf of the Trust and for the benefit of the Certificateholders, a security
      interest in the Mortgage Loans and all other property described in clause (2)
      of
      the preceding sentence, for the purpose of securing to the Trustee the
      performance by the Depositor of the obligations described in clause (3) of
      the
      preceding sentence. Notwithstanding the foregoing, the parties hereto intend
      the
      conveyance pursuant to Section 2.01 to be a true, absolute and
      unconditional sale of the Mortgage Loans and assets constituting the Trust
      Fund
      by the Depositor to the Trustee, on behalf of the Trust and for the benefit
      of
      the Certificateholders.

     

    
      
        
          
          

        

        
          183

          
            

          

        

         

      

    

     

    SECTION
      12.10. Survival
      of Indemnification.

     

    Any
      and
      all indemnities to be provided by any party to this Agreement shall survive
      the
      termination and resignation of any party hereto and the termination of this
      Agreement.

     

    SECTION
      12.11. Intention
      of the Parties and Interpretation.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Sections 4.15, 4.16,
      4.17, 4.18 and 5.06 of this Agreement is to facilitate compliance by the
      Sponsor, the Master Servicer, the Securities Administrator and the Depositor
      with the provisions of Regulation AB promulgated by the SEC under the Exchange
      Act (17 C.F.R. §§ 229.1100 - 229.1123), as such may be amended from time to time
      and subject to clarification and interpretive advice as may be issued by the
      staff of the SEC from time to time. 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 requests made by the Master Servicer, Securities
      Administrator, Sponsor or the Depositor for delivery of additional or different
      information as the Master Servicer, Securities Administrator, Sponsor or the
      Depositor may determine in good faith is necessary to comply with the provisions
      of Regulation AB. 

     

    SECTION
      12.12. Indemnification.

     

    Each
      of
      the Depositor, Master Servicer, Securities Administrator and any Servicing
      Function Participant engaged by such party, respectively, shall indemnify and
      hold harmless the Master Servicer, the Securities Administrator and the
      Depositor, respectively, and each of its directors, officers, employees, agents,
      and affiliates from and against any and all claims, losses, damages, penalties,
      fines, forfeitures, reasonable legal fees and related costs, judgments and
      other
      costs and expenses arising out of or based upon (a) any breach by such party
      of
      any if its obligations under hereunder, including particularly its obligations
      to provide any Assessment of Compliance, Attestation Report, Compliance
      Statement or any information, data or materials required to be included in
      any
      1934 Act report, (b) any material misstatement or omission in any information,
      data or materials provided by such party (or, in the case of the Securities
      Administrator or Master Servicer, any material misstatement or material omission
      in (i) any Compliance Statement, Assessment of Compliance or Attestation Report
      delivered by it, or by any Servicing Function Participant engaged by it,
      pursuant to this Agreement, or (ii) any Additional Form 10-D Disclosure,
      Additional Form 10-K Disclosure or Form 8-K Disclosure concerning the Master
      Servicer or the Securities Administrator), or (c) the negligence, bad faith
      or
      willful misconduct of such indemnifying party in connection with its performance
      hereunder. If the indemnification provided for herein is unavailable or
      insufficient to hold harmless the Master Servicer, the Securities Administrator
      or the Depositor, as the case may be, then each such party agrees that it shall
      contribute to the amount paid or payable by the Master Servicer, the Securities
      Administrator or the Depositor, as applicable, as a result of any claims,
      losses, damages or liabilities incurred by such party in such proportion as
      is
      appropriate to reflect the relative fault of the indemnified party on the one
      hand and the indemnifying party on the other. This indemnification shall survive
      the termination of this Agreement or the termination of any party to this
      Agreement.

     

    
      
        
          
          

        

        
          184

          
            

          

        

         

      

    

     

    SECTION
      12.13. Swap
      Provider as a Third Party Beneficiary.

     

    The
      Swap
      Provider shall be deemed a third party beneficiary of this Agreement to the
      same
      extent as if it were a party hereto, and shall have the right to enforce the
      provisions of this Agreement.

     

    
      
        
          
          

        

        
          185

          
            

          

        

         

      

    

     

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

     

    
      	 	 	 
	 	
              ACE
                SECURITIES CORP.,

              as
                Depositor

            
	 
 	 
 	 
 
	 	By:  	/s/ Douglas
              K. Johnson 
	 	
              

              Name:
                Douglas K. Johnson 

              Title:
                President

            
	 	 

      	 	 	 
	
            	By:  	/s/ Evelyn
              Echevarria 
	 	
              

              Name:
                Evelyn Echevarria 

              Title:
                Vice President 

            
	 	 

      	 	 	 
	 	
              HSBC
                BANK USA, NATIONAL ASSOCIATION

              not
                in its individual capacity but solely as Trustee

            
	 
 	 
 	 
 
	 	By:  	/s/ Fernando
              Acebedo 
	 	
              

              Name:
                Fernando Acebedo 

              Title:
                Vice President 

            
	 	 

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

         

      

    

     

    
      	 	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Master Servicer and Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	/s/ Jennifer
              L. Richardson 
	 	
              

              Name:
                Jennifer L. Richardson 

              Title:
                Assistant Vice President 

            
	 	 

    

    
      	 	 	 
	 	
              Acknowledged
                and Agreed for purposes of
Section 9.05:

               

            
	 	DB STRUCTURED PRODUCTS, INC
	 
 	 
 	 
 
	 	By:  	/s/ Paul
              Mangione 
	 	
              

              Name:
                Paul Mangione 

              Title:
                Managing Director 

            
	 	 

    

    
      
        	 	 	 
	
              	By:  	/s/ Susan
                Valenti 
	 	
                

                Name:
                  Susan Valenti 

                Title:
                  Director 

              
	 	 

      

    

    
      
        	 	 	 
	 	
                Acknowledged
                  and Agreed for purposes of 

                Sections 7.08,
                  7.09 and 7.10:

              
	 	 
	 	CLAYTON FIXED INCOME SERVICES INC.
	 
 	 
 	 
 
	 	By:  	/s/ Kevin
                J.
                Kanouff 
	 	
                

                Name:
                  Kevin J. Kanouff 

                Title:
                  President and General Counsel 

              
	 	 

      

       

    

    
      
        
          
          

        

        
          
          

          
            

          

        

         

      

    

     

    
      	
              STATE
                OF

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF

            	
              )

            

    

    

    On
      the
      ___ day of July 2006, before me, a notary public in and for said State,
      personally appeared _____________________ known to me to be a
      _____________________ of ACE Securities Corp., 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

              

            
	 	 
	
              [Notarial
                Seal]

            	
              My
                commission expires

            

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

         

      

    

     

    
      	
              STATE
                OF

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF

            	
              )

            
	 	 

    

    

    On
      the
      ___ day of July 2006, before me, a notary public in and for said State,
      personally appeared _____________________ known to me to be a
      _____________________ of ACE Securities Corp., 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

              

            
	 	 
	
              [Notarial
                Seal]

            	
              My
                commission expires

            

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

         

      

    

     

    
      	
              STATE
                OF

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF

            	
              )

            
	 	 

    

    

    On
      the
      ___ day of July 2006, before me, a notary public in and for said State,
      personally appeared _____________________ known to me to be a
      _____________________ of Wells Fargo Bank, National Association, one of the
      nationally banking associations that executed the within instrument, and also
      known to me to be the person who executed it on behalf of said federally
      chartered savings bank, and acknowledged to me that such federally chartered
      savings bank 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]

            	
              My
                commission expires

            

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

         

      

    

     

    
      	
              STATE
                OF

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF

            	
              )

            
	 	 

    

    

    On
      the
      ___ day of July 2006, before me, a notary public in and for said State,
      personally appeared _____________________ known to me to be a
      _____________________ of HSBC Bank USA, National Association, one of the
      national banking associations that executed the within instrument, and also
      known to me to be the person who executed it 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

              

            
	 	 
	
              [Notarial
                Seal]

            	
              My
                commission expires

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-1

     

    FORM
      OF
      CLASS A-[1][2A][2B][2C][2D] CERTIFICATE

     

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

     

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

     

    PRIOR
      TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, ANY PERSON ACQUIRING
      THIS
      CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS IN SECTION 6.02(c)
      OF THE POOLING AND SERVICING AGREEMENT.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2006-CW1, Class A-[1][2A][2B][2C][2D]

            	 	
              Aggregate
                Certificate Principal Balance of the Class A-[1][2A][2B][2C][2D]
                Certificates as of the Issue Date: $_____________

            
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $____________

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

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              First
                Distribution Date: August 25, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	
              No.
                __

            	 	
              Issue
                Date: July 25, 2006

            
	 	 	
              CUSIP:
                ________________

            

    

    

    DISTRIBUTIONS
      IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
      MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
      PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
      AS
      THE DENOMINATION OF THIS CERTIFICATE.

     

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that ________________ is the registered owner of a Percentage Interest
      (obtained by dividing the denomination of this Certificate by the aggregate
      Certificate Principal Balance of the Class A-[1][2A][2B][2C][2D] Certificates
      as
      of the Issue Date) in that certain beneficial ownership interest evidenced
      by
      all of the Class A-[1][2A][2B][2C][2D] Certificates in REMIC III created
      pursuant to a Pooling and Servicing Agreement, dated as specified above (the
      “Agreement”), among ACE Securities Corp., as depositor (hereinafter called the
“Depositor”, which term includes any successor entity under the Agreement),
      Wells Fargo Bank, N.A. as master servicer (the “Master Servicer”) and securities
      administrator (the “Securities Administrator”) and HSBC Bank USA, 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,
      the capitalized terms used herein have the meanings assigned in the Agreement.
      This Certificate is issued under and is subject to the terms, provisions and
      conditions of the Agreement, to which Agreement the Holder of this Certificate
      by virtue of the acceptance hereof assents and by which such Holder is
      bound.

     

    
      
        
        

      

      
        A-1-2

        
          

        

      

      
        
        

      

       

    

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the Business
      Day
      immediately preceding such Distribution Date (the “Record Date”), in an amount
      equal to the product of the Percentage Interest evidenced by this Certificate
      and the amount required to be distributed to the Holders of Class
      A-[1][2A][2B][2C][2D] Certificates on such Distribution Date pursuant to the
      Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class A-[1][2A][2B][2C][2D]
      Certificates the aggregate initial Certificate Principal Balance of which is
      in
      excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate
      initial Certificate Principal Balance of the Class A-[1][2A][2B][2C][2D]
      Certificates, or otherwise by check mailed by first class mail to the address
      of
      the Person entitled thereto, as such name and address shall appear on the
      Certificate Register. Notwithstanding the above, the final distribution on
      this
      Certificate will be made after due notice by the Securities Administrator of
      the
      pendency of such distribution and only upon presentation and surrender of this
      Certificate at the office or agency appointed by the Securities Administrator
      for that purpose as provided in the Agreement.

     

    The
      Pass-Through Rate applicable to the calculation of interest payable with respect
      to this Certificate on any Distribution Date shall be a rate per annum equal
      to
      the lesser of (i) One-Month LIBOR plus [_____]%, in the case of each
      Distribution Date through and including the Distribution Date on which the
      aggregate principal balance of the Mortgage Loans (and properties acquired
      in
      respect thereof) remaining in the Trust Fund is reduced to less than or equal
      to
      10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
      Date, or One-Month LIBOR plus [_____]%, in the case of any Distribution Date
      thereafter and (ii) the applicable Net WAC Pass-Through Rate for such
      Distribution Date.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing a Percentage Interest in the
      Class of Certificates specified on the face hereof equal to the denomination
      specified on the face hereof divided by the aggregate Certificate Principal
      Balance of the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans and payments received pursuant to
      the
      Swap Agreement and the Cap Contracts, all as more specifically set forth herein
      and in the Agreement. As provided in the Agreement, withdrawals from the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans. 

     

    
      
        
        

      

      
        A-1-3

        
          

        

      

      
        
        

      

       

    

    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, the Trustee, the Securities Administrator and the rights of
      the
      Certificateholders under the Agreement at any time by the Depositor, the Master
      Servicer, the Trustee and the Securities Administrator with the consent of
      the
      Swap Provider and the Holders of Certificates entitled to at least 66% of the
      Voting Rights. Any such consent by the Holder of this Certificate shall be
      conclusive and binding on such Holder and upon all future Holders of this
      Certificate and of any Certificate issued upon the transfer hereof or in
      exchange herefor or in lieu hereof whether or not notation of such consent
      is
      made upon this Certificate. The Agreement also permits the amendment thereof,
      in
      certain limited circumstances, without the consent of the Holders of any of
      the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    Prior
      to
      the termination of the Supplemental Interest Trust, any transferee of this
      Certificate shall be deemed to make the representations in Section 6.02(c)
      of
      the Agreement.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Countrywide Home Loans Servicing LP (the “Servicer”) and any agent of the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator or
      the
      Servicer 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, the Securities Administrator, the Servicer nor any such
      agent shall be affected by notice to the contrary.

     

    
      
        
        

      

      
        A-1-4

        
          

        

      

      
        
        

      

       

    

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assumes any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any
      purpose.

    
      
        
        

      

      
        A-1-5

        
          

        

      

       

    

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

     

    Dated:

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class A-[1][2A][2B][2C][2D] Certificates referred to in the
      within-mentioned Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
               Custodian

            
	 	 	 	
              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to ____%
      evidenced by the within Asset Backed Pass-Through Certificate and hereby
      authorize(s) the registration of transfer of such interest to assignee on the
      Certificate Register of the Trust Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest 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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    EXHIBIT
      A-2

     

    FORM
      OF
      CLASS M-[1][2][3][4][5][6][7][8][9] CERTIFICATE

     

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

     

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

     

    THIS
      CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES [[,/AND] CLASS M-1
      CERTIFICATES [,/AND] CLASS M-2 CERTIFICATES[,/AND] CLASS M-3 CERTIFICATES
      [,/AND] CLASS M-4 CERTIFICATES [,/AND] CLASS M-5 CERTIFICATES [,/AND] CLASS
      M-6
      CERTIFICATES [,/AND] CLASS M-7 CERTIFICATES [,/AND] CLASS M-8 CERTIFICATES
      TO
      THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

     

    ANY
      TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO MAKE THE REPRESENTATIONS
      SET
      FORTH IN SECTION 6.02(c) OF THE AGREEMENT REFERRED TO
      HEREIN.

     

    THE
      CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
      PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED
      IN
      THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE
      OF
      THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL
      BE
      DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE
      MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
      ADMINISTRATOR NAMED HEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    
      	
              Series
                2006-CW1, Class M-[1][2][3][4][5][6][7][8][9]

            	 	
              Aggregate
                Certificate Principal Balance of the Class M-[1][2][3][4][5][6][7][8][9]
                Certificates as of the Issue Date: $______________

            
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $______________

            
	
              Date
                of Pooling and Servicing Agreement 

              and
                Cut-off Date: July 1, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              First
                Distribution Date: August 25, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	
              No.___

            	 	
              Issue
                Date: July 25, 2006

            
	 	 	
              CUSIP:_________________

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that _____________________ is the registered owner of a Percentage
      Interest (obtained by dividing the denomination of this Certificate by the
      aggregate Certificate Principal Balance of the Class
      M-[1][2][3][4][5][6][7][8][9] Certificates as of the Issue Date) in that certain
      beneficial ownership interest evidenced by of all the Class
      M-[1][2][3][4][5][6][7][8][9] Certificates in REMIC III created pursuant to
      a
      Pooling and Servicing Agreement, dated as specified above (the “Agreement”),
      among ACE Securities Corp., as depositor (hereinafter called the “Depositor”,
      which term includes any successor entity under the Agreement), Wells Fargo
      Bank,
      N.A. as master servicer (the “Master Servicer”) and securities administrator
      (the “Securities Administrator”) and HSBC Bank USA, 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, the capitalized
      terms used herein have the meanings assigned in the Agreement. This Certificate
      is issued under and is subject to the terms, provisions and conditions of the
      Agreement, to which Agreement the Holder of this Certificate by virtue of the
      acceptance hereof assents and by which such Holder is bound.

     

    
      
        
        

      

      
        A-2-2

        
          

        

      

      
        
        

      

    

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the Business
      Day
      immediately preceding such Distribution Date (the “Record Date”), in an amount
      equal to the product of the Percentage Interest evidenced by this Certificate
      and the amount required to be distributed to the Holders of Class
      M-[1][2][3][4][5][6][7][8][9] Certificates on such Distribution Date pursuant
      to
      the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class
      M-[1][2][3][4][5][6][7][8][9] Certificates the aggregate initial Certificate
      Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
      (ii)
      two-thirds of the aggregate initial Certificate Principal Balance of the Class
      M-[1][2][3][4][5][6][7][8][9] Certificates, or otherwise by check mailed by
      first class mail to the address of the Person entitled thereto, as such name
      and
      address shall appear on the Certificate Register. Notwithstanding the above,
      the
      final distribution on this Certificate will be made after due notice by the
      Securities Administrator of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    The
      Pass-Through Rate applicable to the calculation of interest payable with respect
      to this Certificate on any Distribution Date shall equal a rate per annum equal
      to the lesser of (i) One-Month LIBOR plus [____]% , in the case of each
      Distribution Date through and including the Distribution Date on which the
      aggregate principal balance of the Mortgage Loans (and properties acquired
      in
      respect thereof) remaining in the Trust Fund is reduced to less than or equal
      to
      10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
      Date, or One-Month LIBOR plus [____]%, in the case of any Distribution Date
      thereafter and (ii) the applicable Net WAC Pass-Through Rate for such
      Distribution Date.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing a Percentage Interest in the
      Class of Certificates specified on the face hereof equal to the denomination
      specified on the face hereof divided by the aggregate Certificate Principal
      Balance of the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans and payments received pursuant to
      the
      Swap Agreement and the Cap Contracts, all as more specifically set forth herein
      and in the Agreement. As provided in the Agreement, withdrawals from the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    
      
        
        

      

      
        A-2-3

        
          

        

      

      
        
        

      

    

     

    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, the Trustee, the Securities Administrator and the rights of
      the
      Certificateholders under the Agreement at any time by the Depositor, the Master
      Servicer, the Trustee and the Securities Administrator with the consent of
      the
      Swap Provider and the Holders of Certificates entitled to at least 66% of the
      Voting Rights. Any such consent by the Holder of this Certificate shall be
      conclusive and binding on such Holder and upon all future Holders of this
      Certificate and of any Certificate issued upon the transfer hereof or in
      exchange herefor or in lieu hereof whether or not notation of such consent
      is
      made upon this Certificate. The Agreement also permits the amendment thereof,
      in
      certain limited circumstances, without the consent of the Holders of any of
      the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    Any
      transferee of this Certificate shall be deemed to make the representations
      set
      forth in Section 6.02(c) of the Agreement.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Countrywide Home Loan Servicing LP (the “Servicer”) and any agent of the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator or
      the
      Servicer 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, the Securities Administrator, the Servicer nor any such
      agent shall be affected by notice to the contrary.

     

    
      
        
        

      

      
        A-2-4

        
          

        

      

       

    

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator by manual signature, this Certificate shall not be entitled to
      any
      benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-2-5

        
          

        

      

       

    

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

     

    Dated:

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class M-[1][2][3][4][5][6][7][8][9] Certificates referred to in
      the
      within-mentioned Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 	 

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
              Custodian

            
	 	 	 	
              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

     (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to _____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest 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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    EXHIBIT
      A-3

     

    FORM
      OF
      CLASS M-[10][11] CERTIFICATE

     

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

     

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

     

    THIS
      CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, CLASS M-1 CERTIFICATES,
      CLASS M-2 CERTIFICATES, CLASS M-3 CERTIFICATES, CLASS M-4 CERTIFICATES, CLASS
      M-5 CERTIFICATES, CLASS M-6 CERTIFICATES, CLASS M-7 CERTIFICATES, CLASS M-8
      CERTIFICATES [,/AND] CLASS M-9 CERTIFICATES [AND] CLASS M-10 CERTIFICATES TO
      THE
      EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

     

    THE
      CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
      PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED
      IN
      THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE
      OF
      THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL
      BE
      DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE
      MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
      ADMINISTRATOR NAMED HEREIN.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES
      LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS
      CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
      IN
      COMPLIANCE WITH THE ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED
      STATES WITHIN THE MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE
      ACT
      (“REGULATION S”), OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED
      INSTITUTIONAL BUYERS” WITHIN THE MEANING OF AND IN COMPLIANCE WITH RULE 144A
      UNDER THE ACT (“RULE 144A”) OR (B) TO INSTITUTIONAL INVESTORS THAT ARE
“ACCREDITED INVESTORS” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF
“REGULATION D” UNDER THE ACT.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    [THIS
      CERTIFICATE IS A REGULATION S TEMPORARY GLOBAL CERTIFICATE FOR PURPOSES OF
      REGULATION S UNDER THE ACT. PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER
      OF
      (I) THE COMMENCEMENT OF THE OFFERING OF THE OFFERED CERTIFICATES AND (II) THE
      CLOSING DATE, THIS CERTIFICATE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
      TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN
      EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT.]

     

    [NO
      BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL CERTIFICATE SHALL BE
      ENTITLED TO RECEIVE PAYMENTS OF PRINCIPAL OR INTEREST HEREIN UNLESS THE REQUIRED
      CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT TO THE TERMS OF THE AGREEMENT (AS
      DEFINED HEREIN).]

     

    [THE
      HOLDER OF THIS REGULATION S PERMANENT GLOBAL CERTIFICATE BY ITS ACCEPTANCE
      HEREOF AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE WITHIN
      THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE
      ACT)
      PRIOR TO THE DATE WHICH IS THE LATER OF (I) 40 DAYS AFTER THE LATER OF THE
      CLOSING DATE AND (II) THE DATE ON WHICH THE REQUISITE CERTIFICATIONS ARE DUE
      TO
      AND PROVIDED TO THE TRUSTEE AND SECURITIES ADMINISTRATOR PURSUANT TO THE
      AGREEMENT (AS DEFINED BELOW), EXCEPT PURSUANT TO AN EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS OF THE ACT.]

     

    
      
        
        

      

      
        A-2-2

        
          

        

      

      
        
        

      

       

    

    NO
      TRANSFER OF THIS CERTIFICATE TO A PLAN SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
      SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE CODE, ANY
      PERSON ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF OF ANY SUCH PLAN OR ANY PERSON
      USING “PLAN ASSETS” TO ACQUIRE THIS CERTIFICATE SHALL BE MADE EXCEPT IN
      ACCORDANCE WITH SECTION 6.02(c) OF THE AGREEMENT REFERRED TO
      HEREIN.

    
      
        
        

      

      
        A-2-3

        
          

        

      

       

    

    

    
      	
              Series
                2006-CW1, Class M-[10][11]

            	 	
              Aggregate
                Certificate Principal Balance of the Class M-[10][11] Certificates
                as of
                the Issue Date: $______________

            
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $______________

            
	
              Date
                of Pooling and Servicing Agreement 

              and
                Cut-off Date: July 1, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              First
                Distribution Date: August 25, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	
              No.___

            	 	
              Issue
                Date: July 25, 2006

            
	 	 	
              CUSIP:_________________

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that _____________________ is the registered owner of a Percentage
      Interest (obtained by dividing the denomination of this Certificate by the
      aggregate Certificate Principal Balance of the Class M-[10][11] Certificates
      as
      of the Issue Date) in that certain beneficial ownership interest evidenced
      by of
      all the Class M-[10][11] Certificates in REMIC III created pursuant to a Pooling
      and Servicing Agreement, dated as specified above (the “Agreement”), among ACE
      Securities Corp., as depositor (hereinafter called the “Depositor”, which term
      includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”) and HSBC Bank USA, 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, the capitalized terms
      used herein have the meanings assigned in the Agreement. This Certificate is
      issued under and is subject to the terms, provisions and conditions of the
      Agreement, to which Agreement the Holder of this Certificate by virtue of the
      acceptance hereof assents and by which such Holder is bound.

    
      
        
        

      

      
        A-2-4

        
          

        

      

       

    

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the Business
      Day
      immediately preceding such Distribution Date (the “Record Date”), in an amount
      equal to the product of the Percentage Interest evidenced by this Certificate
      and the amount required to be distributed to the Holders of Class M-[10][11]
      Certificates on such Distribution Date pursuant to the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class M-[10][11] Certificates
      the aggregate initial Certificate Principal Balance of which is in excess of
      the
      lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
      Principal Balance of the Class M-[10][11] Certificates, or otherwise by check
      mailed by first class mail to the address of the Person entitled thereto, as
      such name and address shall appear on the Certificate Register. Notwithstanding
      the above, the final distribution on this Certificate will be made after due
      notice by the Securities Administrator of the pendency of such distribution
      and
      only upon presentation and surrender of this Certificate at the office or agency
      appointed by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    The
      Pass-Through Rate applicable to the calculation of interest payable with respect
      to this Certificate on any Distribution Date shall equal a rate per annum equal
      to the lesser of (i) One-Month LIBOR plus [____]% , in the case of each
      Distribution Date through and including the Distribution Date on which the
      aggregate principal balance of the Mortgage Loans (and properties acquired
      in
      respect thereof) remaining in the Trust Fund is reduced to less than or equal
      to
      10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
      Date, or One-Month LIBOR plus [____]%, in the case of any Distribution Date
      thereafter and (ii) the applicable Net WAC Pass-Through Rate for such
      Distribution Date.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing a Percentage Interest in the
      Class of Certificates specified on the face hereof equal to the denomination
      specified on the face hereof divided by the aggregate Certificate Principal
      Balance of the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans and payments received pursuant to
      the
      Swap Agreement and the Cap Contracts, all as more specifically set forth herein
      and in the Agreement. As provided in the Agreement, withdrawals from the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    
      
        
        

      

      
        A-2-5

        
          

        

      

       

    

     

    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, the Trustee, the Securities Administrator and the rights of
      the
      Certificateholders under the Agreement at any time by the Depositor, the Master
      Servicer, the Trustee and the Securities Administrator with the consent of
      the
      Swap Provider and the Holders of Certificates entitled to at least 66% of the
      Voting Rights. Any such consent by the Holder of this Certificate shall be
      conclusive and binding on such Holder and upon all future Holders of this
      Certificate and of any Certificate issued upon the transfer hereof or in
      exchange herefor or in lieu hereof whether or not notation of such consent
      is
      made upon this Certificate. The Agreement also permits the amendment thereof,
      in
      certain limited circumstances, without the consent of the Holders of any of
      the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Act, and an effective
      registration or qualification under applicable state securities laws, or is
      made
      in a transaction that does not require such registration or qualification.
      In
      the event that such a transfer of this Certificate is to be made without
      registration or qualification, the Securities Administrator shall require
      receipt of (i) if such transfer is purportedly being made in reliance upon
      Rule
      144A or Regulation S under the Act, written certifications from the Holder
      of
      the Certificate desiring to effect the transfer, and from such Holder’s
      prospective transferee, substantially in the forms attached to the Agreement
      as
      Exhibit B-1, (ii) if such transfer is purportedly being made in reliance upon
      Rule 501(a) under the Act, written certifications from the Holder of the
      Certificate desiring to effect the transfer and from such Holder’s prospective
      transferee, substantially in the form attached to the Agreement as Exhibit
      B-2
      and (iii) in all other cases, an Opinion of Counsel satisfactory to it that
      such
      transfer may be made without such registration or qualification (which Opinion
      of Counsel shall not be an expense of the Trust Fund or of the Depositor, the
      Trustee, the Master Servicer or the Securities Administrator in their respective
      capacities as such), together with copies of the written certification(s) of
      the
      Holder of the Certificate desiring to effect the transfer and/or such Holder’s
      prospective transferee upon which such Opinion of Counsel is based. None of
      the
      Depositor, the Trustee or the Securities Administrator is obligated to register
      or qualify the Class of Certificates specified on the face hereof under the
      Act
      or any other securities law or to take any action not otherwise required under
      the Agreement to permit the transfer of such Certificates without registration
      or qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Master Servicer
      and the Securities Administrator against any liability that may result if the
      transfer is not so exempt or is not made in accordance with such federal and
      state laws.

     

    
      
        
        

      

      
        A-2-6

        
          

        

      

       

    

     

    No
      transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
      the
      Code, any Person acting, directly or indirectly, on behalf of any such Plan
      or
      any Person using “Plan Assets” to acquire this Certificate shall be made except
      in accordance with Section 6.02(c) of the Agreement.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Countrywide Home Loans Servicing LP (the “Servicer”) and any agent of the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator or
      the
      Servicer 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, the Securities Administrator, the Servicer nor any such
      agent shall be affected by notice to the contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    
      
        
        

      

      
        A-2-7

        
          

        

      

      
        
        

      

       

    

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator by manual signature, this Certificate shall not be entitled to
      any
      benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-2-8

        
          

        

      

       

    

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

     

    Dated:

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class M-[10][11] Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        A-2-1

        
          

        

      

       

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
              Custodian

            
	 	 	 	
              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

     (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to _____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest 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

            

    

    
      
        
        

      

      
        A-2-2

        
          

        

      

       

    

    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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

     

    
      
        
        

      

      
        A-2-3

        
          

        

      

       

    

    EXHIBIT
      A-4

     

    FORM
      OF
      CLASS CE CERTIFICATE

     

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

     

    THIS
      CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE MEZZANINE
      CERTIFICATES TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO
      HEREIN.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
      HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE
      REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
      THE
      ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN THE
      MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”),
      OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN
      THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR
      (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE
      MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE
      ACT.

     

    NO
      TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
      PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE
      AGREEMENT.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    
      	
              Series
                2006-CW1, Class CE

            	 	
              Aggregate
                Certificate Principal Balance of the Class CE Certificates as of
                the Issue
                Date: $_____________

            
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $_________________

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

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              First
                Distribution Date: August 25, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	
              No.
                __

            	 	
              Issue
                Date: July 25, 2006

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that ________________ is the registered owner of a Percentage Interest
      (obtained by dividing the denomination of this Certificate by the aggregate
      Certificate Principal Balance of the Class CE Certificates as of the Issue
      Date)
      in that certain beneficial ownership interest evidenced by all of the Class
      CE
      Certificates in REMIC III created pursuant to a Pooling and Servicing Agreement,
      dated as specified above (the “Agreement”), among ACE Securities Corp., as
      depositor (hereinafter called the “Depositor,” which term includes any successor
      entity under the Agreement), Wells Fargo Bank, N.A. as master servicer (the
      “Master Servicer”) and securities administrator (the “Securities Administrator”)
      and HSBC Bank USA, 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, the capitalized terms used herein have the meanings
      assigned in the Agreement. This Certificate is issued under and is subject
      to
      the terms, provisions and conditions of the Agreement, to which Agreement the
      Holder of this Certificate by virtue of the acceptance hereof assents and by
      which such Holder is bound.

    
      
        
        

      

      
        A-3-A-2

        
          

        

      

       

    

     

    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 (as
      defined in the Agreement) hereof at a per annum rate equal to the applicable
      Pass-Through Rate as set forth in the Agreement. Pursuant to the terms of the
      Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the last Business
      Day of the calendar month immediately preceding the month in which the related
      Distribution Date occurs (the “Record Date”), in an amount equal to the product
      of the Percentage Interest evidenced by this Certificate and the amount required
      to be distributed to the Holders of Class CE Certificates on such Distribution
      Date pursuant to the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class CE Certificates the
      aggregate initial Certificate Principal Balance of which is in excess of the
      lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
      Principal Balance of the Class CE Certificates, or otherwise by check mailed
      by
      first class mail to the address of the Person entitled thereto, as such name
      and
      address shall appear on the Certificate Register. Notwithstanding the above,
      the
      final distribution on this Certificate will be made after due notice by the
      Securities Administrator of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing a Percentage Interest in the
      Class of Certificates specified on the face hereof equal to the denomination
      specified on the face hereof divided by the aggregate Certificate Principal
      Balance of the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    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, the Trustee, the Securities Administrator and the rights of
      the
      Certificateholders under the Agreement at any time by the Depositor, the Master
      Servicer, the Trustee and the Securities Administrator with the consent of
      the
      Swap Provider and the Holders of Certificates entitled to at least 66% of the
      Voting Rights. Any such consent by the Holder of this Certificate shall be
      conclusive and binding on such Holder and upon all future Holders of this
      Certificate and of any Certificate issued upon the transfer hereof or in
      exchange herefor 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.

     

    
      
        
        

      

      
        A-3-A-3

        
          

        

      

       

    

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an effective registration or qualification under
      applicable state securities laws, or is made in a transaction that does not
      require such registration or qualification. In the event that such a transfer
      of
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A or Regulation S under the
      1933
      Act, written certifications from the Holder of the Certificate desiring to
      effect the transfer, and from such Holder’s prospective transferee,
      substantially in the forms attached to the Agreement as Exhibit B-1, (ii) if
      such transfer is purportedly being made in reliance upon Rule 501(a) under
      the
      1933 Act, written certifications from the Holder of the Certificate desiring
      to
      effect the transfer and from such Holder’s prospective transferee, substantially
      in the form attached to the Agreement as Exhibit B-2 and (iii) in all other
      cases, an Opinion of Counsel satisfactory to it that such transfer may be made
      without such registration or qualification (which Opinion of Counsel shall
      not
      be an expense of the Trust Fund or of the Depositor, the Trustee, the Master
      Servicer or the Securities Administrator in their respective capacities as
      such), together with copies of the written certification(s) of the Holder of
      the
      Certificate desiring to effect the transfer and/or such Holder’s prospective
      transferee upon which such Opinion of Counsel is based. None of the Depositor,
      the Trustee or the Securities Administrator is obligated to register or qualify
      the Class of Certificates specified on the face hereof under the 1933 Act or
      any
      other securities law or to take any action not otherwise required under the
      Agreement to permit the transfer of such Certificates without registration
      or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Master Servicer
      and the Securities Administrator against any liability that may result if the
      transfer is not so exempt or is not made in accordance with such federal and
      state laws.

     

    No
      transfer of this Certificate shall be made except in accordance with Section
      6.02(c) of the Agreement.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same. No service charge
      will be made for any such registration of transfer or exchange of Certificates,
      but the Securities Administrator may require payment of a sum sufficient to
      cover any tax or other governmental charge that may be imposed in connection
      with any transfer or exchange of Certificates.

     

    
      
        
        

      

      
        A-3-A-4

        
          

        

      

       

    

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Countrywide Home Loans Servicing LP (the “Servicer”) and any agent of the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator or
      the
      Servicer 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, the Securities Administrator, the Servicer nor any such
      agent shall be affected by notice to the contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-3-A-5

        
          

        

      

       

    

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

     

    Dated:

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class CE Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
              Custodian

            
	 	 	 	
              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee) 

     

    a
      Percentage Interest equal to ____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest 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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-5

     

    FORM
      OF
      CLASS P CERTIFICATE

     

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

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
      HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE
      REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
      THE
      ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN THE
      MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”),
      OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN
      THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR
      (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE
      MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE
      ACT.

     

    NO
      TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
      PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE
      AGREEMENT.

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    
      	
              Series
                2006-CW1, Class P

            	 	
              Aggregate
                Certificate Principal Balance of the Class P Certificates as of the
                Issue
                Date: $100.00

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

            	 	
              Denomination:
                $100.00

            
	
              First
                Distribution Date: August 25, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              No.
                __

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	
              Issue
                Date: July 25, 2006

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

     

    This
      certifies that____________________ is the registered owner of a Percentage
      Interest (obtained by dividing the denomination of this Certificate by the
      aggregate Certificate Principal Balance of the Class P Certificates as of the
      Issue Date) in that certain beneficial ownership interest evidenced by all
      of
      the Class P Certificates in REMIC III created pursuant to a Pooling and
      Servicing Agreement, dated as specified above (the “Agreement”), among ACE
      Securities Corp., as depositor (hereinafter called the “Depositor”, which term
      includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”) and HSBC Bank USA, 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, the capitalized terms
      used herein have the meanings assigned in the Agreement. This Certificate is
      issued under and is subject to the terms, provisions and conditions of the
      Agreement, to which Agreement the Holder of this Certificate by virtue of the
      acceptance hereof assents and by which such Holder is bound.

     

    
      
        
        

      

      
        A-4-2

        
          

        

      

       

    

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the last Business
      Day of the calendar month immediately preceding the month in which the related
      Distribution Date occurs (the “Record Date”), in an amount equal to the product
      of the Percentage Interest evidenced by this Certificate and the amount required
      to be distributed to the Holders of Class P Certificates on such Distribution
      Date pursuant to the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class P Certificates the
      aggregate initial Certificate Principal Balance of which is in excess of the
      lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
      Principal Balance of the Class P Certificates, or otherwise by check mailed
      by
      first class mail to the address of the Person entitled thereto, as such name
      and
      address shall appear on the Certificate Register. Notwithstanding the above,
      the
      final distribution on this Certificate will be made after due notice by the
      Securities Administrator of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing a Percentage Interest in the
      Class of Certificates specified on the face hereof equal to the denomination
      specified on the face hereof divided by the aggregate Certificate Principal
      Balance of the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    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, the Trustee, the Securities Administrator and the rights of
      the
      Certificateholders under the Agreement at any time by the Depositor, the Master
      Servicer, the Trustee and the Securities Administrator with the consent of
      the
      Swap Provider and the Holders of Certificates entitled to at least 66% of the
      Voting Rights. Any such consent by the Holder of this Certificate shall be
      conclusive and binding on such Holder and upon all future Holders of this
      Certificate and of any Certificate issued upon the transfer hereof or in
      exchange herefor 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.

    
      
        
        

      

      
        A-4-3

        
          

        

      

       

    

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an effective registration or qualification under
      applicable state securities laws, or is made in a transaction that does not
      require such registration or qualification. In the event that such a transfer
      of
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A or Regulation S under the
      1933
      Act, written certifications from the Holder of the Certificate desiring to
      effect the transfer, and from such Holder’s prospective transferee,
      substantially in the forms attached to the Agreement as Exhibit B-1, (ii) if
      such transfer is purportedly being made in reliance upon Rule 501(a) under
      the
      1933 Act, written certifications from the Holder of the Certificate desiring
      to
      effect the transfer and from such Holder’s prospective transferee, substantially
      in the form attached to the Agreement as Exhibit B-2 and (iii) in all other
      cases, an Opinion of Counsel satisfactory to it that such transfer may be made
      without such registration or qualification (which Opinion of Counsel shall
      not
      be an expense of the Trust Fund or of the Depositor, the Trustee, the Master
      Servicer or the Securities Administrator in their respective capacities as
      such), together with copies of the written certification(s) of the Holder of
      the
      Certificate desiring to effect the transfer and/or such Holder’s prospective
      transferee upon which such Opinion of Counsel is based. None of the Depositor,
      the Trustee or the Securities Administrator is obligated to register or qualify
      the Class of Certificates specified on the face hereof under the 1933 Act or
      any
      other securities law or to take any action not otherwise required under the
      Agreement to permit the transfer of such Certificates without registration
      or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Master Servicer
      and the Securities Administrator against any liability that may result if the
      transfer is not so exempt or is not made in accordance with such federal and
      state laws.

     

    No
      transfer of this Certificate shall be made except in accordance with Section
      6.02(c) of the Agreement.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same. No service charge
      will be made for any such registration of transfer or exchange of Certificates,
      but the Securities Administrator may require payment of a sum sufficient to
      cover any tax or other governmental charge that may be imposed in connection
      with any transfer or exchange of Certificates.

     

    
      
        
        

      

      
        A-4-4

        
          

        

      

       

    

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Countrywide Home Loans Servicing LP (the “Servicer”) and any agent of the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator or
      the
      Servicer 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, the Securities Administrator, the Servicer nor any such
      agent shall be affected by notice to the contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

    
      
        
        

      

      
        A-4-5

        
          

        

      

       

    

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

     

    Dated:

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class P Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
              Custodian

            
	 	 	 	
              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to ____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest 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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    EXHIBIT
      A-6

     

    FORM
      OF
      CLASS R CERTIFICATE

     

    THIS
      CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES
      PERSON.

     

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

     

    ANY
      RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
      IN
      ACCORDANCE WITH THE PROVISIONS OF SECTION 6.02 OF THE AGREEMENT REFERRED TO
      HEREIN.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD
      OR
      TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
      OR
      TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
      AND
      UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS
      OF SECTION 6.02 OF THE AGREEMENT.

     

    ANY
      RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
      IF
      THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE SECURITIES
      ADMINISTRATOR THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY
      POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN
      GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY
      OF
      ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED
      IN SECTION 521 OF THE CODE) THAT 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, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE
      CODE
      (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL
      HEREINAFTER BE REFERRED TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF
      A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE
      THE
      ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN
      ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
      TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF
      ANY
      TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED
      ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, 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 HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO
      THE
      PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 6.02(d) OF THE
      AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION
      IS
      PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS
      CERTIFICATE.

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    ANY
      PERSON ACQUIRING A CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF, OR
      WITH
      PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT
      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, SHALL BE DEEMED
      TO HAVE MADE THE REPRESENTATIONS OR PROVIDED THE OPINION OF COUNSEL IN SECTION
      6.02(c) OF THE POOLING AND SERVICING AGREEMENT.

     

    
      
        
        

      

      
        A-5-2

        
          

        

      

       

    

    

    
      	
              Series
                2006-CW1, Class R

            	 	
              Aggregate
                Percentage Interest of the Class R Certificates as of the Issue Date:
                100.00%

            
	
              Date
                of Pooling and Servicing Agreement

              and
                Cut-off Date: July 1, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	
              First
                Distribution Date: August 25, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	
              No
                __

            	 	
              Issue
                Date: July 25, 2006

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
      by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE
      TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
      THE
      UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
      THE
      UNITED STATES.

    

    This
      certifies that _______________ is the registered owner of a Percentage Interest
      set forth above in that certain beneficial ownership interest evidenced by
      all
      of the Class R Certificates in REMIC III created pursuant to a Pooling and
      Servicing Agreement, dated as specified above (the “Agreement”), among ACE
      Securities Corp., as depositor (hereinafter called the “Depositor”, which term
      includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”) and HSBC Bank USA, 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, the capitalized terms
      used herein have the meanings assigned in the Agreement. This Certificate is
      issued under and is subject to the terms, provisions and conditions of the
      Agreement, to which Agreement the Holder of this Certificate by virtue of the
      acceptance hereof assents and by which such Holder is bound.

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th day of
      each month or, if such 25th day is not a Business Day, the Business Day
      immediately following (a “Distribution Date”), commencing on the First
      Distribution Date specified above, to the Person in whose name this Certificate
      is registered on the last Business Day of the calendar month immediately
      preceding the month in which the related Distribution Date occurs (the “Record
      Date”), in an amount equal to the product of the Percentage Interest evidenced
      by this Certificate and the amount required to be distributed to the Holders
      of
      Class R Certificates on such Distribution Date pursuant to the
      Agreement.

    
      
        
        

      

      
        A-5-3

        
          

        

      

       

    

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class R Certificates, or
      otherwise by check mailed by first class mail to the address of the Person
      entitled thereto, as such name and address shall appear on the Certificate
      Register. Notwithstanding the above, the final distribution on this Certificate
      will be made after due notice by the Securities Administrator of the pendency
      of
      such distribution and only upon presentation and surrender of this Certificate
      at the office or agency appointed by the Securities Administrator for that
      purpose as provided in the Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificate of the Series specified on the face hereof
      (herein called the “Certificates”) and representing the Percentage Interest in
      the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    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, the Trustee, the Securities Administrator and the rights of
      the
      Certificateholders under the Agreement at any time by the Depositor, the Master
      Servicer, the Trustee and the Securities Administrator with the consent of
      the
      Swap Provider and the Holders of Certificates entitled to at least 66% of the
      Voting Rights. Any such consent by the Holder of this Certificate shall be
      conclusive and binding on such Holder and upon all future Holders of this
      Certificate and of any Certificate issued upon the transfer hereof or in
      exchange herefor or in lieu hereof whether or not notation of such consent
      is
      made upon this Certificate. The Agreement also permits the amendment thereof,
      in
      certain limited circumstances, without the consent of the Holders of any of
      the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

    
      
        
        

      

      
        A-5-4

        
          

        

      

       

    

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, Certificates are exchangeable for new Certificates of the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an effective registration or qualification under
      applicable state securities laws, or is made in a transaction that does not
      require such registration or qualification. In the event that such a transfer
      of
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer, and from such Holder’s prospective transferee, substantially in the
      forms attached to the Agreement as Exhibit B-1, and (ii) in all other cases,
      an
      Opinion of Counsel satisfactory to it that such transfer may be made without
      such registration or qualification (which Opinion of Counsel shall not be an
      expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer
      or the Securities Administrator in their respective capacities as such),
      together with copies of the written certification(s) of the Holder of the
      Certificate desiring to effect the transfer and/or such Holder’s prospective
      transferee upon which such Opinion of Counsel is based. None of the Depositor,
      the Trustee or the Securities Administrator is obligated to register or qualify
      the Class of Certificates specified on the face hereof under the 1933 Act or
      any
      other securities law or to take any action not otherwise required under the
      Agreement to permit the transfer of such Certificates without registration
      or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Master Servicer
      and the Securities Administrator against any liability that may result if the
      transfer is not so exempt or is not made in accordance with such federal and
      state laws.

     

    No
      transfer of this Certificate shall be made except in accordance with Section
      6.02 of the Agreement.

     

    Prior
      to
      registration of any transfer, sale or other disposition of this Certificate,
      the
      proposed transferee shall provide to the Securities Administrator (i) an
      affidavit to the effect that such transferee is any Person other than a
      Disqualified Organization or the agent (including a broker, nominee or
      middleman) of a Disqualified Organization, and (ii) a certificate that
      acknowledges that (A) the Class R Certificates have been designated as
      representing the beneficial ownership of the residual interests in each of
      REMIC
      I, REMIC II and REMIC III, (B) it will include in its income a pro
      rata
      share of
      the net income of the Trust Fund and that such income may be an “excess
      inclusion,” as defined in the Code, that, with certain exceptions, cannot be
      offset by other losses or benefits from any tax exemption, and (C) it expects
      to
      have the financial means to satisfy all of its tax obligations including those
      relating to holding the Class R Certificates. Notwithstanding the registration
      in the Certificate Register of any transfer, sale or other disposition of this
      Certificate to a Disqualified Organization or an agent (including a broker,
      nominee or middleman) of a Disqualified Organization, 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, including, but not limited
      to,
      the receipt of distributions in respect of this Certificate.

     

    
      
        
        

      

      
        A-5-5

        
          

        

      

       

    

     

    The
      Holder of this Certificate, by its acceptance hereof, shall be deemed to have
      consented to the provisions of Section 6.02 of the Agreement and to any
      amendment of the Agreement deemed necessary by counsel of the Depositor to
      ensure that the transfer of this Certificate to any Person other than a
      Permitted Transferee or any other Person will not cause any portion of the
      Trust
      Fund to cease to qualify as a REMIC or cause the imposition of a tax upon any
      REMIC.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Countrywide Home Loans Servicing LP as the servicer (the “Servicer”) and any
      agent of the Depositor, the Master Servicer, the Trustee, the Securities
      Administrator or the Servicer 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, the Securities Administrator,
      the
      Servicer nor any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    
      
        
        

      

      
        A-5-6

        
          

        

      

      
        
        

      

       

    

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-5-7

        
          

        

      

       

    

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

     

    Dated:

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            
	 	 	 	 	 	 	 	 	 

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class R Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
              Custodian

            
	 	 	 	
              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	 
	 	 
	 	 

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to _____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest 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

            

    

    
      
        
        

      

      
        B-1-2

        
          

        

      

       

    

    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

            	 
	
              assignee
                named above, or

            	 
	
              its
                agent.

            	 

    

    

    

    
      
        
        

      

      
        B-1-3

        
          

        

      

       

    

    EXHIBIT
      B-1

    FORM
      OF
      TRANSFEROR REPRESENTATION LETTER

     

    [Date]

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-CW1

     

    
      	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-CW1 

              Asset
                Backed Pass-Through Certificates

              Class
                M-10, Class M-11, Class CE, Class P and Class R
                Certificates

            

    

    

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ______________________ (the “Transferor”) to
      ___________________ (the “Transferee”) of the captioned mortgage pass-through
      certificates (the “Certificates”), the Transferor hereby certifies as
      follows:

     

    Neither
      the Transferor nor anyone acting on its behalf has (a) offered, pledged, sold,
      disposed of or otherwise transferred any Certificate, any interest in any
      Certificate or any other similar security to any person in any manner, (b)
      has
      solicited any offer to buy or to accept a pledge, disposition or other transfer
      of any Certificate, any interest in any Certificate or any other similar
      security from any person in any manner, (c) has otherwise approached or
      negotiated with respect to any Certificate, any interest in any Certificate
      or
      any other similar security with any person in any manner, (d) has made any
      general solicitation by means of general advertising or in any other manner,
      (e)
      has taken any other action, that (in the case of each of subclauses (a) through
      (e) above) would constitute a distribution of the Certificates under the
      Securities Act of 1933, as amended (the “1933 Act”), or would render the
      disposition of any Certificate a violation of Section 5 of the 1933 Act or
      any
      state securities law or would require registration or qualification pursuant
      thereto. The Transferor will not act, nor has it authorized or will it authorize
      any person to act, in any manner set forth in the foregoing sentence with
      respect to any Certificate. The Transferor will not sell or otherwise transfer
      any of the Certificates, except in compliance with the provisions of that
      certain Pooling and Servicing Agreement, dated as of July 1, 2006, among ACE
      Securities Corp. as Depositor, Wells Fargo Bank, N.A. as Master Servicer and
      Securities Administrator and HSBC Bank USA, National Association as Trustee
      (the
“Pooling and Servicing Agreement”), pursuant to which Pooling and Servicing
      Agreement the Certificates were issued.

     

    
      
        
        

      

      
        B-1-4

        
          

        

      

       

    

    Capitalized
      terms used but not defined herein shall have the meanings assigned thereto
      in
      the Pooling and Servicing Agreement.

     

    
      	 	 	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              [Transferor]

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            

    

     

    
      
        
        

      

      
        B-1-5

        
          

        

      

       

    

    FORM
      OF
      TRANSFEREE REPRESENTATION LETTER

     

    [Date]

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-CW1

     

    
      	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-CW1

              Asset
                Backed Pass-Through Certificates 

              Class
                M-10, Class M-11, Class CE, Class P and Class R
                Certificates

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the purchase from ______________________________ (the
“Transferor”) on the date hereof of the captioned trust certificates (the
“Certificates”), (the “Transferee”) hereby certifies as follows:

     

    1. The
      Transferee is a “qualified institutional buyer” as that term is defined in Rule
      144A (“Rule 144A”) under the Securities Act of 1933 (the “1933 Act”) and has
      completed either of the forms of certification to that effect attached hereto
      as
      Annex 1 or Annex 2. The Transferee is aware that the sale to it is being made
      in
      reliance on Rule 144A. The Transferee is acquiring the Certificates for its
      own
      account or for the account of a qualified institutional buyer, and understands
      that such Certificate may be resold, pledged or transferred only (i) to a person
      reasonably believed to be a qualified institutional buyer that purchases for
      its
      own account or for the account of a qualified institutional buyer to whom notice
      is given that the resale, pledge or transfer is being made in reliance on Rule
      144A, or (ii) pursuant to another exemption from registration under the 1933
      Act.

     

    2. The
      Transferee has been furnished with all information regarding (a) the
      Certificates and distributions thereon, (b) the nature, performance and
      servicing of the Mortgage Loans, (c) the Pooling and Servicing Agreement
      referred to below, and (d) any credit enhancement mechanism associated with
      the
      Certificates, that it has requested.

     

    3. The
      Transferee: (a) is not an employee benefit plan or other plan subject to the
      prohibited transaction provisions of the Employee Retirement Income Security
      Act
      of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
      1986, as amended (the “Code”) (each, a “Plan”), or any other person (including
      an investment manager, a named fiduciary or a trustee of any Plan) acting,
      directly or indirectly, on behalf of or purchasing any Certificate with “plan
      assets” of any Plan within the meaning of the Department of Labor (“DOL”)
      regulation at 29 C.F.R. § 2510.3-101 or (b) has provided the Securities
      Administrator with an opinion of counsel on which the Trustee, the Depositor,
      the Master Servicer and the Securities Administrator may rely, acceptable to
      and
      in form and substance satisfactory to the Securities Administrator to the effect
      that the purchase of Certificates is permissible under applicable law, will
      not
      constitute or result in any non-exempt prohibited transaction under ERISA or
      Section 4975 of the Code and will not subject the Trust Fund, the Trustee,
      the
      Depositor, the Master Servicer or the Securities Administrator to any obligation
      or liability (including obligations or liabilities under ERISA or Section 4975
      of the Code) in addition to those undertaken in the Pooling and Servicing
      Agreement.

    
      
        
        

      

      
        B-1-6

        
          

        

      

       

    

    

    In
      addition, the Transferee hereby certifies, represents and warrants to, and
      covenants with, the Depositor, the Trustee, the Securities Administrator and
      the
      Master Servicer that the Transferee will not transfer such Certificates to
      any
      Plan or person unless such Plan or person meets the requirements set forth
      in
      paragraph 3 above.

     

    All
      capitalized terms used but not otherwise defined herein have the respective
      meanings assigned thereto in the Pooling and Servicing Agreement, dated as
      of
      July 1, 2006, among ACE Securities Corp. as Depositor, Wells Fargo Bank, N.A.
      as
      Master Servicer and Securities Administrator and HSBC Bank USA, National
      Association as Trustee, pursuant to which the Certificates were
      issued.

     

    
      	 	 	 	 	 	 	 	
              [TRANSFEREE]

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            

    

    
      
        
        

      

      
        B-1-7

        
          

        

      

       

    

    ANNEX
      1 TO EXHIBIT B-1

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees Other Than Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, N.A., as Securities Administrator, with
      respect to the asset backed pass-through certificates (the “Certificates”)
      described in the Transferee Certificate to which this certification relates
      and
      to which this certification is an Annex:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer,
      Senior Vice President or other executive officer of the entity purchasing the
      Certificates (the “Transferee”).

     

    2. In
      connection with purchases by the Transferee, the Transferee is a “qualified
      institutional buyer” as that term is defined in Rule 144A under the Securities
      Act of 1933 (“Rule 144A”) because (i) the Transferee owned and/or invested on a
      discretionary basis $________________1 
      in
      securities (except for the excluded securities referred to below) as of the
      end
      of the Transferee’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in
      the
      category marked below.

     

    
      	
              ___

            	
              Corporation,
                etc.
                The Transferee is a corporation (other than a bank, savings and loan
                association or similar institution), Massachusetts or similar business
                trust, partnership, or any organization described in Section 501(c)(3)
                of
                the Internal Revenue Code of 1986.

            
	 	 
	
              ___

            	
              Bank.
                The Transferee (a) is a national bank or banking institution organized
                under the laws of any State, territory or the District of Columbia,
                the
                business of which is substantially confined to banking and is supervised
                by the State or territorial banking commission or similar official
                or is a
                foreign bank or equivalent institution, and (b) has an audited net
                worth
                of at least $25,000,000 as demonstrated in its latest annual financial
                statements, a
                copy of which is attached hereto.

            
	 	 
	
              ___

            	
              Savings
                and Loan.
                The Transferee (a) is a savings and loan association, building and
                loan
                association, cooperative bank, homestead association or similar
                institution, which is supervised and examined by a State or Federal
                authority having supervision over any such institutions or is a foreign
                savings and loan association or equivalent institution and (b) has
                an
                audited net worth of at least $25,000,000 as demonstrated in its
                latest
                annual financial statements, a
                copy of which is attached hereto.

            

    

     

    
      
        
1   Transferee
        must own
        and/or invest on a discretionary basis at least $100,000,000 in securities
        unless Transferee is a dealer, and, in that case, Transferee must own and/or
        invest on a discretionary basis at least $10,000,000 in
        securities.

    

     

    
      
        
        

      

      
        B-1-8

        
          

        

      

      
        
        

      

    

     

    
      	
              ___

            	
              Broker-dealer.
                The Transferee is a dealer registered pursuant to Section 15 of the
                Securities Exchange Act of 1934.

            
	 	 
	
              ___

            	
              Insurance
                Company.
                The Transferee is an insurance company whose primary and predominant
                business activity is the writing of insurance or the reinsuring of
                risks
                underwritten by insurance companies and which is subject to supervision
                by
                the insurance commissioner or a similar official or agency of a State,
                territory or the District of Columbia.

            
	 	 
	
              ___

            	
              State
                or Local Plan.
                The Transferee is a plan established and maintained by a State, its
                political subdivisions, or any agency or instrumentality of the State
                or
                its political subdivisions, for the benefit of its
                employees.

            
	 	 
	
              ___

            	
              ERISA
                Plan.
                The Transferee is an employee benefit plan within the meaning of
                Title I
                of the Employee Retirement Income Security Act of 1974.

            
	 	 
	
              ___

            	
              Investment
                Advisor
                The Transferee is an investment advisor registered under the Investment
                Advisers Act of 1940.

            

    

     

    3. The
      term
“securities”
as
      used
      herein does
      not include
      (i)
      securities of issuers that are affiliated with the Transferee, (ii) securities
      that are part of an unsold allotment to or subscription by the Transferee,
      if
      the Transferee is a dealer, (iii) securities issued or guaranteed by the U.S.
      or
      any instrumentality thereof, (iv) bank deposit notes and certificates of
      deposit, (v) loan participations, (vi) repurchase agreements, (vii)
      securities owned but subject to a repurchase agreement and (viii) currency,
      interest rate and commodity swaps.

     

    4. For
      purposes of determining the aggregate amount of securities owned and/or invested
      on a discretionary basis by the Transferee, the Transferee used the cost of
      such
      securities to the Transferee and did not include any of the securities referred
      to in the preceding paragraph. Further, in determining such aggregate amount,
      the Transferee may have included securities owned by subsidiaries of the
      Transferee, but only if such subsidiaries are consolidated with the Transferee
      in its financial statements prepared in accordance with generally accepted
      accounting principles and if the investments of such subsidiaries are managed
      under the Transferee’s direction. However, such securities were not included if
      the Transferee is a majority-owned, consolidated subsidiary of another
      enterprise and the Transferee is not itself a reporting company under the
      Securities Exchange Act of 1934.

     

    5. The
      Transferee acknowledges that it is familiar with Rule 144A and understands
      that
      the Transferor and other parties related to the Certificates are relying and
      will continue to rely on the statements made herein because one or more sales
      to
      the Transferee may be in reliance on Rule 144A.

     

    
      	
              ___

            	
              ___

            	
              Will
                the Transferee be purchasing the Certificates

            
	
              Yes

            	
              No

            	
              only
                for the Transferee’s own account?

            

    

     

    
      
        
        

      

      
        B-1-9

        
          

        

      

       

    

    6. If
      the
      answer to the foregoing question is “no”, the Transferee agrees that, in
      connection with any purchase of securities sold to the Transferee for the
      account of a third party (including any separate account) in reliance on Rule
      144A, the Transferee will only purchase for the account of a third party that
      at
      the time is a “qualified institutional buyer” within the meaning of Rule 144A.
      In addition, the Transferee agrees that the Transferee will not purchase
      securities for a third party unless the Transferee has obtained a current
      representation letter from such third party or taken other appropriate steps
      contemplated by Rule 144A to conclude that such third party independently meets
      the definition of “qualified institutional buyer” set forth in Rule
      144A.

     

    7. The
      Transferee will notify each of the parties to which this certification is made
      of any changes in the information and conclusions herein. Until such notice
      is
      given, the Transferee’s purchase of the Certificates will constitute a
      reaffirmation of this certification as of the date of such purchase. In
      addition, if the Transferee is a bank or savings and loan as provided above,
      the
      Transferee agrees that it will furnish to such parties updated annual financial
      statements promptly after they become available.

     

    Dated:

    
      	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Print
                Name of Transferee

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            

    

    
      
        
        

      

      
        B-1-10

        
          

        

      

       

    

    ANNEX
      2 TO EXHIBIT B-1

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees That Are Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, N.A., as Securities Administrator, with
      respect to the asset backed pass-through certificates (the “Certificates”)
      described in the Transferee Certificate to which this certification relates
      and
      to which this certification is an Annex:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer
      or
      Senior Vice President of the entity purchasing the Certificates (the
“Transferee”) or, if the Transferee is a “qualified institutional buyer” as that
      term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”)
      because the Transferee is part of a Family of Investment Companies (as defined
      below), is such an officer of the investment adviser (the
“Adviser”).

     

    2. In
      connection with purchases by the Transferee, the Transferee is a “qualified
      institutional buyer” as defined in Rule 144A because (i) the Transferee is an
      investment company registered under the Investment Company Act of 1940, and
      (ii)
      as marked below, the Transferee alone, or the Transferee’s Family of Investment
      Companies, owned at least $100,000,000 in securities (other than the excluded
      securities referred to below) as of the end of the Transferee’s most recent
      fiscal year. For purposes of determining the amount of securities owned by
      the
      Transferee or the Transferee’s Family of Investment Companies, the cost of such
      securities was used.

     

    
      	
              ___

            	
              The
                Transferee owned $________________________ in securities (other than
                the
                excluded securities referred to below) as of the end of the Transferee’s
                most recent fiscal year (such amount being calculated in accordance
                with
                Rule 144A).

            
	 	 
	
              ___

            	
              The
                Transferee is part of a Family of Investment Companies which owned
                in the
                aggregate $_______________ in securities (other than the excluded
                securities referred to below) as of the end of the Transferee’s most
                recent fiscal year (such amount being calculated in accordance with
                Rule
                144A).

            

    

     

    3. The
      term
“Family
      of Investment Companies”
as
      used
      herein means two or more registered investment companies (or series thereof)
      that have the same investment adviser or investment advisers that are affiliated
      (by virtue of being majority owned subsidiaries of the same parent or because
      one investment adviser is a majority owned subsidiary of the
      other).

     

    4. The
      term
“securities”
as
      used
      herein does not include (i) securities of issuers that are affiliated with
      the
      Transferee or are part of the Transferee’s Family of Investment Companies, (ii)
      securities issued or guaranteed by the U.S. or any instrumentality thereof,
      (iii) bank deposit notes and certificates of deposit, (iv) loan participations,
      (v) repurchase agreements, (vi) securities owned but subject to a
      repurchase agreement and (vii) currency, interest rate and commodity
      swaps.

     

    
      
        
        

      

      
        B-1-11

        
          

        

      

       

    

    5. The
      Transferee is familiar with Rule 144A and understands that the parties to which
      this certification is being made are relying and will continue to rely on the
      statements made herein because one or more sales to the Transferee will be
      in
      reliance on Rule 144A. In addition, the Transferee will only purchase for the
      Transferee’s own account.

     

    6. The
      undersigned will notify the parties to which this certification is made of
      any
      changes in the information and conclusions herein. Until such notice, the
      Transferee’s purchase of the Certificates will constitute a reaffirmation of
      this certification by the undersigned as of the date of such
      purchase.

     

    Dated:

    
      	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Print
                Name of Transferee or Advisor

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              IF
                AN ADVISER:

               

            
	 	 	 	 	 	 	 	
               

            
	 	 	 	 	 	 	 	
              Print
                Name of Transferee

            

    

     

    
      
        
        

      

      
        B-1-12

        
          

        

      

       

    

    FORM
      OF
      TRANSFEREE REPRESENTATION LETTER

     

    The
      undersigned hereby certifies on behalf of the purchaser named below (the
“Purchaser”) as follows:

     

    1. I
      am an
      executive officer of the Purchaser.

     

    2. The
      Purchaser is a “qualified institutional buyer”, as defined in Rule 144A, (“Rule
      144A”) under the Securities Act of 1933, as amended.

     

    3. As
      of the
      date specified below (which is not earlier than the last day of the Purchaser’s
      most recent fiscal year), the amount of “securities”, computed for purposes of
      Rule 144A, owned and invested on a discretionary basis by the Purchaser was
      in
      excess of $100,000,000.

     

    
      	
              Name
                of Purchaser 

            	 
	 	 
	
              By:
                (Signature) 

            	 
	 	 
	
              Name
                of Signatory 

            	 
	 	 
	
              Title
                

            	 
	 	 
	
              Date
                of this certificate 

            	 
	 	 
	
              Date
                of information provided in paragraph 3 

            	 

    

     

    
      
        
        

      

      
        B-1-13

        
          

        

      

       

    

    ANNEX
      A TO EXHIBIT B-1 

     

    FORM
      OF
      REGULATION S TRANSFER CERTIFICATE

     

    [Date]

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-CW1

     

    
      	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-CW1 

              Asset
                Backed Pass-Through Certificates, 

              Class
                M-10, Class M-11, Class CE Certificates and/or Class P
                Certificates

            

    

     

    Ladies
      and Gentlemen:

     

    Reference
      is hereby made to the Pooling and Servicing Agreement (the “Agreement”), dated
      as of July 1, 2006, among ACE Securities Corp. (the “Depositor”), Wells Fargo
      Bank, N.A., as master servicer and securities administrator (the “Master
      Servicer”), and HSBC Bank USA, National Association, as trustee (the “Trustee”).
      Capitalized terms used herein but not defined herein shall have the meanings
      assigned thereto in the Agreement.

     

    This
      letter relates to U.S. $[__________] Certificate Principal Balance of Class
      [CE][P] Certificates (the “Certificates”) which are held in the name of [name of
      transferor] (the “Transferor”) to effect the transfer of the Certificates to a
      person who wishes to take delivery thereof in the form of an equivalent
      beneficial interest [name of transferee] (the “Transferee”).

     

    In
      connection with such request, the Transferor hereby certifies that such transfer
      has been effected in accordance with the transfer restrictions set forth in
      the
      Agreement relating to the Certificates and that the following additional
      requirements (if applicable) were satisfied:

     

    (a) the
      offer
      of the Certificates was not made to a person in the United States;

     

    (b) at
      the
      time the buy order was originated, the Transferee was outside the United States
      or the Transferor and any person acting on its behalf reasonably believed that
      the Transferee was outside the United States;

     

    (c) no
      directed selling efforts were made in contravention of the requirements of
      Rule
      903(b) or 904(b) of Regulation S, as applicable;

     

    (d) the
      transfer or exchange is not part of a plan or scheme to evade the registration
      requirements of the Securities Act;

     

    (e) the
      Transferee is not a U.S. Person, as defined in Regulation S under the Securities
      Act;

    
      
        
        

      

      
        B-1-14

        
          

        

      

       

    

     

    (f) the
      transfer was made in accordance with the applicable provisions of Rule 903(b)(2)
      or (3) or Rule 904(b)(1), as the case may be; and

     

    (g) the
      Transferee understands that the Certificates have not been and will not be
      registered under the Securities Act, that any offers, sales or deliveries of
      the
      Certificates purchased by the Transferee in the United States or to U.S. persons
      prior to the date that is 40 days after the later of (i) the commencement of
      the
      offering of the Certificates and (ii) the Closing Date, may constitute a
      violation of United States law, and that (x) distributions of principal and
      interest and (y) the exchange of beneficial interests in a Temporary Regulation
      S Global Certificate for beneficial interests in the related Permanent
      Regulation S Global Certificate, in each case, will be made in respect of such
      Certificates only following the delivery by the Holder of a certification of
      non-U.S. beneficial ownership, at the times and in the manner set forth in
      the
      Agreement.

    
      
        
        

      

      
        B-1-15

        
          

        

      

       

    

    You
      are
      entitled to rely upon this letter and are irrevocably authorized to produce
      this
      letter or a copy hereof to any interested party in any administrative or legal
      proceedings or official inquiry with respect to the matters covered
      hereby.

     

    
      	 	 	 	 	 	 	 	
              [Name
                of Transferor]

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            

    

     

    
      
        
        

      

      
        B-1-16

        
          

        

      

       

    

    EXHIBIT
      B-2

     

    FORM
      OF
      TRANSFEROR REPRESENTATION LETTER

     

    ____________,
      20__

    

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-CW1

     

    
      	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-CW1 

              Asset
                Backed Pass-Through Certificates, 

              Class
                M-10, Class M-11, Class CE, Class P and Class R
                Certificates

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ________________ (the “Transferor”) to
      __________________________ (the “Transferee”) of the captioned mortgage
      pass-through certificates (the “Certificates”), the Transferor hereby certifies
      as follows:

     

    Neither
      the Seller nor anyone acting on its behalf has (a) offered, pledged, sold,
      disposed of or otherwise transferred any Certificate, any interest in any
      Certificate or any other similar security to any person in any manner, (b)
      has
      solicited any offer to buy or to accept a pledge, disposition or other transfer
      of any Certificate, any interest in any Certificate or any other similar
      security from any person in any manner, (c) has otherwise approached or
      negotiated with respect to any Certificate, any interest in any Certificate
      or
      any other similar security with any person in any manner, (d) has made any
      general solicitation by means of general advertising or in any other manner,
      or
      (e) has taken any other action, that (as to any of (a) through (e) above) would
      constitute a distribution of the Certificates under the Securities Act of 1933
      (the “Act’), that would render the disposition of any Certificate a violation of
      Section 5 of the Act or any state securities law, or that would require
      registration or qualification pursuant thereto. The Seller will not act, in
      any
      manner set forth in the foregoing sentence with respect to any Certificate.
      The
      Seller has not and will not sell or otherwise transfer any of the Certificates,
      except in compliance with the provisions of the Pooling and Servicing
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
               

            
	 	 	 	 	 	 	 	
              (Transferor)

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    FORM
      OF
      TRANSFEREE LETTER

    

    _______________,
      20__

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-CW1

     

    
      	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-CW1 

              Asset
                Backed Pass-Through Certificates, 

              Class
                M-10, Class M-11, Class CE, Class P and Class R
                Certificates

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ______________________ (the “Transferor”) to
      __________________________ (the “Transferee”) of the captioned mortgage
      pass-through certificates (the “Certificates”), the Transferee hereby certifies
      as follows:

     

    1. The
      Transferee understands that (a) the Certificates have not been and will not
      be
      registered or qualified under the Securities Act of 1933, as amended (the “Act”)
      or any state securities law, (b) the Depositor is not required to so register
      or
      qualify the Certificates, (c) the Certificates may be resold only if registered
      and qualified pursuant to the provisions of the Act or any state securities
      law,
      or if an exemption from such registration and qualification is available, (d)
      the Pooling and Servicing Agreement contains restrictions regarding the transfer
      of the Certificates and (e) the Certificates will bear a legend to the foregoing
      effect.

     

    2. The
      Transferee is acquiring the Certificates for its own account for investment
      only
      and not with a view to or for sale in connection with any distribution thereof
      in any manner that would violate the Act or any applicable state securities
      laws.

     

    3. The
      Transferee is (a) a substantial, sophisticated institutional investor having
      such knowledge and experience in financial and business matters, and, in
      particular, in such matters related to securities similar to the Certificates,
      such that it is capable of evaluating the merits and risks of investment in
      the
      Certificates, (b) able to bear the economic risks of such an investment and
      (c)
      an “accredited investor” within the meaning of Rule 501(a) promulgated pursuant
      to the Act.

     

    4. The
      Transferee has been furnished with, and has had an opportunity to review (a)
      a
      copy of the Pooling and Servicing Agreement and (b) such other information
      concerning the Certificates, the Mortgage Loans and the Depositor as has been
      requested by the Transferee from the Depositor or the Transferor and is relevant
      to the Transferee’s decision to purchase the Certificates. The Transferee has
      had any questions arising from such review answered by the Depositor or the
      Transferor to the satisfaction of the Transferee.

    
      
        
        

      

      
        B-2-2

        
          

        

      

       

    

     

    5. The
      Transferee has not and will not nor has it authorized or will it authorize
      any
      person to (a) offer, pledge, sell, dispose of or otherwise transfer any
      Certificate, any interest in any Certificate or any other similar security
      to
      any person in any manner, (b) solicit any offer to buy or to accept a pledge,
      disposition of other transfer of any Certificate, any interest in any
      Certificate or any other similar security from any person in any manner, (c)
      otherwise approach or negotiate with respect to any Certificate, any interest
      in
      any Certificate or any other similar security with any person in any manner,
      (d)
      make any general solicitation by means of general advertising or in any other
      manner or (e) take any other action, that (as to any of (a) through (e) above)
      would constitute a distribution of any Certificate under the Act, that would
      render the disposition of any Certificate a violation of Section 5 of the 1933
      Act or any state securities law, or that would require registration or
      qualification pursuant thereto. The Transferee will not sell or otherwise
      transfer any of the Certificates, except in compliance with the provisions
      of
      the Pooling and Servicing Agreement.

     

    6. The
      Transferee: (a) is not an employee benefit plan or other plan subject to the
      prohibited transaction provisions of the Employee Retirement Income Security
      Act
      of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
      1986, as amended (the “Code”) (each, a “Plan”), or any other person (including
      an investment manager, a named fiduciary or a trustee of any Plan) acting,
      directly or indirectly, on behalf of or purchasing any Certificate with “plan
      assets” of any Plan within the meaning of the Department of Labor (“DOL”)
      regulation at 29 C.F.R. § 2510.3-101 or (b) has provided the Securities
      Administrator with an opinion of counsel on which the Depositor, the Master
      Servicer, the Securities Administrator and the Trustee may rely, acceptable
      to
      and in form and substance satisfactory to the Securities Administrator to the
      effect that the purchase of Certificates is permissible under applicable law,
      will not constitute or result in any non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Trust Fund, the
      Trustee, the Master Servicer, the Securities Administrator, the Depositor or
      the
      Servicer to any obligation or liability (including obligations or liabilities
      under ERISA or Section 4975 of the Code) in addition to those undertaken in
      the
      Pooling and Servicing Agreement.

     

    In
      addition, the Transferee hereby certifies, represents and warrants to, and
      covenants with, the Depositor, the Trustee, the Securities Administrator and
      the
      Master Servicer that the Transferee will not transfer such Certificates to
      any
      Plan or person unless such Plan or person meets the requirements set forth
      in
      paragraph 6 above.

     

    
      	 	 	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 

    

     

    
      
        
        

      

      
        B-2-3

        
          

        

      

       

    

    EXHIBIT
      B-3

     

    TRANSFER
      AFFIDAVIT AND AGREEMENT

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

    ___________________________
      being duly sworn, deposes, represents and warrants as follows:

     

    
      	 	
              1.

            	
              I
                am a _____________________ of _______________________________ (the
                “Owner”) a corporation duly organized and existing under the laws of
                _________________________, the record owner of ACE Securities Corp.
                Home
                Equity Loan Trust, Series 2006-CW1 Asset Backed Pass-Through Certificates,
                Class R Certificates (the “Class R Certificates”), on behalf of whom I
                make this affidavit and agreement. Capitalized terms used but not
                defined
                herein have the respective meanings assigned thereto in the Pooling
                and
                Servicing Agreement pursuant to which the Class R Certificates were
                issued.

            

    

     

    
      	 	
              2.

            	
              The
                Owner (i) is and will be a “Permitted Transferee” as of
                ____________________. ____ and (ii) is acquiring the Class R Certificates
                for its own account or for the account of another Owner from which
                it has
                received an affidavit in substantially the same form as this affidavit.
                A
                “Permitted Transferee” is any person other than a “disqualified
                organization” or a possession of the United States. For this purpose, a
                “disqualified organization” means the United States, any state or
                political subdivision thereof, any agency or instrumentality of any
                of the
                foregoing (other than an instrumentality all of the activities of
                which
                are subject to tax and, except for the Federal Home Loan Mortgage
                Corporation, a majority of whose board of directors is not selected
                by any
                such governmental entity) or any foreign government, international
                organization or any agency or instrumentality of such foreign government
                or organization, any real electric or telephone cooperative, or any
                organization (other than certain farmers’ cooperatives) that is generally
                exempt from federal income tax unless such organization is subject
                to the
                tax on unrelated business taxable
                income.

            

    

     

    
      	 	
              3.

            	
              The
                Owner is aware (i) of the tax that would be imposed on transfers
                of the
                Class R Certificates to disqualified organizations under the Internal
                Revenue Code of 1986 that applies to all transfers of the Class R
                Certificates after April 31, 1988; (ii) that such tax would be on
                the
                transferor or, if such transfer is through an agent (which person
                includes
                a broker, nominee or middleman) for a non-Permitted Transferee, on
                the
                agent; (iii) that the person otherwise liable for the tax shall be
                relieved of liability for the tax if the transferee furnishes to
                such
                person an affidavit that the transferee is a Permitted Transferee
                and, at
                the time of transfer, such person does not have actual knowledge
                that the
                affidavit is false; and (iv) that each of the Class R Certificates
                may be
                a “noneconomic residual interest” within the meaning of proposed Treasury
                regulations promulgated under the Code and that the transferor of
                a
                “noneconomic residual interest” will remain liable for any taxes due with
                respect to the income on such residual interest, unless no significant
                purpose of the transfer is to impede the assessment or collection
                of
                tax.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    
      	 	
              4.

            	
              The
                Owner is aware of the tax imposed on a “pass-through entity” holding the
                Class R Certificates if, at any time during the taxable year of the
                pass-through entity, a non-Permitted Transferee is the record holder
                of an
                interest in such entity. (For this purpose, a “pass-through entity”
                includes a regulated investment company, a real estate investment
                trust or
                common trust fund, a partnership, trust or estate, and certain
                cooperatives.)

            

    

     

    
      	 	
              5.

            	
              The
                Owner is aware that the Securities Administrator will not register
                the
                transfer of any Class R Certificate unless the transferee, or the
                transferee’s agent, delivers to the Securities Administrator, among other
                things, an affidavit in substantially the same form as this affidavit.
                The
                Owner expressly agrees that it will not consummate any such transfer
                if it
                knows or believes that any of the representations contained in such
                affidavit and agreement are false.

            

    

     

    
      	 	
              6.

            	
              The
                Owner consents to any additional restrictions or arrangements that
                shall
                be deemed necessary upon advice of counsel to constitute a reasonable
                arrangement to ensure that the Class R Certificates will only be
                owned,
                directly or indirectly, by an Owner that is a Permitted
                Transferee.

            

    

     

    
      	 	
              7.

            	
              The
                Owner’s taxpayer identification number is
                ________________.

            

    

     

    
      	 	
              8.

            	
              The
                Owner has reviewed the restrictions set forth on the face of the
                Class R
                Certificates and the provisions of Section 6.02(d) of the Pooling
                and
                Servicing Agreement under which the Class R Certificates were issued
                (in
                particular, clauses (iii)(A) and (iii)(B) of Section 6.02(d) which
                authorize the Securities Administrator to deliver payments to a person
                other than the Owner and negotiate a mandatory sale by the Securities
                Administrator in the event that the Owner holds such Certificate
                in
                violation of Section 6.02(d)); and that the Owner expressly agrees
                to be
                bound by and to comply with such restrictions and
                provisions.

            

    

     

    
      	 	
              9.

            	
              The
                Owner is not acquiring and will not transfer the Class R Certificates
                in
                order to impede the assessment or collection of any
                tax.

            

    

     

    
      	 	
              10.

            	
              The
                Owner anticipates that it will, so long as it holds the Class R
                Certificates, have sufficient assets to pay any taxes owed by the
                holder
                of such Class R Certificates, and hereby represents to and for the
                benefit
                of the person from whom it acquired the Class R Certificates that
                the
                Owner intends to pay taxes associated with holding such Class R
                Certificates as they become due, fully understanding that it may
                incur tax
                liabilities in excess of any cash flows generated by the Class R
                Certificates.

            

    

     

    
      	 	
              11.

            	
              The
                Owner has no present knowledge that it may become insolvent or subject
                to
                a bankruptcy proceeding for so long as it holds the Class R
                Certificates.

            

    

     

    
      
        
        

      

      
        B-3-2

        
          

        

      

       

    

     

    
      	 	
              12.

            	
              The
                Owner has no present knowledge or expectation that it will be unable
                to
                pay any United States taxes owed by it so long as any of the Certificates
                remain outstanding.

            

    

     

    
      	 	
              13.

            	
              The
                Owner is not acquiring the Class R Certificates with the intent to
                transfer the Class R Certificates to any person or entity that will
                not
                have sufficient assets to pay any taxes owed by the holder of such
                Class R
                Certificates, or that may become insolvent or subject to a bankruptcy
                proceeding, for so long as the Class R Certificates remain
                outstanding.

            

    

     

    
      	 	
              14.

            	
              The
                Owner will, in connection with any transfer that it makes of the
                Class R
                Certificates, obtain from its transferee the representations required
                by
                Section 6.02(d) of the Pooling and Servicing Agreement under which
                the
                Class R Certificate were issued and will not consummate any such
                transfer
                if it knows, or knows facts that should lead it to believe, that
                any such
                representations are false.

            

    

     

    
      	 	
              15.

            	
              The
                Owner will, in connection with any transfer that it makes of the
                Class R
                Certificates, deliver to the Securities Administrator an affidavit,
                which
                represents and warrants that it is not transferring the Class R
                Certificates to impede the assessment or collection of any tax and
                that it
                has no actual knowledge that the proposed transferee: (i) has insufficient
                assets to pay any taxes owed by such transferee as holder of the
                Class R
                Certificates; (ii) may become insolvent or subject to a bankruptcy
                proceeding for so long as the Class R Certificates remains outstanding;
                and (iii) is not a “Permitted
                Transferee”.

            

    

     

    
      	 	
              16.

            	
              The
                Owner is a citizen or resident of the United States, a corporation,
                partnership or other entity created or organized in, or under the
                laws of,
                the United States or any political subdivision thereof, or an estate
                or
                trust whose income from sources without the United States may be
                included
                in gross income for United States federal income tax purposes regardless
                of its connection with the conduct of a trade or business within
                the
                United States.

            

    

     

    
      	 	
              17.

            	
              The
                Owner of the Class R Certificate, hereby agrees that in the event
                that the
                Trust Fund created by the Pooling and Servicing Agreement is terminated
                pursuant to Section 10.01 thereof, the undersigned shall assign and
                transfer to the Holders of the Class CE Certificates and Class P
                Certificates any amounts in excess of par received in connection
                with such
                termination. Accordingly, in the event of such termination, the Securities
                Administrator is hereby authorized to withhold any such amounts in
                excess
                of par and to pay such amounts directly to the Holders of the Class
                CE
                Certificates and Class P Certificates. This agreement shall bind
                and be
                enforceable against any successor, transferee or assigned of the
                undersigned in the Class R Certificate. In connection with any transfer
                of
                the Class R Certificate, the Owner shall obtain an agreement substantially
                similar to this clause from any subsequent
                owner.

            

    

     

    
      
        
        

      

      
        B-3-3

        
          

        

      

       

    

    IN
      WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
      behalf, pursuant to the authority of its Board of Directors, by its [Vice]
      President, attested by its [Assistant] Secretary, this ____ day of
      _________________, ____.

     

    
      	 	 	 	 	 	 	 	
              [OWNER]

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:
                [Vice] President

            

    

     

    ATTEST:

     

    
      	
              By:

            	 	
            
	 	
              Name:

            
	 	
              Title:
                [Assistant] Secretary

            

    

    

     

    Personally
      appeared before me the above-named __________________, known or proved to me
      to
      be the same person who executed the foregoing instrument and to be a [Vice]
      President of the Owner, and acknowledged to me that [he/she] executed the same
      as [his/her] free act and deed and the free act and deed of the
      Owner.

     

    Subscribed
      and sworn before me this ______________ day of __________,
      ____.

    

    
      	 	 
	 	
              Notary
                Public

            
	 	 
	 	
              County
                of 

            	 
	 	
              State
                of 

            	 
	 	 
	 	
              My
                Commission expires:

            

    

     

    
      
        
        

      

      
        B-3-4

        
          

        

      

       

    

    FORM
      OF
      TRANSFEROR AFFIDAVIT

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

    _________________________,
      being duly sworn, deposes, represents and warrants as follows:

     

    1. I
      am
      a ____________________
      of _________________________ (the “Owner”), a corporation duly organized and
      existing under the laws of _____________, on behalf of whom I make this
      affidavit.

     

    2. The
      Owner
      is not transferring the Class R Certificates (the “Residual Certificates”) to
      impede the assessment or collection of any tax.

     

    3. The
      Owner
      has no actual knowledge that the Person that is the proposed transferee (the
      “Purchaser”) of the Residual Certificates: (i) has insufficient assets to pay
      any taxes owed by such proposed transferee as holder of the Residual
      Certificates; (ii) may become insolvent or subject to a bankruptcy proceeding
      for so long as the Residual Certificates remain outstanding and (iii) is not
      a
      Permitted Transferee.

     

    4. The
      Owner
      understands that the Purchaser has delivered to the Trustee or a transfer
      affidavit and agreement in the form attached to the Pooling and Servicing
      Agreement as Exhibit B-2. The Owner does not know or believe that any
      representation contained therein is false.

     

    5. At
      the
      time of transfer, the Owner has conducted a reasonable investigation of the
      financial condition of the Purchaser as contemplated by Treasury Regulations
      Section 1.860E-1(c)(4)(i) and, as a result of that investigation, the Owner
      has
      determined that the Purchaser has historically paid its debts as they became
      due
      and has found no significant evidence to indicate that the Purchaser will not
      continue to pay its debts as they become due in the future. The Owner
      understands that the transfer of a Residual Certificate may not be respected
      for
      United States income tax purposes (and the Owner may continue to be liable
      for
      United States income taxes associated therewith) unless the Owner has conducted
      such an investigation.

     

    6. Capitalized
      terms not otherwise defined herein shall have the meanings ascribed to them
      in
      the Pooling and Servicing Agreement.

    
      
        
        

      

      
        B-3-5

        
          

        

      

       

    

    IN
      WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
      behalf, pursuant to the authority of its Board of Directors, by its [Vice]
      President, attested by its [Assistant] Secretary, this ____ day of
      ________________, ____.

     

    
      	 	 	 	 	 	 	 	
              [OWNER]

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	 	
              Title:
                [Vice] President

            

    

     

    ATTEST:

    

    
      	
              By:

            	 
	 	
              Name:

            
	 	
              Title:
                [Assistant] Secretary

            

    

     

    Personally
      appeared before me the above-named _________________, known or proved to me
      to
      be the same person who executed the foregoing instrument and to be a [Vice]
      President of the Owner, and acknowledged to me that [he/she] executed the same
      as [his/her] free act and deed and the free act and deed of the
      Owner.

     

    Subscribed
      and sworn before me this ______ day of _____________, ____.

    

    
      	 	 
	 	
              Notary
                Public

            
	 	 
	 	
              County
                of 

            	 
	 	
              State
                of 

            	 
	 	 
	 	
              My
                Commission expires:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    EXHIBIT
      C

    

    [Reserved]

    
      
        
        

      

      
        C-1

        
          

        

      

       

    

    EXHIBIT
      D

    

    FORM
      OF
      POWER OF ATTORNEY

    

    RECORDING
      REQUESTED BY

    AND
      WHEN
      RECORDED MAIL TO

    [Servicer]

    [Servicer’s
      Address]

    

    Attn:
      _________________________________

    

    LIMITED
      POWER OF ATTORNEY

    

    KNOW
      ALL
      MEN BY THESE PRESENTS, that ________________, having its principal place of
      business at ____________________, as Trustee (the “Trustee”) pursuant to that
      Pooling and Servicing Agreement among ___________________ (the “Depositor”),
      Wells Fargo Bank, N.A., as Master Servicer and Securities Administrator and
      the
      Trustee, dated as of July 1, 2006 (the “Pooling and Servicing Agreement”),
      hereby constitutes and appoints Countrywide Home Loan Servicing LP (the
“Servicer”), by and through the Servicer’s officers, the Trustee’s true and
      lawful Attorney-in-Fact, in the Trustee’s name, place and stead and for the
      Trustee’s benefit, in connection with all mortgage loans serviced by the
      Servicer pursuant to the Amended
      and Restated Master Mortgage Loan Purchase and Servicing Agreement, dated as
      of
      September 1, 2005 as amended and restated to and including May 1, 2006, between
      DB Structured Products, Inc. (“DBSP”) and Countrywide Home Loans, Inc.
      (‘Countrywide”) as amended and as modified by the Assignment, Assumption and
      Recognition Agreement, dated as of July 25, 2006, among DBSP, the Servicer,
      ACE
      Securities Corp., the Master Servicer and Countrywide (together,
      the “Servicing Agreement”) for the purpose of performing all acts and executing
      all documents in the name of the Trustee as may be customarily and reasonably
      necessary and appropriate to effectuate the following enumerated transactions
      in
      respect of any of the mortgages or deeds of trust (the “Mortgages” and the
“Deeds of Trust”, respectively) and promissory notes secured thereby (the
“Mortgage Notes”) for which the undersigned is acting as Trustee for various
      certificateholders (whether the undersigned is named therein as mortgagee or
      beneficiary or has become mortgagee by virtue of endorsement of the Mortgage
      Note secured by any such Mortgage or Deed of Trust) and for which the Servicer
      is acting as servicer, all subject to the terms of the Pooling and Servicing
      Agreement and Servicing Agreement.

    

    This
      appointment shall apply to the following enumerated transactions
      only:

    

    
      	
              1.

            	
              The
                modification or re-recording of a Mortgage or Deed of Trust, where
                said
                modification or re-recordings is for the purpose of correcting the
                Mortgage or Deed of Trust to conform same to the original intent
                of the
                parties thereto or to correct title errors discovered after such
                title
                insurance was issued and said modification or re-recording, in either
                instance, does not adversely affect the lien of the Mortgage or Deed
                of
                Trust as insured.

            

    

    
      
        
        

      

      
        D-1

        
          

        

      

       

    

     

    
      	
              2.

            	
              The
                subordination of the lien of a Mortgage or Deed of Trust to an easement
                in
                favor of a public utility company of a government agency or unit
                with
                powers of eminent domain; this section shall include, without limitation,
                the execution of partial satisfactions/releases, partial reconveyances
                or
                the execution or requests to trustees to accomplish
                same.

            

    

    

    
      	
              3.

            	
              The
                conveyance of the properties to the mortgage insurer, or the closing
                of
                the title to the property to be acquired as real estate owned, or
                conveyance of title to real estate
                owned.

            

    

    

    
      	4.	
              The
                completion of loan assumption
                agreements.

            

    

    

    
      	
              5.

            	
              The
                full satisfaction/release of a Mortgage or Deed of Trust or full
                conveyance upon payment and discharge of all sums secured thereby,
                including, without limitation, cancellation of the related Mortgage
                Note.

            

    

    

    
      	
              6.

            	
              The
                assignment of any Mortgage or Deed of Trust and the related Mortgage
                Note,
                in connection with the repurchase of the mortgage loan secured and
                evidenced thereby.

            

    

    

    
      	
              7.

            	
              The
                full assignment of a Mortgage or Deed of Trust upon payment and discharge
                of all sums secured thereby in conjunction with the refinancing thereof,
                including, without limitation, the assignment of the related Mortgage
                Note.

            

    

    

    
      	
              8.

            	
              With
                respect to a Mortgage or Deed of Trust, 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,
                Deed of
                Trust or state law to expeditiously complete said transactions in
                paragraphs 8.a. through 8.e.,
                above.

            

    

    
      
        
        

      

      
        D-2

        
          

        

      

       

    

     

    The
      undersigned gives said 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 or under this Limited
      Power of Attorney as fully as the undersigned might or could do, and hereby
      does
      ratify and confirm to all that said Attorney-in-Fact shall lawfully do or cause
      to be done by authority hereof. 

    

    Third
      parties without actual notice may rely upon the exercise of the power granted
      under this Limited Power of Attorney; and may be satisfied that this Limited
      Power of Attorney shall continue in full force and effect and has not been
      revoked unless an instrument of revocation has been made in writing by the
      undersigned.

    

    IN
      WITNESS WHEREOF, ________________ as Trustee pursuant to that Pooling and
      Servicing Agreement among the Depositor, Wells Fargo Bank, National Association,
      Wells Fargo and the Trustee, dated as of ___________ 1, 200__ (_____________
      Asset Backed Certificates, Series 200__-___), has caused its corporate seal
      to
      be hereto affixed and these presents to be signed and acknowledged in its name
      and behalf by ____________ its duly elected and authorized Vice President this
      _________ day of _________, 200__.

    

    
      	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	
              as
                Trustee for _____ Asset 

              Backed
                Certificates, Series 200__-___

            
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	 

    

     

    
      	
              STATE
                OF _____________

            
	 
	
              COUNTY
                OF ___________

            

    

     

    On
      _______________, 200__, before me, the undersigned, a Notary Public in and
      for
      said state, personally appeared ____________, Vice President of
      ____________________ as Trustee for ___________ Asset Backed Certificates,
      Series 200__-___, personally known to me to be the person whose name is
      subscribed to the within instrument and acknowledged to me that he/she executed
      that same in his/her authorized capacity, and that by his/her signature on
      the
      instrument the entity upon behalf of which the person acted and executed the
      instrument.

     

    WITNESS
      my hand and official seal.

    (SEAL)

    
      	 	 
	 	
              Notary
                Public

            
	 	
              My
                Commission Expires
                

            	 

    

     

    
      
        
        

      

      
        D-3

        
          

        

      

       

    

    EXHIBIT
      E

    
      

      SERVICING
        CRITERIA

      

      Schedule
        1122 (Pooling and Servicing Agreement)

       

      Assessments
        of Compliance and Attestation Reports Servicing Criteria1 

      

      
        	 	 	 	 	 	 	 	 	 
	
                Reg.
                  AB Item 1122(d) 

                Servicing
                  Criteria

              	
                Depositor

              	
                Seller

              	
                Servicer

              	
                Trustee

              	
                Custodian

              	
                Paying
                  Agent

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              
	
                (1) 
                  General
                  Servicing Considerations

                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                (i)   
                  monitoring
                  performance or other triggers and events of default

              	 	 	
                X

                 

              	 	 	 	
                X

                 

              	
                X

                 

              
	
                (ii)  
                  monitoring
                  performance of vendors of activities outsourced

              	 	 	
                X

                 

              	 	 	 	
                X

                 

              	 
	
                (iii) 
                  maintenance
                  of back-up servicer for pool assets

              	 	 	 	 	 	 	 	 
	
                (iv) 
                  fidelity
                  bond and E&O policies in effect

              	 	 	
                X

                 

              	 	 	 	
                X

                 

              	 
	
                (2)  
                  Cash
                  Collection and Administration

                 

              	 	 	 	 	 	 	 	 
	
                (i)   
                  timing
                  of deposits to custodial account

              	 	 	
                X

                 

              	 	 	
                X

                 

              	
                X

                 

              	
                X

                 

              
	
                (ii)  
                  wire
                  transfers to investors by authorized personnel

              	 	 	
                X

                 

              	 	 	
                X

                 

              	 	
                X

                 

              
	
                (iii) 
                  advances
                  or guarantees made, reviewed and approved as required

              	 	 	
                X

                 

              	 	 	 	
                X

                 

              	 

      

       

        
          

        

      

      
        
          	*	
                  The
                    descriptions of the Item 1122(d) servicing criteria use key words
                    and
                    phrases and are not verbatim recitations of the servicing criteria.
                    Refer
                    to Regulation AB, Item 1122 for a full description of servicing
                    criteria.
                    

                

        

      

       

      
        
          
          

        

        
          E-1

          
            

          

        

        
          
          

        

      

      
        	 	 	 	 	 	 	 	 	 
	
                Reg.
                  AB Item 1122(d) 

                Servicing
                  Criteria

              	
                Depositor

              	
                Seller

              	
                Servicer

              	
                Trustee

              	
                Custodian

              	
                Paying
                  Agent

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              

      

      
        	
                (iv) 
                  accounts
                  maintained as required

              	 	 	
                X

                 

              	 	 	
                X

                 

              	
                X

                 

              	
                X

                 

              
	
                (v)  
                  accounts
                  at federally insured depository institutions

              	 	 	
                X

                 

              	 	 	
                X

                 

              	
                X

                 

              	
                X

                 

              
	
                (vi) 
                  unissued
                  checks safeguarded

              	 	 	
                X

                 

              	 	 	
                X

                 

              	 	
                X

                 

              
	
                (vii) monthly
                  reconciliations of accounts

              	 	 	
                X

                 

              	 	 	
                X

                 

              	
                X

                 

              	
                X

                 

              
	
                (3)  
                  Investor
                  Remittances and Reporting

              	 	 	 	 	 	 	 	 
	
                (i)   
                  investor
                  reports

              	 	 	
                X

                 

              	 	 	 	
                X

                 

              	
                X

                 

              
	
                (ii)  
                  remittances

              	 	 	
                X

                 

              	 	 	
                X

                 

              	 	
                X

                 

              
	
                (iii) 
                  proper
                  posting of distributions

              	 	 	
                X

                 

              	 	 	
                X

                 

              	 	
                X

                 

              
	
                (iv) 
                  reconciliation
                  of remittances and payment statements

              	 	 	
                X

                 

              	 	 	
                X

                 

              	
                X

                 

              	
                X

                 

              
	
                (4) 
                  Pool
                  Asset Administration

                 

              	 	 	 	 	 	 	 	 
	
                (i)   
                  maintenance
                  of pool collateral

              	 	 	
                X

                 

              	 	
                X

                 

              	 	 	 
	
                (ii)  
                  safeguarding
                  of pool assets/documents

              	 	 	
                X

                 

              	 	
                X

                 

              	 	 	 
	
                (iii) 
                  additions,
                  removals and substitutions of pool assets

              	 	
                X

                 

              	
                X

                 

              	 	 	 	 	 
	
                (iv) 
                  posting
                  and allocation of pool asset payments to pool assets

              	 	 	
                X

                 

              	 	 	 	 	 
	
                (v) 
                  reconciliation
                  of servicer records

              	 	 	
                X

                 

              	 	 	 	 	 
	
                (vi) 
                  modifications
                  or other changes to terms of pool assets

              	 	 	
                X

                 

              	 	 	 	 	 

      

       

      
        
          
          

        

        
          E-2

          
            

          

        

        
          
          

          	 	 	 	 	 	 	 	 	 
	
                  Reg.
                    AB Item 1122(d) 

                  Servicing
                    Criteria

                	
                  Depositor

                	
                  Seller

                	
                  Servicer

                	
                  Trustee

                	
                  Custodian

                	
                  Paying
                    Agent

                	
                  Master
                    Servicer

                	
                  Securities
                    Administrator

                

        

      

      
        	
                (vii)
                  loss
                  mitigation and recovery actions

              	 	 	
                X

                 

              	 	 	 	 	 
	
                (viii)
                  records regarding collection efforts

              	 	 	
                X

                 

              	 	 	 	 	 
	
                (ix) 
                  adjustments
                  to variable interest rates on pool assets

              	 	 	
                X

                 

              	 	 	 	 	 
	
                (x)   
                  matters
                  relating to funds held in trust for obligors

              	 	 	
                X

                 

              	 	 	 	 	 
	
                (xi)  
                  payments
                  made on behalf of obligors (such as for taxes or
                  insurance)

              	 	 	
                X

                 

              	 	 	 	 	 
	
                (xii) 
                  late
                  payment penalties with respect to payments made on behalf of obligors
                  

              	 	 	
                X

                 

              	 	 	 	 	 
	
                (xiii) records
                  with respect to payments made on behalf of obligors

              	 	 	
                X

                 

              	 	 	 	 	 
	
                (xiv)
                  recognition
                  and recording of delinquencies, charge-offs and uncollectible
                  accounts

              	 	 	
                X

                 

              	 	 	 	
                X

                 

              	 
	
                (xv) 
                  maintenance
                  of external credit enhancement or other support

              	 	 	 	 	 	 	 	
                X

                 

              

      

       

      
        
          
          

        

        
          E-3

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      F

     

    
      MORTGAGE
        LOAN PURCHASE AGREEMENT

       

      This
        is a
        Mortgage Loan Purchase Agreement (this “Agreement”), dated July 25, 2006,
        between DB Structured Products, Inc., a Delaware corporation (the “Seller”) and
        ACE Securities Corp., a Delaware corporation (the “Purchaser”).

       

      Preliminary
        Statement

       

      The
        Seller intends to sell the Mortgage Loans (as hereinafter identified) to
        the
        Purchaser on the terms and subject to the conditions set forth in this
        Agreement. The Purchaser intends to deposit the Mortgage Loans into a mortgage
        pool comprising the Trust Fund. The Trust Fund will be evidenced by a single
        series of mortgage pass-through certificates designated as ACE Securities
        Corp.
        Home Equity Loan Trust, Series 2006-CW1, Asset Backed Pass-Through Certificates
        (the “Certificates”). The Certificates will consist of nineteen classes of
        certificates. The Certificates will be issued pursuant to a Pooling and
        Servicing Agreement for ACE Securities Corp. Home Equity Loan Trust, Series
        2006-CW1, Asset Backed Pass-Through Certificates, dated as of July 1, 2006
        (the
“Pooling and Servicing Agreement”), among the Purchaser as depositor, Wells
        Fargo Bank, National Association as master servicer (the “Master Servicer”) and
        securities administrator (the “Securities Administrator”) and HSBC Bank USA,
        National Association as trustee (the “Trustee”). The Purchaser will sell the
        Class A-1 Certificates , Class A-2A, Class A-2B, Class A-2C and Class A-2D
        Certificates (collectively, the “Class A Certificates”), the Class M-1, Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and
        Class
        M-9 Certificates (collectively, the “Public Mezzanine Certificates”) to Deutsche
        Bank Securities Inc. (“DBSI”), pursuant to the Second Amended and Restated
        Underwriting Agreement, dated as of June 24, 1999, as amended and restated
        to
        and including January 25, 2006, between the Purchaser and DBSI, and the Terms
        Agreement, dated July19, 2006 (collectively, the “Underwriting Agreement”),
        between the Purchaser and DBSI. The
        Purchaser will sell the Class M-10 and M-11 Certificates to DBSI pursuant
        to the
        Purchase Agreement dated as of July 19, 2006 between Purchaser and DBSI.
        Capitalized
        terms used but not defined herein shall have the meanings set forth in the
        Pooling and Servicing Agreement. 

       

      The
        parties hereto agree as follows:

       

      SECTION
        1.  Agreement
        to Purchase.
        The
        Seller hereby sells, and the Purchaser hereby purchases, on July 25, 2006
        (the
“Closing Date”), certain conventional, one- to four-family, fixed-rate and
        adjustable-rate, residential, first and second lien, residential mortgage
        loans
        (the “Mortgage Loans”), having an aggregate principal balance as of the close of
        business on July 1, 2006 (the “Cut-off Date”) of approximately $843,837,521 (the
“Closing Balance”), after giving effect to all payments due on the Mortgage
        Loans on or before the Cut-off Date, whether or not received, including the
        right to any Prepayment Charges payable by the related Mortgagors in connection
        with any Principal Prepayments on the Mortgage Loans, but excluding the rights
        to the servicing of the Mortgage Loans, which are owned by Countrywide Home
        Loans, Inc. (the “Servicing Rights”).
        

       

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

       

      
        
          
          

        

        
          F-1

          
            

          

        

        
          
          

        

      

       

      SECTION
        3.  Consideration.

       

      (a)  In
        consideration for the Mortgage Loans to be purchased hereunder, the Purchaser
        shall, as described in Section 8, (i) pay to or upon the order of the Seller
        in
        immediately available funds an amount (the “Purchase Price”) equal to (i)
        $________*1
        and (ii)
        a 100% interest in the Class CE, Class P and Class R Certificates (collectively
        the “DB Certificates”). The DB Certificates shall be in the name of “Deutsche
        Bank Securities Inc.”

       

      (b)  The
        Purchaser or any assignee, transferee or designee of the Purchaser shall
        be
        entitled to all scheduled payments of principal due after the Cut-off Date,
        all
        other payments of principal due and collected after the Cut-off Date, and
        all
        payments of interest on the Mortgage Loans allocable to the period after
        the
        Cut-off Date. All scheduled payments of principal and interest due on or
        before
        the Cut-off Date and collected after the Cut-off Date shall belong to the
        Seller.

       

      (c)  Pursuant
        to the Pooling and Servicing Agreement, the Purchaser will assign all of
        its
        right, title and interest in and to the Mortgage Loans, together with its
        rights
        under this Agreement, to the Trustee for the benefit of the
        Certificateholders.

       

      SECTION
        4.  Transfer
        of the Mortgage Loans.

       

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

       

      
        
          

        

        * Please
          contact the Mortgage Loan Seller for this information.

      

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

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

       

      (i)  the
        original Mortgage Note, including any riders thereto, endorsed in blank,
        with
        all prior and intervening endorsements showing a complete chain of endorsement
        from the originator to the Person so endorsing to the Trustee;

       

      (ii)  the
        original Mortgage or a certified copy thereof, including any riders thereto,
        with evidence of recording thereon, and the original recorded power of attorney,
        if the Mortgage was executed pursuant to a power of attorney, with evidence
        of
        recording thereon, and in the case of each MOM Loan, the original Mortgage,
        noting the presence of the MIN of the Loan and either language indicating
        that
        the Mortgage Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan
        at
        origination, the original Mortgage and the assignment thereof to MERS®, with
        evidence of recording indicated thereon;

       

      (iii)  an
        original Assignment of Mortgage executed in blank;

       

      (iv)  the
        original recorded Assignment or Assignments of the Mortgage, or a certified
        copy
        or copies thereof, showing a complete chain of assignment from the originator
        to
        the last Person assigning the Mortgage;

       

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

       

      (vi)  the
        original lender’s title insurance policy, together with all endorsements or
        riders that were issued with or subsequent to the issuance of such policy,
        insuring the priority of the Mortgage as a first lien or second lien on the
        Mortgaged Property represented therein as a fee interest vested in the
        Mortgagor;

       

      (vii)  the
        original of any guarantee executed in connection with the Mortgage Note,
        if any;
        and

       

      (viii)  the
        original of any security agreement, chattel mortgage or equivalent document
        executed in connection with the Mortgage, if any.

       

      Notwithstanding
        anything to the contrary contained in this Section 4, with respect to a maximum
        of approximately 1.00% of the Mortgage Loans, by aggregate principal balance
        of
        the Mortgage Loans as of the Cut-off Date, if any original Mortgage Note
        referred to in Section 4(b)(i) above cannot be located, the obligations of
        the
        Seller to deliver such documents shall be deemed to be satisfied upon delivery
        to the Purchaser or any assignee, transferee or designee of the Purchaser
        of a
        photocopy of such Mortgage Note, if available, with a lost note affidavit
        substantially in the form of Exhibit 1 attached hereto. If any of the original
        Mortgage Notes for which a lost note affidavit was delivered to the Purchaser
        or
        any assignee, transferee or designee of the Purchaser is subsequently located,
        such original Mortgage Note shall be delivered to the Purchaser or any assignee,
        transferee or designee of the Purchaser within three (3) Business Days; and
        if
        any document referred to in Section 4(b)(ii) or 4(b)(iv) above has been
        submitted for recording but either (x) has not been returned from the applicable
        public recording office or (y) has been lost or such public recording office
        has
        retained the original of such document, the obligations of the Seller hereunder
        shall be deemed to have been satisfied upon delivery to the Purchaser or
        any
        assignee, transferee or designee of the Purchaser promptly upon receipt thereof
        by or on behalf of the Seller of either the original or a copy of such document
        certified by the applicable public recording office to be a true and complete
        copy of the original.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      In
        the
        event that the original lender’s title insurance policy has not yet been issued,
        the Seller shall deliver to the Purchaser or any assignee, transferee or
        designee of the Purchaser a written commitment or interim binder or preliminary
        report of title issued by the title insurance or escrow company. The Seller
        shall deliver such original title insurance policy to the Purchaser or any
        assignee, transferee or designee of the Purchaser promptly upon receipt by
        the
        Seller, if any.

       

      Each
        original document relating to a Mortgage Loan which is not delivered to the
        Purchaser or its assignee, transferee or designee, if held by the Seller,
        shall
        be so held for the benefit of the Purchaser, its assignee, transferee or
        designee.

       

      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 Countrywide Home Loans Servicing
        LP
        (the “Servicer”) or the Master Servicer to alter the codes referenced in this
        paragraph with respect to any Mortgage Loan during the term of this Agreement
        unless and until such Mortgage Loan is repurchased in accordance with the
        terms
        of this Agreement or the Pooling and Servicing Agreement.

       

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

       

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

       

      (e)  Examination
        of Mortgage Files.
        Prior
        to the Closing Date, the Seller shall either (i) deliver in escrow to the
        Purchaser or to any assignee, transferee or designee of the Purchaser for
        examination the Mortgage File pertaining to each Mortgage Loan, or (ii) make
        such Mortgage Files available to the Purchaser or to any assignee, transferee
        or
        designee of the Purchaser for examination. Such examination may be made by
        the
        Purchaser or the Trustee, and their respective designees, upon reasonable
        notice
        to the Seller during normal business hours before the Closing Date and within
        sixty (60) days after the Closing Date.  If any such person makes such
        examination prior to the Closing Date and identifies any Mortgage Loans that
        do
        not conform to the requirements of the Purchaser as described in this Agreement,
        such Mortgage Loans shall be deleted from the Closing Schedule.  The
        Purchaser may, at its option and without notice to the Seller, purchase all
        or
        part of the Mortgage Loans without conducting any partial or complete
        examination.  The fact that the Purchaser or any person has conducted
        or has failed to conduct any partial or complete examination of the Mortgage
        Files shall not affect the rights of the Purchaser or any assignee, transferee
        or designee of the Purchaser to demand repurchase or other relief as provided
        herein or under the Pooling and Servicing Agreement.

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

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

       

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

       

      (i)  The
        Seller is a Delaware corporation with full corporate power and authority
        to
        conduct its business as presently conducted by it to the extent material
        to the
        consummation of the transactions contemplated herein. The Agreement has been
        duly authorized, executed and delivered by the Seller. The Seller had the
        full
        corporate power and authority to own the Mortgage Loans and to transfer and
        convey the Mortgage Loans to the Purchaser and has the full corporate power
        and
        authority to execute and deliver, engage in the transactions contemplated
        by,
        and perform and observe the terms and conditions of this Agreement;

       

      (ii)  The
        Seller has duly authorized the execution, delivery and performance of this
        Agreement, has duly executed and delivered this Agreement, and this Agreement,
        assuming due authorization, execution and delivery by the Purchaser, constitutes
        a legal, valid and binding obligation of the Seller, enforceable against
        it in
        accordance with its terms except as the enforceability thereof may be limited
        by
        bankruptcy, insolvency or reorganization or by general principles of
        equity;

       

      (iii)  The
        execution, delivery and performance of this Agreement by the Seller (x) does
        not
        conflict and will not conflict with, does not breach and will not result
        in a
        breach of and does not constitute and will not constitute a default (or an
        event, which with notice or lapse of time or both, would constitute a default)
        under (A) any terms or provisions of the organizational documents of the
        Seller,
        (B) any term or provision of any material agreement, contract, instrument
        or
        indenture, to which the Seller is a party or by which the Seller or any of
        its
        property is bound, or (C) any law, rule, regulation, order, judgment, writ,
        injunction or decree of any court or governmental authority having jurisdiction
        over the Seller or any of its property and (y) does not create or impose
        and
        will not result in the creation or imposition of any lien, charge or encumbrance
        (other than any created hereby in favor of the Purchaser and its assignees)
        which would have a material adverse effect upon the Mortgage Loans or any
        documents or instruments evidencing or securing the Mortgage Loans;

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

      (iv)  No
        consent, approval, authorization or order of, registration or filing with,
        or
        notice on behalf of the Seller to any governmental authority or court is
        required, under federal laws or the laws of the State of New York, for the
        execution, delivery and performance by the Seller of, or compliance by the
        Seller with, this Agreement or the consummation by the Seller of any other
        transaction contemplated hereby and by the Pooling and Servicing Agreement;
        provided, however, that the Seller makes no representation or warranty regarding
        federal or state securities laws in connection with the sale or distribution
        of
        the Certificates;

       

      (v)  The
        Seller is not in violation of, and the execution and delivery of this Agreement
        by the Seller and its performance and compliance with the terms of this
        Agreement will not constitute a violation with respect to, any order or decree
        of any court or any order or regulation of any federal, state, municipal
        or
        governmental agency having jurisdiction over the Seller or its assets, which
        violation might have consequences that would materially and adversely affect
        the
        condition (financial or otherwise) or the operation of the Seller or its
        assets
        or might have consequences that would materially and adversely affect the
        performance of its obligations and duties hereunder;

       

      (vi)  The
        Seller 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;

       

      (vii)  Immediately
        prior to the sale of the Mortgage Loans to the Purchaser as herein contemplated,
        the Seller was the owner of the related Mortgage and the indebtedness evidenced
        by the related Mortgage Note, and, upon the payment to the Seller of the
        Purchase Price, in the event that the Seller retains or has retained record
        title, the Seller shall retain such record title to each Mortgage, each related
        Mortgage Note and the related Mortgage Files with respect thereto in trust
        for
        the Purchaser as the owner thereof from and after the date hereof;

       

      (viii)  There
        are
        no actions or proceedings against, or investigations known to it of, the
        Seller
        before any court, administrative or other tribunal (A) that might prohibit
        its
        entering into this Agreement, (B) seeking to prevent the sale of the Mortgage
        Loans by the Seller or the consummation of the transactions contemplated
        by this
        Agreement or (C) that might prohibit or materially and adversely affect the
        performance by the Seller of its obligations under, or validity or
        enforceability of, this Agreement;

       

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

       

      (x)  The
        Seller has not dealt with any broker, investment banker, agent or other person,
        except for the Purchaser or any of its affiliates, that may be entitled to
        any
        commission or compensation in connection with the sale of the Mortgage Loans
        (except that an entity that previously financed the Seller’s ownership of the
        Mortgage Loans may be entitled to a fee to release its security interest
        in the
        Mortgage Loans, which fee shall have been paid and which security interest
        shall
        have been released on or prior to the Closing Date);

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      (xi)  There
        is
        no litigation currently pending or, to the best of the Seller’s knowledge
        without independent investigation, threatened against the Seller that would
        reasonably be expected to adversely affect the transfer of the Mortgage Loans,
        the issuance of the Certificates or the execution, delivery, performance
        or
        enforceability of this Agreement, or that would result in a material adverse
        change in the financial condition of the Seller; and

       

      (xii)  The
        information set forth in the applicable part of the Closing Schedule relating
        to
        the existence of a Prepayment Charge is complete, true and correct in all
        material respects at the date or dates respecting which such information
        is
        furnished and each Prepayment Charge is permissible and enforceable in
        accordance with its terms upon the mortgagor’s full and voluntary principal
        prepayment under applicable law, except to the extent that: (1) the
        enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
        receivership and other similar laws relating to creditors’ rights; (2) the
        collectability thereof may be limited due to acceleration in connection with
        a
        foreclosure or other involuntary prepayment; or (3) subsequent changes in
        applicable law may limit or prohibit enforceability thereof under applicable
        law.

       

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

       

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

       

      (i)  Information
        provided to the Rating Agencies, including the loan level detail, is true
        and
        correct according to the Rating Agency requirements;

       

      (ii)  No
        error,
        omission, misrepresentation, fraud or similar occurrence with respect to
        a
        Mortgage Loan has taken place on the part Seller or, to the best of Seller’s
        knowledge, the Mortgagor, any appraiser, any builder or developer, or any
        other
        party involved in the origination of the Mortgage Loan or in the application
        of
        any insurance in relation to such Mortgage Loan;

       

      (iii)  Except
        as
        set forth on the Closing Schedule, all payments required to be made prior
        to the
        Cut-off Date with respect to each Mortgage Loan have been made;

       

      (iv)  [Reserved];

       

      (v)  There
        are
        no delinquent taxes, assessment liens or insurance premiums affecting the
        related Mortgaged Property;

       

      
        
          
          

        

        
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      (vi)  The
        terms
        of the Mortgage Note and the Mortgage have not been materially impaired,
        waived,
        altered or modified in any respect, except by written instruments, recorded
        in
        the applicable public recording office if necessary to maintain the lien
        priority of the Mortgage. The substance of any such waiver, alteration or
        modification has been approved by the title insurer, to the extent required
        by
        the related policy. No Mortgagor has been released, in whole or in part,
        except
        in connection with an assumption agreement (approved by the title insurer
        to the
        extent required by the policy) and which assumption agreement has been delivered
        to the Trustee;

       

      (vii)  The
        Mortgaged Property is insured against loss by fire and hazards of extended
        coverage (excluding earthquake insurance) in an amount which is at least
        equal
        to the lesser of (i) the amount necessary to compensate for any damage or
        loss
        to the improvements which are a part of such property on a replacement cost
        basis or (ii) the outstanding principal balance of the Mortgage Loan. If
        the
        Mortgaged Property is in an area identified on a flood hazard map or flood
        insurance rate map issued by the Federal 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. All such insurance policies
        contain a standard mortgagee clause naming the originator of the Mortgage
        Loan,
        its successors and assigns as mortgagee and the Seller has not engaged in
        any
        act or omission which would impair the coverage of any such insurance policies.
        Except as may be limited by applicable law, 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 Mortgagor’s cost and expense and to seek
        reimbursement therefor from the Mortgagor;

       

      (viii)  Each
        Mortgage Loan and the related Prepayment Charge, if any, complied in all
        material respects with any and all requirements of any federal, state or
        local
        law including, without limitation, usury, truth in lending, anti-predatory
        lending, real estate settlement procedures, consumer credit protection, equal
        credit opportunity, fair housing, fair housing or disclosure laws applicable
        to
        the origination and servicing of the Mortgage Loans and the consummation
        of the
        transactions contemplated hereby will not involve the violation of any such
        laws;

       

      (ix)  The
        Mortgage has not been satisfied, cancelled, subordinated (other than with
        respect to second lien Mortgage Loans, the subordination to the first lien)
        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 satisfaction, cancellation, subordination,
        rescission or release;

       

      (x)  The
        Mortgage was recorded or was submitted for recording in accordance with all
        applicable laws and is a valid, existing and enforceable first or second
        lien on
        the Mortgaged Property including all improvements on the Mortgaged
        Property;

       

      (xi)  The
        Mortgage Note and the related Mortgage are genuine and each is the legal,
        valid
        and binding obligation of the maker thereof, insured under the related title
        policy, and enforceable in accordance with its terms, except to the extent
        that
        the enforceability thereof may be limited by a bankruptcy, insolvency or
        reorganization;

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

      (xii)  The
        Seller is the sole legal, beneficial and equitable owner of the Mortgage
        Note
        and the Mortgage and has the full right to convey, transfer and sell the
        Mortgage Loan to the Purchaser free and clear of any encumbrance, equity,
        lien
        (other than with respect to second lien Mortgage Loans, the subordination
        to the
        related first lien), pledge, charge, claim or security interest and immediately
        upon the sale, assignment and endorsement of the Mortgage Loans from the
        Seller
        to the Purchaser, the Purchaser shall have good and indefeasible title to
        and be
        the sole legal owner of the Mortgage Loans subject only to any encumbrance,
        equity, lien, pledge, charge, claim or security interest arising out of the
        Purchaser’s actions;

       

      (xiii)  Each
        Mortgage Loan is covered by a valid and binding American Land Title Association
        lender’s title insurance policy issued by a title insurer qualified to do
        business in the jurisdiction where the Mortgaged Property is located. No
        claims
        have been filed under such lender’s title insurance policy, and the Seller has
        not done, by act or omission, anything that would impair the coverage of
        the
        lender’s title insurance policy;

       

      (xiv)  There
        is
        no material default, breach, violation event 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 material default, breach, violation or event of acceleration,
        and
        the Seller has not, nor has its predecessors, waived any material default,
        breach, violation or event of acceleration;

       

      (xv)  There
        are
        no mechanics’ or similar liens or claims which have been filed for work, labor
        or material provided to the related Mortgaged Property prior to the origination
        of the Mortgage Loan which are or may be liens prior to, or equal or coordinate
        with, the lien of the related Mortgage, except as may be disclosed in the
        related title policy;

       

      (xvi)  Except
        with respect to approximately 25.94% of the Group I Mortgage Loans and
        approximately 33.42% of the Group II Mortgage Loans by aggregate principal
        balance as of the Cut-off Date, which are interest-only loans and approximately
        2.11% of the Group I Mortgage Loans and approximately 4.70% of the Group
        II
        Mortgage Loans by aggregate principal balance as of the Cut-off Date, which
        are
        balloon loans, each Mortgage Note is payable on the first day of each month
        in
        equal monthly installments or principal and interest (subject to adjustment
        in
        the case of the adjustable rate Mortgage Loans), with interest calculated
        on a
        30/360 basis and payable in arrears, sufficient to amortize the Mortgage
        Loan
        fully by the stated maturity date over an original term from commencement
        of
        amortization to not more than 30 years and no Mortgage Loan permits negative
        amortization;

       

      (xvii)  The
        servicing practices used in connection with the servicing of the Mortgage
        Loans
        have been in all respects reasonable and customary in the mortgage servicing
        industry of like mortgage loan servicers, servicing similar subprime mortgage
        loans originated in the same jurisdiction as the Mortgaged
        Property;

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

      (xviii)  At
        the
        time of origination of the Mortgage Loan there was no proceeding pending
        for the
        total or partial condemnation of the Mortgaged Property and, as of the date
        such
        Mortgage Loan was purchased by the Purchaser, to the best of the Purchaser’s
        knowledge there is no proceeding pending for the total or partial condemnation
        of the Mortgaged Property;

       

      (xix)  The
        Mortgage and related Mortgage Note contain 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, (a) in the case of a Mortgage designated as
        a deed
        of trust, by trustee’s sale, and (b) otherwise by judicial
        foreclosure;

       

      (xx)  The
        Mortgage Note is not and has not been secured by any collateral except the
        lien
        of the related Mortgage referred to in subsection (x) above;

       

      (xxi)  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 Seller to the trustee under the deed of trust, except in
        connection with a trustee’s sale after default by the Mortgagor;

       

      (xxii)  The
        Mortgage Loan is not subject to any valid 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 such 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;

       

      (xxiii)  The
        Mortgage Loans were underwritten in accordance with the originator’s
        underwriting guidelines in effect at the time the Mortgage Loans were originated
        (the “Applicable Underwriting Guidelines”), except with respect to certain of
        those Mortgage Loans which had compensating factors permitting a deviation
        from
        the Applicable Underwriting Guidelines;

       

      (xxiv)  The
        Mortgaged Property is free of material damage and waste, excepting therefrom
        any
        Mortgage Loan subject to an escrow withhold as shown on the Closing
        Schedule;

       

      (xxv)  All
        of
        the improvements which were included in determining the appraised value of
        the
        Mortgaged Property lie wholly within the Mortgaged Property’s boundary lines and
        no improvements on adjoining properties encroach upon the Mortgaged Property,
        excepting therefrom: (i) any encroachment insured against in the lender’s title
        insurance policy identified in subsection (xiii), (ii) any encroachment
        generally acceptable to subprime mortgage loan originators doing business
        in the
        same jurisdiction as the Mortgaged Property, and (iii) any encroachment which
        does not materially interfere with the benefits of the security intended
        to be
        provided by such Mortgage;

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

      (xxvi)  All
        parties to the Mortgage Note had the legal capacity to execute the Mortgage
        Note
        and the Mortgage, and the Mortgage Note and the Mortgage have been duly executed
        by such parties;

       

      (xxvii)  To
        the
        best of the Seller’s knowledge, at the time of origination of the Mortgage Loan,
        no appraised improvement located on or being part of the Mortgaged Property
        was
        in violation of any applicable zoning law or regulation and all inspections,
        licenses and certificates required in connection with the origination of
        any
        Mortgage Loan with respect to the occupancy of the Mortgaged Property, have
        been
        made or obtained from the appropriate authorities;

       

      (xxviii)  No
        Mortgagor has notified the Seller of any relief requested or allowed under
        the
        Servicemembers Civil Relief Act;

       

      (xxix)  All
        parties which have held an interest in the Mortgage Loan 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 state wherein the
        Mortgaged Property is located, (2) organized under the laws of such state,
        (3)
        qualified to do business in such state, (4) a federal savings and loan
        association or national bank, (5) not doing business in such state, or (6)
        exempt from the applicable licensing requirements of such state;

       

      (xxx)  The
        Mortgage File contains an appraisal of the related Mortgaged Property which
        was
        made prior to the approval of the Mortgage Loan by a qualified appraiser,
        duly
        appointed by the related originator and was made in accordance with the
        Financial Institutions Reform, Recovery, and Enforcement Act of
        1989;

       

      (xxxi)  Except
        as
        may otherwise be limited by applicable law, the Mortgage contains a provision
        for the acceleration of the payment of the unpaid principal balance of the
        Mortgage Loan in the event that the Mortgaged Property is sold or transferred
        without the prior written consent of the Mortgagee thereunder;

       

      (xxxii)  The
        Mortgage Loan does not contain any provision which would constitute a “buydown”
provision and pursuant to which Monthly Payments are paid or partially paid
        with
        funds deposited in a separate account established by the related originator,
        the
        Mortgagor or anyone on behalf of the Mortgagor, or paid by any source other
        than
        the Mortgagor. 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;

       

      (xxxiii)  To
        the
        best of the Seller’s knowledge there is no action or proceeding directly
        involving the Mortgaged Property presently pending in which compliance with
        any
        environmental law, rule or regulation is at issue;

       

      (xxxiv)  Each
        Mortgage Loan is an obligation which is principally secured by an interest
        in
        real property within the meaning of Treasury Regulation section
        1.860G-2(a);

       

      (xxxv)  Each
        Mortgage Loan (a) is directly secured by a first or second lien on, and consists
        of a single parcel of, real property with a detached one-to-four family
        residence erected thereon or an individual condominium unit in a condominium
        project, or an individual unit in a planned unit development (“PUD”). Any unit
        in a PUD or condominium project conforms to the requirements of the Applicable
        Underwriting Guidelines regarding such dwellings. No residence or dwelling
        is a
        mobile home or a manufactured dwelling unless it is a manufactured dwelling,
        which is permanently affixed to a foundation and treated as “real estate” under
        applicable law. No Mortgaged Property is used for commercial purposes. Mortgaged
        Properties which contain a home office shall not be considered as being used
        for
        commercial purposes as long as the Mortgaged Property has not been altered
        for
        commercial purposes and is not storing any chemicals or raw materials other
        than
        those commonly used for homeowner repair, maintenance and/or household
        purposes;

       

      
        
          
          

        

        
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      (xxxvi)  The
        Mortgage Interest Rate with respect to the Adjustable Rate Mortgage Loans
        is
        subject to adjustment at the time and in the amounts as are set forth in
        the
        related Mortgage Note;

       

      (xxxvii)  No
        Mortgage Loan contains a provision whereby the Mortgagor can convert an
        Adjustable Rate Mortgage Loan into a Fixed Rate Mortgage Loan;

       

      (xxxviii)  
        With
        respect to each Group I Mortgage Loan, no borrower obtained a prepaid
        single-premium credit-life, credit disability, credit unemployment or credit
        property insurance policy (e.g., life, mortgage, disability, accident,
        unemployment, or health insurance product) in connection with the origination
        of
        such Group I Mortgage Loan;

       

      (xxxix)  With
        respect to any Group I Mortgage Loan that contains a provision permitting
        imposition of a penalty upon a prepayment prior to maturity: (a) such Group
        I
        Mortgage Loan provides some benefit to the borrower (e.g., a rate or fee
        reduction) in exchange for accepting such prepayment penalty; (b) the Group
        I
        Mortgage Loan’s originator had a written policy of offering the borrower, or
        requiring third-party brokers to offer the borrower, the option of obtaining
        a
        mortgage loan that did not require payment of such a penalty; (c) the prepayment
        penalty was adequately disclosed to the borrower pursuant to applicable state
        and federal law; (d) no Group I Mortgage Loan originated on or after October
        1,
        2002 will provide for prepayment penalties for a term in excess of three
        years
        and any Group I Mortgage Loans originated prior to such date will not provide
        for prepayment penalties for a term ; in each case unless such Group I Mortgage
        Loan was modified to reduce the prepayment period to no more than three years
        from the date of the Note and the borrower was notified in writing of such
        reduction in prepayment period; and (e) such prepayment penalty shall not
        be
        imposed in any instance where the Group I 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 such Group I Mortgage Loan
        or state or federal law might permit the imposition of such
        penalty;

       

      (xl)  No
        Mortgage Loan is subject to the Home Ownership and Equity Protection Act
        of 1994
        or any comparable law and no Mortgage Loan is classified and/or defined as
“high
        cost”, “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” loan under
        any other federal, state 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);

       

      
        
          
          

        

        
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      (xli)  There
        is
        no Mortgage Loan that was originated or modified on or after October 1, 2002
        and
        before March 7, 2003, which is secured by property located in the State of
        Georgia. There is no such Mortgage Loan underlying the Certificate that was
        originated on or after March 7, 2003, which is a “high cost home loan” as
        defined under the Georgia Fair Lending Act;

       

      (xlii)  [Reserved];

       

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

       

      (xliv)  There
        is
        no Mortgage Loan that (a) is secured by property located in the State of
        Kentucky; (b) was originated on or after June 24, 2003, and (c) which is
        a “high
        cost home loan” as defined under Kentucky State Statute KRS 360.100, effective
        as of June 24, 2003;

       

      (xlv)  There
        is
        no Mortgage Loan that (a) is secured by property located in the State of
        Arkansas, (b) has a note date on or after July 16, 2003, and (c) which is
        a
“high cost home loan” as defined under the Arkansas Home Loan Protection Act,
        effective as of July 16, 2003;

       

      (xlvi)  The
        Servicer for each Group I Mortgage Loan has fully furnished, and will fully
        furnish, 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;

       

      (xlvii)  The
        original principal balance of each Group I Mortgage Loan which is secured
        by a
        first or second lien on the related Mortgaged Property is within Freddie
        Mac’s
        dollar amount limits for conforming one-to-four family mortgage loans;

       

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

       

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

       

      (l)  No
        Mortgage Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk
        Home Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et
        seq.);

       

      (li)  No
        Mortgage Loan originated in the City of Los Angeles is subject to the City
        of
        Los Angeles California Ordinance 175008 as a home loan;

       

      (lii)  No
        Mortgage Loan is a “High Cost Home Loan” as defined under the Maine House Bill
        383 L.D. 494, effective as of September 13, 2003;

       

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

      (liii)  No
        Mortgage Loan is a “High Cost” loan as defined under the New York Banking Law
        Section 6L, effective as of April 1, 2003;

       

      (liv)  No
        Mortgage Loan is a “home loan” in the state of Nevada; 

       

      (lv)  No
        Mortgage Loan is a “Section 10 mortgage loan” as defined in Oklahoma House Bill
        1574;

       

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

       

      (lvii)  No
        Mortgage Loan is a High Cost Loan or Covered Loan, as applicable (as such
        terms
        are defined in the then current Standard & Poor’s LEVELS®
        Glossary
        which is now Version 5.6(d) Revised, Appendix E (attached hereto as Exhibit
        2))
        and no Mortgage Loan originated on or after October 1, 2002 through March
        6,
        2003 is governed by the Georgia Fair Lending Act;

       

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

       

      (lix)  [Reserved];

       

      (lx)  [Reserved];

       

      (lxi)  With
        respect to each Group I Mortgage Loan, the methodology used in underwriting
        the
        extension of credit for each Group I Mortgage Loan did not rely on the extent
        of
        the borrower’s equity in the collateral as the principal determining factor in
        approving such extension of credit. With respect to each Group I Mortgage
        Loan,
        the methodology employed objective criteria that related such facts as, without
        limitation, the borrower’s credit history, income, assets or liabilities, to the
        proposed mortgage payment and, based on such methodology, the Group I Mortgage
        Loan's originator made a reasonable determination that at the time of
        origination the borrower had the ability to make timely payments on such
        Group I
        Mortgage Loan;

       

      (lxii)  [Reserved];

       

      (lxiii)  [Reserved];

       

      (lxiv)  With
        respect to any Group I Mortgage Loans that are on manufactured housing, upon
        the
        origination of each such Group I Mortgage Loan the manufactured housing unit
        either: (i) will be the principal residence of the borrower or (ii) will
        be
        classified as real property under applicable state law; 

       

      (lxv)  [Reserved];

       

      
        
          
          

        

        
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      (lxvi)  With
        respect to any Mortgage Loan that is secured by a second lien on the related
        Mortgaged Property, either (i) no consent for the Mortgage Loan is required
        by
        the holder of any related senior lien or (ii) such consent has been obtained
        and
        is contained in the Mortgage File;

       

      (lxvii)  With
        respect to each Group I Mortgage Loan, the borrower was not encouraged or
        required to select a mortgage loan product offered by the Group I Mortgage
        Loan's originator which is a higher cost product designed for less creditworthy
        borrowers, taking into account such facts as, without limitation, the Group
        I
        Mortgage Loan's requirements and the borrower’s credit history, income, assets
        and liabilities. For a borrower who seeks financing through a Group I Mortgage
        Loan originator’s higher-priced subprime lending channel, the borrower should be
        directed towards or offered the Group I Mortgage Loan originator’s standard
        mortgage line if the borrower is able to qualify for one of the standard
        products;

       

      (lxviii)  With
        respect to a Mortgage Loan which is a second lien, as of the date hereof,
        the
        Seller has not received a notice of default of a senior lien on the related
        Mortgaged Property which has not been cured;

       

      (lxix)  With
        respect to a Group I Mortgage Loan which is a second lien, (a) such second
        lien
        Group I Mortgage Loan is secured by a one- to four-family residence that
        is the
        principal residence of the Mortgagor, (b) the origination amount for such
        second
        lien Group I Mortgage Loan did not exceed one-half of the one-unit limitation
        set forth by Freddie Mac for first lien mortgage loans, without regard to
        the
        number of units, and (c) the aggregate original principal balance for the
        first
        lien and the second lien mortgage Loan do not exceed Freddie Mac’s applicable
        loan limits for first lien mortgage loans for properties of the same type
        as the
        related Mortgaged Property;

       

      (lxx)  No
        borrower under a Group I Mortgage Loan was charged “points and fees” in an
        amount greater than (a) $1,000 or (b) 5% of the principal amount of such
        Group I
        Mortgage Loan, whichever is greater. For purposes of this representation,
        “points and fees” (x) include origination, underwriting, broker and finder’s
        fees and charges that the lender imposed as a condition of making such Group
        I
        Mortgage Loan, whether they were paid to the lender or a third party; and
        (y)
        exclude bona fide discount points, fees paid for actual services rendered
        in
        connection with the origination of the mortgage (such as attorney’s fees,
        notaries fees and fees paid for property appraisals, credit reports, surveys,
        title examinations and extracts, flood and tax certifications, and home
        inspections); the cost of mortgage insurance or credit-risk price adjustments;
        the costs of title, hazard, and flood insurance policies; state and local
        transfer taxes or fees; escrow deposits for the future payment of taxes and
        insurance premiums; and other miscellaneous fees and charges that, in total,
        do
        not exceed 0.25 percent of the loan amount;

       

      (lxxi)  No
        selection procedures were used by the Seller that identified the Mortgage
        Loans
        as being less desirable or valuable than other comparable mortgage loans
        in the
        Seller’s portfolio;

       

      (lxxii)  The
        information set forth in the Closing Schedule is true and correct in all
        material respects as of the Cut-off Date; and

       

      
        
          
          

        

        
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      (lxxiii)  No
        Mortgage Loan is secured in whole or in part by the interest of the Mortgagor
        as
        a lessee under a ground lease of the related Mortgaged Property.

       

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

       

      (a)  The
        representations and warranties contained in Section 6 shall not be impaired
        by
        any review and examination of loan files or other documents evidencing or
        relating to the Mortgage Loans or any failure on the part of the Seller or
        the
        Purchaser to review or examine such documents and shall inure to the benefit
        of
        any assignee, transferee or designee of the Purchaser, including the Trustee
        for
        the benefit of the Certificateholders. With respect to the representations
        and
        warranties contained herein as to which the Seller has no knowledge, if it
        is
        discovered that the substance of any such representation and warranty was
        inaccurate as of the date such representation and warranty was made or deemed
        to
        be made, and such inaccuracy materially and adversely affects the value of
        the
        related Mortgage Loan or the interest therein of the Purchaser or the
        Purchaser’s assignee, transferee or designee, then notwithstanding the lack of
        knowledge by the Seller with respect to the substance of such representation
        and
        warranty being inaccurate at the time the representation and warranty was
        made,
        the Seller shall take such action described in the following paragraph in
        respect of such Mortgage Loan. Notwithstanding anything to the contrary
        contained herein, any breach of a representation or warranty contained in
        clauses (viii), (xxxv), (xxxviii), (xxxix), (xl), (xli), (xlvi), (xlvii),
        (lvi),
        (lxi), (lxiv), (lxvii), (lxix) and/or (lxx) of Section 6 above, shall be
        automatically deemed to affect materially and adversely the interests of
        the
        Purchaser or the Purchaser’s assignee, transferee or designee.

       

      Upon
        discovery by the Seller, the Purchaser or any assignee, transferee or designee
        of the Purchaser of any materially defective document in, or that any material
        document was not transferred by the Seller, as listed on a Custodian’s
        preliminary exception report, as described in the Custodial Agreement, as
        part
        of any Mortgage File, or of a breach of any of the representations and
        warranties contained in Section 6 that materially and adversely affects the
        value of any Mortgage Loan or the interest therein of the Purchaser or the
        Purchaser’s assignee, transferee or designee, the party discovering such breach
        shall give prompt written notice to the Seller. Within sixty (60) days of
        its
        discovery or its receipt of notice of any such missing documentation that
        was
        not transferred by the Seller as described above, or of materially defective
        documentation, or any such breach of a representation and warranty, the Seller
        promptly shall deliver such missing document or cure such defect or breach
        in
        all material respects or, in the event the Seller cannot deliver such missing
        document or cannot cure such defect or breach, the Seller shall, within ninety
        (90) days of its discovery or receipt of notice of any such missing or
        materially defective documentation or of any such breach of a representation
        and
        warranty, either (i) repurchase the affected Mortgage Loan at the Purchase
        Price
        (as such term is defined in the Pooling and Servicing Agreement) or (ii)
        pursuant to the provisions of the Pooling and Servicing Agreement, cause
        the
        removal of such Mortgage Loan from the Trust Fund and substitute one or more
        Qualified Substitute Mortgage Loans. The Seller shall amend the Closing Schedule
        to reflect the withdrawal of such Mortgage Loan from the terms of this Agreement
        and the Pooling and Servicing Agreement. The Seller shall deliver to the
        Purchaser such amended Closing Schedule and shall deliver such other documents
        as are required by this Agreement or the Pooling and Servicing Agreement
        within
        five (5) days of any such amendment. Any repurchase pursuant to this Section
        7(a) shall be accomplished by transfer to an account designated by the Purchaser
        of the amount of the Purchase Price in accordance with Section 2.03 of the
        Pooling and Servicing Agreement. Any repurchase required by this Section
        shall
        be made in a manner consistent with Section 2.03 of the Pooling and Servicing
        Agreement.

       

      
        
          
          

        

        
          -16-

          
            

          

        

        
          
          

        

      

      (b)  If
        the
        representation made by the Seller in Section 5(xii) is breached, the Seller
        shall not have the right or obligation to cure, substitute or repurchase
        the
        affected Mortgage Loan but shall remit to the Servicer for deposit in the
        Collection Account, prior to the next succeeding Servicer Remittance Date,
        the
        amount of the Prepayment Charge indicated on the applicable part of the Closing
        Schedule to be due from the Mortgagor in the circumstances less any amount
        collected and remitted to such Servicer for deposit into the Collection
        Account.

       

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

       

      SECTION
        8.  Closing;
        Payment for the Mortgage Loans.The
        closing of the purchase and sale of the Mortgage Loans, shall be held at
        the New
        York City office of Thacher Proffitt & Wood llp
        at 10:00
        a.m. New York City time on the Closing Date.

       

      The
        closing shall be subject to each of the following conditions:

       

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

       

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

       

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

       

      (d)  All
        other
        terms and conditions of this Agreement and the Pooling and Servicing Agreement
        shall have been complied with.

       

      Subject
        to the foregoing conditions, the Purchaser shall deliver or cause to be
        delivered to the Seller on the Closing Date, against delivery and release
        by the
        Seller to the Trustee of all documents required pursuant to the Pooling and
        Servicing Agreement, the consideration for the Mortgage Loans as specified
        in
        Section 3 of this Agreement.

       

      
        
          
          

        

        
          -17-

          
            

          

        

        
          
          

        

      

      SECTION
        9.  Closing
        Documents.
        Without
        limiting the generality of Section 8 hereof, the closing shall be subject
        to
        delivery of each of the following documents:

       

      (a)  An
        Officers’ Certificate of the Seller, dated the Closing Date, upon which the
        Purchaser and DBSI may rely with respect to certain facts regarding the sale
        of
        the Mortgage Loans by the Seller to the Purchaser;

       

      (b)  An
        Opinion of Counsel of the Seller, dated the Closing Date and addressed to
        the
        Purchaser and DBSI;

       

      (c)  Such
        opinions of counsel as the Rating Agencies or the Trustee may request in
        connection with the sale of the Mortgage Loans by the Seller to the Purchaser
        or
        the Seller’s execution and delivery of, or performance under, this Agreement;
        and

       

      (d)  Such
        further information, certificates, opinions and documents as the Purchaser
        or
        DBSI may reasonably request.

       

      SECTION
        10.  Costs.
        The
        Seller shall pay (or shall reimburse the Purchaser or any other Person to
        the
        extent that the Purchaser or such other Person shall pay) all costs and expenses
        incurred in connection with the transfer and delivery of the Mortgage Loans,
        including without limitation, fees for title policy endorsements and
        continuations, the fees and expenses of the Seller’s accountants and attorneys,
        the costs and expenses incurred in connection with producing the Servicer’s loan
        loss, foreclosure and delinquency experience, and the costs and expenses
        incurred in connection with obtaining the documents referred to in Sections
        9(a), 9(b) and 9(c), the costs and expenses of printing (or otherwise
        reproducing) and delivering this Agreement, the Pooling and Servicing Agreement,
        the Certificates, the prospectus and prospectus supplement, and any private
        placement memorandum relating to the Certificates and other related documents,
        the initial fees, costs and expenses of the Trustee, the fees and expenses
        of
        the Purchaser’s counsel in connection with the preparation of all documents
        relating to the securitization of the Mortgage Loans, the filing fee charged
        by
        the Securities and Exchange Commission for registration of the Certificates
        and
        the fees charged by any rating agency to rate the Certificates.  All
        other costs and expenses in connection with the transactions contemplated
        hereunder shall be borne by the party incurring such expense.

       

      SECTION
        11.  Servicing.
        The
        Mortgage Loans will be master serviced by the Master Servicer under the Pooling
        and Servicing Agreement and serviced by the Servicer, on behalf of the Trust,
        under that certain Amended and Restated Master Mortgage Loan Purchase and
        Servicing Agreement, dated as of September 1, 2005 as amended and restated
        to
        and including May 1, 2006 among the Seller, and Countrywide Home Loans, Inc.
        (“Countrywide”), as modified by the Assignment, Assumption and Recognition
        Agreement, dated as of July 25, 2006 among the Seller, the Purchaser, the
        Servicer and Countrywide (collectively, the “Servicing Agreement”) and the
        Seller has represented to the Purchaser that such Mortgage Loans are not
        subject
        to any other servicing agreements with third parties.  It is
        understood and agreed between the Seller and the Purchaser that the Mortgage
        Loans are to be delivered free and clear of any other servicing
        agreements.  Neither the Purchaser nor any affiliate of the Purchaser
        is servicing the Mortgage Loans under any such servicing agreement and,
        accordingly, neither the Purchaser nor any affiliate of the Purchaser is
        entitled to receive any fee for releasing the Mortgage Loans from any such
        servicing agreement.  The Seller shall arrange for the orderly
        transfer of such servicing to the Servicer.  For so long as the Master
        Servicer master services the Mortgage Loans and the Servicer services the
        Mortgage Loans, the Master Servicer shall be entitled to the master servicing
        compensation and the Servicer shall be entitled to its Servicing Fee and
        such
        other payments as provided for under the terms of the Pooling and Servicing
        Agreement and Servicing Agreement, as applicable.

       

      
        
          
          

        

        
          -18-

          
            

          

        

        
          
          

        

      

       

      SECTION
        12.  Mandatory
        Delivery; Grant of Security Interest.  The
        sale and delivery on the Closing Date of the Mortgage Loans (exclusive of
        the
        Servicing Rights) described on the Closing Schedule in accordance with the
        terms
        and conditions of this Agreement is mandatory.  It is specifically
        understood and agreed that each Mortgage Loan is unique and identifiable
        on the
        date hereof and that an award of money damages would be insufficient to
        compensate the Purchaser for the losses and damages incurred by the Purchaser
        in
        the event of the Seller’s failure to deliver the Mortgage Loans on or before the
        Closing Date.  The Seller hereby grants to the Purchaser a lien on and
        a continuing security interest in the Seller’s interest in each Mortgage Loan
        and each document and instrument evidencing each such Mortgage Loan to secure
        the performance by the Seller of its obligation hereunder, and the Seller
        agrees
        that it holds such Mortgage Loans in custody for the Purchaser, subject to
        the
        Purchaser’s (i) right, prior to the Closing Date, to reject any Mortgage Loan to
        the extent permitted by this Agreement and (ii) obligation to deliver or
        cause
        to be delivered the consideration for the Mortgage Loans pursuant to Section
        8
        hereof.  Any Mortgage Loans rejected by the Purchaser shall
        concurrently therewith be released from the security interest created
        hereby.  All rights and remedies of the Purchaser under this Agreement
        are distinct from, and cumulative with, any other rights or remedies under
        this
        Agreement or afforded by law or equity and all such rights and remedies may
        be
        exercised concurrently, independently or successively.

       

      Notwithstanding
        the foregoing, if on the Closing Date, each of the conditions set forth in
        Section 8 hereof shall have been satisfied and the Purchaser shall not have
        paid
        or caused to be paid the Purchase Price, or any such condition shall not
        have
        been waived or satisfied and the Purchaser determines not to pay or cause
        to be
        paid the Purchase Price, the Purchaser shall immediately effect the redelivery
        of the Mortgage Loans, if delivery to the Purchaser has occurred, and the
        security interest created by this Section 12 shall be deemed to have been
        released.

       

      
        
          
          

        

        
          -19-

          
            

          

        

        
          
          

        

      

       

      SECTION
        13.  Notices.  All
        demands, notices and communications hereunder shall be in writing and shall
        be
        deemed to have been duly given if personally delivered to or mailed by
        registered mail, postage prepaid, or transmitted by fax and, receipt of which
        is
        confirmed by telephone, if to the Purchaser, addressed to the Purchaser at
        6525
        Morrison Boulevard, Suite 318, Charlotte, North Carolina 28211, fax: (704)
        365-1362, Attention: Doris Hearn, or such other address as may hereafter
        be
        furnished to the Seller in writing by the Purchaser; and if to the Seller,
        addressed to the Seller at 60 Wall Street, New York, New York 10005, fax:
        (212)
        250-2740, Attention:  Michael Commaroto, or to such other address as
        the Seller may designate in writing to the Purchaser.

       

      SECTION
        14.  Severability
        of Provisions.  Any
        part, provision, representation or warranty of this Agreement that is prohibited
        or that 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 that is prohibited or unenforceable or is held to be void
        or
        unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
        to the extent of such prohibition or unenforceability without invalidating
        the
        remaining provisions hereof, 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.

       

      SECTION
        15.  Agreement
        of Parties.  The
        Seller and the Purchaser each agree to execute and deliver such instruments
        and
        take such actions as either of the others may, from time to time, reasonably
        request in order to effectuate the purpose and to carry out the terms of
        this
        Agreement and the Pooling and Servicing Agreement.

       

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

       

      SECTION
        17.  GOVERNING
        LAW.  THIS
        AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE
        PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        (EXCLUDING THE CHOICE OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF NEW
        YORK.  THE
        PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK
        GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.

       

      
        
          
          

        

        
          -20-

          
            

          

        

        
          
          

        

      

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

       

      It
        is the
        express intent of the parties hereto that the conveyance of the Mortgage
        Loans
        by the Seller to the Purchaser as provided in Section 4 hereof be, and be
        construed as, a sale of the Mortgage Loans by the Seller to the Purchaser
        and
        not as 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 aforementioned intent of the parties, the Mortgage Loans
        are
        held to be property of the Seller, then (a) it is the express intent of the
        parties that such conveyance be deemed a pledge of the Mortgage Loans by
        the
        Seller to the Purchaser to secure a debt or other obligation of the Seller
        and
        (b) (1) this Agreement shall also be deemed to be a security agreement within
        the meaning of Articles 8 and 9 of the New York Uniform Commercial Code;
        (2) the
        conveyance provided for in Section 4 hereof shall be deemed to be a grant
        by the
        Seller to the Purchaser of a security interest in all of the Seller’s right,
        title and interest in and to the Mortgage Loans 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, including without limitation
        all amounts, other than investment earnings, from time to time held or invested
        in the Collection Account whether in the form of cash, instruments, securities
        or other property; (3) the possession by the Purchaser or its agent of Mortgage
        Notes, the related Mortgages and such other items of property that constitute
        instruments, money, negotiable documents or chattel paper shall be deemed
        to be
“possession by the secured party” for purposes of perfecting the security
        interest pursuant to Section 9-305 of the New York Uniform Commercial Code;
        and
        (4) notifications to persons holding such property and acknowledgments, receipts
        or confirmations from persons holding such property shall be deemed
        notifications to, or acknowledgments, receipts or confirmations from, financial
        intermediaries, bailees or agents (as applicable) of the Purchaser for the
        purpose of perfecting such security interest under applicable law. Any
        assignment of the interest of the Purchaser pursuant to Section 4(d) hereof
        shall also be deemed to be an assignment of any security interest created
        hereby. The Seller and the Purchaser shall, to the extent consistent with
        this
        Agreement, take such actions as may be necessary to ensure that, if this
        Agreement were deemed to create a security interest in the Mortgage Loans,
        such
        security interest would be deemed to be a perfected security interest of
        first
        priority under applicable law and will be maintained as such throughout the
        term
        of this Agreement and the Pooling and Servicing Agreement.

       

      SECTION
        19.  Third
        Party Beneficiary.  The
        parties hereto acknowledge and agree that DBSI and each of its respective
        successors and assigns shall have all the rights of a third-party beneficiary
        in
        respect of Section 12 of this Agreement and shall be entitled to rely upon
        and
        directly enforce the provisions of Section 12 of this Agreement.

       

      
        
          
          

        

        
          -21-

          
            

          

        

        
          
          

        

      

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

       

      
        	 	 DB STRUCTURED PRODUCTS,
                INC.
	 	 
	 	 
	 	
                By:
                  _________________________________________

              
	 	Name:
                Title:

              
	 	 
	 	 
	 	
                By:
                  ____________________________________

              
	 	Name:
	 	
                Title:

              
	 	 
	 	 
	 	
                ACE
                  SECURITIES CORP.

              
	 	 
	 	 
	 	
                By:
                  __________________________________________

              
	 	
                Name:

              
	 	
                Title:

              
	 	 
	 	 
	 	
                By:
                  _____________________________________

              
	 	
                Name:

                Title:

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        1

       

      Loan
        #:  ___

      Borrower:
        ___

       

      LOST
        NOTE
        AFFIDAVIT

       

      I,
        as
        _____________________ of ____________________, a _______________ am authorized
        to make this Affidavit on behalf of __________________ (the “Seller”). In
        connection with the administration of the Mortgage Loans held by
        ______________________, a _______________ [corporation] as Seller on behalf
        of
        ____________________ (the “Purchaser”), _______________________ (the
“Deponent”), being duly sworn, deposes and says that:

       

      1. The
        Seller’s address is:  _____________________________________

                                                      
          _____________________________________

                                                        
            _____________________________________

        

      

      

      2. The
        Seller previously delivered to the Purchaser a signed Initial Certification
        with
        respect to such Mortgage and/or Assignment of Mortgage;

       

      3. Such
        Mortgage Note and/or Assignment of Mortgage was assigned or sold to the
        Purchaser by __________________,
        a                  
 pursuant to the terms and provisions of a Mortgage Loan Purchase Agreement
        dated as of _____________;

       

      4. Such
        Mortgage Note and/or Assignment of Mortgage is not outstanding pursuant to
        a
        request for release of Documents;

       

      5. Aforesaid
        Mortgage Note and/or Assignment of Mortgage (the “Original”) has been
        lost;

       

      6. Deponent
        has made or caused to be made a diligent search for the Original and has
        been
        unable to find or recover same;

       

      7. The
        Seller was the Seller of the Original at the time of the loss; and

       

      8. Deponent
        agrees that, if said Original should ever come into Seller’s possession, custody
        or power, Seller will immediately and without consideration surrender the
        Original to the Purchaser.

       

      9. Attached
        hereto is a true and correct copy of (i) the Note, endorsed in blank by the
        Mortgagee and (ii) the Mortgage or Deed of Trust (strike one) which secures
        the
        Note, which Mortgage or Deed of Trust is recorded in the county where the
        property is located.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      10. Deponent
        hereby agrees that the Seller (a) shall indemnify and hold harmless the
        Purchaser, its successors and assigns, against any loss, liability or damage,
        including reasonable attorney’s fees, resulting from the unavailability of any
        Notes, including but not limited to any loss, liability or damage arising
        from
        (i) any false statement contained in this Affidavit, (ii) any claim of any
        party
        that purchased a mortgage loan evidenced by the Lost Note or any interest
        in
        such mortgage loan, (iii) any claim of any borrower with respect to the
        existence of terms of a mortgage loan evidenced by the Lost Note on the related
        property to the fact that the mortgage loan is not evidenced by an original
        note
        and (iv) the issuance of a new instrument in lieu thereof (items (i) through
        (iv) above hereinafter referred to as the “Losses”) and (b) if required by any
        Rating Agency in connection with placing such Lost Note into a Pass-Through
        Transfer, shall obtain a surety from an insurer acceptable to the applicable
        Rating Agency to cover any Losses with respect to such Lost Note.

       

      11. This
        Affidavit is intended to be relied upon by the Purchaser, its successors
        and
        assigns. Seller represents and warrants that is has the authority to perform
        its
        obligations under this Affidavit of Lost Note.

       

      Executed
        this _ day of _______, 200_.

       

      
        	 	______________________________
	 	 
	 	
                By: ________________________________

              
	 	
                Name:

              
	 	
                Title:

              
	 	 

      

       

      On
        this
        __ day of ______, 200_, before me appeared ______________________ to me
        personally known, who being duly sworn did say that he is the
        _______________________ of ____________________, a ______________________
        and
        that said Affidavit of Lost Note was signed and sealed on behalf of such
        corporation and said acknowledged this instrument to be the free act and
        deed of
        said entity.

       

      Signature:

       

      [Seal]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        2

       

      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 

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        Standard & Poor’s High Cost Loan
          Categorization

         

        
          	
                   State/Jurisdiction

                	 	
                   Name
                    of Anti-Predatory Lending Law/Effective Date

                	 	
                  
                    Category
                      under Applicable Anti-Predatory Lending Law

                  

                
	
                  Georgia
                    as amended (Mar. 7, 2003 - current) 

                	 	
                  Georgia
                    Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                    seq.
                    

                  Effective
                    for loans closed on or after March 7, 2003 

                	 	
                  High
                    Cost Home Loan 

                
	 	 	 	 	 
	
                  HOEPA
                    Section 32 

                	 	
                  Home
                    Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R.
                    §§ 226.32 and 226.34 

                  Effective
                    October 1, 1995, amendments October 1, 2002 

                	 	
                  High
                    Cost Loan 

                
	 	 	 	 	 
	
                  Illinois
                    

                	 	
                  High
                    Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et
                    seq.
                    

                  Effective
                    January 1, 2004 (prior to this date, regulations under Residential
                    Mortgage License Act effective from May 14, 2001) 

                	 	
                  High
                    Risk Home Loan 

                
	 	 	 	 	 
	
                  Kansas

                	 	
                  Consumer
                    Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et
                    seq.
                    

                  Sections
                    16a-1-301 and 16a-3-207 became effective April 14, 1999; Section
                    16a-3-308a became effective July 1, 1999

                	 	
                  High
                    Loan to Value Consumer Loan (id.
                    §
                    16a-3-207) and;

                  High
                    APR Consumer Loan (id.
                    §
                    16a-3-308a)

                
	 	 	 	 	 
	
                  Kentucky
                    

                	 	
                  2003
                    KY H.B. 287 - High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100
                    et
                    seq.
                    

                  Effective
                    June 24, 2003 

                	 	
                  High
                    Cost Home Loan 

                
	 	 	 	 	 
	
                  Maine
                    

                	 	
                  Truth
                    in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et
                    seq.
                    

                  Effective
                    September 29, 1995 and as amended from time to time 

                	 	
                  High
                    Rate High Fee Mortgage 

                
	 	 	 	 	 
	
                  Massachusetts
                    

                	 	
                  Part
                    40 and Part 32, 209 C.M.R. §§ 32.00 et
                    seq.
                    and 209 C.M.R. §§ 40.01 et
                    seq.
                    

                  Effective
                    March 22, 2001 and amended from time to time

                	 	
                  High
                    Cost Home Loan 

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

           

          Standard & Poor’s High Cost Loan
            Categorization

           

        

        
          	 

                   State/Jurisdiction

                	 	
                   Name
                    of Anti-Predatory Lending
                    Law/Effective Date

                	 	
                  
                    Category
                      under Applicable Anti-Predatory Lending Law

                  

                
	
                  Nevada
                    

                	 	
                  Assembly
                    Bill No. 284, Nev. Rev. Stat. §§ 598D.010 et
                    seq.
                    

                  Effective
                    October 1, 2003 

                	 	
                  Home
                    Loan 

                
	 	 	 	 	 
	
                  New
                    Jersey 

                	 	
                  New
                    Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                    et
                    seq.
                    

                  Effective
                    for loans closed on or after November 27, 2003 

                	 	
                  High
                    Cost Home Loan 

                
	 	 	 	 	 
	
                  New
                    Mexico 

                	 	
                  Home
                    Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et
                    seq.
                    

                  Effective
                    as of January 1, 2004; Revised as of February 26, 2004 

                	 	
                  High
                    Cost Home Loan 

                
	 	 	 	 	 
	
                  New
                    York 

                	 	
                  N.Y.
                    Banking Law Article 6-l 

                  Effective
                    for applications made on or after April 1, 2003 

                	 	
                  High
                    Cost Home Loan 

                
	 	 	 	 	 
	
                  North
                    Carolina 

                	 	
                  Restrictions
                    and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                    et
                    seq.
                    

                  Effective
                    July 1, 2000; amended October 1, 2003 (adding open-end lines
                    of credit)
                    

                	 	
                  High
                    Cost Home Loan 

                
	 	 	 	 	 
	
                  Ohio
                    

                	 	
                  H.B.
                    386 (codified in various sections of the Ohio Code), Ohio Rev.
                    Code Ann.
                    §§ 1349.25 et
                    seq.
                    

                  Effective
                    May 24, 2002 

                	 	
                  Covered
                    Loan 

                
	 	 	 	 	 
	
                  Oklahoma
                    

                	 	
                  Consumer
                    Credit Code (codified in various sections of Title 14A) 

                  Effective
                    July 1, 2000; amended effective January 1, 2004 

                	 	
                  Subsection
                    10 Mortgage 

                
	 	 	 	 	 
	
                  South
                    Carolina 

                	 	
                  South
                    Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                    et
                    seq.
                    

                  Effective
                    for loans taken on or after January 1, 2004

                	 	
                  High
                    Cost Home Loan 

                
	 	 	 	 	 
	
                  West
                    Virginia 

                	 	
                  West
                    Virginia Residential Mortgage Lender, Broker and Servicer Act,
                    W. Va. Code
                    Ann. §§ 31-17-1 et
                    seq.
                    

                  Effective
                    June 5, 2002 

                	 	
                  West
                    Virginia Mortgage Loan Act Loan 

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        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
        4/18/06 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    EXHIBIT
      G

    

    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 5.06(a)(ii). 

    

    Under
      Item 1 of Form 10-D: a) items marked “monthly statement” are required to be
      included in the periodic Distribution Date statement under Section 5.02,
      provided by the Securities Administrator based on information received from
      the
      Master Servicer; and b) items marked “Form 10-D report” are required to be in
      the Form 10-D report but not the monthly statement, provided by the party
      indicated. Information under all other Items of Form 10-D is to be included
      in
      the Form 10-D report.

    
      
        

          

            
              	
                      Form

                    	
                      Item

                    	
                      Description

                    	
                      Servicers

                    	
                      Master
                        Servicer

                    	
                      Securities
                        Administrator

                    	
                      Custodian

                    	
                      Trustee

                    	
                      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
                        Statement)

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    
	 	 	 	 	 	 	 	 
	
                      (2)
                        Cash flows received and the sources thereof for distributions,
                        fees and
                        expenses.

                    	
                       

                    	
                       

                    	
                      X

                       

                      (monthly
                        Statement)

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    
	 	 	 	 	 	 	 	 
	
                      (3)
                        Calculated amounts and distribution of the flow of funds
                        for the period
                        itemized by type and priority of payment, including:

                    	
                       

                    	
                       

                    	
                      X

                       

                      (monthly
                        Statement)

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    

            

          

        

      

       

      
        
          
          

        

        
          G-1

          
            

          

        

        
          
          

        

         

        
          
            
              
                
                  
                    	
                            Form

                          	
                            Item

                          	
                            Description

                          	
                            Servicers

                          	
                            Master
                              Servicer

                          	
                            Securities
                              Administrator

                          	
                            Custodian

                          	
                            Trustee

                          	
                            Depositor

                          	
                            Sponsor

                          
	
                             

                          	
                             

                          	
                            (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
                              Statement)

                          	
                             

                          	
                             

                          	
                             

                          	
                             

                          
	 	 	 	 	 	 	 	 
	
                            (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
                              Statement)

                          	
                             

                          	
                             

                          	
                             

                          	
                             

                          
	 	 	 	 	 	 	 	 
	
                            (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
                              Statement)

                          	
                             

                          	
                             

                          	
                             

                          	
                             

                          
	 	 	 	 	 	 	 	 
	
                            (iv)
                              The amount of excess cash flow or excess spread and
                              the disposition of
                              excess cash flow.

                          	
                             

                          	
                             

                          	
                            X

                             

                            (monthly
                              Statement)

                          	
                             

                          	
                             

                          	
                             

                          	
                             

                          
	 	 	 	 	 	 	 	 
	
                            (4)
                              Beginning and ending principal balances of the asset-backed
                              securities.

                          	
                             

                          	
                             

                          	
                            X

                             

                            (monthly
                              Statement)

                          	
                             

                          	
                             

                          	
                             

                          	
                             

                          

                  

                

              

            

             

          

        

      

      
        
          
            
            

          

          
            G-2

            
              

            

          

          
            
            

          

        

        
          
          

        

      

       

      
        

          
            	
                    Form

                  	
                    Item

                  	
                    Description

                  	
                    Servicers

                  	
                    Master
                      Servicer

                  	
                    Securities
                      Administrator

                  	
                    Custodian

                  	
                    Trustee

                  	
                    Depositor

                  	
                    Sponsor

                  
	
                     

                  	
                     

                  	
                    (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
                      Statement)

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	 	 	 	 	 	 	 	 
	
                    (6)
                      Beginning and ending balances of transaction accounts, such
                      as reserve
                      accounts, and material account activity during the period.

                  	
                     

                  	
                     

                  	
                    X

                     

                    (monthly
                      Statement)

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	 	 	 	 	 	 	 	 
	
                    (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
                      Statement)

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	 	 	 	 	 	 	 	 
	
                    (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
                      Statement)

                  	
                     

                  	
                     

                  	
                    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
                      Statement)

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	 	 	 	 	 	 	 	 
	
                    In
                      addition, describe any material changes to the information
                      specified in
                      Item 1100(b)(5) of Regulation AB regarding the pool assets.
                      (methodology)

                  	
                    X

                  	
                    X

                  	 	
                     

                  	
                     

                  	
                     

                  	
                     

                  

          

        

      

      
         

      

      
        
          
            
            

          

          
            G-3

            
              

            

          

          
            
            

          

        

        
          
          

        

      

       

      

        
          	
                  Form

                	
                  Item

                	
                  Description

                	
                  Servicers

                	
                  Master
                    Servicer

                	
                  Securities
                    Administrator

                	
                  Custodian

                	
                  Trustee

                	
                  Depositor

                	
                  Sponsor

                
	
                   

                	
                   

                	
                  (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
                    Statement)

                	
                   

                	
                   

                	
                   

                	
                   

                
	 	 	 	 	 	 	 	 
	
                  (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
                    Statement)

                	
                   

                	
                   

                	
                   

                	
                   

                
	 	 	 	 	 	 	 	 
	
                  (12)
                    Material breaches of pool asset representations or warranties
                    or
                    transaction covenants.

                	
                  X

                	
                  X

                	 	
                   

                	
                   

                	
                  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
                    Statement)

                	
                   

                	
                   

                	
                   

                	
                   

                
	 	 	 	 	 	 	 	 
	
                  (14)
                    Information regarding any new issuance of asset-backed securities
                    backed
                    by the same asset pool, 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

                	
                   

                	
                   

                	
                   

                	
                   

                

        

      

       

      
        
          
            
              
                
                

              

              
                G-4

                
                  

                

              

              
                
                

              

            

            
              
              

            

          

           

          

            
              	
                      Form

                    	
                      Item

                    	
                      Description

                    	
                      Servicers

                    	
                      Master
                        Servicer

                    	
                      Securities
                        

                      Administrator

                    	
                      Custodian

                    	
                      Trustee

                    	
                      Depositor

                    	
                      Sponsor

                    
	
                       

                    	
                       

                    	
                      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

                    
	 	 	 	 	 	 	 	 
	
                      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

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    
	 	 	 	 	 	 	 	 
	
                      Securities
                        Administrator

                    	
                       

                    	
                       

                    	
                      X

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    
	 	 	 	 	 	 	 	 
	
                      Originator
                        of 20% or more of pool assets as of the Cut-off Date

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    	
                      X

                    	
                       

                    
	 	 	 	 	 	 	 	 
	
                      Custodian

                    	
                       

                    	
                       

                    	
                       

                    	
                      X

                    	
                       

                    	
                       

                    	
                       

                    

            

          

           

        

      

       

      
        
          
          

        

        
          G-5

          
            

          

        

        
          
          

        

      

      
        
          
          

          
          

        

        
        

        
          
          

        

      

       

      

        
          	
                  Form

                	
                  Item

                	
                  Description

                	
                  Servicers

                	
                  Master
                    Servicer

                	
                  Securities
                    

                  Administrator

                	
                  Custodian

                	
                  Trustee

                	
                  Depositor

                	
                  Sponsor

                
	
                   

                	
                  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

                	
                   

                	
                  X

                	
                   

                	
                   

                
	 	 	 	 	 	 	 	 	 
	
                  5

                	
                  Submission
                    of Matters to a Vote of Security Holders

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                
	 	 	 	 	 	 	 	 
	
                  Information
                    from Item 4 of Part II of Form 10-Q

                	
                   

                	
                   

                	
                  X

                	
                   

                	
                  X

                	
                   

                	
                   

                
	 	 	 	 	 	 	 	 	 
	
                  6

                	
                  Significant
                    Obligors of Pool Assets

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                
	 	 	 	 	 	 	 	 
	
                  Item
                    1112(b) -Significant Obligor Financial Information*

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                  X

                	
                  X

                

        

      

       

      
        
          
          

        

        
          G-6

          
            

          

        

        
          
          

        

         

        

          
            	
                    Form

                  	
                    Item

                  	
                    Description

                  	
                    Servicers

                  	
                    Master
                      Servicer

                  	
                    Securities
                      

                    Administrator

                  	
                    Custodian

                  	
                    Trustee

                  	
                    Depositor

                  	
                    Sponsor

                  
	
                     

                  	
                     

                  	
                    *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

                  	 	 	 	 
	 	 	 	 	 	 	 	 
	
                    Requesting
                      required financial information or effecting incorporation by
                      reference

                  	
                     

                  	
                     

                  	
                    X

                  	 	 	 	 
	 	 	 	 	 	 	 	 
	
                    Item
                      1115(b) - Derivative Counterparty Financial
                      Information*

                  	
                     

                  	
                     

                  	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
                    Determining
                      current maximum probable exposure

                  	
                     

                  	
                     

                  	 	 	 	
                    X

                  	 
	 	 	 	 	 	 	 	 
	
                    Determining
                      current significance percentage

                  	
                     

                  	
                     

                  	
                    X

                  	 	 	 	 
	 	 	 	 	 	 	 	 
	
                    Requesting
                      required financial information or effecting incorporation by
                      reference

                  	
                     

                  	
                     

                  	
                    X

                  	 	 	 	 
	 	 	 	 	 	 	 	 
	
                    *This
                      information need only be reported on the Form 10-D for the
                      distribution
                      period in which updated information is required pursuant to
                      the
                      Items.

                  	
                     

                  	
                     

                  	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                    8

                  	
                    Other
                      Information

                  	
                     

                  	
                     

                  	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
                    Disclose
                      any information required to be reported on Form 8-K during
                      the period
                      covered by the Form 10-D but not reported

                  	
                    The
                      Responsible Party for the applicable Form 8-K item as indicated
                      below.

                  

          

        

         

      

      
        
          
          

        

        
          G-7

          
            

          

        

        
          
          

        

         

        
          

            
              	
                      Form

                    	
                      Item

                    	
                      Description

                    	
                      Servicers

                    	
                      Master
                        Servicer

                    	
                      Securities
                        Administrator

                    	
                      Custodian

                    	
                      Trustee

                    	
                      Depositor

                    	
                      Sponsor

                    
	
                       

                    	
                      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
                        (if Master Servicer is not a party)

                    	
                       

                    	
                      X
                        (if Master Servicer is not a party)

                    	
                      X
                        (if Master Servicer is not a party)

                    	
                      X
                        (if Master Servicer is not a party)

                    
	 	 	 	 	 	 	 	 	 
	
                      1.02

                    	
                      Termination
                        of a Material Definitive Agreement

                    	
                      X

                    	
                      X

                    	
                      X
                        (if Master Servicer is not a party)

                    	
                       

                    	
                      X
                        (if Master Servicer is not a party)

                    	
                      X
                        (if Master Servicer is not a party)

                    	
                      X
                        (if Master Servicer is not a
                        party)

                    

            

          

        

         

      

      
        
          
          

        

        
          G-8

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Form

                	
                  Item

                	
                  Description

                	
                  Servicers

                	
                  Master
                    Servicer

                	
                  Securities
                    

                  Administrator

                	
                  Custodian

                	
                  Trustee

                	
                  Depositor

                	
                  Sponsor

                
	
                   

                   
                    

                	
                   

                	
                  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

                	
                  X

                
	 	 	 	 	 	 	 	 	 
	
                  2.04

                	
                  Triggering
                    Events that Accelerate or Increase a Direct Financial Obligation
                    or an
                    Obligation under an Off-Balance Sheet Arrangement

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                

        

      

       

      
        
          
            
            

          

          
            G-9

            
              

            

          

          
            
            

          

        

      

      
        
          
            
              
              

              
              

            

            
            

            
              
              

            

          

           

          

            
              	
                      Form

                    	
                      Item

                    	
                      Description

                    	
                      Servicers

                    	
                      Master
                        Servicer

                    	
                      Securities
                        Administrator

                    	
                      Custodian

                    	
                      Trustee

                    	
                      Depositor

                    	
                      Sponsor

                    
	
                       

                    	
                       

                    	
                      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 5.02 statement

                    	
                       

                    	
                      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

                    	 	
                      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

                    	
                      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

                    	
                      X

                    	
                       

                    
	 	 	 	 	 	 	 	 	 
	
                       

                    	
                      Reg
                        AB disclosure about any new servicer (from entity appointing
                        new servicer)
                        or trustee (from Depositor) is also required.

                    	
                      X

                    	 	 	 	
                      X

                    	
                      X

                    	
                       

                    

            

          

           

          
            
              
              

            

            
              G-10

              
                

              

            

            
              
              

            

          

          
            
              
              

              
              

            

            
            

            
              
              

            

          

          
          

          
            
               

              

                
                  	
                          Form

                        	
                          Item

                        	
                          Description

                        	
                          Servicers

                        	
                          Master
                            Servicer

                        	
                          Securities
                            

                          Administrator

                        	
                          Custodian

                        	
                          Trustee

                        	
                          Depositor

                        	
                          Sponsor

                        
	
                           

                        	
                          6.03

                        	
                          Change
                            in Credit Enhancement or Other External 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

                        	
                          X

                        	
                           

                        
	 	 	 	 	 	 	 	 	 
	
                           

                        	
                          Reg
                            AB disclosure about any new enhancement provider is also
                            required

                        	
                           

                        	
                           

                        	
                           

                        	
                           

                        	
                           

                        	
                          X

                        	
                           

                        
	 	 	 	 	 	 	 	 	 
	
                          6.04

                        	
                          Failure
                            to Make a Required Distribution

                        	
                           

                        	
                           

                        	
                          X

                        	 	
                          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

                        	
                          X

                        
	 	 	 	 	 	 	 	 	 
	
                          8.01

                        	
                          Other
                            Events

                        	
                           

                        	
                           

                        	
                           

                        	
                           

                        	
                           

                        	
                           

                        	
                           

                        

                

              

               

              
                
                  
                  

                

                
                  G-11

                  
                    

                  

                

                
                  
                  

                

              

              
                 

                
                  

                    
                      	
                              Form

                            	
                              Item

                            	
                              Description

                            	
                              Servicers

                            	
                              Master
                                Servicer

                            	
                              Securities
                                Administrator

                            	
                              Custodian

                            	
                              Trustee

                            	
                              Depositor

                            	
                              Sponsor

                            
	
                               

                            	
                               

                            	
                              Any
                                event, with respect to which information is not otherwise
                                called for in
                                Form 8-K, that the registrant deems of importance
                                to security
                                holders.

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                              X

                            	
                               

                            
	 	 	 	 	 	 	 	 	 
	
                              9.01

                            	
                              Financial
                                Statements and Exhibits

                            	
                              The
                                Responsible Party applicable to reportable event.

                            
	 	 	 	 
	
                              10-K

                            	
                              Must
                                be filed within 90 days of the fiscal year end for
                                the
                                registrant.

                            
	 	 	 	 	 	 	 	 	 	 
	 	
                              9B

                            	
                              Other
                                Information

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            
	 	 	 	 	 	 	 	 	 	 
	
                               

                            	
                               

                            	
                              Disclose
                                any information required to be reported on Form 8-K
                                during the fourth
                                quarter covered by the Form 10-K but not reported

                            	
                              The
                                Responsible Party for the applicable Form 8-K as
                                indicated
                                above.

                            
	 	 	 	 
	
                               

                            	
                              15

                            	
                              Exhibits
                                and Financial Statement Schedules

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            
	 	 	 	 	 	 	 	 
	
                              Item
                                1112(b) -Significant Obligor Financial Information

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                              X

                            	
                              X

                            
	 	 	 	 	 	 	 	 
	
                              Item
                                1114(b)(2) - Credit Enhancement Provider Financial
                                Information

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            
	 	 	 	 	 	 	 	 
	
                              Determining
                                applicable disclosure threshold

                            	
                               

                            	
                               

                            	
                              X

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            
	 	 	 	 	 	 	 	 
	
                              Requesting
                                required financial information or effecting incorporation
                                by
                                reference

                            	
                               

                            	
                               

                            	
                              X

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            
	 	 	 	 	 	 	 	 
	
                              Item
                                1115(b) - Derivative Counterparty Financial
                                Information

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            
	 	 	 	 	 	 	 	 
	
                              Determining
                                current maximum probable exposure

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                              X

                            	
                               

                            
	 	 	 	 	 	 	 	 	 	 
	
                               

                            	
                               

                            	
                              Determining
                                current significance percentage

                            	
                               

                            	
                               

                            	
                              X

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            
	 	 	 	 	 	 	 	 
	
                              Requesting
                                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:

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            	
                               

                            

                    

                  

                

                 

              

            

          

          
            
              
              

            

            
              G-12

              
                

              

            

            
              
              

            

          

          
            
              
              

              
              

            

            
            

             

            
              
                	
                        Form

                      	
                        Item

                      	
                        Description

                      	
                        Servicers

                      	
                        Master
                          Servicer

                      	
                        Securities
                          

                        Administrator

                      	
                        Custodian

                      	
                        Trustee

                      	
                        Depositor

                      	
                        Sponsor

                      
	
                         

                      	
                         

                      	
                        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

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      
	 	 	 	 	 	 	 	 
	
                        Securities
                          Administrator

                      	
                         

                      	
                         

                      	
                        X

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      
	 	 	 	 	 	 	 	 
	
                        Originator
                          of 20% or more of pool assets as of the Cut-off Date

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                        X

                      	
                        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
                          with respect to 1119(a) affiliations only

                      	
                         

                      	
                         

                      
	 	 	 	 	 	 	 	 	 	 
	
                         

                      	
                         

                      	
                        Master
                          Servicer, affiliated Servicer, other Servicer servicing
                          20% or more of
                          pool assets at time of report, other material servicers

                      	
                        X

                      	
                        X

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      
	 	 	 	 	 	 	 	 	 	 
	
                         

                      	
                         

                      	
                        Securities
                          Administrator

                      	
                         

                      	
                         

                      	
                        X

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      
	 	 	 	 	 	 	 	 	 	 
	
                         

                      	
                         

                      	
                        Originator

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                        X

                      	
                        X

                      
	 	 	 	 	 	 	 	 	 	 
	
                         

                      	
                         

                      	
                        Custodian

                      	
                         

                      	
                         

                      	
                         

                      	
                        X
                          (with respect to affiliations only)

                      	
                         

                      	
                         

                      	
                         

                      
	 	 	 	 	 	 	 	 	
                         

                      	 
	
                         

                      	
                         

                      	
                        Credit
                          Enhancer/Support Provider

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                        X

                      	
                        X

                      
	 	 	 	 	 	 	 	 	 	 
	
                         

                      	
                         

                      	
                        Significant
                          Obligor

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                        X

                      	
                        X

                      
	 	 	 	 	 	 	 	 	 	 
	
                         

                      	
                         

                      	
                        Item
                          1122 - Assessment of Compliance with Servicing
                          Criteria

                      	
                        X

                      	
                        X

                      	
                        X

                      	
                        X

                      	
                         

                      	
                         

                      	
                         

                      
	 	 	 	 	 	 	 	 	 	 
	
                         

                      	
                         

                      	
                        Item
                          1123 - Servicer Compliance Statement

                      	
                        X

                      	
                        X

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                         

                      

              

            

            
              
                
                   

                

              

            

            
              
                
                

              

              
                G-13

                
                  

                

              

              
                
                

              

            

             

            
              
                EXHIBIT
                  H

              

            

          

        

      

    

     

    ADDITIONAL
      DISCLOSURE NOTIFICATION

     

    **SENT
      VIA FAX TO [_XXX)XXX-XXXX] AND VIA EMAIL TO [_________________] AND VIA
      OVERNIGHT MAIL TO THE ADDRESS IMMEDIATELY BELOW:

     

    Wells
      Fargo Bank, N.A. as Securities Administrator

    9062
      Old
      Annapolis Road

    Columbia,
      Maryland 21045

    Fax:
      (410) 715-2380

    E-mail:
      cts.sec.notifications@wellsfargo.com

    Attn:
      Corporate Trust Services - ACE 2006-CW1 - SEC REPORT PROCESSING

     

    ACE
      Securities Corp.

    6525
      Morrison Boulevard, Suite 318

    Charlotte,
      North Carolina 28211

    Fax:
      (704) 365-1362)

    Attn:
      Juliana Johnson

     

    RE:
      **
      Additional Form [10-D][10-K][8-K] Disclosure** Required

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section [__] of the Pooling and Servicing Agreement, dated
      as of [________] [__], 2006 among [_____________], as [______], [_____________],
      as [______], [_____________], as [______] and [_____________], as [______],
      the
      undersigned, as [______], hereby notifies you that certain events have come
      to
      our attention that [will] [may] need to be disclosed on Form
      [10-D][10-K][8-K].

     

    Description
      of Additional Form [10-D][10-K][8-K] Disclosure:

     

    List
      of any Attachments hereto to be included in the Additional Form
      [10-D][10-K][8-K] Disclosure: 

     

    Any
      inquiries related to this notification should be directed to [_____________],
      phone number: [______]; email address: [_________________].

     

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	
              [NAME
                OF PARTY],

              as
                [role]

            
	 
 	 
 	 
 
	
            	By:  	 
	 	
              

              Name:

              Title:

            
	 	 

    

     

    
      
        
        

      

      
        H-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

     

    SWAP
      AGREEMENT

    
       

      
        	 	
                

              
	 	 
	 	
                Financial
                  Markets

                280
                  Bishopsgate 

                London
                  EC2M 4RB

              

      

      

      
        	
                Memorandum

              	
                July
                  25, 2006

              

      

      

        
          	
                  To:

                	
                  HSBC
                    Bank USA, National Association, not in its individual capacity,
                    but solely
                    as Supplemental Interest Trust Trustee for the Supplemental Interest
                    Trust
                    with respect to Ace Securities Corp. Home Equity Loan Trust,
Series
                    2006-CW1, Asset Backed Pass-Through Certificates ("Party
                    B")

                
	 	 
	 	
                  452
                    Fifth Avenue

                  New
                    York, New York 10018

                  Attn:
                    Corporate Trust & Loan Agency

                  Tel:
                    212-525-1309

                  Fax:
                    212-525-1300

                  E-Mail:
                    fernando.acebedo@us.hsbc.com

                
	 	 
	
                  Copy
                    To:

                	
                  Wells
                    Fargo Bank, National Association

                  9062
                    Old Annapolis Road

                  Columbia,
                    Maryland 21045

                  Tel:
                    410-884-2000

                  Attn:
                    Client Manager, ACE 2006-CW1

                  Fax:
                    410-715-2380

                
	 	 
	
                  From:

                	
                  The
                    Royal Bank of Scotland plc ("Party
                    A")

                  c/o
                    RBS Financial Markets

                  Level
                    7,135 Bishopsgate

                  London
                    EC2M 3UR

                  Attn:
                    Head of Legal, Financial Markets

                  Tel:
                    44 207 085 5000

                  Fax:
                    44 207 085 8411

                
	 	 
	
                  Copy
                    To:

                	
                  Greenwich
                    Capital Markets, Inc.

                  600
                    Steamboat Road

                  Greenwich,
                    CT 06830

                  Attn:
                    Legal Department - Derivatives Documentation

                  Tel.:
                    203-618-2576

                  Fax:
                    203-618-2533/34

                
	 	 
	
                  Our
                    Reference

                  Number:

                	
                  D16043892

                

        

      

      
         

      

      
        
          
            
            

          

          
            Page
              1 of
              18

            
              

            

          

          
            
            

          

        

      

      

      Dear
        Sir
        or Madam:

       

      The
        purpose of this letter agreement is to confirm the terms and conditions of
        the
        Transaction entered into between
        Party A and HSBC Bank USA, National Association as supplemental interest
        trust
        trustee of the supplemental
        interest trust (the "Supplemental
        Interest Trust Trustee" and
        the
"Supplemental
        Interest Trust",
        respectively)
        under the Pooling and Servicing Agreement (the "Pooling
        and Servicing Agreement"), dated
        and
        effective as of July 1, 2006, among Ace Securities Corp., as Depositor,
Countrywide
        Home Loans Servicing LP, as Servicer, Wells Fargo Bank, National Association,
        as
        Master Servicer and Securities Administrator and the Supplemental Interest
        Trust
        Trustee (each a "party"
        and
        together
        "the
        parties") on
        the
        Trade Date specified below (the "Transaction").
        This
        letter agreement (the "Agreement")
        constitutes
        the sole and complete "Confirmation",
        as
        referred to in the Master Agreement (as
        defined below).

       

      The
        definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions")
        as
        published by the
        International Swaps and Derivatives Association, Inc., ("ISDA")
        are
        incorporated into this Confirmation. This
        Confirmation will be governed by and subject to the terms and conditions
        which
        would be applicable if,
        prior
        to the Trade Date, the parties had executed and delivered an ISDA Master
        Agreement (Multicurrency-Cross Border), in the form published by ISDA in
        1992
        (the "Master
        Agreement") (but
        without any Schedule except for the elections noted in Schedule B hereto).
        In
        the event of any inconsistency
        between the provisions of the Master Agreement and this Confirmation, this
        Confirmation will govern. Terms capitalized but not defined herein or in
        the
        Definitions incorporated herein shall have the
        respective meanings attributed to them in the Pooling and Servicing
        Agreement.

       

      
        	
                1

              	
                This
                  Confirmation evidences a complete binding agreement between the
                  parties as
                  to the terms of the Transaction to which this Confirmation relates.
                  In
                  addition, each party represents to the other party and will be
                  deemed to
                  represent to the other party on the date on which it enters into
                  a
                  Transaction that (absent a written agreement between the parties
                  that
                  expressly imposes affirmative obligations to the contrary for that
                  Transaction):

              

      

      

      
        	 	
                (i)

              	
                Principal
                  In
                  the case of Party A, it is acting as principal and not as agent
                  when
                  entering into the Transaction and in the case of Party B, it is
                  acting as
                  Supplemental
                  Interest Trust Trustee when entering into the
                  Transaction.

              

      

       

      
        	 	
                (ii)

              	
                Non-Reliance
                  In
                  the case of Party A, it is acting for its own account and, in the
                  case
                  of Party B, it is acting as Supplemental Interest Trust Trustee,
                  and in
                  the case of
                  both parties, it has made its own independent decisions to enter
                  into the
                  Transaction
                  and as to whether the Transaction is appropriate or proper for
                  it based
                  upon
                  its own judgment and upon advice from such advisors as it has deemed
                  necessary and, with respect to Party B, as directed under the Pooling
                  and
                  Servicing
                  Agreement. It is not relying on any communication (written or oral)
                  of the
                  other
                  party as investment advice or as a recommendation to enter into
                  the
                  Transaction; it being understood that information and explanations
                  related
                  to the terms
                  and conditions of the Transaction shall not be considered investment
                  advice or
                  a recommendation to enter into the Transaction. No communication
                  (written
                  or oral)
                  received from the other party shall be deemed to be an assurance
                  or
                  guarantee as to the expected results of the
                  Transaction.

              

      

       

      
        	 	
                (iii)

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

              

      

       

      

      
        
          
            
            

          

          
            Page
              2 of
              18

            
              

            

          

          
            
            

          

        

      

      

      
        	 	
                (iv)

              	
                Status
                  of Parties The
                  other party is not acting as an agent, fiduciary or advisor it
                  in respect of that Transaction.

              

      

       

      
        	
                2

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

              

      

      

      
        	 	
                Notional
                  Amount:

              	
                With
                  respect to any Calculation Period, the amount set
                  forth on Schedule A attached hereto.

              
	 	 	 	 
	 	 	
                Trade
                  Date:

              	
                July
                  14, 2006

              
	 	 	 	 
	 	 	
                Effective
                  Date:

              	
                July
                  25, 2006

              
	 	 	 	 
	 	 	
                Termination
                  Date:

              	
                November
                  25, 2010, subject to adjustment in accordance with the Business
                  Day
                  Convention (provided, however, solely for the purpose of determining
                  the
                  Fixed Rated Payer Period End Date with respect to the final Calculation
                  Period, such
                  date shall be subject to No Adjustment).

              
	 	 	 
	 	
                Fixed
                  Amounts:

              	 
	 	 	 	 
	 	 	
                Fixed
                  Rate Payer:

              	
                Party
                  B

              
	 	 	 	 
	 	 	
                Fixed
                  Rate Payer Period

                End
                  Dates:

              	
                The
                  25th
                  day of each month of each year commencing
                  February 25, 2007, through and including
                  the Termination Date, subject to no
                  adjustment. For
                  the avoidance of doubt, the initial Fixed Rate Payer
                  Calculation Period will commence on (and including)
                  January 25, 2007 and end on (and
                  excluding) February 25, 2007.

              
	 	 	 	 
	 	 	
                Fixed
                  Rate Payer 

                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. The Fixed Rate Payer
                  Payment Dates shall be one (1) Business Day
                  prior to each Fixed Rate Payer Period End Date,
                  subject to adjustment in accordance with the
                  Business Day Convention.

              
	 	 	 	 
	 	 	
                Fixed
                  Rate:

              	
                5.480%

              
	 	 	 	 
	 	 	
                Fixed
                  Rate Day

              	
                30/360

              
	 	 	
                Count
                  Fraction:

              	 
	 	 	 
	 	
                Floating
                  Amounts:

              	 
	 	 	 	 
	 	 	
                Floating
                  Rate Payer:

              	
                Party
                  A

              
	 	 	 	 
	 	 	
                Floating
                  Rate Payer Period 

                End
                  Dates:

              	
                The
                  25th
                  day of each month of each year commencing February 25, 2007, through
                  and
                  including
                  the Termination Date, subject to
                  adjustment in accordance with the Business Day Convention. For
                  the avoidance of doubt, the initial Floating Rate
                  Payer Calculation Period will commence on (and including) January
                  25, 2007
                  and end on (and excluding) February 25,
                  2007.

              

      

      

        
          
            
            

          

          
            Page
              3 of
              18

            
              

            

          

          
            
            

          

        

      

       

      
        	 	
                Floating
                  Rate Payer 

                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. The Floating Rate Payer Payment Dates
                  shall
                  be one (1) Business Day prior to each Floating Rate Payer Period
                  End Date,
                  subject to adjustment in accordance
                  with the Business Day Convention.

              
	 	 	 
	 	
                Floating
                  Rate Option:

              	
                USD-LIBOR-BBA

              
	 	 	 
	 	
                Designated
                  Maturity:

              	
                One
                  month

              
	 	 	 
	 	
                Spread:

              	
                None

              
	 	 	 
	 	
                Floating
                  Rate Day Count 

                Fraction:

              	
                Actual/360

              
	 	 	 
	 	
                Reset
                  Dates:

              	
                First
                  day of each Calculation Period

              
	 	 	 
	 	
                Business
                  Days for payment:

              	
                New
                  York

              
	 	 	 
	 	
                Business
                  Day Convention:

              	
                Following

              
	 	 	 
	 	
                Calculation
                  Agent:

              	
                Party
                  A

              

      

      

      
        	
                3

              	
                Recording
                  of Conversations

              

      

      

      Each
        party (i) consents to the recording of the telephone conversations of trading
        and marketing personnel of the parties and (ii) agrees to obtain any necessary
        consent of, and give notice of such recording to, such personnel of
        it.

      

      
        	
                4

              	
                Account
                  Details:

              

      

      

      
        	 	
                Account
                  for payments to Party A:

              	
                For
                  the account of The Royal Bank of Scotland Financial Markets Fixed
                  Income
                  and Interest Rate Derivative Operations, London SWIFT RBOSGB2RTCM
                  with JPMorgan Chase Bank, New York
                  CHASUS33, ABA # 021000021
                  Account Number 400930153

              
	 	 	 
	 	
                Account
                  for payments to Party B:

              	
                Wells
                  Fargo Bank, NA 

                ABA#
                  121000248 

                Account
                  Name: SAS Clearing Account #3970771416 FFC
                  to: 50936202, ACE 2006-CW1 Supplemental
                  Interest Trust Account

              

      

      

      

      
        
          
            
            

          

          
            Page
              4 of
              18

            
              

            

          

          
            
            

          

        

      

      

      
        	
                5

              	
                Offices:

              

      

      

      The
        Office of Party A for this Transaction is:      
London
        

      

      The
        Office of Party B for this Transaction
        is:       New York

      

      
        	
                6

              	
                Other
                  Provisions:

              

      

      

      
        	
                6.1

              	
                Agency
                  Role of Greenwich Capital Markets, Inc. This Transaction has been
                  entered
                  into by Greenwich
                  Capital Markets, Inc., as agent for The Royal Bank of Scotland
                  plc.
                  Greenwich Capital Markets,
                  Inc. has not guaranteed and is not otherwise responsible for the
                  obligations of Party A under
                  this Transaction.

              

      

      

      [REMAINDER
        OF THIS PAGE INTENTIONALLY LEFT BLANK]

       

       

       

       

       

       

       

      

      
        
          
            
            

          

          
            Page
              5 of
              18

            
              

            

          

          
            
            

          

        

      

      

      Please
        promptly confirm that the foregoing correctly sets forth the terms of the
        Transaction entered into between
        us by executing this Confirmation and returning it to us by facsimile
        to:

      

      The
        Royal Bank of Scotland plc

      Attention:
        Derivatives Documentation

      Fax:
        0207 375 6724 / 6486 Phone: 0207 375 4225

       

       

      THE
        ROYAL BANK OF SCOTLAND PLC

      By:
        Greenwich Capital Markets, Inc., its agent

       

      By  
        /s/ Giuliano Granata        

      Name:
        Giuliano Granata

      Title:
        Vice President

      

      Accepted
        and confirmed as of the Trade Date written above:

       

       

      HSBC
        BANK USA, NATIONAL ASSOCIATION,
        NOT IN
        ITS INDIVIDUAL CAPACITY, BUT SOLELY AS SUPPLEMENTAL
        INTEREST TRUST TRUSTEE FOR THE SUPPLEMENTAL INTEREST TRUST WITH RESPECT
        TO ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1, ASSET
BACKED
        PASS-THROUGH CERTIFICATES

       

      By  
        ________________________________

      Name:
        

      Title:
        

      

       

       

       

       

       

       

      Swap
        Confirmation (reference number D16043892)

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      Please
        promptly confirm that the foregoing correctly sets forth the terms of the
        Transaction entered into between
        us by executing this Confirmation and returning it to us by facsimile
        to:

      

      The
        Royal Bank of Scotland plc

      Attention:
        Derivatives Documentation

      Fax:
        0207 375 6724 / 6486 Phone: 0207 375 4225

      

      THE
        ROYAL BANK OF SCOTLAND PLC

      By:
        Greenwich Capital Markets, Inc., its agent

      

      By  
        ____________________________

      Name:

      Title:

      

      Accepted
        and confirmed as of the Trade Date written above:

      

      HSBC
        BANK USA, NATIONAL ASSOCIATION, NOT
        IN
        ITS INDIVIDUAL CAPACITY, BUT SOLELY AS SUPPLEMENTAL INTEREST TRUST TRUSTEE
        FOR
        THE SUPPLEMENTAL INTEREST TRUST WITH RESPECT
        TO ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1, ASSET
BACKED
        PASS-THROUGH CERTIFICATES

      

      By  
        /s/ Fernando Acebedo        

      Name:
        FERNANDO
        ACEBEDO 

      Title:
        VICE
        PRESIDENT

       

       

       

       

       

      
 

      Swap
        Confirmation (reference number D16043892)

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      Schedule
        A to the Confirmation dated as of July 25, 2006

      

      Re:
        Reference Number D16043892

      

      Amortization
        Schedule, all such dates subject to No Adjustment with respect to Fixed Rate
        Payer Period
        End Dates and subject to adjustment in accordance with the Business Day
        Convention with respect
        to Floating Rate Payer Period End Dates

      

      
        	
                From
                  and Including

              	
                To
                  but Excluding

              	
                Notional
                  Amount (USD)

              
	
                1/25/2007

              	
                2/25/2007

              	
                738,774,499.00

              
	
                2/25/2007

              	
                3/25/2007

              	
                714,410,158.00

              
	
                3/25/2007

              	
                4/25/2007

              	
                688,369,440.00

              
	
                4/25/2007

              	
                5/25/2007

              	
                660,852,881.00

              
	
                5/25/2007

              	
                6/25/2007

              	
                634,437,886.00

              
	
                6/25/2007

              	
                7/25/2007

              	
                609,084,922.00

              
	
                7/25/2007

              	
                8/25/2007

              	
                584,751,184.00

              
	
                8/25/2007

              	
                9/25/2007

              	
                561,395,304.00

              
	
                9/25/2007

              	
                10/25/2007

              	
                538,977,752.00

              
	
                10/25/2007

              	
                11/25/2007

              	
                517,460,759.00

              
	
                11/25/2007

              	
                12/25/2007

              	
                496,807,777.00

              
	
                12/25/2007

              	
                1/25/2008

              	
                476,983,904.00

              
	
                1/25/2008

              	
                2/25/2008

              	
                457,901,601.00

              
	
                2/25/2008

              	
                3/25/2008

              	
                439,473,441.00

              
	
                3/25/2008

              	
                4/25/2008

              	
                420,781,547.00

              
	
                4/25/2008

              	
                5/25/2008

              	
                370,326,371.00

              
	
                5/25/2008

              	
                6/25/2008

              	
                327,855,635.00

              
	
                6/25/2008

              	
                7/25/2008

              	
                292,076,263.00

              
	
                7/25/2008

              	
                8/25/2008

              	
                262,245,816.00

              
	
                8/25/2008

              	
                9/25/2008

              	
                251,323,956.00

              
	
                9/25/2008

              	
                10/25/2008

              	
                240,894,077.00

              
	
                10/25/2008

              	
                11/25/2008

              	
                230,909,844.00

              
	
                11/25/2008

              	
                12/25/2008

              	
                221,355,400.00

              
	
                12/25/2008

              	
                1/25/2009

              	
                212,205,676.00

              
	
                1/25/2009

              	
                2/25/2009

              	
                203,443,141.00

              
	
                2/25/2009

              	
                3/25/2009

              	
                195,050,981.00

              
	
                3/25/2009

              	
                4/25/2009

              	
                187,013,137.00

              
	
                4/25/2009

              	
                5/25/2009

              	
                179,315,197.00

              
	
                5/25/2009

              	
                6/25/2009

              	
                171,945,039.00

              
	
                6/25/2009

              	
                7/25/2009

              	
                164,884,889.00

              
	
                7/25/2009

              	
                8/25/2009

              	
                158,121,391.00

              
	
                8/25/2009

              	
                9/25/2009

              	
                151,641,784.00

              
	
                9/25/2009

              	
                10/25/2009

              	
                145,433,877.00

              
	
                10/25/2009

              	
                11/25/2009

              	
                139,486,011.00

              
	
                11/25/2009

              	
                12/25/2009

              	
                133,787,309.00

              
	
                12/25/2009

              	
                1/25/2010

              	
                128,326,781.00

              
	
                1/25/2010

              	
                2/25/2010

              	
                123,094,229.00

              
	
                2/25/2010

              	
                3/25/2010

              	
                118,079,907.00

              
	
                3/25/2010

              	
                4/25/2010

              	
                113,274,501.00

              
	
                4/25/2010

              	
                5/25/2010

              	
                108,669,100.00

              
	
                5/25/2010

              	
                6/25/2010

              	
                104,255,302.00

              
	
                6/25/2010

              	
                7/25/2010

              	
                100,024,812.00

              
	
                7/25/2010

              	
                8/25/2010

              	
                95,969,831.00

              

      

      

      

      
        
          
          

        

        
          Page
            7 of
            18

          
            

          

        

        
          
          

        

      

      

      
        	
                From
                  and Including

              	
                To
                  but Excluding

              	
                Notional
                  Amount (USD)

              
	
                8/25/2010

              	
                9/25/2010

              	
                92,082,904.00

              
	
                9/25/2010

              	
                10/25/2010

              	
                88,356,900.00

              
	
                10/25/2010

              	
                11/25/2010

              	
                84,784,997.00

              

      

       

       

       

       

       

       

      
 

      

      
        
          
            
            

          

          
            Page
              8 of
              18

            
              

            

          

          
            
            

          

        

      

      

      

      Schedule
        B to the Confirmation dated as of July 25, 2006

      

      

      Re:
        Reference Number D16043892

      

      Between
        The Royal Bank of Scotland plc ("Party
        A") and
        HSBC
        Bank USA, National Association, not in its individual
        capacity, but solely as Supplemental Interest Trust Trustee for the Supplemental
        Interest Trust with
        respect to Ace Securities Corp. Home Equity Loan Trust, Series 2006-CW1,
        Asset
        Backed Pass-Through
        Certificates ("Party
        B")

       

      
        
          	
                  Part.
                    1

                	
                  Termination
                    Provisions

                

        

        

          
            	 	
                    (a)

                  	
                    "Specified
                      Entity" means
                      in relation to Party A for the purpose of the Master Agreement:
                      

                  

          

          

          Section
            5(a)(v): none.

          

          Section
            5(a)(vi): none.

          

          Section
            5(a)(vii): none.

          

          Section
            5(b)(iv): none.

          

          and
            in
            relation to Party B for the purpose of the Master Agreement:

          

          Section
            5(a)(v): none.

          

          Section
            5(a)(vi): none.

          

          Section
            5(a)(vii): none.

          

          Section
            5(b)(iv): none.

           

          
            	 	
                    (b)

                  	
                    "Specified
                      Transaction" is
                      not applicable to Party A or Party B for any purpose, and accordingly,
                      Section 5(a)(v) of the Master Agreement shall not apply to
                      Party A or
                      Party B.

                  

          

           

          
            	 	
                    (c)

                  	
                    The
                      "Breach
                      of Agreement" provisions
                      of Section 5(a)(ii) of the Master Agreement will be inapplicable
                      to Party A and Party B.

                  

          

           

          
            	 	
                    (d)

                  	
                    The
                      "Credit
                      Support Default" provisions
                      of Section 5(a)(iii) of the Master Agreement will be
                      inapplicable to Party A and Party
                      B.

                  

          

           

          
            	 	
                    (e)

                  	
                    The
                      "Misrepresentation"
                      provisions of Section 5(a)(iv) of the Master Agreement will
                      be
                      inapplicable to Party A and Party
                      B.

                  

          

           

          
            	 	
                    (f)

                  	
                    The
                      "Default
                      Under Specified Transaction"
                      provisions of Section 5(a)(v) of the Master Agreement will
                      be inapplicable
                      to Party A and Party B.

                  

          

           

          
            	 	
                    (g)

                  	
                    The
                      "Cross
                      Default"
                      provisions of Section 5(a)(vi) of the Master Agreement will
                      be
                      inapplicable to Party A and Party
                      B.

                  

          

           

          
            	 	
                    (h)

                  	
                    The
                      "Bankruptcy"
                      provision of Section 5(a)(vii)(2) of the Master Agreement will
                      be
                      inapplicable to Party B.

                  

          

           

          
            	 	
                    (i)

                  	
                    The
                      "Credit
                      Event Upon Merger"
                      provisions of Section 5(b)(iv) of the Master Agreement will
                      be
                      inapplicable to Party A and Party
                      B.

                  

          

          

            
              
                
                

              

              
                Page
                  9 of
                  18

                
                  

                

              

              
                
                

              

            

          
            	 	
                    (j)

                  	
                    The
                      "Automatic
                      Early Termination" provision
                      of Section 6(a) of the Master Agreement will be
                      inapplicable to Party A and Party B; provided that where there
                      is an Event
                      of Default under
                      Section 5(a)(vii)(1), (3), (4), (5), (6) or, to the extent
                      analogous
                      thereto, (8), and the Defaulting
                      Party is governed by a system of law that does not permit termination
                      to
                      take place
                      after the occurrence of such Event of Default, then the Automatic
                      Early
                      Termination provisions
                      of Section 6(a) will apply.

                  

          

          

          If
            an
            Early Termination Date has occurred under Section 6(a) of the Master
            Agreement
            as a
            result
            of Automatic Early Termination, and if the Non-defaulting Party determines
            that
            it has
            either sustained or incurred a loss or damage or benefited from a gain
            in
            respect of any
            Transaction, as a result of movement in interest rates, currency exchange
            rates,
            other relevant
            rates or market quotations between the Early Termination Date and the
            date upon
which
            the
            Non-defaulting Party first becomes aware that such Event of Default has
            occurred
            under Section 6(a) of the Agreement, then (i) the amount of such loss
            or damage
shall
            be
            added to the amount due by the Defaulting Party or deducted from the
            amount
due
            by
            the Non-defaulting Party, as the case may be (in both cases pursuant
            to Section
6(e)(i)(3)
            of the Master Agreement); or (ii) the amount of such gain shall be deducted
            from
            the amount due by the Defaulting Party or added to the amount due by
            the
            Non-defaulting Party,
            as
            the case may be (in both cases pursuant to Section 6(e)(i)(3) of the
            Master
            Agreement).

          

          
            	 	
                    (k)

                  	
                    "Payments
                      on Early Termination" For
                      the purpose of Section 6(e) of the Master
                      Agreement:

                  

          

          

          
            	 	
                    (i)

                  	
                    Market
                      Quotation will apply; and

                  

          

          

          
            	 	
                    (ii)

                  	
                    The
                      Second Method will apply.

                  

          

          

          
            	 	
                    (l)

                  	
                    "Termination
                      Currency" means
                      United States Dollars.

                  

          

           

        

      

      
        	
                Part.
                  2

              	
                Tax
                  Representations

              

      

       

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

      

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

      

      

      
        
          
            
            

          

          
            Page
              10 of
              18

            
              

            

          

          
            
            

          

        

      

      

      Payee
        Representations For
        the purpose of Section 3(f) of the Master Agreement, Party A and Party B
        make
        the following representations:

      

      
        	 	
                (i)

              	
                Party
                  A represents that

              

      

      

      
        	 	
                (A)

              	
                it
                  is a tax resident of the United
                  Kingdom;

              

      

      

      
        	 	
                (B)

              	
                it
                  is a "foreign person" within the meaning of the applicable U.S.
                  Treasury
                  Regulations concerning information reporting and backup withholding
                  tax
                  (as in effect on January 1, 2001), unless Party A provides written
                  notice
                  to Party B that it is no longer a foreign
                  person;

              

      

      

      
        	 	
                (C)

              	
                in
                  respect of each Transaction it enters into through an office or
                  discretionary agent in the United States or which otherwise is
                  allocated
                  (in whole or part) for United States federal income tax purposes
                  to such
                  United States trade or business, each payment received or to be
                  received
                  by it under such Transaction (or portion thereof, if applicable)
                  will be
                  effectively connected with its conduct of a trade or business in
                  the
                  United States; and

              

      

      

      
        	 	
                (D)

              	
                in
                  respect of all other Transactions or portions thereof, no such
                  payment
                  received or to be received by it in connection with this Agreement
                  is
                  attributable to a trade or business carried on by it through a
                  permanent
                  establishment in the United States.

              

      

      

      
        	 	
                (ii)

              	
                Party
                  B represents that it is the Supplemental Interest Trust Trustee
                  of the
                  Supplemental
                  Interest Trust created under the Pooling and Servicing
                  Agreement.

              

      

      

      
        	
                Part.
                  3

              	
                Agreement
                  to Deliver Documents

              

      

       

      For
        the purpose of Sections 4(a)(i) and (ii) of the Master Agreement, Party A
        and
        Party B agree to deliver the following documents, as applicable:

      

        
          	 	
                  (a)

                	
                  Tax
                    forms, documents or certificates to be delivered
                    are:

                

        

      

      

        
          	 	
                  Party
                    Required to

                  Deliver
                    Document

                	 	
                  Form/Document/Certificate

                	 	
                  Date
                    by Which to be Delivered

                
	 	 	 	 	 	 
	 	
                  Party
                    A and Party B

                	 	
                  Any
                    form or document required or reasonably requested
                    to allow the other party
                    to make payments under
                    the Agreement without any
                    deduction or withholding for
                    or on account of any Tax, or
                    with such deduction or withholding
                    at a reduced
                    rate.

                	 	
                  Promptly
                    upon reasonable demand
                    by the other party.

                

        

      

      
         

        
          
          

        

        
          Page
            11 of
            18

          
            

          

        

        
          
          

        

      

      
        

        
          	 	
                  (b)

                	
                  Other
                    documents to be delivered and covered by the Section 3(d) representation
                    are:-

                

        

         

      

      
        	 	
                Party
                  required to 

                deliver

              	 	
                Form/Document/or 

                Certificate

              	 	
                Date
                  by which to be 

                delivered

              	 	
                Covered
                  by 

                Section
                  3(d) 

                representation

              
	 	 	 	 	 	 	 	 
	 	
                Party
                  A and Party B

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

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

              	 	
                Yes

              
	 	 	 	 	 	 	 	 
	 	
                Party
                  B

              	 	
                The
                  Pooling and Servicing
                  Agreement

              	 	
                Concurrently
                  with the execution and delivery of the Confirmation.

              	 	
                No

              
	 	 	 	 	 	 	 	 
	 	
                Party
                  A and Party B

              	 	
                Legal
                  opinion[s] with
                  respect to such party and its Credit Support Provider, if any,
                  for it,
                  reasonably
                  satisfactory
                  in
                  form and substance to the other party relating to the enforceability
                  of
                  the party's obligation under this Agreement.

              	 	
                Upon
                  the execution and
                  delivery of this Agreement and any Confirmation

              	 	
                No

              

      

      

      
        	
                Part.
                  4

              	
                Miscellaneous

              

      

       

      
        	 	
                (a)

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

              

      

       

      Addresses
        for notices or communications to Party A and to Party B shall be those
set
        forth
        on the first page of the Confirmation.

      

      
        	 	
                (b)

              	
                Process
                  Agent For
                  the purpose of Section 13(c) of the Master
                  Agreement:

              

      

       

      Party
        A
        appoints as its Process Agent: none.

       

      Party
        B appoints as its Process Agent:
        none.

      
        
          
            
            

          

          
            Page
              12 of
              18

            
              

            

          

          
            
            

          

        

      

       

      
        	 	
                (c)

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

              

      

       

      
        	 	
                (d)

              	
                Multibranch
                  Party For
                  the purpose of Section 10(c) of the Master
                  Agreement:

              

      

       

      Party
        A
        is not a Multibranch Party. Party
        B
        is not a Multibranch Party.

      

      
        	 	
                (e)

              	
                Calculation
                  Agent The
                  Calculation Agent is Party A.

              

      

       

      
        	 	
                (f)

              	
                Credit
                  Support Document Details
                  of any Credit Support Document:
                  none

              

      

       

      
        	 	
                (g)

              	
                Credit
                  Support Provider

              

      

       

      Credit
        Support Provider means in relation to Party A: none.

      

      Credit
        Support Provider means in relation to Party B: none.

      

      
        	 	
                (h)

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

              

      

       

      
        	 	
                (i)

              	
                Netting
                  of Payments Subparagraph
                  (ii) of Section 2(c) of the Agreement will apply to the Transaction
                  evidenced by the Confirmation.

              

      

       

      
        	 	
                (j)

              	
                "Affiliate"
                  Party
                  B shall be deemed to have no Affiliates for purposes of this
                  Transaction.

              

      

       

      
        	 	
                (k)

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

              

      

       

      
        	
                Part.
                  5

              	
                Other
                  Provisions

              

      

      

        
          	 	
                  (a)

                	
                  Modifications
                    to the Agreement Section
                    3(a) of the Master Agreement shall be amended
                    to include the following additional representations after paragraph
                    3(a)(v):

                

        

         

      

      (vi)      Eligible
        Contract Participant etc. It
        is an
        "eligible contract participant" as defined
        in Section 1a(12) of the U.S. Commodity Exchange Act (7 U.S.C. 1a), as
amended
        by the Commodity Futures Modernization Act of 2000 and the Transaction
        evidenced hereby has been the subject of individual negotiations and
is
        intended to be exempt from, or otherwise not subject to regulation
        thereunder.

      

      
        	 	
                (b)

              	
                Waiver
                  of Right to Trial by Jury Each
                  party hereby irrevocably waives any and all rights to
                  trial by jury in any legal proceeding arising out of or relating
                  to this
                  Agreement or any Transaction
                  hereunder.

              

      

       

      
        	 	
                (c)

              	
                Absence
                  of Litigation In
                  Section 3(c) of the Master Agreement the words "or any of its Affiliates"
                  shall be deleted.

              

      

       

      
        	 	
                (d)

              	
                Tax
                  Event In
                  Section 5(b)(ii)(y) of the Master Agreement the words ", or there
                  is a
                  substantial likelihood that it will," shall be
                  deleted.

              

      

       

      

      
        
          
            
            

          

          
            Page
              13 of
              18

            
              

            

          

          
            
            

          

        

      

      

      
        	 	
                (e)

              	
                Transfer
                  and Amendment

              

      

       

      Subject
        to Part 5(j) herein, no transfer, amendment, waiver, supplement, assignment
        or
        other modification of this Transaction shall be permitted by either party
        unless
        (i) each of Standard and Poor's Ratings Services, a Division of The McGraw-Hill
        Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's")
        (each a "Rating Agency") has been provided notice of the same and (ii) each
        of
        S&P and Moody's confirm in writing (including by facsimile transmission)
        that they will not downgrade, qualify, withdraw or otherwise modify their
        then-current rating of the Certificates and any notes backed by the Certificates
        ("Notes").

      

      
        	 	
                (f)

              	
                Supplemental
                  Interest Trust Trustee
                  Capacity

              

      

       

      It
        is expressly understood and agreed by the parties hereto that insofar as
        this
        Confirmation is executed by the Supplemental Interest Trust Trustee (i) this
        Confirmation is executed and delivered by HSBC Bank USA, National Association,
        not in its individual capacity but solely as Supplemental Interest Trust
        Trustee
        of the Supplemental Interest Trust created under the Pooling and Servicing
        Agreement in the exercise of the powers and authority conferred and vested
        in it
        thereunder (ii) each of the representations, undertakings and agreements
        herein
        made on behalf of the Trust is made and intended not as personal representations
        of the Supplemental Interest Trust Trustee but is made and intended for the
        purpose of binding only the Supplemental Trust created under the Pooling
        and
        Servicing Agreement, and (iii) under no circumstances will HSBC Bank USA,
        National Association in its individual capacity be personally liable for
        the
        payment of any indebtedness or expenses or be personally liable for the breach
        or failure of any obligation, representation, warranty or covenant made or
        undertaken under this Confirmation.

      

      
        	 	
                (g)

              	
                Proceedings

              

      

       

      Party
        A shall not institute against or cause any other person to institute against,
        or
        join any other person in instituting against, Party B, or Ace Securities
        Corp.
        Home Equity Loan Trust, Series 2006-CW1, Asset Backed Pass-Through Certificates
        created under the Pooling and Servicing Agreement, any bankruptcy,
        reorganization, arrangement, insolvency or liquidation proceedings, or other
        proceedings under any federal or state bankruptcy, dissolution or similar
        law,
        for a period of one year and one day (or, if longer, the applicable preference
        period) following indefeasible payment in full of the Certificates, provided
        that nothing herein shall preclude, or be deemed to estop Party A from taking
        any action in any case or proceeding voluntarily filed or commenced by or
        on
        behalf of Party B or in any involuntary case or proceeding after it has been
        commenced.

      

      
        	 	
                (h)

              	
                Set-off

              

      

       

      Notwithstanding
        any provision of this Agreement or any other existing or future agreement,
        each
        party irrevocably waives any and all rights it may have to set-off, net recoup
        or otherwise withhold or suspend or condition payment or performance of any
        obligation between it and the other party hereunder against any obligation
        between it and the other party
        under any other agreements. The provisions for Set-off set forth in Section
        6(e)
        of the
        Master Agreement shall not apply for purposes of this Transaction.

      

      
        
          
            
            

          

          
            Page
              14 of
              18

            
              

            

          

          
            
            

          

        

      

      

      
        	 	
                (i)

              	
                Section
                  1(c)

              

      

       

      For
        purposes of Section 1(c) of the Master Agreement, this Transaction shall
        be the
        sole Transaction
        under the Agreement.

      

      
        	 	
                (j)

              	
                Rating
                  Agency Downgrade

              

      

       

      If
        a
        Ratings Event (as defined below) occurs with respect to Party A (or any
        applicable credit
        support provider), then Party A shall, within (30) days of such Ratings Event
        subject to
        the
        Rating Agency Condition (as hereinafter defined) and at its own expense (unless,
        within
        30
        days of such Ratings Event, each of S&P and Moody's has reconfirmed the
rating
        of
        the Certificates and Notes which was in effect immediately prior to such
        Ratings
        Event), (i) assign this Transaction hereunder to a third party that meets
        or
        exceeds, or as to which any applicable credit support provider of such third
        party meets or exceeds, the Approved Ratings Thresholds (as defined below)
        on
        terms substantially similar to this Confirmation, (ii) obtain a guaranty
        of
        Party A's obligations under this Transaction from a third
        party that meets or exceeds the Approved Ratings Threshold, in form and
        substance, (iii)
        post collateral, or (iv) establish any other arrangement, which will be
        sufficient to restore the immediately prior ratings of the Certificates and
        Notes. For purposes of this Transaction,
        a "Ratings Event" shall occur with respect to Party A (or any applicable
        credit
        support provider), if its short-term unsecured and unsubordinated debt ceases
        to
        be rated at
        least
        "A-1" by S&P or its short-term unsecured and unsubordinated debt ceases to
        be rated
        at
        least "P-1" by Moody's or its long-term unsecured and unsubordinated debt
        ceases
        to be rated at least "A1" by Moody's (including in connection with a merger,
        consolidation or other similar transaction by Party A or any applicable credit
        support provider)
        such ratings being referred to herein as the "Approved Ratings Thresholds."
        If a
Further
        Ratings Event (as defined below) occurs with respect to Party A (or any
        applicable credit
        support provider), then Party A shall, within (10) days of such Downgrade
        Event
        subject to the Rating Agency Condition (as hereinafter defined) and at its
        own
        expense (unless, within 10 days of such Ratings Event, S&P has reconfirmed
        the rating of the Certificates and Notes which was in effect immediately
        prior
        to such Further Ratings Event),
        (i) assign this Transaction hereunder to a third party that meets or
        exceeds, or as to which any applicable credit support provider of such third
        party meets or exceeds, the Approved
        Ratings Thresholds on terms substantially similar to this Confirmation or
        (ii)
        obtain a guaranty of Party A's obligations under this Transaction from a
        third
        party that meets
        or
        exceeds the Approved Ratings Threshold. For purposes of this Transaction,
        a
"Further
        Ratings Event" shall occur with respect to Party A (or any applicable credit
        support
        provider), if its long-term unsecured and unsubordinated debt ceases to be
        rated
at
        least
        "BBB-" by S&P or its short-term unsecured and unsubordinated debt ceases to
        be rated
        at
        least "P-1" on watch for downgrade by Moody's or its long-term unsecured
        and
unsubordinated
        debt ceases to be rated at least "A2" on watch for downgrade by Moody's
(including
        in connection with a merger, consolidation or other similar transaction by
        Party
        A or
        any
        applicable credit support provider). "Rating Agency Condition" means, with
        respect to
        any
        particular proposed act or omission to act hereunder that the party acting
        or
        failing to
        act
        must consult with each Rating Agency then providing a rating of the Certificates
        and Notes and receive from each Rating Agency a prior written confirmation
        that
        the proposed action or inaction would not cause a downgrade or withdrawal
        of the
        then-current rating of the
        Certificates and Notes.

      

      
        
          
            
            

          

          
            Page
              15 of
              18

            
              

            

          

          
            
            

          

        

      

      

      

      
        	 	
                (k)

              	
                Additional
                  Termination Events

              

      

       

      Additional
        Termination Events will apply as specified below:

       

      The
        occurrence of the following shall constitute an Additional Termination
        Event:

       

      If
        a Rating Agency Downgrade has occurred and Party A has not complied with
        paragraph (j) above, then an Additional Termination Event shall have occurred
        with respect to Party A and Party A shall be the sole Affected Party with
        respect to such an Additional Termination Event.

       

      If,
        at any time, the Terminator purchases the Mortgage Loans pursuant to Section
        10.01 of the Pooling and Servicing Agreement, then an Additional Termination
        Event shall have occurred and Party B shall be the sole Affected Party with
        respect thereto; provided, however, that notwithstanding Section 6(b)(iv)
        of the
        Master Agreement, both Party A and Party B shall have the right to designate
        an
        Early Termination Date in respect of this Additional Termination Event;
        provided, further, that the Early Termination Date shall not be prior to
        the
        Optional Termination Date.

       

      If,
        at any time, the Pooling and Servicing Agreement is amended or modified without
        the prior written consent of Party A (such consent not to be unreasonably
        withheld), where such consent is required under the terms of the Pooling
        and
        Servicing Agreement, then an Additional Termination Event shall have occurred
        and Party B shall be the sole Affected Party.

       

      If,
        upon the occurrence of a Regulation AB Event (as defined in Part 5(o) below)
        Party A has not, within 30 days after such Regulation AB Event complied with
        any
        of the provisions set forth in Part 5(o)(iii) below (provided that if the
        significance percentage reaches 10% after a Regulation AB Event has occurred,
        Party A must comply with the provisions set forth in Part 5(o)(iii) below
        within
        10 calendar days of Party A being informed of the significance percentage
        reaching 10%), then an Additional Termination Event shall have occurred with
        respect to Party A and Party A shall be the sole Affected Party with respect
        to
        such Additional Termination Event.

       

      
        	 	
                (l)

              	
                Amendment
                  to ISDA Form

              

      

       

      The
        "Failure to Pay or Deliver" provision in Section 5(a)(i) of the Master Agreement
        is hereby amended by deleting the word "third" in the third line thereof
        and
        inserting the word "first" in place thereof.

      

      
        	 	
                (m)

              	
                Severability

              

      

       

      If
        any term, provision, covenant, or condition of the Agreement, or the application
        thereof to any other party or circumstance, shall be held invalid or
        unenforceable (in whole or in part) for any reason, the remaining terms,
        provisions, covenants, and conditions hereof
        shall
        continue in full force and effect as if the Agreement has been executed with
        the
        invalid or unenforceable provision portion eliminated, so long as the Agreement
        as so modified continues to express, without material change, the original
        intentions of the parties
        as to the subject matter of the Agreement and the deletion of such portion
        of
        the Agreement
        will not substantially impair the respective benefits or expectations of
        the
        parties. The parties shall endeavor to engage in good faith negotiations
        to
        replace any invalid
        or unenforceable term, provision, covenant or conditions with a valid or
        enforceable term,
        provision, covenant or condition, the economic effect of which comes as close
        as
possible
        to that of the invalid or unenforceable term, provision, covenant or
        condition.

      

      
        
          
            
            

          

          
            Page
              16 of
              18

            
              

            

          

          
            
            

          

        

      

      

      
        	 	
                (n)

              	
                Priority
                  of Payments

              

      

       

      Party
        A
        hereby agrees that, notwithstanding any provision of this agreement to the
        contrary,
        Party B's obligations to pay any amounts owing under this Agreement shall
        be
subject
        to Section 5.01 and Section 5.07 of the Pooling and Servicing Agreement and
        Party
        A's
        right to receive payment of such amounts shall be subject to Section 5.01
        and
Section
        5.07 of the Pooling and Servicing Agreement. This provision will survive
        the
        termination of this Agreement.

      

      
        	 	
                (o)

              	
                Compliance
                  with Regulation AB

              

      

       

      
        	 	
                (i)

              	
                Party
                  A agrees and acknowledges that while reporting requirements with
                  respect
                  to this
                  Transaction are operative by force of law, DB Structured Products,
                  Inc.
                  ("DBSP") and
                  ACE Securities Corp. ("ACE") are required under Regulation AB under
                  the
                  Securities Act of 1933, as amended, and the Securities Exchange
                  Act of
                  1934, as amended
                  ("Regulation AB"), to disclose certain information set forth in
                  Regulation
                  AB regarding
                  Party A or its group of affiliated entities, if applicable, depending
                  on
                  the aggregate "significance percentage" of this Agreement and any
                  other
                  derivative contracts
                  between Party A or its group of affiliated entities, if applicable,
                  and
                  Party B, as
                  calculated from time to time in accordance with Item 1115 of Regulation
                  AB.

              

      

       

      
        	 	
                (ii)

              	
                If,
                  solely while the relevant reporting requirements apply by force
                  of law to
                  this Transaction, DBSP or ACE determines, reasonably and in good
                  faith,
                  that the significance percentage of this Agreement has increased
                  to nine
                  (9) percent, then DBSP
                  or ACE, as the case may be, may notify Party A on a Business Day
                  after the
                  date
                  hereof of such increase in the significance percentage (such notification,
                  a "Regulation
                  AB Event"). DBSP and/or ACE, as applicable hereby agree with Party
                  A
                  to
                  provide Party A with the calculations and any other information
                  reasonably
                  requested by Party A with respect to the determination that led
                  to a
                  Regulation AB Event.

              

      

       

      
        	 	
                (iii)

              	
                Upon
                  the occurrence of a Regulation AB Event, Party A, at its own expense,
                  shall secure another entity to replace Party A as party to this
                  Agreement
                  on terms substantially similar to this Agreement and subject to
                  prior
                  notification to the Rating Agencies, which entity (or a guarantor
                  therefor) and satisfies the Rating Agency Condition
                  and which entity is able to provide the information set forth in
                  Item
                  1115(b) of
                  Regulation AB (the "Regulation AB Information"). If permitted by
                  Regulation AB, any required Regulation AB Information may be provided
                  by
                  incorporation by reference from reports filed pursuant to the Exchange
                  Act.

              

      

       

      

      
        
          
            
            

          

          
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              17 of
              18

            
              

            

          

          
            
            

          

        

      

      

      
        	 	
                (p)

              	
                Non-Recourse

              

      

      

      Notwithstanding
        any provision herein or in the Master Agreement to the contrary, the
obligations
        of Party B hereunder are limited recourse obligations of Party B, payable
        solely
        from the Supplemental Interest Trust and the proceeds thereof, in accordance
        with
        the
        terms of the Pooling and Servicing Agreement. In the event that the Supplemental
        Interest Trust and the proceeds thereof, should be insufficient to satisfy
        all
        claims outstanding and following the realization of the account held by the
        Supplemental Interest Trust and the proceeds thereof, any claims against
        or
        obligations of Party B under the Master Agreement or any other confirmation
        thereunder still outstanding shall be extinguished and thereafter not revive.
        The Supplemental
        Interest Trust Trustee shall not have liability for any failure or delay
        in
making
        a
        payment hereunder to Party A due to any failure or delay in receiving
amounts
        in the account held by the Supplemental Interest Trust from the trust created
        pursuant
        to the Pooling and Servicing Agreement.

       

       

       

      
        
          
          

        

        
          Page
            18 of
            18

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      J

     

    CAP
      CONTRACTS

     

    
       

      
        	 	
                

              
	 	
                Financial
                  Markets

                280
                  Bishopsgate

                London
                  EC2M 4RB

              

      

       

      
        	
                Memorandum

              	
                July
                  25, 2006

              

      

       

      
        	
                To:

              	
                HSBC
                  Bank USA, National Association, not in its individual capacity,
                  but solely
                  as Trustee for the ACE Securities Corp. Home Equity Loan Trust,
                  Series
                  2006-CW1,
                  Asset Backed Pass-Through Certificates ("Party
                  B")

              
	 	 
	 	
                452
                  Fifth Avenue

                New
                  York, New York 10018

                Attn:
                  Corporate Trust & Loan Agency

                Tel:
                  212-525-1309

                Fax:
                  212-525-1300

                E-Mail:
                  fernando.acebedo@us.hsbc.com

              
	 	 
	
                Copy
                  To:

              	
                Wells
                  Fargo Bank, National Association

                9062
                  Old Annapolis Road

                Columbia,
                  Maryland 21045

                Tel:
                  410-884-2000

                Attn:
                  Client Manager, ACE 2006-CW1

                Fax:
                  410-715-2380

              
	 	 
	
                From:

              	
                The
                  Royal Bank of Scotland plc ("Party
                  A")

                c/o
                  RBS Financial Markets

                Level
                  7, 135 Bishopsgate

                London
                  EC2M 3UR

                Attn:
                  Head of Legal, Financial Markets

                Tel:
                  44 207 085 5000

                Fax:
                  44 207 085 8411

              
	 	 
	
                Copy
                  To:

              	
                Greenwich
                  Capital Markets, Inc.

                600
                  Steamboat Road

                Greenwich,
                  CT 06830

                Attn:
                  Legal Department - Derivatives Documentation

                Tel.:
                  203-618-2576

                Fax:
                  203-618-2533/34

              
	 	 
	
                Our
                  Reference

                Number:

              	
                IRG16043901

              

      

      

      
        
          
          

        

        
          Page
            1 of
            17

          
            

          

        

        
          
          

        

      

      Dear
        Sir
        or Madam:

      

      The
        purpose of this letter agreement is to confirm the terms and conditions of
        the
        Transaction entered into between Party A and HSBC Bank USA, National Association
        as trustee of the ACE Securities Corp. Home Equity
        Loan Trust, Series 2006-CW1 Asset Backed Pass-Through Certificates (the
"Trustee"
        and
        the
"Trust", respectively) under the Pooling and Servicing
        Agreement (the "Pooling
        and Servicing Agreement"), dated
        and
        effective as of July 1, 2006, among Ace Securities Corp., as Depositor,
Countrywide
        Home Loans Servicing LP, as Servicer, Wells Fargo Bank, National Association,
        as
        Master Servicer and Securities Administrator and the Trustee (each a
"party"
        and
        together "the
        parties") on
        the
        Trade Date specified below (the "Transaction").
        This
        letter agreement (the "Agreement")
        constitutes
        the sole
        and
        complete "Confirmation",
        as
        referred to in the Master Agreement (as defined below).

      

      The
        definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions")
        as
        published by the
        International Swaps and Derivatives Association, Inc., ("ISDA")
        are
        incorporated into this Confirmation. This
        Confirmation will be governed by and subject to the terms and conditions
        which
        would be applicable if,
        prior
        to the Trade Date, the parties had executed and delivered an ISDA Master
        Agreement (Multicurrency-Cross Border), in the form published by ISDA in
        1992
        (the "Master
        Agreement") (but
        without any Schedule except for the elections noted in Schedule B hereto).
        In
        the event
        of
        any
inconsistency
        between the provisions of the Master Agreement and this Confirmation, this
        Confirmation will govern. Terms capitalized but not defined herein or in
        the
        Definitions incorporated herein shall have the
        respective meanings attributed to them in the Pooling and Servicing
        Agreement.

      

      
        	
                1

              	
                This
                  Confirmation evidences a complete binding agreement between the
                  parties as
                  to the terms of the
                  Transaction to which this Confirmation relates. In addition, each
                  party
                  represents to the other party
                  and will be deemed to represent to the other party on the date
                  on which it
                  enters into a Transaction that (absent a written agreement between
                  the
                  parties that expressly imposes affirmative obligations to the contrary
                  for
                  that Transaction):

              

      

      

      
        	 	
                (i)

              	
                Principal
                  In
                  the case of Party A, it is acting as principal and not as agent
                  when
                  entering into the Transaction and in the case of Party B, it is
                  acting as
                  Trustee when entering into the
                  Transaction.

              

      

      

      
        	 	
                (ii)

              	
                Non-Reliance
                  In
                  the case of Party A, it is acting for its own account and, in the
                  case
                  of Party B, it is acting as Trustee, and in the case of both parties,
                  it
                  has made its
                  own independent decisions to enter into the Transaction and as
                  to whether
                  the Transaction is appropriate or proper for it based upon its
                  own
                  judgment and upon advice from such advisors as it has deemed necessary
                  and, with respect to Party B, as directed under the Pooling and
                  Servicing
                  Agreement. It is not relying on any communication
                  (written or oral) of the other party as investment advice or as
                  a
                  recommendation
                  to enter into the Transaction; it being understood that information
                  and
                  explanations related to the terms and conditions of the Transaction
                  shall
                  not be considered
                  investment advice or a recommendation to enter into the Transaction.
                  No
                  communication (written or oral) received from the other party shall
                  be
                  deemed to
                  be an assurance or guarantee as to the expected results of the
                  Transaction.

              

      

      

      
        	 	
                (iii)

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

              

      

      
        
          
          

        

        
          Page
            2 of
            17

          
            

          

        

        
          
          

        

      

      
        	 	
                (iv)

              	
                Status
                  of Parties The
                  other party is not acting as an agent, fiduciary or advisor for
                  it
                  in respect of that Transaction.

              

      

      

      
        	
                2

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

              

      

       

      
        	 	 	
                Notional
                  Amount:

              	
                With
                  respect to any Calculation Period, shall equal the lesser of (1)
                  the Notional Amount as detailed in Schedule A attached hereto
                  and (2) the aggregate Certificate Principal Balance of the Class
                  A-1 Certificates, the Mezzanine Certificates and the Class CE
                  Certificates (together, the "Certificates") immediately prior
                  to the
                  related Floating Rate Payer Payment Date. The Securities Administrator
                  shall make available each month, and in any event no
                  later than five (5) business days prior to the related
                  Floating Rate
                  Payer Payment Date, via the Securities Administrator's website
                  a Distribution Date statement containing the aggregate Certificate
                  Principal Balance of the Certificates as of the first day of
                  such Calculation Period. Party A shall rely upon the statement of
                  Certificate Principal Balance of the Certificates made
                  available on
                  the Securities Administrator's website. The Securities Administrator's
                  internet website shall initially be located at www.ctslink.com
                  and assistance in using the website can be obtained
                  by calling the Securities Administrator's investor
                  relations desk at (301) 815-6600.

              
	 	 	 	 
	 	 	 	
                Any
                  payment by Party A to Party B in excess of the amount due under
                  this Transaction on any Floating Rate Payer Payment Date
                  shall be promptly returned by Party B to Party A and Party B
                  shall promptly notify Party A after Party B is aware of such overpayment.
                  Other than the return of such overpayment, neither
                  party shall incur any penalty or liability hereunder with
                  respect to such overpayment.

              
	 	 	 	 
	 	 	
                Trade
                  Date:

              	
                July
                  14, 2006

              
	 	 	 	 
	 	 	
                Effective
                  Date:

              	
                July
                  25, 2006

              
	 	 	 	 
	 	 	
                Termination
                  Date:

              	
                January
                  25, 2007, subject to adjustment in accordance with the
                  Business Day Convention.

              
	 	 
	 	
                Fixed
                  Amount:

              
	 	 	 	 
	 	 	
                Fixed
                  Rate Payer:

              	
                Party
                  B

              
	 	 	 	 
	 	 	
                Fixed
                  Rate Payer Payment

                Date:

              	
                July
                  25, 2006

              
	 	 	 	 
	 	 	
                Fixed
                  Amount:

              	
                USD
                  200.00

              
	 	 
	 	
                Floating
                  Amounts:

              
	 	 	 	 
	 	 	
                Floating
                  Rate Payer:

              	
                Party
                  A

              
	 	 	 	 
	 	 	
                Cap
                  Rate:

              	
                7.50%

              
	 	 	 	 
	 	 	
                Floating
                  Rate Payer Period

                End
                  Dates:

              	
                The
                  25th calendar day of each month of each year, commencing August
                  25, 2006, through and including the Termination Date, subject
                  to adjustment in accordance with the Business Day Convention.

              

      

      

      
        
          
          

        

        
          Page
            3 of
            17

          
            

          

        

        
          
          

        

      

      
        	 	 	
                Floating
                  Rate Payer

                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. The Floating Rate Payer Payment Dates
                  shall
                  be one (1) Business Day prior to each Floating Rate Payer Period
                  End Date,
                  subject to adjustment in accordance with the Business Day
                  Convention.

              
	 	 	 	 
	 	 	
                Floating
                  Rate Option:

              	
                USD-LIBOR-BBA

              
	 	 	 	 
	 	 	
                Floating
                  Amount

              	
                To
                  be determined in accordance with the following formula: the greater
                  of (i)
                  (Floating Rate Option - Cap Rate) * Notional Amount * Floating
                  Rate Day
                  Count Fraction and (ii) zero.

              
	 	 	 	 
	 	 	
                Designated
                  Maturity:

              	
                One
                  month.

              
	 	 	 	 
	 	 	
                Floating
                  Rate Day Count 

                Fraction:

              	
                Actual/360

              
	 	 	 	 
	 	 	
                Reset
                  Dates:

              	
                First
                  day of each Calculation Period

              
	 	 	 	 
	 	 	
                Compounding:

              	
                Inapplicable

              
	 	 	 	 
	 	 	
                Business
                  Days:

              	
                New
                  York

              
	 	 	 	 
	 	 	
                Business
                  Day Convention:

              	
                Following

              
	 	 	 	 
	 	 	
                Calculation
                  Agent:

              	
                Party
                  A

              

      

      

      
        	
                3

              	
                Recording
                  of Conversations

              

      

      

      Each
        party (i) consents to the recording of the telephone conversations of trading
        and marketing personnel of the parties and (ii) agrees to obtain any necessary
        consent of, and give notice of such recording to, such personnel of
        it.

      

      
        	
                4

              	
                Account
                  Details:

              

      

       

      
        	 	
                Account
                  for payments to Party A:

              	
                For
                  the account of The Royal Bank of Scotland Financial Markets Fixed
                  Income
                  and Interest Rate Derivative
                  Operations, London SWIFT RBOSGB2RTCM
                  with JPMorgan Chase Bank, New York
                  CHASUS33, ABA # 021000021
                  Account Number 400930153

              
	 	 	 
	 	
                Account
                  for payments to Party B:

              	
                Wells
                  Fargo Bank, NA 

                ABA#
                  121000248 

                Account
                  Name: SAS Clearing Account 

                #3970771416
                  

                FFC
                  to: 50936201, ACE 2006-CW1 Reserve
                  Fund

              

      

      

      
        	
                5

              	
                Offices:

              

      

      

      The
        Office of Party A for this Transaction is:       London

      

      The
        Office of Party B for this Transaction
        is:       New York

      
        
          
          

        

        
          Page
            4 of
            17

          
            

          

        

        
          
          

        

      

      
        	
                6

              	
                Other
                  Provisions:

              

      

      

      
        	
                6.1

              	
                Agency
                  Role of Greenwich Capital Markets, Inc. This Transaction has been
                  entered
                  into by Greenwich
                  Capital Markets, Inc., as agent for The Royal Bank of Scotland
                  plc.
                  Greenwich Capital Markets,
                  Inc. has not guaranteed and is not otherwise responsible for the
                  obligations of Party A under
                  this Transaction.

              

      

      

      [REMAINDER
        OF THIS PAGE INTENTIONALLY LEFT BLANK]

      

       

       

       

       

       

      
 

      
        
          
          

        

        
          Page
            5 of
            17

          
            

          

        

        
          
          

        

      

      Please
        promptly confirm that the foregoing correctly sets forth the terms of the
        Transaction entered into between
        us by executing this Confirmation and returning it to us by facsimile
        to:

      

      The
        Royal Bank of Scotland plc

      Attention:
        Derivatives Documentation

      Fax:
        0207 375 6724 / 6486 Phone: 0207 375 4225

      

      

      

      

      THE
        ROYAL BANK OF SCOTLAND PLC

      By:
        Greenwich Capital Markets, Inc., its agent

      

      

      By   /s/
        Giuliano Granata              

      Name:
        Giuliano Granata

      Title:
        Vice President

      

      Accepted
        and confirmed as of the Trade Date written above:

      

      HSBC
        BANK USA, NATIONAL ASSOCIATION, NOT
        IN ITS
        INDIVIDUAL CAPACITY, BUT SOLELY AS TRUSTEE
        FOR THE ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1,
ASSET
        BACKED PASS-THROUGH CERTIFICATES

      

      By                            

      Name:

      Title:

       

       

       

      

      Class
        A-1
        Cap Confirmation (reference number IRG16043901)

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Please
        promptly confirm that the foregoing correctly sets forth the terms of the
        Transaction entered into between
        us by executing this Confirmation and returning it to us by facsimile
        to:

      

      The
        Royal Bank of Scotland plc

      Attention:
        Derivatives Documentation

      Fax:
        0207 375 6724 / 6486 Phone: 0207 375 4225

       

       

      
 

      THE
        ROYAL BANK OF SCOTLAND PLC

      By:
        Greenwich Capital Markets, Inc., its agent

      

      

      By   ____________________________________

      Name:
        

      Title:

      

      Accepted
        and confirmed as of the Trade Date written above:

      

      HSBC
        BANK USA, NATIONAL ASSOCIATION, NOT
        IN
        ITS INDIVIDUAL CAPACITY, BUT SOLELY AS TRUSTEE
        FOR THE ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1,
ASSET
        BACKED PASS-THROUGH CERTIFICATES

      

      By   /s/
        Fernando Acebedo                

      Name:
        FERNANDO
        ACEBEDO

      Title:
        VICE PRESIDENT

      

      Class
        A-1
        Cap Confirmation (reference number IRG16043901)

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Schedule
        A to the Confirmation dated as of July 25, 2006

      

      Re:
        Reference Number IRG16043901

      

      Amortization
        Schedule, all such dates subject to adjustment in accordance with the Business
        Day Convention

      

      
        	
                From
                  and Including

              	
                To
                  but Excluding

              	
                Notional
                  Amount (USD)

              
	
                7/25/2006

              	
                8/25/2006

              	
                441,118,026.00

              
	
                8/25/2006

              	
                9/25/2006

              	
                436,789,480.00

              
	
                9/25/2006

              	
                10/25/2006

              	
                431,714,598.00

              
	
                10/25/2006

              	
                11/25/2006

              	
                425,903,133.00

              
	
                11/25/2006

              	
                12/25/2006

              	
                419,368,727.00

              
	
                12/25/2006

              	
                1/25/2007

              	
                412,128,860.00

              

      

       

       

       

       

       

      
 

      
        
          
          

        

        
          Page
            7 of
            17

          
            

          

        

        
          
          

        

      

      Schedule
        B to the Confirmation dated as of July 25, 2006

      

      Re:
        Reference Number IRG16043901

      

      Between
        The Royal Bank of Scotland plc ("Party
        A") and
        HSBC
        Bank USA, National Association, not in its individual
        capacity, but solely as Trustee for the ACE Securities Corp. Home Equity
        Loan
        Trust, Series 2006-CW1,
        Asset Backed Pass-Through Certificates ("Party
        B")

      

      
        	
                Part.
                  1

              	
                Termination
                  Provisions

              

      

      

      
        	 	
                (a)

              	
                "Specified
                  Entity" means
                  in relation to Party A for the purpose of the Master
                  Agreement:

              

      

       

      Section
        5(a)(v): none.

       

      Section
        5(a)(vi): none.

       

      Section
        5(a)(vii): none.

       

      Section
        5(b)(iv): none.

       

      and
        in
        relation to Party B for the purpose of the Master Agreement:

       

      Section
        5(a)(v): none.

       

      Section
        5(a)(vi): none.

       

      Section
        5(a)(vii): none.

       

      Section
        5(b)(iv): none.

       

      
        	 	
                (b)

              	
                "Specified
                  Transaction" is
                  not applicable to Party A or Party B for any purpose, and accordingly,
                  Section 5(a)(v) of the Master Agreement shall not apply to Party
                  A or
                  Party B.

              

      

       

      
        	 	
                (c)

              	
                The
                  "Breach
                  of Agreement" provisions
                  of Section 5(a)(ii) of the Master Agreement will be inapplicable
                  to Party A and Party B.

              

      

       

      
        	 	
                (d)

              	
                The
                  "Credit
                  Support Default" provisions
                  of Section 5(a)(iii) of the Master Agreement will be
                  inapplicable to Party A and Party
                  B.

              

      

       

      
        	 	
                (e)

              	
                The
                  "Misrepresentation"
                  provisions
                  of Section 5(a)(iv) of the Master Agreement will be inapplicable
                  to Party
                  A and Party B.

              

      

       

      
        	 	
                (f)

              	
                The
                  "Default
                  Under Specified Transaction" provisions
                  of Section 5(a)(v) of the Master Agreement will be inapplicable
                  to Party A
                  and Party B.

              

      

       

      
        	 	
                (g)

              	
                The
                  "Cross
                  Default" provisions
                  of Section 5(a)(vi) of the Master Agreement will be inapplicable
                  to Party
                  A and Party B.

              

      

       

      
        	 	
                (h)

              	
                The
                  "Bankruptcy"
                  provision
                  of Section 5(a)(vii)(2) of the Master Agreement will be inapplicable
                  to
                  Party B.

              

      

       

      
        	 	
                (i)

              	
                The
                  "Merger
                  Without Assumption" provision
                  of Section 5(a)(viii) will not apply to Party
                  B.

              

      

       

      
        
          
          

        

        
          Page
            8 of
            17

          
            

          

        

        
          
          

        

      

      
        	 	
                (j)

              	
                The
                  "Credit
                  Event Upon Merger" provisions
                  of Section 5(b)(iv) of the Master Agreement will be inapplicable
                  to Party
                  A and Party B.

              

      

       

      
        	 	
                (k)

              	
                The
                  "Automatic
                  Early Termination" provision
                  of Section 6(a) of the Master Agreement will be inapplicable to
                  Party A
                  and Party B; provided that where there is an Event of Default under
                  Section 5(a)(vii)(1), (3), (4), (5), (6) or, to the extent analogous
                  thereto, (8), and the Defaulting
                  Party is governed by a system of law that does not permit termination
                  to
                  take place
                  after the occurrence of such Event of Default, then the Automatic
                  Early
                  Termination provisions
                  of Section 6(a) will apply.

              

      

       

      if
        an
        Early Termination Date has occurred under Section 6(a) of the Master Agreement
        as a
        result
        of Automatic Early Termination, and if the Non-defaulting Party determines
        that
        it has
        either sustained or incurred a loss or damage or benefited from a gain in
        respect of any
        Transaction, as a result of movement in interest rates, currency exchange
        rates,
        other relevant rates or market quotations between the Early Termination Date
        and
        the date upon which
        the
        Non-defaulting Party first becomes aware that such Event of Default has
occurred
        under Section 6(a) of the Agreement, then (i) the amount of such loss or
        damage
shall
        be
        added to the amount due by the Defaulting Party or deducted from the amount
        due
        by
        the Non-defaulting Party, as the case may be (in both cases pursuant to Section
        6(e)(i)(3)
        of the Master Agreement); or (ii) the amount of such gain shall be deducted
        from
        the amount due by the Defaulting Party or added to the amount due by the
        Non-defaulting Party,
        as
        the case may be (in both cases pursuant to Section 6(e)(i)(3) of the Master
        Agreement).

       

      
        	 	
                (l)

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

              

      

       

      
        	 	
                (i)

              	
                Market
                  Quotation will apply; and

              

      

       

      
        	 	
                (ii)

              	
                The
                  Second Method will apply.

              

      

       

      
        	 	
                (m)

              	
                “Termination
                  Currency” means
                  United States Dollars.

              

      

       

      
        	
                Part.
                  2

              	
                Tax
                  Representations

              

      

      

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

       

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

       

      
        
          
          

        

        
          Page
            9 of
            17

          
            

          

        

        
          
          

        

      

      Payee
        Representations For
        the
        purpose of Section 3(f) of the Master Agreement, Party A and
        Party
        B make the following representations:

       

      
        	 	
                (i)

              	
                Party
                  A represents that

              

      

       

      
        	 	
                (A)

              	
                it
                  is a tax resident of the United
                  Kingdom;

              

      

       

      
        	 	
                (B)

              	
                it
                  is a "foreign person" within the meaning of the applicable U.S.
                  Treasury
                  Regulations
                  concerning information reporting and backup withholding tax (as
                  in effect on January 1, 2001), unless Party A provides written
                  notice to
                  Party
                  B that it is no longer a foreign
                  person;

              

      

       

      
        	 	
                (C)

              	
                in
                  respect of each Transaction it enters into through an office or
                  discretionary
                  agent in the United States or which otherwise is allocated (in
                  whole
                  or part) for United States federal income tax purposes to such
                  United
                  States
                  trade or business, each payment received or to be received by it
                  under
                  such Transaction (or portion thereof, if applicable) will be effectively
                  connected
                  with its conduct of a trade or business in the United States;
                  and

              

      

       

      
        	 	
                (D)

              	
                in
                  respect of all other Transactions or portions thereof, no such
                  payment
                  received or to be received by it in connection with this Agreement
                  is
                  attributable to a trade or business carried on by it through a
                  permanent
                  establishment in the United States.

              

      

       

      
        	 	
                (ii)

              	
                Party
                  B represents that it is the Trustee of the Trust created under
                  the Pooling
                  and Servicing
                  Agreement.

              

      

       

      
        	
                Part.
                  3

              	
                Agreement
                  to Deliver Documents

              

      

      

      For
        the
        purpose of Sections 4(a)(i) and (ii) of the Master Agreement, Party A and
        Party
        B agree to deliver the
        following documents, as applicable:

       

      
        	 	
                (a)

              	
                Tax
                  forms, documents or certificates to be delivered
                  are:

              

      

       

      
        	 	
                Party
                  Required to

                Deliver
                  Document

              	 	
                Form/Document/Certificate

              	 	
                Date
                  by Which to be Delivered

              
	 	 	 	 	 	 
	 	
                Party
                  A and Party B

              	 	
                Any
                  form or document required or reasonably requested
                  to allow the other party
                  to make payments under
                  the Agreement without any
                  deduction or withholding for
                  or on account of any Tax, or
                  with such deduction or withholding
                  at a reduced
                  rate.

              	 	
                Promptly
                  upon reasonable demand
                  by the other party.

              

      

      

      
        
          
          

        

        
          Page
            10
            of 17

          
            

          

        

        
          
          

        

      

      
        	 	
                (b)

              	
                Other
                  documents to be delivered and covered by the Section 3(d) representation
                  are:-

              

      

       

      
        	 	
                Party
                  required to

                deliver

              	 	
                Form/Document/or

                Certificate

              	 	
                Date
                  by which to be

                delivered

              	 	
                Covered
                  by

                Section
                  3(d)

                representation

              
	 	 	 	 	 	 	 	 
	 	
                Party
                  A and Party B

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

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

              	 	
                Yes

              
	 	 	 	 	 	 	 	 
	 	
                Party
                  B

              	 	
                The
                  Pooling and Servicing
                  Agreement

              	 	
                Concurrently
                  with the execution and delivery of the Confirmation.

              	 	
                No

              
	 	 	 	 	 	 	 	 
	 	
                Party
                  A

              	 	
                Legal
                  opinion[s] with
                  respect to Party A and its Credit Support Provider,
                  if any, reasonably
                  satisfactory
                  in
                  form and substance to Party B to the enforceability
                  of Party
                  A's obligation under this Agreement.

              	 	
                Upon
                  the execution and
                  delivery of this Agreement and any Confirmation

              	 	
                No

              

      

      

      
        	
                Part.
                  4

              	
                Miscellaneous

              

      

      

      
        	 	
                (a)

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

              

      

       

      Addresses
        for notices or communications to Party A and to Party B shall be those
set
        forth
        on the first page of the Confirmation.

       

      
        
          
          

        

        
          Page
            11
            of 17

          
            

          

        

        
          
          

        

      

      
        	 	
                (b)

              	
                Process
                  Agent For
                  the purpose of Section 13(c) of the Master
                  Agreement:

              

      

       

      Party
        A
        appoints as its Process Agent: none. 

       

      Party
        B
        appoints as its Process Agent: none.

       

      
        	 	
                (c)

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

              

      

       

      
        	 	
                (d)

              	
                Multibranch
                  Party For
                  the purpose of Section 10(c) of the Master
                  Agreement:

              

      

       

      Party
        A
        is not a Multibranch Party. 

       

      Party
        B
        is not a Multibranch Party.

       

      
        	 	
                (e)

              	
                Calculation
                  Agent The
                  Calculation Agent is Party A.

              

      

       

      
        	 	
                (f)

              	
                Credit
                  Support Document Details
                  of any Credit Support Document:
                  none

              

      

       

      
        	 	
                (g)

              	
                Credit
                  Support Provider

              

      

       

      Credit
        Support Provider means in relation to Party A: none.

       

      Credit
        Support Provider means in relation to Party B: none.

       

      
        	 	
                (h)

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

              

      

       

      
        	 	
                (i)

              	
                Netting
                  of Payments Subparagraph
                  (ii) of Section 2(c) of the Agreement will apply to the Transaction
                  evidenced by the Confirmation.

              

      

       

      
        	 	
                (j)

              	
                "Affiliate"
                  Party
                  B shall be deemed to have no Affiliates for purposes of this
                  Transaction.

              

      

       

      
        	 	
                (k)

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

              

      

       

      
        	
                Part.
                  5

              	
                Other
                  Provisions

              

      

       

      
        
          
            	
                  	(a)	
                    Modifications
                      to the Agreement Section
                      3(a) of the Master Agreement shall be amended
                      to include the following additional representations after paragraph
                      3(a)(v):

                  

          

        

      

       

      (vi)       Eligible
        Contract Participant etc. It
        is an
        "eligible contract participant" as defined
        in Section 1a(12) of the U.S. Commodity Exchange Act (7 U.S.C. 1a), as
amended
        by the Commodity Futures Modernization Act of 2000 and the Transaction
        evidenced hereby has been the subject of individual negotiations and
is
        intended to be exempt from, or otherwise not subject to regulation
        thereunder.

       

      
        	 	
                (b)

              	
                Waiver
                  of Right to Trial by Jury Each
                  party hereby irrevocably waives any and all rights to
                  trial by jury in any legal proceeding arising out of or relating
                  to this
                  Agreement or any Transaction
                  hereunder.

              

      

       

      
        	 	
                (c)

              	
                Absence
                  of Litigation In
                  Section 3(c) of the Master Agreement the words "or any of its Affiliates"
                  shall be deleted.

              

      

       

      
        
          
          

        

        
          Page
            12
            of 17

          
            

          

        

        
          
          

        

      

      
        	 	
                (d)

              	
                Tax
                  Event In
                  Section 5(b)(ii)(y) of the Master Agreement the words ", or there
                  is a
                  substantial likelihood that it will,” shall be
                  deleted.

              

      

       

      
        	 	
                (e)

              	
                Transfer
                  and Amendment

              

      

       

      Subject
        to Part 5(j) herein, no transfer, amendment, waiver, supplement, assignment
        or
other
        modification of this Transaction shall be permitted by either party unless
        (i)
        each of Standard and Poor's Ratings Services, a Division of The McGraw-Hill
        Companies, Inc. ("S&P")
        and Moody's Investors Service, Inc. ("Moody's) (each a "Rating Agency") has
        been
        provided notice of the same and (ii) each of S&P and Moody's confirm in
        writing (including
        by facsimile transmission) that they will not downgrade, qualify, withdraw
        or
otherwise
        modify their then-current rating of the Certificates.

       

      
        	 	
                (f)

              	
                Trustee
                  Capacity

              

      

       

      It
        is
        expressly understood and agreed by the parties hereto that insofar as this
        Confirmation
        is executed by the Trustee (i) this Confirmation is executed and delivered
        by
        HSBC Bank USA, National Association, not in its individual capacity but solely
        as Trustee of
        the
        Trust created under the Pooling and Servicing Agreement in the exercise of
        the
powers
        and authority conferred and vested in it thereunder (ii) each of the
        representations, undertakings
        and agreements herein made on behalf of the Trust is made and intended
not
        as
        personal representations of the Trustee but is made and intended for the
        purpose
        of binding
        only the Trust created under the Pooling and Servicing Agreement, and (iii)
        under no circumstances will HSBC Bank USA, National Association in its
        individual capacity be personally liable for the payment of any indebtedness
        or
        expenses or be personally liable for
        the
        breach or failure of any obligation, representation, warranty or covenant
        made
        or undertaken
        under this Confirmation.

       

      
        	 	
                (g)

              	
                Proceedings

              

      

       

      Party
        A
        shall not institute against or cause any other person to institute against,
        or
        join any other
        person in instituting against, Party B or the Supplemental Interest Trust
        created pursuant to the Pooling and Servicing Agreement, any bankruptcy,
        reorganization, arrangement,
        insolvency or liquidation proceedings, or other proceedings under any
federal
        or state bankruptcy, dissolution or similar law, for a period of one year
        and
        one day (or, if longer, the applicable preference period) following indefeasible
        payment in full of the Certificates,
        provided that nothing herein shall preclude, or be deemed to estop Party
        A
from
        taking any action in any case or proceeding voluntarily filed or commenced
        by or
        on behalf
        of
        Party B or in any involuntary case or proceeding after it has been
        commenced.

       

      
        	 	
                (h)

              	
                Set-off

              

      

       

      Notwithstanding
        any provision of this Agreement or any other existing or future agreement,
        each
        party irrevocably waives any and all rights it may have to set-off, net recoup
        or otherwise withhold or suspend or condition payment or performance of any
        obligation between
        it and the other party hereunder against any obligation between it and the
        other
party
        under any other agreements. The provisions for Set-off set forth in Section
        6(e)
        of the
        Master Agreement shall not apply for purposes of this Transaction.

       

      
        
          
          

        

        
          Page
            13
            of 17

          
            

          

        

        
          
          

        

      

      
        	 	
                (i)

              	
                Section
                  1(c)

              

      

       

      For
        purposes of Section 1(c) of the Master Agreement, this Transaction shall
        be the
        sole Transaction
        under the Agreement.

       

      
        	 	
                (j)

              	
                Rating
                  Agency Downgrade

              

      

       

      If
        a
        Ratings Event (as defined below) occurs with respect to Party A (or any
        applicable credit
        support provider), then Party A shall, within (30) days of such Ratings Event
        subject to
        the
        Rating Agency Condition (as hereinafter defined) and at its own expense (unless,
        within
        30
        days of such Ratings Event, each of S&P and Moody's has reconfirmed the
        rating of the Certificates which was in effect immediately prior to such
        Ratings
        Event), (i)
        assign this Transaction hereunder to a third party that meets or exceeds,
        or as
        to which any
        applicable credit support provider of such third party meets or exceeds,
        the
        Approved Ratings Thresholds (as defined below) on terms substantially similar
        to
        this Confirmation, (ii) obtain a guaranty of Party A's obligations under
        this
        Transaction from a third party that meets
        or
        exceeds the Approved Ratings Threshold, in form and substance, (iii) post
        collateral,
        or (iv) establish any other arrangement, which will be sufficient to restore
        the
        immediately prior ratings of the Certificates. For purposes of this Transaction,
        a "Ratings Event"
        shall occur with respect to Party A (or any applicable credit support provider),
        if its short-term
        unsecured and unsubordinated debt ceases to be rated at least "A-1" by S&P
        or its short-term unsecured and unsubordinated debt ceases to be rated at
        least
        "P-1" by Moody's or its long-term unsecured and unsubordinated debt ceases
        to be
        rated at least "A1"
        by
        Moody's (including in connection with a merger, consolidation or other similar
        transaction by Party A or any applicable credit support provider) such ratings
        being referred to herein as the "Approved Ratings Thresholds." If a Further
        Ratings Event (as defined
        below) occurs with respect to Party A (or any applicable credit support
        provider), then
        Party A shall, within (10) days of such Downgrade Event subject to the Rating
        Agency Condition
        (as hereinafter defined) and at its own expense (unless, within 10 days of
        such
Ratings
        Event, S&P has reconfirmed the rating of the Certificates which was in
        effect immediately
        prior to such Further Ratings Event), (i) assign this Transaction hereunder
        to a
        third party that meets or exceeds, or as to which any applicable credit support
        provider of
        such
        third party meets or exceeds, the Approved Ratings Thresholds on terms
        substantially similar to this Confirmation or (ii) obtain a guaranty of Party
        A's obligations under this Transaction from a third party that meets or exceeds
        the Approved Ratings Threshold. For purposes of this Transaction, a "Further
        Ratings Event" shall occur with respect to Party A (or any applicable credit
        support provider), if its long-term unsecured and unsubordinated debt ceases
        to
        be rated at least "BBB-" by S&P or its short-term unsecured and
        unsubordinated debt ceases to be rated at least "P-1" on watch for downgrade
        by Moody's or its long-term unsecured and unsubordinated debt ceases to be
        rated
        at
        least "A2" on watch for downgrade by Moody's (including in connection with
        a
        merger, consolidation or other similar transaction by Party A or any applicable
        credit support provider). "Rating Agency Condition" means, with respect to
        any
        particular proposed act or omission to act hereunder that the party acting
        or
        failing to act must consult with each Rating Agency then providing a rating
        of
        the Certificates and receive from
        each
        Rating Agency a prior written confirmation that the proposed action or inaction
        would
        not
        cause a downgrade or withdrawal of the then-current rating of the
        Certificates.

       

      
        
          
          

        

        
          Page
            14
            of 17

          
            

          

        

        
          
          

        

      

      
        	 	
                (k)

              	
                Additional
                  Termination Events

              

      

       

      Additional
        Termination Events will apply as specified below:

       

      The
        occurrence of the following shall constitute an Additional Termination
        Event:

       

      If
        a
        Rating Agency Downgrade has occurred and Party A has not complied with paragraph
        (j) above, then an Additional Termination Event shall have occurred with
        respect
        to Party A and Party A shall be the sole Affected Party with respect to such
        an
        Additional Termination Event.

       

      If,
        at
        any time, the Terminator purchases the Mortgage Loans pursuant to Section
        10.01
        of the
        Pooling and Servicing Agreement, then an Additional Termination Event shall
        have
occurred
        and Party B shall be the sole Affected Party with respect thereto; provided,
        however,
        that notwithstanding Section 6(b)(iv) of the Master Agreement, only Party
        B
        shall have
        the
        right to designate an Early Termination Date in respect of this Additional
        Termination
        Event; provided, further, that the Early Termination Date shall not be prior
        to
the
        Optional Termination Date.

       

      If,
        upon
        the occurrence of a Regulation AB Event (as defined in Part 5(o) below) Party
        A
has
        not,
        within 30 days after such Regulation AB Event complied with any of the
        provisions set forth in Part 5(o)(iii) below (provided that if the significance
        percentage reaches 10% after a Regulation AB Event has occurred, Party A
        must
        comply with the provisions
        set forth in Part 5(o)(iii) below within 10 calendar days of Party A being
        informed of
        the
        significance percentage reaching 10%), then an Additional Termination Event
        shall have
        occurred with respect to Party A and Party A shall be the sole Affected Party
        with respect to such Additional Termination Event.

       

      
        	 	
                (l)

              	
                Amendment
                  to ISDA Form

              

      

       

      The
        "Failure to Pay or Deliver" provision in Section 5(a)(i) of the Master Agreement
        is hereby
        amended by deleting the word "third" in the third line thereof and inserting
        the
        word "first"
        in place thereof.

       

      
        	 	
                (m)

              	
                Severability

              

      

       

      If
        any
        term, provision, covenant, or condition of the Agreement, or the application
        thereof to any other party or circumstance, shall be held invalid or
        unenforceable (in whole or in part)
        for
        any reason, the remaining terms, provisions, covenants, and conditions hereof
        shall continue in full force and effect as if the Agreement has been executed
        with the invalid
        or unenforceable provision portion eliminated, so long as the Agreement as
        so
modified
        continues to express, without material change, the original intentions of
        the
parties
        as to the subject matter of the Agreement and the deletion of such portion
        of
        the Agreement
        will not substantially impair the respective benefits or expectations of
        the
        parties. The parties shall endeavor to engage in good faith negotiations
        to
        replace any invalid
        or unenforceable term, provision, covenant or conditions with a valid or
        enforceable
        term,
        provision, covenant or condition, the economic effect of which comes as close
        as
possible
        to that of the invalid or unenforceable term, provision, covenant or
        condition.

       

      
        
          
          

        

        
          Page
            15
            of 17

          
            

          

        

        
          
          

        

      

      
        	 	
                (n)

              	
                [Reserved]

              

      

       

      
        	 	
                (o)

              	
                Compliance
                  with Regulation AB

              

      

       

      
        	 	
                (i)

              	
                Party
                  A agrees and acknowledges that while reporting requirements with
                  respect
                  to this
                  Transaction are operative by force of law, DB Structured Products,
                  Inc.
                  ("DBSP") and
                  ACE Securities Corp. ("ACE") are required under Regulation AB under
                  the
                  Securities Act of 1933, as amended, and the Securities Exchange
                  Act of
                  1934, as amended
                  ("Regulation AB"), to disclose certain information set forth in
                  Regulation
                  AB regarding
                  Party A or its group of affiliated entities, if applicable, depending
                  on
                  the aggregate "significance percentage" of this Agreement and any
                  other
                  derivative contracts
                  between Party A or its group of affiliated entities, if applicable,
                  and
                  Party B, as
                  calculated from time to time in accordance with Item 1115 of Regulation
                  AB.

              

      

       

      
        	 	
                (ii)

              	
                If,
                  solely while the relevant reporting requirements apply by force
                  of law to
                  this Transaction, DBSP or ACE determines, reasonably and in good
                  faith,
                  that the significance percentage of this Agreement has increased
                  to nine
                  (9) percent, then DBSP
                  or ACE, as the case may be, may notify Party A on a Business Day
                  after the
                  date
                  hereof of such increase in the significance percentage (such notification,
                  a "Regulation AB Event"). DBSP and/or ACE, as applicable hereby
                  agree with
                  Party A to provide Party A with the calculations and any other
                  information
                  reasonably requested by Party A with respect to the determination
                  that led
                  to a Regulation AB Event.

              

      

       

      
        	 	
                (iii)

              	
                Upon
                  the occurrence of a Regulation AB Event, Party A, at its own expense,
                  shall secure another entity to replace Party A as party to this
                  Agreement
                  on terms substantially
                  similar to this Agreement and subject to prior notification to
                  the Rating
                  Agencies,
                  which entity (or a guarantor therefor) and satisfies the Rating
                  Agency
                  Condition
                  and which entity is able to provide the information set forth in
                  Item
                  1115(b) of
                  Regulation AB (the "Regulation AB Information"). If permitted by
                  Regulation AB, any required Regulation AB Information may be provided
                  by
                  incorporation by reference from reports filed pursuant to the Exchange
                  Act.

              

      

       

      
        
          
          

        

        
          Page
            16
            of 17

          
            

          

        

        
          
          

        

      

      
        	 	
                (p)

              	
                Limitation
                  on Events of Default

              

      

       

      Notwithstanding
        the terms
        of
        Sections 5 and
        6
of
        the
        Master Agreement, if
        at any
        time and so
        long
        as the Party B has satisfied in full all its payment obligations under Section
        2(a)(i) of
        the
        Master Agreement and has at the time no future payment obligations, whether
        absolute or contingent, under such Section, then unless Party A is required
        pursuant to appropriate
        proceedings to return to the Party B or otherwise returns to the Party B
        upon
demand
        of
        the Party B any portion of any such payment, (a) the occurrence of an event
        described in Section 5(a) of the Master Agreement with respect to the Party
        B
        shall not constitute
        an Event of Default or Potential Event of Default with respect to the Party
        B as
Defaulting
        Party and (b) Party A shall be entitled to designate an Early Termination
        Date
pursuant
        to Section 6 of the Master Agreement only as a result of the occurrence of
        a
Termination
        Event set forth in either Section 5(b)(i) or 5(b)(ii) of the Master Agreement
        with respect
        to Party A as the Affected Party, or Section 5(b)(iii) with respect to Party
        A
        as the Burdened Party. For purposes of the Transaction to which this Agreement
        relates, Party B's
        only
        obligation under Section 2(a)(i) of the Master Agreement is to pay the Fixed
        Amount
        on
        the Fixed Rate Payer Payment Date.

       

      
        
          
          

        

        
          Page
            17
            of 17

          
            

          

        

        
          
          

        

      

       

      
        	 	
                

              
	 	
                Financial
                  Markets

                280
                  Bishopsgate

                London
                  EC2M 4RB

              

      

      

      
        	
                Memorandum

              	
                July
                  25, 2006

              

      

      

      
        	
                To:

              	
                HSBC
                  Bank USA, National Association, not in its individual capacity,
                  but solely
                  as Trustee for the ACE Securities Corp. Home Equity Loan Trust,
                  Series
                  2006-CW1,
                  Asset Backed Pass-Through Certificates ("Party
                  B")

              
	 	 
	 	
                452
                  Fifth Avenue

                New
                  York, New York 10018

                Attn:
                  Corporate Trust & Loan Agency

                Tel:
                  212-525-1309

                Fax:
                  212-525-1300

                E-Mail:
                  fernando.acebedo@us.hsbc.com

              
	 	 
	
                Copy
                  To:

              	
                Wells
                  Fargo Bank, National Association

                9062
                  Old Annapolis Road

                Columbia,
                  Maryland 21045

                Tel:
                  410-884-2000

                Attn:
                  Client Manager, ACE 2006-CW1

                Fax:
                  410-715-2380

              
	 	 
	
                From:

              	
                The
                  Royal Bank of Scotland plc ("Party
                  A")

                c/o
                  RBS Financial Markets

                Level
                  7,135 Bishopsgate

                London
                  EC2M 3UR

                Attn:
                  Head of Legal, Financial Markets

                Tel:
                  44 207 085 5000

                Fax:
                  44 207 085 8411

              
	 	 
	
                Copy
                  To:

              	
                Greenwich
                  Capital Markets, Inc.

                600
                  Steamboat Road

                Greenwich,
                  CT 06830

                Attn:
                  Legal Department - Derivatives Documentation

                Tel.:
                  203-618-2576

                Fax:
                  203-618-2533/34

              
	 	 
	
                Our
                  Reference

                Number:

              	
                IRG16043905

              

      

       

      
        
          
          

        

        
          Page
            1 of
            17

          
            

          

        

        
          
          

        

      

      Dear
        Sir
        or Madam:

       

      The
        purpose of this letter agreement is to confirm the terms and conditions of
        the
        Transaction entered into between
        Party A and HSBC Bank USA, National Association as trustee of the ACE Securities
        Corp. Home Equity
        Loan Trust, Series 2006-CW1 Asset Backed Pass-Through Certificates (the
"Trustee"
        and
        the
"Trust",
        respectively)
        under the Pooling and Servicing Agreement (the "Pooling
        and Servicing Agreement"), dated
        and
        effective as of July 1, 2006, among Ace Securities Corp., as Depositor,
Countrywide
        Home Loans Servicing LP, as Servicer, Wells Fargo Bank, National Association,
        as
        Master Servicer and Securities Administrator and the Trustee (each a
"party"
        and
        together "the
        parties") on
        the
Trade
        Date specified below (the "Transaction").
        This
        letter agreement (the "Agreement")
        constitutes
        the sole and complete "Confirmation",
        as
        referred to in the Master Agreement (as defined below).

       

      The
        definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions")
        as
        published by the
        International Swaps and Derivatives Association, Inc., ("ISDA")
        are
        incorporated into this Confirmation. This
        Confirmation will be governed by and subject to the terms and conditions
        which
        would be applicable if,
        prior
        to the Trade Date, the parties had executed and delivered an ISDA Master
        Agreement (Multicurrency-Cross Border), in the form published by ISDA in
        1992
        (the "Master
        Agreement") (but
        without any Schedule except for the elections noted in Schedule B hereto).
        In
        the event of any inconsistency
        between the provisions of the Master Agreement and this Confirmation, this
        Confirmation will govern. Terms capitalized but not defined herein or
        in
        the
        Definitions incorporated herein shall have the
        respective meanings attributed to them in the Pooling and Servicing
        Agreement.

       

      
        	
                1

              	
                This
                  Confirmation evidences a complete binding agreement between the
                  parties as
                  to the terms of the Transaction to which this Confirmation relates.
                  In
                  addition, each party represents to the other party and will be
                  deemed to
                  represent to the other party on the date on which it enters into
                  a
                  Transaction that (absent a written agreement between the parties
                  that
                  expressly imposes affirmative obligations to the contrary for that
                  Transaction):

              

      

       

      
        	 	
                (i)

              	
                Principal
                  In
                  the case of Party A, it is acting as principal and not as agent
                  when
                  entering into the Transaction and in the case of Party B, it is
                  acting as
                  Trustee when entering into the
                  Transaction.

              

      

       

      
        	 	
                (ii)

              	
                Non-Reliance
                  In
                  the case of Party A, it is acting for its own account and, in the
                  case
                  of Party B, it is acting as Trustee, and in the case of both parties,
                  it
                  has made its
                  own independent decisions to enter into the Transaction and as
                  to whether
                  the Transaction is appropriate or proper for it based upon its
                  own
                  judgment and upon advice from such advisors as it has deemed necessary
                  and, with respect to Party B, as directed under the Pooling and
                  Servicing
                  Agreement. It is not relying on any communication
                  (written or oral) of the other party as investment advice or as
                  a
                  recommendation
                  to enter into the Transaction; it being understood that information
                  and
                  explanations related to the terms and conditions of the Transaction
                  shall
                  not be considered
                  investment advice or a recommendation to enter into the Transaction.
                  No
                  communication (written or oral) received from the other party shall
                  be
                  deemed to
                  be an assurance or guarantee as to the expected results of the
                  Transaction.

              

      

       

      
        	 	
                (iii)

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

              

      

       

      
        
          
          

        

        
          Page
            2 of
            17

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (iv)

              	
                Status
                  of Parties The
                  other party is not acting as an agent, fiduciary or advisor for
                  it
                  in respect of that Transaction.

              

      

       

      
        	
                2

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

              

      

       

      
        	 	 	
                Notional
                  Amount:

              	
                With
                  respect to any Calculation Period, shall equal the lesser of (1)
                  the Notional Amount as detailed in Schedule A attached hereto
                  and (2) the aggregate Certificate Principal Balance of the Class
                  A-2 Certificates, the Mezzanine Certificates and the Class CE
                  Certificates (together, the "Certificates") immediately prior
                  to the
                  related Floating Rate Payer Payment Date. The Securities Administrator
                  shall make available each month, and in any event no
                  later than five (5) business days prior to the related
                  Floating Rate
                  Payer Payment Date, via the Securities Administrator's website
                  a Distribution Date statement containing the aggregate Certificate
                  Principal Balance of the Certificates as of the first day of
                  such Calculation Period. Party A shall rely upon the statement of
                  Certificate Principal Balance of the Certificates made
                  available on
                  the Securities Administrator's website. The Securities Administrator's
                  internet website shall initially be located at www.ctslink.com
                  and assistance in using the website can be obtained
                  by calling the Securities Administrator's investor
                  relations desk at (301) 815-6600. 

                 

                Any
                  payment by Party A to Party B in excess of the amount due under
                  this Transaction on any Floating Rate Payer Payment Date
                  shall be promptly returned by Party B to Party A and Party B
                  shall promptly notify Party A after Party B is aware of such overpayment.
                  Other than the return of such overpayment, neither
                  party shall incur any penalty or liability hereunder with
                  respect to such overpayment.

              
	 	 	 	 
	 	 	
                Trade
                  Date:

              	
                July
                  14, 2006

              
	 	 	 	 
	 	 	
                Effective
                  Date:

              	
                July
                  25, 2006

              
	 	 	 	 
	 	 	
                Termination
                  Date:

              	
                January
                  25, 2007, subject to adjustment in accordance with the

                Business
                  Day Convention.

              
	 	 	 	 
	 	
                Fixed
                  Amount:

              
	 	 	 	 
	 	 	
                Fixed
                  Rate Payer:

              	
                Party
                  B

              
	 	 	 	 
	 	 	
                Fixed
                  Rate Payer Payment

                Date:

              	
                July
                  25, 2006

              
	 	 	 	 
	 	 	
                Fixed
                  Amount:

              	
                USD
                  200.00

              
	 	 	 	 
	 	
                Floating
                  Amounts:

              
	 	 	 	 
	 	 	
                Floating
                  Rate Payer:

              	
                Party
                  A

              
	 	 	 	 
	 	 	
                Cap
                  Rate:

              	
                7.50%

              
	 	 	 	 
	 	 	
                Floating
                  Rate Payer Period

                End
                  Dates:

              	
                The
                  25th calendar day of each month of each year, commencing August
                  25, 2006, through and including the Termination Date, subject
                  to adjustment in accordance with the Business Day Convention.

              

      

      

      
        
          
          

        

        
          Page
            3 of
            17

          
            

          

        

        
          
          

        

      

       

      
        	 	
                Floating
                  Rate Payer

                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. The Floating Rate Payer Payment
                  Dates shall be one (1) Business Day prior to each Floating
                  Rate Payer Period End Date, subject to adjustment in accordance
                  with the Business Day Convention.

              
	 	 	 
	 	
                Floating
                  Rate Option:

              	
                USD-LIBOR-BBA

              
	 	 	 
	 	
                Floating
                  Amount

              	
                To
                  be determined in accordance with the following formula: the greater
                  of (i) (Floating Rate Option - Cap Rate) * Notional Amount
                  * Floating Rate Day Count Fraction and (ii) zero.

              
	 	 	 
	 	
                Designated
                  Maturity:

              	
                One
                  month.

              
	 	 	 
	 	
                Floating
                  Rate Day Count 

                Fraction:

              	
                Actual/360

              
	 	 	 
	 	
                Reset
                  Dates:

              	
                First
                  day of each Calculation Period

              
	 	 	 
	 	
                Compounding:

              	
                Inapplicable

              
	 	 	 
	 	
                Business
                  Days:

              	
                New
                  York

              
	 	 	 
	 	
                Business
                  Day Convention:

              	
                Following

              
	 	 	 
	 	
                Calculation
                  Agent:

              	
                Party
                  A

              

      

       

      
        	
                3

              	
                Recording
                  of Conversations

              

      

       

      Each
        party (i) consents to the recording of the telephone conversations of trading
        and marketing personnel of the parties and (ii) agrees to obtain any necessary
        consent of, and give notice of such recording to, such personnel of
        it.

       

      
        	
                4

              	
                Account
                  Details:

              

      

       

      
        	 	
                Account
                  for payments to Party A:

              	
                For
                  the account of The Royal Bank of Scotland Financial Markets Fixed
                  Income
                  and Interest Rate Derivative
                  Operations, London SWIFT RBOSGB2RTCM
                  with JPMorgan Chase Bank, New York
                  CHASUS33, ABA # 021000021
                  Account Number 400930153

              
	 	 	 
	 	
                Account
                  for payments to Party B:

              	
                Wells
                  Fargo Bank, NA 

                ABA
                  #121000248 

                Account
                  Name: SAS Clearing Account 

                #3970771416
                  

                FFC
                  to: 50936201, ACE 2006-CW1 Reserve
                  Fund

              

      

       

      

        
          	
                  5

                	
                  Offices:

                

        

         

      

      The
        Office of Party A for this Transaction is:      
London

       

      The
        Office of Party B for this Transaction is:      
New York

       

      
        
          
          

        

        
          Page
            4 of
            17

          
            

          

        

        
          
          

        

      

      
        	
                6

              	
                Other
                  Provisions:

              

      

       

      
        	
                6.1

              	
                Agency
                  Role of Greenwich Capital Markets, Inc. This Transaction has been
                  entered
                  into by Greenwich
                  Capital Markets, Inc., as agent for The Royal Bank of Scotland
                  plc.
                  Greenwich Capital Markets,
                  Inc. has not guaranteed and is not otherwise responsible for the
                  obligations of Party A under
                  this Transaction.

              

      

       

      [REMAINDER
        OF THIS PAGE INTENTIONALLY LEFT BLANK]

       

       

       

      
 

       

      
        
          
          

        

        
          Page
            5 of
            17

          
            

          

        

        
          
          

        

      

      Please
        promptly confirm that the foregoing correctly sets forth the terms of the
        Transaction entered into between
        us by executing this Confirmation and returning it to us by facsimile
        to:

       

      The
        Royal Bank of Scotland plc

      Attention:
        Derivatives Documentation

      Fax:
        0207 375 6724 / 6486 Phone: 0207 375 4225

       

       

       

      THE
        ROYAL BANK OF SCOTLAND PLC

      By:
        Greenwich Capital Markets, Inc., its agent

       

      By   /s/
        Giuliano
        Granata            

      Name:
        Giuliano Granata 

      Title:
        Vice President

      

      Accepted
        and confirmed as of the Trade Date written above:

      

      HSBC
        BANK USA, NATIONAL ASSOCIATION, NOT
        IN
        ITS INDIVIDUAL CAPACITY, BUT SOLELY AS TRUSTEE
        FOR THE ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1,
ASSET
        BACKED PASS-THROUGH CERTIFICATES

      

      By   _______________________________

      Name:
        

      Title:

      

      Class
        A-2
        Cap Confirmation (reference number IRG16043905)

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Please
        promptly confirm that the foregoing correctly sets forth the terms of the
        Transaction entered into between
        us by executing this Confirmation and returning it to us by facsimile
        to:

      

      The
        Royal Bank of Scotland plc

      Attention:
        Derivatives Documentation

      Fax:
        0207 375 6724 / 6486 Phone: 0207 375 4225

       

       

      
 

      THE
        ROYAL BANK OF SCOTLAND PLC

      By:
        Greenwich Capital Markets, Inc., its agent

      

      By   _______________________________

      Name:
        

      Title:

      

      Accepted
        and confirmed as of the Trade Date written above:

      

      HSBC
        BANK USA, NATIONAL ASSOCIATION, NOT
        IN
        ITS INDIVIDUAL CAPACITY, BUT SOLELY AS TRUSTEE
        FOR THE ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-CW1,
ASSET
        BACKED PASS-THROUGH CERTIFICATES

      

      By   /s/
        Fernando Acebedo            

      Name:
        FERNANDO ACEBEDO

      Title:
        VICE PRESIDENT

      

      Class
        A-2
        Cap Confirmation (reference number IRG16043905)

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Schedule
        A to the Confirmation dated as of July 25, 2006

      

      Re:
        Reference Number IRG16043905

      

      Amortization
        Schedule, all such dates subject to adjustment in accordance with the Business
        Day Convention

      

       

      
        	
                From
                  and Including

              	
                To
                  but Excluding

              	
                Notional
                  Amount (USD)

              
	
                7/25/2006

              	
                8/25/2006

              	
                402,719,496.00

              
	
                8/25/2006

              	
                9/25/2006

              	
                398,956,933.00

              
	
                9/25/2006

              	
                10/25/2006

              	
                394,536,582.00

              
	
                10/25/2006

              	
                11/25/2006

              	
                389,466,522.00

              
	
                11/25/2006

              	
                12/25/2006

              	
                383,758,121.00

              
	
                12/25/2006

              	
                1/25/2007

              	
                377,426,060.00

              

      

      

       

      
        
          
          

        

        
          Page
            7 of
            17

          
            

          

        

        
          
          

        

      

      Schedule
        B to the Confirmation dated as of July 25, 2006

       

      Re:
        Reference Number IRG16043905

       

      Between
        The Royal Bank of Scotland plc ("Party
        A") and
        HSBC
        Bank USA, National Association, not in its individual
        capacity, but solely as Trustee for the ACE Securities Corp. Home Equity
        Loan
        Trust, Series 2006-CW1, Asset Backed Pass-Through Certificates ("Party
        B")

       

      
        	
                Part.
                  1

              	
                Termination
                  Provisions

              

      

       

      
        	 	
                (a)

              	
                "Specified
                  Entity" means
                  in relation to Party A for the purpose of the Master
                  Agreement:

              

      

       

      Section
        5(a)(v): none.

       

      Section
        5(a)(vi): none.

       

      Section
        5(a)(vii): none.

       

      Section
        5(b)(iv): none.

       

      and
        in
        relation to Party B for the purpose of the Master Agreement

       

      Section
        5(a)(v): none.

       

      Section
        5(a)(vi): none.

       

      Section
        5(a)(vii): none.

       

      Section
        5(b)(iv): none.

       

      
        	 	
                (b)

              	
                "Specified
                  Transaction" is
                  not applicable to Party A or Party B for any purpose, and accordingly,
                  Section 5(a)(v) of the Master Agreement shall not apply to Party
                  A or
                  Party B.

              

      

       

      
        	 	
                (c)

              	
                The
                  "Breach
                  of Agreement" provisions
                  of Section 5(a)(ii) of the Master Agreement will be inapplicable
                  to Party A and Party B.

              

      

       

      
        	 	
                (d)

              	
                The
                  "Credit
                  Support Default" provisions
                  of Section 5(a)(iii) of the Master Agreement will be
                  inapplicable to Party A and Party
                  B.

              

      

       

      
        	 	
                (e)

              	
                The
                  "Misrepresentation"
                  provisions
                  of Section 5(a)(iv) of the Master Agreement will be inapplicable
                  to Party
                  A and Party B.

              

      

       

      
        	 	
                (f)

              	
                The
                  "Default
                  Under Specified Transaction" provisions
                  of Section 5(a)(v) of the Master Agreement will be inapplicable
                  to Party A
                  and Party B.

              

      

       

      
        	 	
                (g)

              	
                The
                  "Cross
                  Default" provisions
                  of Section 5(a)(vi) of the Master Agreement will be inapplicable
                  to Party
                  A and Party B.

              

      

       

      
        	 	
                (h)

              	
                The
                  "Bankruptcy"
                  provision
                  of Section 5(a)(vii)(2) of the Master Agreement will be inapplicable
                  to
                  Party B.

              

      

       

      
        	 	
                (i)

              	
                The
                  "Merger
                  without Assumption" provision
                  of Section 5a(viii) will not apply to Party
                  B.

              

      

       

      
        
          
          

        

        
          Page
            8 of
            17

          
            

          

        

        
          
          

        

      

      
        	 	
                (j)

              	
                The
                  "Credit
                  Event Upon Merger" provisions
                  of Section 5(b)(iv) of the Master Agreement will be inapplicable
                  to Party
                  A and Party B.

              

      

       

      
        	 	
                (k)

              	
                The
                  "Automatic
                  Early Termination" provision
                  of Section 6(a) of the Master Agreement will be inapplicable to
                  Party A
                  and Party B; provided that where there is an Event of Default under
                  Section 5(a)(vii)(1), (3), (4), (5), (6) or, to the extent analogous
                  thereto, (8), and the Defaulting
                  Party is governed by a system of law that does not permit termination
                  to
                  take place
                  after the occurrence of such Event of Default, then the Automatic
                  Early
                  Termination provisions
                  of Section 6(a) will apply.

              

      

       

      If
        an
        Early Termination Date has occurred under Section 6(a) of the Master Agreement
        as a result of Automatic Early Termination, and if the Non-defaulting Party
        determines that it has
        either sustained or incurred aloss
        or
        damage or benefited from a gain in respect of any
        Transaction, as a result of movement in interest rates, currency exchange
        rates,
        other relevant
        rates or market quotations between the Early Termination Date and the date
        upon
which
        the
        Non-defaulting Party first becomes aware that such Event of Default has
occurred
        under Section 6(a) of the Agreement, then (i) the amount of such loss or
        damage
shall
        be
        added to the amount due by the Defaulting Party or deducted from the amount
        due
        by
        the Non-defaulting Party, as the case may be (in both cases pursuant to Section
        6(e)(i)(3)
        of the Master Agreement); or (ii) the amount of such gain shall be deducted
        from
        the amount due by the Defaulting Party or added to the amount due by the
        Non-defaulting Party,
        as
        the case may be (in both cases pursuant to Section 6(e)(i)(3) of the Master
        Agreement).

       

      
        	 	
                (l)

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

              

      

       

      
        	 	
                (i)

              	
                Market
                  Quotation will apply; and

              

      

       

      
        	 	
                (ii)

              	
                The
                  Second Method will apply.

              

      

       

      
        	 	
                (m)

              	
                "Termination
                  Currency" means
                  United States Dollars.

              

      

       

      
        	
                Part.
                  2

              	
                Tax
                  Representations

              

      

       

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

       

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

       

      
        
          
          

        

        
          Page
            9 of
            17

          
            

          

        

        
          
          

        

      

      Payee
        Representations For
        the
        purpose of Section 3(f) of the Master Agreement, Party A and
        Party
        B make the following representations:

       

      
        	 	
                (i)

              	
                Party
                  A represents that

              

      

       

      
        	 	
                (A)

              	
                it
                  is a tax resident of the United
                  Kingdom;

              

      

       

      
        	 	
                (B)

              	
                it
                  is a "foreign person" within the meaning of the applicable U.S.
                  Treasury
                  Regulations
                  concerning information reporting and backup withholding tax (as
                  in effect on January 1, 2001), unless Party A provides written
                  notice to
                  Party
                  B that it is no longer a foreign
                  person;

              

      

       

      
        	 	
                (C)

              	
                in
                  respect of each Transaction it enters into through an office or
                  discretionary
                  agent in the United States or which otherwise is allocated (in
                  whole
                  or part) for United States federal income tax purposes to such
                  United
                  States
                  trade or business, each payment received or to be received by it
                  under
                  such Transaction (or portion thereof, if applicable) will be effectively
                  connected
                  with its conduct of a trade or business in the United States;
                  and

              

      

       

      
        	 	
                (D)

              	
                in
                  respect of all other Transactions or portions thereof, no such
                  payment
                  received or to be received by it in connection with this Agreement
                  is
                  attributable to a trade or business carried on by it through a
                  permanent
                  establishment in the United States.

              

      

       

      
        	 	
                (ii)

              	
                Party
                  B represents that it is the Trustee of the Trust created under
                  the Pooling
                  and Servicing
                  Agreement.

              

      

       

      
        	
                Part.
                  3

              	
                Agreement
                  to Deliver Documents

              

      

       

      For
        the
        purpose of Sections 4(a)(i) and (ii) of the Master Agreement, Party A and
        Party
        B agree to deliver the
        following documents, as applicable:

       

      
        	 	
                (a)

              	
                Tax
                  forms, documents or certificates to be delivered
                  are:

              

      

       

      
        	 	
                Party
                  Required to

                Deliver
                  Document

              	 	
                Form/Document/Certificate

              	 	
                Date
                  by Which to be Delivered

              
	 	 	 	 	 	 
	 	
                Party
                  A and Party B

              	 	
                Any
                  form or document required or reasonably requested
                  to allow the other party
                  to make payments under
                  the Agreement without any
                  deduction or withholding for
                  or on account of any Tax, or
                  with such deduction or withholding
                  at a reduced
                  rate.

              	 	
                Promptly
                  upon reasonable demand
                  by the other party.

              

      

      

       

      
        
          
          

        

        
          Page
            10
            of 17

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (b)

              	
                Other
                  documents to be delivered and covered by the Section 3(d) representation
                  are:-

              

      

       

      
        	 	
                Party
                  required to

                deliver

              	 	
                Form/Document/or

                Certificate

              	 	
                Date
                  by which to be

                delivered

              	 	
                Covered
                  by

                Section
                  3(d)

                representation

              
	 	 	 	 	 	 	 	 
	 	
                Party
                  A and Party B

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

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

              	 	
                Yes

              
	 	 	 	 	 	 	 	 
	 	
                Party
                  B

              	 	
                The
                  Pooling and Servicing
                  Agreement

              	 	
                Concurrently
                  with the execution and delivery of the Confirmation.

              	 	
                No

              
	 	 	 	 	 	 	 	 
	 	
                Party
                  A

              	 	
                Legal
                  opinion[s] with respect to Party A and its Credit Support Provider,
                  if any, reasonably
                  satisfactory
                  in
                  form and substance to Party B to the enforceability
                  of Party
                  A's obligation under this Agreement.

              	 	
                Upon
                  the execution and
                  delivery of this Agreement and any Confirmation

              	 	
                No

              

      

       

      
        	
                Part.
                  4

              	
                Miscellaneous

              

      

       

      
        	 	
                (a)

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

              

      

       

      Addresses
        for notices or communications to Party A and to Party B shall be those
set
        forth
        on the first page of the Confirmation.

       

      
        
          
          

        

        
          Page
            11
            of 17

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (b)

              	
                Process
                  Agent For
                  the purpose of Section 13(c) of the Master
                  Agreement:

              

      

       

      Party
        A
        appoints as its Process Agent: none. 

       

      Party
        B
        appoints as its Process Agent: none.

       

      
        	 	
                (c)

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

              

      

       

      
        	 	
                (d)

              	
                Multibranch
                  Party For
                  the purpose of Section 10(c) of the Master
                  Agreement:

              

      

       

      Party
        A
        is not a Multibranch Party. 

       

      Party
        B
        is not a Multibranch Party.

       

      
        	 	
                (e)

              	
                Calculation
                  Agent The
                  Calculation Agent is Party A.

              

      

       

      
        	 	
                (f)

              	
                Credit
                  Support Document Details
                  of any Credit Support Document:
                  none

              

      

       

      
        	 	
                (g)

              	
                Credit
                  Support Provider

              

      

       

      Credit
        Support Provider means in relation to Party A: none.

       

      Credit
        Support Provider means in relation to Party B: none.

       

      
        	 	
                (h)

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

              

      

       

      
        	 	
                (i)

              	
                Netting
                  of Payments Subparagraph
                  (ii) of Section 2(c) of the Agreement will apply to the Transaction
                  evidenced by the Confirmation.

              

      

       

      
        	 	
                (j)

              	
                "Affiliate"
                  Party
                  B shall be deemed to have no Affiliates for purposes of this
                  Transaction.

              

      

       

      
        	 	
                (k)

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

              

      

       

      
        	
                Part.
                  5

              	
                Other
                  Provisions

              

      

       

      
        	 	
                (a)

              	
                Modifications
                  to the Agreement Section
                  3(a) of the Master Agreement shall be amended
                  to include the following additional representations after paragraph
                  3(a)(v):

              

      

       

      (vi)      Eligible
        Contract Participant etc. It
        is an
        "eligible contract participant" as defined
        in Section 1a(12) of the U.S. Commodity Exchange Act (7 U.S.C. 1a), as
amended
        by the Commodity Futures Modernization Act of 2000 and the Transaction
        evidenced hereby has been the subject of individual negotiations and
is
        intended to be exempt from, or otherwise not subject to regulation
        thereunder.

       

      
        	 	
                (b)

              	
                Waiver
                  of Right to Trial by Jury Each
                  party hereby irrevocably waives any and all rights to
                  trial by jury in any legal proceeding arising out of or relating
                  to this
                  Agreement or any Transaction
                  hereunder.

              

      

       

      
        	 	
                (c)

              	
                Absence
                  of Litigation In
                  Section 3(c) of the Master Agreement the words "or any of its Affiliates”
                  shall be deleted.

              

      

       

      
        
          
          

        

        
          Page
            12
            of 17

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (d)

              	
                Tax
                  Event In
                  Section 5(b)(ii)(y) of the Master Agreement the words ", or there
                  is a
                  substantial likelihood that it will," shall be
                  deleted.

              

      

       

      
        	 	
                (e)

              	
                Transfer
                  and Amendment

              

      

       

      Subject
        to Part 5(j) herein, no transfer, amendment, waiver, supplement, assignment
        or
other
        modification of this Transaction shall be permitted by either party unless
        (i)
        each of Standard
        and Poor's Ratings Services, a Division of The McGraw-Hill Companies, Inc.
        ("S&P") and Moody's Investors Service, Inc. ("Moody's") (each a "Rating
        Agency") has been provided notice of the same and (ii) each of S&P and
        Moody's confirm in writing (including
        by facsimile transmission) that they will not downgrade, qualify, withdraw
        or
otherwise
        modify their then-current rating of the Certificates.

       

      
        	 	
                (f)

              	
                Trustee
                  Capacity

              

      

       

      It
        is
        expressly understood and agreed by the parties hereto that insofar as this
        Confirmation
        is executed by the Trustee (i) this Confirmation is executed and delivered
        by
        HSBC Bank USA, National Association, not in its individual capacity but solely
        as Trustee of
        the
        Trust created under the Pooling and Servicing Agreement in the exercise of
        the
powers
        and authority conferred and vested in it thereunder (ii) each of the
        representations, undertakings
        and agreements herein made on behalf of the Trust is made and intended
not
        as
        personal representations of the Trustee but is made and intended for the
        purpose
        of binding
        only the Trust created under the Pooling and Servicing Agreement, and (iii)
        under no circumstances will HSBC Bank USA, National Association in its
        individual capacity be personally liable for the payment of any indebtedness
        or
        expenses or be personally liable for
        the
        breach or failure of any obligation, representation, warranty or covenant
        made
        or undertaken
        under this Confirmation.

       

      
        	 	
                (g)

              	
                Proceedings

              

      

       

      Party
        A
        shall not institute against or cause any other person to institute against,
        or
        join any other
        person in instituting against, Party B or the Supplemental Interest Trust
        created pursuant to the Pooling and Servicing Agreement, any bankruptcy,
        reorganization, arrangement, insolvency or liquidation proceedings, or other
        proceedings under any federal
        or state bankruptcy, dissolution or similar law, for a period of one year
        and
        one day (or, if longer, the applicable preference period) following indefeasible
        payment in full of the Certificates,
        provided that nothing herein shall preclude, or be deemed to estop Party
        A
from
        taking any action in any case or proceeding voluntarily filed or commenced
        by or
        on behalf
        of
        Party B or in any involuntary case or proceeding after it has been
        commenced.

       

      
        	 	
                (h)

              	
                Set-off

              

      

       

      Notwithstanding
        any provision of this Agreement or any other existing or future agreement,
        each
        party irrevocably waives any and all rights it may have to set-off, net recoup
        or otherwise
        withhold or suspend or condition payment or performance of any obligation
        between it and the other party hereunder against any obligation between it
        and
        the other party
        under any other agreements. The provisions for Set-off set forth in Section
        6(e)
        of the
        Master Agreement shall not apply for purposes of this Transaction.

       

      
        
          
          

        

        
          Page
            13
            of 17

          
            

          

        

        
          
          

        

      

      
        	 	
                (i)

              	
                Section
                  1(c)

              

      

       

      For
        purposes of Section 1(c) of the Master Agreement, this Transaction shall
        be the
        sole Transaction
        under the Agreement.

       

      
        	 	
                (j)

              	
                Rating
                  Agency Downgrade

              

      

       

      If
        a
        Ratings Event (as defined below) occurs with respect to Party A (or any
        applicable credit
        support provider), then Party A shall, within (30) days of such Ratings Event
        subject to
        the
        Rating Agency Condition (as hereinafter defined) and at its own expense (unless,
        within
        30
        days of such Ratings Event, each of S&P and Moody's has reconfirmed the
        rating of the Certificates which was in effect immediately prior to such
        Ratings
        Event), (i)
        assign this Transaction hereunder to a third party that meets or exceeds,
        or as
        to which any
        applicable credit support provider of such third party meets or exceeds,
        the
        Approved Ratings Thresholds (as defined below) on terms substantially similar
        to
        this Confirmation, (ii) obtain a guaranty of Party A's obligations under
        this
        Transaction from a third party that meets
        or
        exceeds the Approved Ratings Threshold, in form and substance, (iii) post
        collateral, or (iv) establish any other arrangement, which will be sufficient
        to
        restore the immediately
        prior ratings of the Certificates. For purposes of this Transaction, a "Ratings
        Event" shall occur with respect to Party A (or any applicable credit support
        provider), if its short-term unsecured and unsubordinated debt ceases to
        be
        rated at least "A-1" by S&P or its short-term unsecured and unsubordinated
        debt ceases to be rated at least "P-1" by Moody's or its long-term unsecured
        and
        unsubordinated debt ceases to be rated at least "A1"
        by
        Moody's (including in connection with a merger, consolidation or other similar
        transaction by Party A or any applicable credit support provider) such ratings
        being referred to herein as the "Approved Ratings Thresholds." If a Further
        Ratings Event (as defined
        below) occurs with respect to Party A (or any applicable credit support
        provider), then
        Party A shall, within (10) days of such Downgrade Event subject to the Rating
        Agency Condition
        (as hereinafter defined) and at its own expense (unless, within 10 days of
        such
Ratings
        Event, S&P has reconfirmed the rating of the Certificates which was in
        effect immediately
        prior to such Further Ratings Event), (i) assign this Transaction hereunder
        to a
        third party that meets or exceeds, or as to which any applicable credit support
        provider of
        such
        third party meets or exceeds, the Approved Ratings Thresholds on terms
substantially
        similar to this Confirmation or (ii) obtain a guaranty of Party A's obligations
        under
        this Transaction from a third party that meets or exceeds the Approved Ratings
        Threshold. For purposes of this Transaction, a "Further Ratings Event" shall
        occur with respect to Party A (or any applicable credit support provider),
        if
        its long-term unsecured and unsubordinated debt ceases to be rated at least
        "BBB-" by S&P or its short-term unsecured and unsubordinated debt ceases to
        be rated at least "P-1" on watch for downgrade
        by Moody's or its long-term unsecured and unsubordinated debt ceases to be
        rated
        at
        least "A2" on watch for downgrade by Moody's (including in connection with
        a
        merger, consolidation or other similar transaction by Party A or any applicable
        credit support provider). "Rating Agency Condition" means, with respect to
        any
        particular proposed act or omission to act hereunder that the party acting
        or
        failing to act must consult with each Rating Agency then providing a rating
        of
        the Certificates and receive from
        each
        Rating Agency a prior written confirmation that the proposed action or inaction
        would
        not
        cause a downgrade or withdrawal of the then-current rating of the
        Certificates.

       

      
        
          
          

        

        
          Page
            14
            of 17

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (k)

              	
                Additional
                  Termination Events

              

      

       

      Additional
        Termination Events will apply as specified below:

       

      The
        occurrence of the following shall constitute an Additional Termination
        Event:

       

      If
        a
        Rating Agency Downgrade has occurred and Party A has not complied with paragraph
        (j) above, then an Additional Termination Event shall have occurred with
        respect
        to Party A and Party A shall be the sole Affected Party with respect to such
        an
        Additional Termination Event.

       

      If,
        at
        any time, the Terminator purchases the Mortgage Loans pursuant to Section
        10.01
        of the
        Pooling and Servicing Agreement, then an Additional Termination Event shall
        have
occurred
        and Party B shall be the sole Affected Party with respect thereto; provided,
        however,
        that notwithstanding Section 6(b)(iv) of the Master Agreement, only Party
        B
        shall have
        the
        right to designate an Early Termination Date in respect of this Additional
        Termination
        Event; provided, further, that the Early Termination Date shall not be prior
        to
the
        Optional Termination Date.

       

      If,
        upon
        the occurrence of a Regulation AB Event (as defined in Part 5(o) below) Party
        A
has
        not,
        within 30 days after such Regulation AB Event complied with any of the
        provisions set forth in Part 5(o)(iii) below (provided that if the significance
        percentage reaches 10% after a Regulation AB Event has occurred, Party A
        must
        comply with the provisions
        set forth in Part 5(o)(iii) below within 10 calendar days of Party A being
        informed of
        the
        significance percentage reaching 10%), then an Additional Termination Event
        shall have
        occurred with respect to Party A and Party A shall be the sole Affected Party
        with respect to such Additional Termination Event.

       

      
        	 	
                (l)

              	
                Amendment
                  to ISDA Form

              

      

       

      The
        "Failure to Pay or Deliver" provision in Section 5(a)(i) of the Master Agreement
        is hereby
        amended by deleting the word "third" in the third line thereof and inserting
        the
        word "first"
        in place thereof.

       

      
        	 	
                (m)

              	
                Severability

              

      

       

      If
        any
        term, provision, covenant, or condition of the Agreement, or the application
        thereof to any other party or circumstance, shall be held invalid or
        unenforceable (in whole or in part)
        for
        any reason, the remaining terms, provisions, covenants, and conditions hereof
        shall continue in full force and effect as if the Agreement has been executed
        with the invalid or unenforceable provision portion eliminated, so long as
        the
        Agreement as so modified continues to express, without material change, the
        original intentions of the parties as to the subject matter of the Agreement
        and
        the deletion of such portion of the Agreement will not substantially impair
        the
        respective benefits or expectations of the parties. The parties shall endeavor
        to engage in good faith negotiations to replace any invalid
        or unenforceable term, provision, covenant or conditions with a valid or
        enforceable
        term,
        provision, covenant or condition, the economic effect of which comes as close
        as
possible
        to that of the invalid or unenforceable term, provision, covenant or
        condition.

       

      
        
          
          

        

        
          Page
            15
            of 17

          
            

          

        

        
          
          

        

      

      
        	 	
                (n)

              	
                [Reserved]

              

      

       

      
        	 	
                (o)

              	
                Compliance
                  with Regulation AB

              

      

       

      
        	 	
                (i)

              	
                Party
                  A agrees and acknowledges that while reporting requirements with
                  respect
                  to this
                  Transaction are operative by force of law, DB Structured Products,
                  Inc.
                  ("DBSP") and
                  ACE Securities Corp. ("ACE") are required under Regulation AB under
                  the
                  Securities Act of 1933, as amended, and the Securities Exchange
                  Act of
                  1934, as amended
                  ("Regulation AB"), to disclose certain information set forth in
                  Regulation
                  AB regarding
                  Party A or its group of affiliated entities, if applicable, depending
                  on
                  the aggregate "significance percentage" of this Agreement and any
                  other
                  derivative contracts
                  between Party A or its group of affiliated entities, if applicable,
                  and
                  Party B, as
                  calculated from time to time in accordance with Item 1115 of Regulation
                  AB.

              

      

       

      
        	 	
                (ii)

              	
                If,
                  solely while the relevant reporting requirements apply by force
                  of law to
                  this Transaction, DBSP or ACE determines, reasonably and in good
                  faith,
                  that the significance
                  percentage of this Agreement has increased to nine (9) percent,
                  then DBSP
                  or ACE, as the case may be, may notify Party A on a Business Day
                  after the
                  date
                  hereof of such increase in the significance percentage (such notification,
                  a "Regulation
                  AB Event"). DBSP and/or ACE, as applicable hereby agree with Party
                  A
                  to
                  provide Party A with the calculations and any other information
                  reasonably
                  requested by Party A with respect to the determination that led
                  to a
                  Regulation AB Event.

              

      

       

      
        	 	
                (iii)

              	
                Upon
                  the occurrence of a Regulation AB Event, Party A, at its own expense,
                  shall secure another entity to replace Party A as party to this
                  Agreement
                  on terms substantially
                  similar to this Agreement and subject to prior notification to
                  the Rating
                  Agencies,
                  which entity (or a guarantor therefor) and satisfies the Rating
                  Agency
                  Condition
                  and which entity is able to provide the information set forth in
                  Item
                  1115(b) of
                  Regulation AB (the "Regulation AB Information"). If permitted by
                  Regulation AB, any required Regulation AB Information may be provided
                  by
                  incorporation by reference from reports filed pursuant to the Exchange
                  Act.

              

      

       

      
        
          
          

        

        
          Page
            16
            of 17

          
            

          

        

        
          
          

        

      

      
        	 	
                (p)

              	
                Limitation
                  on Events of Default

              

      

       

      Notwithstanding
        the terms of Sections 5 and 6 of the Master Agreement, if at any time and
        so
        long
        as the Party B has satisfied in full all its payment obligations under Section
        2(a)(i) of
        the
        Master Agreement and has at the time no future payment obligations, whether
        absolute or contingent, under such Section, then unless Party A is required
        pursuant to appropriate
        proceedings to return to the Party B or otherwise returns to the Party B
        upon
        demand of the Party B any portion of any such payment, (a) the occurrence
        of an
        event described
        in Section 5(a) of the Master Agreement with respect to the Party B shall
        not
constitute
        an Event of Default or Potential Event of Default with respect to the Party
        B as
        Defaulting Party and (b) Party A shall be entitled to designate an Early
        Termination Date pursuant
        to Section 6 of the Master Agreement only as a result of the occurrence of
        a
Termination
        Event set forth in either Section 5(b)(i) or 5(b)(ii) of the Master Agreement
        with respect
        to Party A as the Affected Party, or Section 5(b)(iii) with respect to Party
        A
        as the Burdened Party. For purposes of the Transaction to which this Agreement
        relates, Party B's
        only
        obligation under Section 2(a)(i) of the Master Agreement is to pay the Fixed
        Amount on
        the
        Fixed Rate Payer Payment Date.

       

      

       

      
        
          
          

        

        
          Page
            17
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    EXHIBIT
      K
 

    
      ASSIGNMENT,
        ASSUMPTION AND RECOGNITION AGREEMENT

       

      This
        Assignment, Assumption and Recognition Agreement (the “AAR Agreement”) is made
        and entered into as of July 25, 2006 (the “Closing Date”), among DB Structured
        Products, Inc., having an address at 60 Wall Street, New York, New York 10005
        (the “Assignor”), ACE Securities Corp., having an address at 6525 Morrisson
        Boulevard, Charlotte, North Carolina 28211 (the “Assignee”), Countrywide
        Home Loans Servicing LP, having an address at 400 Countrywide Way, Simi Valley,
        California 93065 (the “Servicer”) and Countrywide Home Loans, Inc., having an
        address at 4500 Park Granada, Calabasas, California 91302 (the
“Company”).

      

      WHEREAS,
        the Assignor has acquired certain residential
        mortgage loans listed on Attachment
        1
        annexed
        hereto (the “Assigned Loans”) from the Company pursuant to that certain Amended
        and Restated Master Mortgage Loan Purchase and Servicing Agreement, dated
        as of
        September 1, 2005 as amended and restated to and including May 1, 2006 (the
        “Agreement”) between Company and Assignor, which incorporates the provisions of
        Amendment One to the Master Mortgage Loan Purchase and Servicing Agreement,
        dated as of May 31, 2006 (the “Reg AB Amendment”; together with the Agreement,
        the “Servicing Agreement”), between Company and Assignor as attached hereto as
Attachment
        4;
        and

      

      WHEREAS,
        the Company has assigned its rights and obligations with respect to the
        servicing of the Mortgage Loans under the Servicing Agreement to the Servicer
        and the Servicer is currently servicing the Mortgage Loans for the benefit
        of
        the Assignor and its successors and assigns in accordance with the terms
        and
        conditions of the Servicing Agreement.

      

      In
        consideration of the mutual promises contained herein, the parties hereto
        agree
        that the Assigned Loans shall be sold by the Assignor to the Assignee pursuant
        to the Mortgage Loan Purchase Agreement, dated as of July 25, 2006 (the “MLPA”),
        between the Assignor and the Assignee and subject to the terms of this AAR
        Agreement. The Assignee intends to transfer all right, title and interest
        in and
        to the Assigned Loans to HSBC Bank USA, National Association as trustee (the
        “Trustee”) for the holders of ACE Securities Corp. Home Equity Loan Trust,
        Series 2006-CW1 Asset Backed Pass-Through Certificates (the
“Certificateholders”) pursuant to the Pooling and Servicing Agreement, dated as
        of July 1, 2006 (the “Pooling and Servicing Agreement”) among the Assignee, as
        depositor, the Trustee, as trustee and Wells Fargo Bank, N.A., as master
        servicer (the “Master Servicer”), and securities administrator. Capitalized
        terms used herein but not defined shall have the meanings ascribed to them
        in
        the Servicing Agreement, provided, however, for purposes of this AAR Agreement
        the definition of “Mortgage Loan Schedule” shall be deemed to refer to a
        mortgage loan schedule setting forth the information agreed to between the
        Purchaser and the Company.

       

      Assignment
        and Assumption

       

      1.
        Assignor
        hereby grants, transfers and assigns to Assignee all of the right, title
        and
        interests and obligations of Assignor in, to and under the Servicing Agreement
        as it relates to the servicing of the Assigned Loans. Assignor specifically
        reserves and does not assign to Assignee any right, title and interest in,
        to or
        under the Servicing Agreement, as it relates to loans other than the Assigned
        Loans set forth on Attachment
        1.
        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
        Subsections 3.01 and 3.02 of the Servicing Agreement and the Assignor is
        retaining the right to enforce the representations and warranties set forth
        in
        Article III of the Servicing Agreement against the Company.

       

      
        
          
          

        

        
          K-1

          
            

          

        

        
          
          

        

      

       

      The
        Servicing Fee Rate with respect to each Mortgage Loan is as set forth on
        Attachment
        1
        attached
        hereto.

       

      Representations,
        Warranties and Covenants

       

      2.
        Assignor
        warrants and represents to Assignee as of the date hereof:

       

      
        	(a)  	
                Attached
                  hereto as Attachment
                  2
                  is
                  a true and accurate copy of the servicing provisions 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)  	
                Assignor
                  is 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 as 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 Assignee under the MLPA, Assignee shall
                  have good
                  title to each and every Assigned Loan, as well as any and all of
                  Assignor’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 Company
                  with
                  respect to the Assigned Loans or the Servicing
                  Agreement;

              

      

       

      
        	(d)  	
                Assignor
                  has no knowledge of, and has not received notice of, any waivers
                  under, or
                  any modification of, any Assigned
                  Loan;

              

      

       

      
        	(e)  	
                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)  	
                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 Assignor’s business and
                  will not conflict with, or result in a breach of, any of the terms,
                  conditions or provisions of Assignor’s articles of incorporation or
                  by-laws or any legal restriction, or any material agreement or
                  instrument
                  to which 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 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 the part of Assignor. This AAR Agreement
                  has
                  been duly executed and delivered by Assignor and, upon the due
                  authorization, execution and delivery by Assignee, Servicer and
                  Company,
                  will constitute the valid and legally binding obligation of Assignor
                  enforceable against 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; and

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	(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 Assignor in connection with the execution, delivery or
                  performance
                  by Assignor of this AAR Agreement, or the consummation by it of
                  the
                  transactions contemplated hereby. Neither 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.

              

      

       

      3.
        Assignee
        warrants and represents to, and covenants with, Assignor, Servicer and Company
        as of the date hereof:

       

      
        	(a)  	
                Assignee
                  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 purchase the Assigned
                  Loans;

              

      

       

      
        	(b)  	
                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 Assignee’s business and
                  will not conflict with, or result in a breach of, any of the terms,
                  conditions or provisions of Assignee’s articles of incorporation or
                  by-laws or any legal restriction, or any material agreement or
                  instrument
                  to which 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
                  Assignee or its property is subject. The execution, delivery and
                  performance by 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 the part of Assignee. This AAR Agreement
                  has
                  been duly executed and delivered by Assignee and, upon the due
                  authorization, execution and delivery by Assignor, Servicer and
                  Company,
                  will constitute the valid and legally binding obligation of Assignee
                  enforceable against 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;

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	(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 Assignee in connection with the execution, delivery or
                  performance
                  by Assignee of this AAR Agreement, or the consummation by it of
                  the
                  transactions contemplated hereby;
                  and

              

      

       

      
        	(d)  	
                Assignee
                  agrees to be bound by all of the terms, covenants and conditions
                  of the
                  Servicing Agreement, as modified by this AAR agreement, with respect
                  to
                  the Assigned Loans, and from and after the date hereof, Assignee
                  assumes
                  for the benefit of each of Assignor, Servicer and Company, all
                  of
                  Assignor’s obligations thereunder but solely with respect to such Assigned
                  Loans.

              

      

       

      4.
        Company
        warrants and represents to, and covenants with, Assignor and Assignee (unless
        otherwise specified) as of the date hereof:

       

      
        	(a)  	
                The
                  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, except as contemplated in this AAR Agreement, nor has
                  any notice
                  of termination been given
                  thereunder;

              

      

       

      
        	(b)  	
                Company
                  is duly organized, validly existing and in good standing under
                  the laws of
                  the jurisdiction of its incorporation;

              

      

       

      
        	(c)  	
                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 Company’s business and
                  will not conflict with, or result in a breach of, any of the terms,
                  conditions or provisions of Company’s charter or by-laws or any legal
                  restriction, or any material agreement or instrument to which 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 Company
                  or its
                  property is subject. The execution, delivery and performance by
                  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 the part of Company. This AAR Agreement has been duly
                  executed
                  and delivered by Company, and, upon the due authorization, execution
                  and
                  delivery by Assignor, Servicer and Assignee, will constitute the
                  valid and
                  legally binding obligation of Company, enforceable against 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;
                  and

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	(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 Company in connection with the execution, delivery or performance
                  by Company of this AAR Agreement, or the consummation by it of
                  the
                  transactions contemplated hereby.

              

      

       

      5.
        Servicer
        warrants and represents to, and covenants with, Assignor and Assignee (unless
        otherwise specified) as of the date hereof:

       

      
        	(a)  	
                Servicer
                  is duly organized, validly existing and in good standing under
                  the laws of
                  the jurisdiction of its formation and has all requisite power and
                  authority to service the Assigned Loans and otherwise to perform
                  its
                  obligations under the Servicing Agreement, as modified by this
                  AAR
                  Agreement;

              

      

       

      
        	(b)  	
                Servicer
                  has the requisite entity 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
                  Servicer
                  ‘s business and will not conflict with, or result in a breach of,
                  any of
                  the terms, conditions or provisions of Servicer’s formation or
                  organizational documents or any legal restriction, or any material
                  agreement or instrument to which Servicer 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 Servicer or its property is subject.
                  The
                  execution, delivery and performance by Servicer of this AAR Agreement
                  and
                  the consummation by it of the transactions contemplated hereby,
                  have been
                  duly authorized by all necessary action on the part of Servicer.
                  This AAR
                  Agreement has been duly executed and delivered by Servicer, and,
                  upon the
                  due authorization, execution and delivery by Assignor, Company
                  and
                  Assignee, will constitute the valid and legally binding obligation
                  of
                  Servicer, enforceable against Servicer 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 Servicer in connection with the execution, delivery or
                  performance
                  by Servicer of this AAR Agreement, or the consummation by it of
                  the
                  transactions contemplated hereby;
                  and

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	(d)  	
                From
                  and after the Closing Date, the Servicer shall service the Assigned
                  Loans
                  in accordance with the terms and provisions of the Servicing Agreement,
                  as
                  modified by this AAR Agreement, and the Servicer shall establish
                  a
                  Custodial Account and an Escrow Account with respect to the Assigned
                  Loans
                  separate from the Custodial Account and Escrow Account previously
                  established under the Servicing Agreement in favor of Assignor,
                  and shall
                  remit collections received. The Custodial Account and Escrow Account
                  shall
                  be entitled “Countrywide Home Loans Servicing LP, as Servicer in trust for
                  ACE Securities Corp. Home Equity Loan Trust, Series
                  2006-CW1”.

              

      

       

      6.
        The
        Company hereby guarantees the performance by the Servicer of the Servicer’s
        obligations under this AAR Agreement and under the Servicing
        Agreement.

       

      7.
        Pursuant
        to Section 8.07(c) of the Servicing Agreement, the Company hereby restates
        to
        the Assignor the representations and warranties set forth in Section 3.01
        of the
        Servicing Agreement as of the Closing Date, as if such representations and
        warranties were set forth herein in full. In the event of a breach of any
        such
        representations and warranties as of the Closing Date, the Assignor shall
        be
        entitled to all of the remedies under the Servicing Agreement.

      

      Recognition
        of Assignee.

      

      8.
        From
        and
        after the date hereof, Servicer shall recognize 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, as modified by this AAR 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 Assignor, Company, Servicer and Assignee that this AAR Agreement
        shall be binding upon and for the benefit of the respective permitted successors
        and assigns of the parties hereto. Neither Company, Servicer nor Assignor
        shall
        amend or agree to amend, modify, waive, or otherwise alter any of the terms
        or
        provisions of the Servicing Agreement which amendment, modification, waiver
        or
        other alteration would in any way materially affect the Assigned Loans without
        the prior written consent of the Trustee and the Master Servicer, which consent
        shall not be unreasonably withheld or delayed. Company and Servicer hereby
        acknowledges that pursuant to the Pooling and Servicing Agreement, the Assignee
        will assign all of its rights under this AAR Agreement to the Trustee for
        the
        benefit of the Certificateholders. Company and Servicer hereby acknowledge
        and
        consent to the assignment by the Assignee of all of the Assignee’s rights and
        obligations against the Company and Servicer pursuant to this AAR Agreement
        and
        to the enforcement or exercise of any right or remedy against the Company
        or
        Servicer pursuant to this AAR Agreement by the Trustee.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      Modification
        of Servicing Agreement

      

      9.
        The
        Servicer and Assignor hereby modify the Servicing Agreement with respect
        to the
        Assigned Loans as follows:

      

      (a)  The
        definition of “Bailee Letter” in Article I of the Servicing Agreement is
        modified by deleting such definition in its entirety and replacing it with
        the
        following:

      

      Bailee
        Letter:
        The
        bailee letter agreed upon by the Purchaser and Countrywide.

      

      (b)  The
        definition of “Business Day” in Article I of the Servicing Agreement is modified
        by deleting such definition in its entirety and replacing it with the
        following:

      

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

       

      (c)  The
        definition of “Collateral Documents” in Article I of the Servicing Agreement is
        modified by deleting such definition in its entirety and replacing it with
        the
        following:

       

      Collateral
        Documents:
        The
        collateral documents pertaining to each Mortgage Loan as agreed upon by the
        Purchaser and Countrywide.

       

      (d)  The
        definition of “Mortgage File” in Article I of the Servicing Agreement is
        modified by deleting such definition in its entirety and replacing it with
        the
        following:

       

      Mortgage
        File:
        The
        items pertaining to a particular Mortgage Loan as agreed upon by the Purchaser
        and Countrywide.

       

      (e)  The
        definition of “Prepayment Interest Excess” in Article I of the Servicing
        Agreement is modified by adding the word “Principal” before the phrase
“Prepayment Period” therein.

      

      (f)  The
        definition of “Purchase Confirmation” in Article I of the Servicing Agreement is
        modified by deleting such definition in its entirety and replacing it with
        the
        following:

      

      Purchase
        Confirmation:
        A
        letter agreement executed by Countrywide and the Purchaser in connection
        with
        the purchase and sale of each Mortgage Loan Package, which sets forth the
        terms
        relating thereto as agreed upon by Countrywide and the Purchaser.

      

      (g)  The
        definition of “Static Pool Information” in Article I of the Servicing Agreement
        is modified by inserting “of Regulation AB” immediately following “Item
        1105”.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (h)  The
        definition of “Trade Confirmation” in Article I of the Servicing Agreement is
        modified by deleting such definition in its entirety and replacing it with
        the
        following:

      

      Trade
        Confirmation:
        A
        letter agreement executed by Countrywide and the Purchaser prior to the
        applicable Closing Date confirming the terms of a prospective purchase and
        sale
        of a Mortgage Loan Package.

      

      (i)  The
        following definitions are added (in alphabetical order) to Article I of the
        Servicing Agreement:

      

      Master
        Servicer:
        Wells
        Fargo Bank, N.A., its successors and assigns.

       

      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 REMICs, which appear
        in
        Sections 860A through 860G of the Code, and related provisions, and proposed,
        temporary and final regulations and published rulings, notices and announcements
        promulgated thereunder, as the foregoing may be in effect from time to
        time.

       

      Securities
        Administrator:
        As of
        the Closing Date, Wells Fargo Bank, National Association and thereafter,
        its
        respective successors in interest that meet the qualifications of this
        Agreement. The Securities Administrator and the Master Servicer shall at
        all
        times be the same Person or Affiliates.

       

      (j)  Section
        5.02(a) of the Servicing Agreement is modified by deleting such section in
        its
        entirety and replacing it with the following: 

       

      (a) On
        the
        18th
        calendar
        day of each month, and if the 18th
        calendar
        day is not a Business Day, the immediately preceding Business Day, the Servicer
        shall, deliver to the Master Servicer and the Securities Administrator by
        telecopy or electronic mail (or by such other means as the Servicer, the
        Master
        Servicer and the Securities Administrator may agree from time to time) a
        remittance report containing information specified in Exhibit
        L
        (or
        otherwise in form and substance acceptable to the Master Servicer, Securities
        Administrator and the Servicer) with respect to the Mortgage Loans and the
        related Remittance Date as is reasonably available to the Servicer as the
        Master
        Servicer or the Securities Administrator may reasonably require so as to
        enable
        the Master Servicer to master service the related Mortgage Loans and oversee
        the
        servicing by the Servicer and the Securities Administrator to fulfill its
        obligations hereunder with respect to securities and tax reporting.

       

      (k)  Section
        5.02(b) of the Servicing Agreement is modified by deleting the fourth sentence
        therein and replacing it with the following:

       

      “Countrywide
        shall file reports of foreclosures and abandonments of any Mortgaged Property
        as
        required by 6050J of the Code.” 

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (l)  The
        Servicing Agreement is modified by deleting Section 5.04, Section 5.05 and
        Section 5.06 in their entirety.

       

      (m)  Section
        9.04 of the Servicing Agreement is modified by inserting “, the Master Servicer”
immediately following the phrase “addressed to the Purchaser”.

       

      (n)  Section
        9.05(i)(D) of the Servicing Agreement is modified by deleting “, if required by
        Regulation AB,” immediately following “deliver and”.

       

      (o)  Section
        9.06(i) of the Servicing Agreement is modified by deleting “Sections 2(b),
        2(c)(iii), 2(c)(v), 2(d) and 2(e)” and replacing it with “Section 9.02,
        9.03(iii), 9.03(v), 9.04 and 9.05”.

       

      (p)  The
        Servicing Agreement is modified by inserting Attachment
        3
        hereto
        as Exhibit
        L;
        provided, however, the Servicer shall not be required to report any information
        relating to any prepayment penalties or charges to the extent such penalties
        or
        charges are retained by the Servicer.

       

      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 Company,

       

      Countrywide
        Home Loans, Inc.

      4500
        Park
        Granada

      Calabasas,
        California 91302

      Attention:
        Darren Bigby

       

      (b)  In
        the
        case of Servicer,

       

      Countrywide
        Home Loans Servicing LP

      400
        Countrywide Way

      Simi
        Valley, California 93065

      Attention:
        John Lindberg, Rachel Meza, Eric Varnen and Yuan Li

       

      (c)  In
        the
        case of Assignor,

       

      DB
        Structured Products, Inc.

      60
        Wall
        Street

      New
        York,
        New York 10005

      Attention:
        Susan Valenti

       

      (d)  In
        the
        case of Assignee,

       

      Ace
        Securities Corp. 

      6525
        Morrison Boulevard,

      Suite
        318

      Charlotte,
        North Carolina 28211

      Attention:
        Julianna Johnson

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (d)  In
        the
        case of the Master Servicer,

       

      Wells
        Fargo Bank, N.A.

      9062
        Old
        Annapolis Road

      Columbia,
        Maryland 21045

      Attention:
        Client Manager - Ace 2006-CW1

      Telecopier:
        (410) 715-2380

       

      11.
        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,
        Servicer and the Company in connection with the negotiations for, documenting
        of
        and closing of the transactions contemplated by this AAR Agreement.

       

      12.
        The
        Servicer hereby acknowledges that, Wells Fargo Bank, N.A. has been appointed
        as
        the Master Servicer of the Assigned Loans pursuant to the Pooling and Servicing
        Agreement and, therefore, has the right to enforce all obligations of the
        Servicer under the Servicing Agreement as modified by this AAR Agreement.
        Such
        rights will include, without limitation, the right to terminate the Servicer
        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
        Servicer under the Servicing Agreement, the right to receive all monthly
        reports
        and other data required to be delivered by the Servicer under the Servicing
        Agreement, the right to examine the books and records of the Servicer, and
        the
        right to exercise certain rights of consent and approval relating to actions
        taken by the Servicer. Notwithstanding
        the foregoing, it is understood that the Servicer shall not be obligated
        to
        defend and indemnify and hold harmless the Master Servicer, the Securities
        Administrator, the Assignor and the Assignee against any losses, damages,
        penalties, fines, forfeitures, judgments and any related costs including,
        without limitation, reasonable and necessary legal fees, resulting from (i)
        action or inactions of the Servicer which were taken or omitted upon the
        instruction or direction of the Master Servicer or Assignee, as applicable,
        or
        (ii) the failure of the Master Servicer or the Assignee, as applicable, to
        perform the obligations of the Assignee or “Owner” with respect to the servicing
        provisions of the Servicing Agreement. A copy of all assessments, attestations,
        reports and certifications required to be delivered by the Servicer under
        this
        AAR Agreement and the Servicing Agreement shall be delivered to the Master
        Servicer by the dates specified herein or therein, and where such documents
        are
        required to be addressed to any party other than the Servicer, such addressee(s)
        shall include the Master Servicer and the Master Servicer shall be entitled
        to
        rely on such documents. The Servicer shall make all distributions under the
        Servicing Agreement to the Master Servicer by wire transfer of immediately
        available funds to:

       

      Wells
        Fargo Bank, N.A.

      ABA
        Number: 121000248

      Account
        Name: SAS Clearing

      Account
        Number: 3970771416

      For
        further credit to: Ace 2006-CW1, Account # 50936200

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      The
        Servicer shall deliver all reports required to be delivered under the Servicing
        Agreement to the Master Servicer at their respective addresses set forth
        in
        Section 11 herein.

       

      13. This
        AAR
        Agreement shall be construed in accordance with the laws of the State of
        New
        York, without regard to conflicts of law principles (other than Section 5-1401
        of the General Obligations Law), and the obligations, rights and remedies
        of the
        parties hereunder shall be determined in accordance with such laws.

       

      14. 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.

       

      15. This
        AAR
        Agreement shall inure to the benefit of the successors and assigns of the
        parties hereto. Any entity into which Assignor, Assignee, Servicer or Company
        may be merged or consolidated or which succeeds to the business or assets
        thereof shall, without the requirement for any further writing, be deemed
        Assignor, Assignee, Servicer or Company, respectively, hereunder.

       

      16. This
        AAR
        Agreement shall survive the conveyance of the Assigned Loans, the assignment
        of
        the Servicing Agreement to the extent of the Assigned Loans by Assignor to
        Assignee and the termination of the Servicing Agreement.

       

      17. 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.

       

      18. 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.

       

      19. For
        purposes of this AAR Agreement, the Master Servicer shall be considered a
        third
        party beneficiary to this AAR Agreement entitled to all the rights and benefits
        accruing to the Master Servicer as if it were a direct party to this AAR
        Agreement.

       

      [signature
        page to follow]

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the parties hereto have executed this AAR Agreement as of
        the
        day and year first above written.

       

      DB
        STRUCTURED PRODUCTS, INC. as Assignor

       

      By:

      
        
          

        

      

      Name:    

      Title: 

       

      By:
        
        
          
            

          

        

      

      Name:

      Title:

       

      ACE
        SECURITIES CORP., as Assignee

       

      By: 
        
        
          
            

          

        

      

      Name:

      Title:

       

      By: 
        
        
          
            

          

        

      

      Name:

      Title:

       

      COUNTRYWIDE
        HOME LOANS, INC., as Company

       

      By: 
        
        
          
            

          

        

      

      Name:     

      Title: 

       

      COUNTRYWIDE
        HOME LOANS SERVICING LP, as Servicer

      By:
        Countrywide GP, Inc., its General Partner

       

      By: 
        
        
          
            

          

        

      

      Name:

      Title: 

       

      ACKNOWLEDGED
        AND AGREED TO:

       

      WELLS
        FARGO BANK, N.A., as Master Servicer

       

      By: 
        
        
          
            

          

        

      

      Name:

      Title:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ATTACHMENT
        1

       

      ASSIGNED
        LOANS AND MORTGAGE LOAN SCHEDULE

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ATTACHMENT
        2

       

      SERVICING
        PROVISIONS OF THE SERVICING AGREEMENT

       

      DEFINITIONS

       

      Adjustable
        Rate Mortgage Loan: Any Mortgage Loan in which the related Mortgage Note
        contains a provision whereby the Mortgage Interest Rate is adjusted from
        time to
        time in accordance with the terms of such Mortgage Note.

       

      Agency:
        Either Fannie Mae or Freddie Mac or for both Fannie Mae and Freddie Mac,
        the
“Agencies.”

       

      Agreement:
        This Amended and Restated Master Mortgage Loan Purchase and Servicing Agreement,
        including all exhibits and supplements hereto, and all amendments
        hereof.

       

      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.

       

      Bailee
        Letter: The bailee letter in the form attached hereto as Exhibit C.

       

      Balloon
        Mortgage Loan: Any Mortgage Loan wherein the Mortgage Note matures prior
        to full
        amortization and requires a final and accelerated payment of
        principal.

       

      Business
        Day: Any day other than (i) a Saturday or Sunday, or (ii) a day on which
        banking
        and savings and loan institutions in either the State of California or the
        State
        of Texas are authorized or obligated by law or executive order to be
        closed.

       

      Cash
        Liquidation: Recovery of all cash proceeds by Countrywide with respect to
        the
        termination of any defaulted Mortgage Loan other than a Mortgage Loan which
        became an REO Property, including all Other Insurance Proceeds, Liquidation
        Proceeds, Condemnation Proceeds and other payments or recoveries whether
        made at
        one time or over a period of time which Countrywide deems to be finally
        recoverable, in connection with the sale or assignment of such Mortgage Loan,
        trustee's sale, foreclosure sale or otherwise.

       

      Closing
        Date: The date on which the purchase and sale of the Mortgage Loans constituting
        a Mortgage Loan Package is consummated, as set forth in the Trade Confirmation
        or Purchase Confirmation.

       

      Collateral
        Documents: The collateral documents pertaining to each Mortgage Loan as set
        forth in Exhibit A hereto.

       

      Collateral
        File: With respect to each Mortgage Loan, a file containing each of the
        Collateral Documents.

       

      Condemnation
        Proceeds: All awards or settlements in respect of a taking of an entire
        Mortgaged Property by exercise of the power of eminent domain or
        condemnation.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Convertible
        Mortgage Loan: Any Adjustable Rate Mortgage Loan that contains a provision
        whereby the Mortgagor is permitted to convert the Mortgage Loan to a fixed-rate
        mortgage loan in accordance with the terms of the related Mortgage
        Note.

       

      Countrywide:
        Countrywide Home Loans, Inc., or any successor or assign to Countrywide under
        this Agreement as provided herein.

       

      Credit
        File: The file retained by Countrywide that includes the mortgage loan documents
        pertaining to a Mortgage Loan including copies of the Collateral Documents
        together with the credit documentation relating to the origination of such
        Mortgage Loan, which Credit File may be maintained by Countrywide on microfilm
        or any other comparable medium.

       

      Custodial
        Account: The account or accounts created and maintained pursuant to Section
        4.04, each of which shall be an Eligible Account.

       

      Custodian:
        Wells Fargo Bank, National Association, its successor in interest or assign,
        or
        such other custodian that may be designated by the Purchaser from time to
        time.

       

      Cut-off
        Date: The first day of the month in which the related Closing Date occurs
        or
        such other date as may be set forth in the related Trade Confirmation or
        Purchase Confirmation.

       

      Determination
        Date: The fifteenth (15th) calendar day of the month related to the Remittance
        Date, or if such fifteenth (15th) day is not a Business Day, the Business
        Day
        immediately preceding such 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 each Remittance Date, the period commencing on the
        second day of the month preceding the month of the Remittance Date and ending
        on
        the first day of the month of the Remittance Date.

       

      Eligible
        Account: An account or accounts (i) maintained with a depository institution
        the
        short term debt obligations of which are rated by a nationally recognized
        statistical rating agency in one of its two (2) highest rating categories
        at the
        time of any deposit therein, (ii) the deposits of which are insured up to
        the
        maximum permitted by the FDIC, or (iii) maintained with an institution and
        in a
        manner acceptable to an Agency.

       

      Escrow
        Account: The separate trust account or accounts created and maintained pursuant
        to Section 4.06, each of which shall be an Eligible Account.

       

      Escrow
        Payments: The amounts constituting ground rents, taxes, assessments, water
        rates, mortgage insurance premiums, fire and hazard insurance premiums and
        other
        payments required to be escrowed by the Mortgagor with the Mortgagee pursuant
        to
        any Mortgage Loan.

       

      Event
        of
        Default: Any one of the conditions or circumstances enumerated in Section
        7.01.

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

       

      Fannie
        Mae: The Federal National Mortgage Association or any successor
        organization.

       

      Fidelity
        Bond: A fidelity bond to be maintained by Countrywide pursuant to Section
        4.12.

       

      Final
        Recovery Determination: With respect to any defaulted Mortgage Loan or any
        REO
        Property (other than a Mortgage Loan or REO Property repurchased by Countrywide
        pursuant to this Agreement), a determination made by Countrywide that all
        Other
        Insurance Proceeds, Liquidation Proceeds and other payments or recoveries
        which
        Countrywide, in its reasonable good faith judgment, expects to be finally
        recoverable in respect thereof have been so recovered. Countrywide shall
        maintain records, prepared by a servicing officer, of each Final Recovery
        Determination.

       

      Fixed
        Rate Mortgage Loan: Any Mortgage Loan wherein the Mortgage Interest Rate
        set
        forth in the Mortgage Note is fixed for the term of such Mortgage Loan.

       

      Freddie
        Mac: The Federal Home Loan Mortgage Corporation or any successor
        organization.

       

      Interest
        Adjustment Date: With respect to an Adjustable Rate Mortgage Loan, the date
        on
        which an adjustment to the Mortgage Interest Rate on a Mortgage Note becomes
        effective.

       

      Late
        Collections: With respect to any Mortgage Loan, all amounts received during
        any
        Due Period, whether as late payments of Monthly Payments or as Liquidation
        Proceeds, Condemnation Proceeds, Other Insurance Proceeds, proceeds of any
        REO
        Disposition or otherwise, which represent late payments or collections of
        Monthly Payments due but delinquent for a previous Due Period and not previously
        recovered.

       

      Liquidation
        Proceeds: Amounts, other than Condemnation Proceeds and Other Insurance
        Proceeds, received by Countrywide in connection with the liquidation of a
        defaulted Mortgage Loan through trustee's sale, foreclosure sale or otherwise,
        other than amounts received following the acquisition of an REO Property
        pursuant to Section 4.13.

       

      LPMI
        Fee:
        The portion of the Mortgage Interest Rate relating to an LPMI Loan, which
        is set
        forth on the related Mortgage Loan Schedule, to be retained by Countrywide
        to
        pay the premium due on the LPMI Policy with respect to such LPMI
        Loan.

       

      LPMI
        Loan: Any Mortgage Loan with respect to which Countrywide is responsible
        for
        paying the premium due on the related LPMI Policy with the proceeds generated
        by
        the LPMI Fee relating to such Mortgage Loan, as set forth on the related
        Mortgage Loan Schedule.

       

      LPMI
        Policy: A policy of mortgage guaranty insurance issued by a Qualified Insurer
        in
        which the owner or servicer of the Mortgage Loan is responsible for the premiums
        associated with such mortgage insurance policy.

       

      Monthly
        Advance: The advances made or required to be made by Countrywide on any
        Remittance Date pursuant to Section 5.03.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Monthly
        Payment: The scheduled monthly payment of principal and interest on a Mortgage
        Loan.

       

      Mortgage:
        The mortgage, deed of trust or other instrument securing a Mortgage Note,
        which
        creates a first or second lien, as applicable, on an unsubordinated estate
        in
        fee simple in real property securing the Mortgage Note.

       

      Mortgage
        File: The items pertaining to a particular Mortgage Loan referred to in Exhibit
        K hereto.

       

      Mortgage
        Interest Rate: The annual rate at which interest accrues on any Mortgage
        Loan
        and, with respect to an Adjustable Rate Mortgage Loan, as adjusted from time
        to
        time in accordance with the provisions of the related Mortgage
        Note.

       

      Mortgage
        Loan: Any mortgage loan that is sold pursuant to this Agreement, as evidenced
        by
        such mortgage loan’s inclusion on the related Mortgage Loan Schedule, which
        mortgage loan includes the Mortgage File, Monthly Payments, Principal
        Prepayments, Liquidation Proceeds, Condemnation Proceeds, Other Insurance
        Proceeds, REO Disposition proceeds, and all other rights, benefits, proceeds
        and
        obligations arising from or in connection with such Mortgage Loan, excluding
        the
        servicing rights relating thereto. Unless the context requires otherwise,
        any
        reference to the Mortgage Loans in this Agreement shall refer to the Mortgage
        Loans constituting a Mortgage Loan Package.

       

      Mortgage
        Loan Package: The Mortgage Loans sold to the Purchaser pursuant to a Purchase
        Confirmation.

       

      Mortgage
        Loan Remittance Rate: With respect to each Mortgage Loan, the interest rate
        payable to the Purchaser on each Remittance Date which shall equal the Mortgage
        Interest Rate less the Servicing Fee and the LPMI Fee, if
        applicable.

       

      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.

       

      Mortgagee:
        The mortgagee or beneficiary named in the Mortgage and the successors and
        assigns of such mortgagee or beneficiary.

       

      Mortgagor:
        The obligor on a Mortgage Note.

       

      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.

       

      Other
        Insurance Proceeds: Proceeds of any title policy, hazard policy, pool policy
        or
        other insurance policy covering a Mortgage Loan, if any, to the extent such
        proceeds are not to be applied to the restoration of the related Mortgaged
        Property or released to the Mortgagor in accordance with the procedures that
        Countrywide would follow in servicing mortgage loans held for its own
        account.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Payment
        Adjustment Date: As to each Mortgage Loan, the date on which an adjustment
        to
        the Monthly Payment on a Mortgage Note becomes effective.

       

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

       

      Prepayment
        Charge: With respect to any Mortgage Loan, any prepayment penalty or premium
        thereon payable in connection with a principal prepayment on such 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 during the period from the
        related Due Date to the end of the related Prepayment Period, any payment
        of
        interest received in connection therewith (net of any applicable Servicing
        Fee)
        representing interest accrued for any portion of such month of
        receipt.

       

      Prepayment
        Interest Shortfall Amount: With respect to any Remittance Date and Mortgage
        Loan
        that was subject to a Principal Prepayment in full or in part during the
        related
        Principal Prepayment Period, which Principal Prepayment was applied to such
        Mortgage Loan prior to such Mortgage Loan's Due Date in such calendar month,
        the
        amount of interest (at the Mortgage Loan Remittance Rate) that would have
        accrued on the amount of such Principal Prepayment during the period commencing
        on the date as of which such Principal Prepayment was applied to such Mortgage
        Loan and ending on the day immediately preceding such Due Date,
        inclusive.

       

      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
        Charge or premium thereon, 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: As to any Remittance Date, the sixteenth (16th) calendar
        day
        of the month preceding the month of distribution to the fifteenth (15th)
        calendar day of the month of distribution.

       

      Purchase
        Confirmation: A letter agreement, substantially in the form of Exhibit B
        hereto,
        executed by Countrywide and the Purchaser in connection with the purchase
        and
        sale of each Mortgage Loan Package, which sets forth the terms relating thereto
        including a description of the related Mortgage Loans (including the Mortgage
        Loan Schedule), the Purchase Proceeds for such Mortgage Loans, the Closing
        Date
        and the Servicing Fee Rate.

       

      Purchase
        Proceeds: The amount paid on the related Closing Date by the Purchaser to
        Countrywide in exchange for the Mortgage Loan Package purchased on such Closing
        Date as set forth in the applicable Purchase Confirmation. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Purchaser:
        The Person identified as the “Purchaser” in the preamble to this Agreement or
        its successor in interest or any successor or assign to the Purchaser under
        this
        Agreement as herein provided. Any reference to the “Purchaser” as used herein
        shall be deemed to include any designee of the Purchaser, so long as such
        designation was made in accordance with the limitations set forth in Section
        8.07.

       

      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, which insurer is approved in such capacity
        by an
        Agency.

       

      Qualified
        Substitute Mortgage Loan: A mortgage loan substituted for a Deleted Mortgage
        Loan pursuant to the terms of this Agreement which must, on the date of such
        substitution, (i) have an unpaid principal balance, after application of
        all
        scheduled payments of principal and interest due during or prior to the month
        of
        substitution, not in excess of the unpaid principal balance of the Deleted
        Mortgage Loan as of the Due Date in the calendar month during which the
        substitution occurs; (ii) have a Mortgage Interest Rate not less than, and
        not
        more than 1% greater than, the Mortgage Interest Rate of the Deleted Mortgage
        Loan; (iii) have a Net Mortgage Interest Rate not less than (and not more
        than
        one percentage point in excess of) the Net Mortgage Interest Rate of the
        Deleted
        Mortgage Loan; (iv) have a remaining term to maturity not greater than, and
        not
        less than, the maturity date of the Deleted Mortgage Loan; , (v) have the
        same
        Due Date as the Due Date on the Deleted Mortgage Loan, (vi) have a Loan-to-Value
        Ratio as of the date of substitution equal to or lower than the Loan-to-Value
        Ratio of the Deleted Mortgage Loan as of such date, (vii) be covered under
        a
        Primary Insurance Policy if such Qualified Substitute Mortgage Loan has a
        Loan-to-Value Ratio in excess of 80% and the Deleted Mortgage Loan was covered
        under a Primary Insurance Policy, (viii) comply with each representation
        and
        warranty (respecting individual Mortgage Loans) set forth in Section 3.02
        hereof; (ix) shall be the same type of Mortgage Loan (i.e., a Convertible
        Mortgage Loan or a Fixed Rate Mortgage Loan). In the event that one or more
        Mortgage Loans are substituted for one or more Deleted Mortgage Loans, the
        amounts described in clause (i) hereof shall be determined on the basis of
        aggregate principal balances, the Mortgage Interest Rates described in clause
        (ii) hereof shall be determined on the basis of weighted average Mortgage
        Interest Rates and shall be satisfied as to each such Qualified Substitute
        Mortgage Loan, the terms described in clause (iv) shall be determined on
        the
        basis of weighted average remaining terms to maturity, the Loan-to-Value
        Ratios
        described in clause (vi) hereof shall be satisfied as to each such Qualified
        Substitute Mortgage Loan and, except to the extent otherwise provided in
        this
        sentence, the representations and warranties described in clause (viii) hereof
        must be satisfied as to each Qualified Substitute Mortgage Loan or in the
        aggregate, as the case may be. In addition, the substitution of a Mortgage
        Loan
        pursuant to the previous sentence shall be subject to the Purchaser’s approval
        in its sole discretion.

       

      Refinanced
        Mortgage Loan: A Mortgage Loan the proceeds of which were not used to purchase
        the related Mortgaged Property.

       

      Remittance
        Date: The twenty-fourth (24th) day of any month, beginning with the month
        next
        following the month in which the related Cut-off Date occurs, or if such
        twenty-fourth (24th) day is not a Business Day, the first Business Day
        immediately preceding such day.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      REO
        Disposition: The final sale by Countrywide of any REO Property or the transfer
        of the management of such REO Property to the Purchaser as set forth in Section
        4.13.

       

      REO
        Property: A Mortgaged Property acquired by Countrywide on behalf of the
        Purchaser as described in Section 4.13.

       

      Repurchase
        Price: With respect to any Mortgage Loan, the amount set forth in the related
        Purchase Confirmation or Trade Confirmation.

       

      Second
        Lien: With respect to each Mortgaged Property, the lien of the mortgage,
        deed of
        trust or other instrument securing a Mortgage Note which creates a second
        lien
        on the Mortgaged Property.

       

      Second
        Lien Mortgage Loan: A Mortgage Loan secured a Second Lien on the Mortgaged
        Property.

       

      Servicing
        Advances: All customary, reasonable and necessary "out of pocket" costs and
        expenses incurred in the performance by Countrywide of its servicing
        obligations, including the cost of (i) the preservation, restoration and
        protection of the Mortgaged Property, (ii) any enforcement or judicial
        proceedings, including foreclosures, (iii) the management and liquidation
        of the
        REO Property, and (iv) compliance with the obligations under this Agreement
        including, without limitation, Sections 4.03 and 4.09.

       

      Servicing
        Fee: With respect to each Mortgage Loan, the amount of the annual fee the
        Purchaser shall pay to Countrywide, which shall, for a period of one full
        month,
        be equal to one-twelfth of the product of (i) the Servicing Fee Rate and
        (ii)
        the Stated 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 of such Monthly
        Payment collected by Countrywide, or as otherwise provided herein. Subject
        to
        the foregoing, and with respect to each Mortgage Loan, Countrywide shall
        be
        entitled to receive its Servicing Fee through the disposition of any related
        REO
        Property and the Servicing Fee payable with respect to any REO Property shall
        be
        based on the Stated Principal Balance of the related Mortgage Loan at the
        time
        of foreclosure.

       

      Servicing
        Fee Rate: With respect to any Mortgage Loan, the rate per annum set forth
        in the
        applicable Trade Confirmation or Purchase Confirmation.

       

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

       

      Servicing
        Officer: Any officer of Countrywide involved in, or responsible for, the
        administration and servicing of the Mortgage Loans whose name appears on
        a list
        of servicing officers furnished by Countrywide to Purchaser upon request,
        as
        such list may from time to time be amended.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Stated
        Principal Balance: With respect to each Mortgage Loan as of any date of
        determination: (i) the unpaid principal balance of the 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 related Mortgage Loan representing payments
        or
        recoveries of principal or advances in lieu thereof.

       

      Trade
        Confirmation: A letter agreement substantially in the form of Exhibit D hereto
        executed by Countrywide and the Purchaser prior to the applicable Closing
        Date
        confirming the terms of a prospective purchase and sale of a Mortgage Loan
        Package.

       

      Whole
        Loan Transfer: Any sale or transfer of some or all of the Mortgage Loans,
        other
        than a Securitization Transaction.

       

      ARTICLE
        IV.

       

      ADMINISTRATION
        AND SERVICING OF MORTGAGE LOANS

       

      Section
        4.01 Countrywide
        to Act as Servicer. 

       

      Countrywide,
        as independent contract servicer, shall service and administer Mortgage Loans
        sold pursuant to this Agreement in accordance with the terms of this Agreement
        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,
        that
        Countrywide may deem necessary or desirable and consistent with the terms
        of
        this Agreement. In servicing and administering the Mortgage Loans, Countrywide
        shall employ procedures in accordance with the customary and usual standards
        of
        practice of prudent mortgage servicers. 

       

      In
        accordance with the terms of this Agreement, Countrywide 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 Countrywide’s reasonable and prudent determination such waiver,
        modification, postponement or indulgence is not materially adverse to the
        Purchaser; provided, however, that Countrywide shall not permit any modification
        with respect to any Mortgage Loan that would decrease the Mortgage Interest
        Rate
        (other than by adjustments required by the terms of the Mortgage Note), defer
        or
        forgive the payment of any principal or interest payments, reduce the
        outstanding principal amount (except for actual payments of principal), make
        future advances or extend the final maturity date on such Mortgage Loan without
        the Purchaser’s consent. Countrywide may permit forbearance or allow for
        suspension of Monthly Payments for up to one hundred and eighty (180) days
        if
        the Mortgagor is in default or Countrywide determines in its reasonable
        discretion, that default is imminent and if Countrywide determines that granting
        such forbearance or suspension is in the best interest of the Purchaser.
        If any
        modification, forbearance or suspension permitted hereunder allows the deferral
        of interest or principal payments on any Mortgage Loan, Countrywide shall
        include in each remittance for any month in which any such principal or interest
        payment has been deferred (without giving effect to such modification,
        forbearance or suspension) an amount equal to such month’s principal and one (1)
        month’s interest at the Mortgage Loan Remittance Rate on the then unpaid
        principal balance of the Mortgage Loan and shall be entitled to reimbursement
        for such advances only to the same extent as for Monthly Advances made pursuant
        to Section 5.03. Without limiting the generality of the foregoing, Countrywide
        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 Property. If reasonably required by Countrywide, the Purchaser
        shall
        furnish Countrywide with any powers of attorney and other documents necessary
        or
        appropriate to enable Countrywide to carry out its servicing and administrative
        duties under this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Countrywide
        shall not waive any Prepayment Charge in the event of a Principal Prepayment
        in
        full or in part of a Mortgage Loan, which is required by the terms of the
        related Mortgage Note unless, (i) such waiver is standard and customary in
        servicing similar mortgage loans and such waiver is related to a default
        or
        reasonably foreseeable default and would, in the reasonable judgment of
        Countrywide, maximize recovery of total proceeds taking into account the
        value
        of such Prepayment Charge and the related Mortgage Loan and, if such waiver
        is
        made in connection with a refinancing of the related Mortgage Loan, such
        refinancing is related to a default or a reasonably foreseeable default,
        (ii)
        such Prepayment Charge is unenforceable in accordance with applicable law
        or the
        collection of such related Prepayment Charge would otherwise violate applicable
        law, or (iii) the collection of such Prepayment Charge would be considered
        “predatory” pursuant to written guidance published or issued by any applicable
        federal, state or local regulatory authority acting in its official capacity
        and
        having jurisdiction over such matters. Notwithstanding any provision in this
        Agreement to the contrary, in the event the Prepayment Charge payable under
        the
        terms of the Mortgage Note is less than the amount of the Prepayment Charge
        set
        forth in the Mortgage Loan Schedule or other information provided to
        Countrywide, Countrywide shall not have any liability or obligation with
        respect
        to such difference, and in addition shall not have any liability or obligation
        to pay the amount of any uncollected Prepayment Charge if the failure to
        collect
        such amount is the direct result of inaccurate or incomplete information
        on the
        related Mortgage Loan Schedule. If Countrywide waives or does not collect
        all or
        a portion of a Prepayment Charge relating to a Principal Prepayment in full
        or
        in part due to any action or omission of Countrywide, other than as provided
        above, Countrywide shall deposit the amount of such Prepayment Charge (or
        such
        portion thereof as had been waived for deposit) into the Custodial Account
        for
        distribution in accordance with the terms of this Agreement.

       

      Countrywide
        will furnish, in accordance with the Fair Credit Reporting Act and its
        implementing regulations, accurate and complete information relating to the
        Mortgagors’ respective credit files to Equifax, Experian, and Trans Credit
        Information Company on a monthly basis. As an independent contract servicer,
        Countrywide shall comply with the applicable provisions of the Anti-Money
        Laundering Laws.

       

      Section
        4.02 Collection
        of Mortgage Loan Payments. 

       

      Countrywide
        shall make reasonable efforts, in accordance with the customary and usual
        standards of practice of prudent mortgage servicers, to collect all payments
        due
        under each Mortgage Loan to the extent such procedures shall be consistent
        with
        this Agreement, the terms and provisions of any related LPMI Policy, and
        applicable law.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        4.03 Realization
        Upon Defaulted Mortgage Loans. 

       

      (a) Foreclosure.
        Countrywide shall use reasonable efforts to foreclose upon or otherwise
        comparably convert the ownership of properties securing such of the Mortgage
        Loans as come into and continue in default and as to which no satisfactory
        arrangements can be made for collection of delinquent payments. Countrywide
        shall use reasonable 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 Mortgaged
        Property shall have suffered damage, Countrywide 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
        Countrywide through Other Insurance Proceeds or Liquidation Proceeds from
        the
        related Mortgaged Property. In the event that any payment due under any Mortgage
        Loan remains delinquent for a period of ninety (90) days or more, Countrywide
        shall commence foreclosure proceedings if it is in the best interest of the
        Purchaser. Countrywide shall notify the Purchaser in writing of the commencement
        of foreclosure proceedings. Such notice may be contained in the reports prepared
        by Countrywide and delivered to the Purchaser pursuant to the terms and
        conditions of this Agreement. Countrywide shall be responsible for all costs
        and
        expenses incurred by it in any foreclosure proceedings; provided, however,
        that
        it shall be entitled to reimbursement thereof from proceeds from the related
        Mortgaged Property.

       

      (b) Notwithstanding
        the foregoing provisions of this Section 4.03, with respect to any Mortgage
        Loan
        as to which Countrywide has received actual notice of, or has actual knowledge
        of, the presence of any toxic or hazardous substance on the related Mortgaged
        Property, Countrywide shall not either (i) obtain title to such Mortgaged
        Property as a result of or in lieu of foreclosure or otherwise, or (ii)
        otherwise acquire possession of, or take any other action, with respect to,
        such
        Mortgaged Property if, as a result of any such action, the Purchaser would
        be
        considered to hold title to, to be a mortgagee in possession of, or to be
        an
        owner or operator of such Mortgaged Property within the meaning of the
        Comprehensive Environmental Response, Compensation and Liability Act of 1980,
        as
        amended from time to time, or any comparable law, unless Countrywide has
        also
        previously determined, based on its reasonable judgment and a report prepared
        by
        a Person who regularly conducts environmental audits using customary industry
        standards, that:

       

      (i) such
        Mortgaged Property is in compliance with applicable environmental laws or,
        if
        not, that it would be in the best economic interest of the Purchaser to take
        such actions as are necessary to bring the Mortgaged Property into compliance
        therewith; and

       

      (ii) there
        are
        no circumstances present at such Mortgaged Property relating to the use,
        management or disposal of any hazardous substances, hazardous materials,
        hazardous wastes, or petroleum based materials for which investigation, testing,
        monitoring, containment, clean up or remediation could be required under
        any
        federal, state or local law or regulation, or that if any such materials
        are
        present for which such action could be required, that it would be in the
        best
        economic interest of the Purchaser to take such actions with respect to the
        affected Mortgaged Property.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      The
        cost
        of the environmental audit report contemplated by this Section 4.03 shall
        be
        advanced by Countrywide, subject to Countrywide’s right to be reimbursed
        therefor from the Custodial Account as provided in Section 4.05(c).

       

      If
        Countrywide determines, as described above, that it is in the best economic
        interest of the Purchaser to take such actions as are necessary to bring
        any
        such Mortgaged Property into compliance with applicable environmental laws,
        or
        to take such action with respect to the containment, clean up or remediation
        of
        hazardous substances, hazardous materials, hazardous wastes, or petroleum
        based
        materials affecting any such Mortgaged Property, then Countrywide shall take
        such action as it deems to be in the best economic interest of the Purchaser.
        The cost of any such compliance, containment, cleanup or remediation shall
        be
        advanced by Countrywide, subject to Countrywide’s right to be reimbursed
        therefor from the Custodial Account as provided in Section 4.05(c).

       

      (c) Proceeds
        received in connection with any Final Recovery Determination, as well as
        any
        recovery resulting from a partial collection of Insurance Proceeds or
        Liquidation Proceeds in respect of any Mortgage Loan, will be applied in
        the
        following order of priority: First, to reimburse Countrywide for any related
        unreimbursed Monthly Advances pursuant to Section 4.05(b); second to reimburse
        Countrywide for any related unreimbursed Servicing Advances, pursuant to
        Section
        4.05(c); third, to accrued and unpaid interest on the Mortgage Loan (to the
        extent no Monthly Advance has been made for such amount or any such Monthly
        Advance has been reimbursed), to the date of the Final Recovery Determination,
        or to the Due Date prior to the Remittance Date on which such amounts are
        to be
        distributed if not in connection with a Final Recovery Determination; and
        fourth, as a recovery of principal of the Mortgage Loan. If the amount of
        the
        recovery so allocated to interest is less than the full amount of accrued
        and
        unpaid interest due on such Mortgage Loan, the amount of such recovery will
        be
        allocated by Countrywide as follows: First, to unpaid Servicing Fees; and
        second, to the balance of the interest then due and owing. The portion of
        the
        recovery so allocated to unpaid Servicing Fees shall be reimbursed to
        Countrywide pursuant to Section 4.05(c).

       

      Section
        4.04 Establishment
        of Custodial Accounts; Deposits in Custodial Accounts. 

       

      Countrywide
        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 (1) or more Custodial Accounts, in the
        form
        of time deposit or demand accounts. The creation of any Custodial Account(s)
        shall be evidenced by a Custodial Account Letter Agreement in the form of
        Exhibit F.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Countrywide
        shall deposit in the Custodial Account within two (2) Business Days, 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:

       

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

       

      (b) all
        payments on account of interest on the Mortgage Loans, adjusted to the Mortgage
        Loan Remittance Rate, including all Prepayment Charges;

       

      (c) all
        proceeds from a Cash Liquidation;

       

      (d) all
        Other
        Insurance Proceeds, including amounts required to be deposited pursuant to
        Sections 4.08 and 4.10, other than proceeds to be applied to the restoration
        or
        repair of the Mortgaged Property or released to the Mortgagor in accordance
        with
        Countrywide’s normal servicing procedures, the loan documents or applicable
        law;

       

      (e) all
        Condemnation Proceeds affecting any Mortgaged Property that are not released
        to
        the Mortgagor in accordance with Countrywide’s normal servicing procedures, the
        loan documents or applicable law;

       

      (f) all
        Monthly Advances;

       

      (g) all
        proceeds of any Mortgage Loan repurchased in accordance with Section 3.03,
        and
        any amount required to be deposited by Countrywide in connection with any
        shortfall in principal amount of the Qualified Substitute Mortgage Loans
        and the
        repurchased Mortgage Loans as required pursuant to Section 3.03;

       

      (h) any
        amounts required to be deposited by Countrywide pursuant to Section 4.10
        in
        connection with the deductible clause in any blanket hazard insurance policy
        (such deposit shall be made from Countrywide’s own funds, without reimbursement
        therefor);

       

      (i) the
        Prepayment Interest Shortfall Amount, if any, for the month of distribution
        (such deposit shall be made from Countrywide’s own funds, without reimbursement
        therefor up to a maximum amount per month equal to the lesser of one-half
        of (a)
        one-twelfth of the product of (i) the Servicing Fee Rate and (ii) the Stated
        Principal Balance of such Mortgage Loans, or (b) the aggregate Servicing
        Fee
        actually received for such month for the Mortgage Loans); and

       

      (j) any
        amounts required to be deposited by Countrywide in connection with any REO
        Property pursuant to Section 4.13. 

       

      The
        foregoing requirements for deposit in the Custodial Account are exclusive.
        The
        Purchaser understands and agrees 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 4.16) need not be deposited by Countrywide
        in the Custodial Account. Any interest paid by the depository institution
        on
        funds deposited in the Custodial Account shall accrue to the benefit of
        Countrywide and Countrywide shall be entitled to retain and withdraw such
        interest from the Custodial Account pursuant to Section 4.05(d).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        4.05 Permitted
        Withdrawals From the Custodial Account. 

       

      Countrywide
        may, from time to time, withdraw funds from the Custodial Account for the
        following purposes:

       

      (a) to
        make
        payments to the Purchaser in the amounts and in the manner provided for in
        Sections 5.01 and 5.03;

       

      (b) to
        reimburse itself for Monthly Advances (Countrywide’s reimbursement for Monthly
        Advances shall be limited to amounts received on the related Mortgage Loan
        which
        represent Late Collections, net of the related Servicing Fee and LPMI Fee,
        if
        applicable. Countrywide’s right to reimbursement hereunder shall be prior to the
        rights of the Purchaser, except that, where Countrywide is required to
        repurchase a Mortgage Loan pursuant to Section 3.03 or 3.04, Countrywide’s right
        to such reimbursement shall be subsequent to the payment to the Purchaser
        of the
        Repurchase Price and all other amounts required to be paid to the Purchaser
        with
        respect to such Mortgage Loans. Notwithstanding the foregoing, Countrywide
        may
        reimburse itself for Monthly Advances from any funds in the Custodial Account
        if
        it has determined that such funds are nonrecoverable advances or if all funds,
        with respect to the related Mortgage Loan, have previously been remitted
        to the
        Purchaser). The determination by Countrywide that it has made a nonrecoverable
        advance or that any proposed Monthly Advance, if made, would constitute a
        nonrecoverable advance, shall be evidenced by an Officers’ Certificate delivered
        to the Purchaser;

       

      (c) to
        reimburse itself for unreimbursed Servicing Advances and any unpaid Servicing
        Fees (Countrywide’s reimbursement for Servicing Advances and/or Servicing Fees
        hereunder with respect to any Mortgage Loan shall be limited to proceeds
        from
        Cash Liquidation, Liquidation Proceeds, Condemnation Proceeds, and Other
        Insurance Proceeds; provided, however, that Countrywide may reimburse itself
        for
        Servicing Advances and Servicing Fees from any funds in the Custodial Account
        if
        all funds, with respect to the related Mortgage Loan, have previously been
        remitted to the Purchaser);

       

      (d) to
        pay to
        itself as servicing compensation (i) any interest earned on funds in the
        Custodial Account (all such interest to be withdrawn monthly not later than
        each
        Remittance Date), (ii) the Servicing Fee and the LPMI Fee, if applicable,
        from
        that portion of any payment or recovery of interest on a particular Mortgage
        Loan and (iii) any Prepayment Interest Excess for the period;

       

      (e) to
        pay to
        itself, with respect to each Mortgage Loan that has been repurchased pursuant
        to
        Section 3.03, all amounts received but not distributed as of the date on
        which
        the related Repurchase Price is determined;

       

      (f) to
        reimburse itself for any amounts deposited in the Custodial Account in error;
        and

       

      (g) to
        clear
        and terminate the Custodial Account upon the termination of this
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Countrywide
        shall keep and maintain separate accounting, on a Mortgage Loan by Mortgage
        Loan
        basis, for the purpose of justifying any withdrawal from the Custodial Account
        pursuant to such subclauses (b) through (g) above. Countrywide shall provide
        written notification in the form of an Officers’ Certificate to the Purchaser,
        on or prior to the next succeeding Remittance Date, upon making any withdrawals
        from the Custodial Account pursuant to nonrecoverable advances in subclause
        (b)
        above.

       

      Section
        4.06 Establishment
        of Escrow Accounts; Deposits in Escrow Accounts.

       

      Countrywide
        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 (1)
        or
        more Escrow Accounts in the form of time deposit or demand accounts, which
        accounts shall be Eligible Accounts. The creation of such Escrow Account(s)
        shall be evidenced by an Escrow Account Letter Agreement in the form of Exhibit
        G.

       

      Countrywide
        shall deposit in the Escrow Account(s) within two (2) Business Days, and
        retain
        therein, (a) all Escrow Payments collected on account of the Mortgage Loans,
        and
        (b) all Other Insurance Proceeds that are to be applied to the restoration
        or
        repair of any Mortgaged Property. Countrywide shall make withdrawals therefrom
        only to effect such payments as are required under this Agreement, and for
        such
        other purposes in accordance with Section 4.07. Countrywide shall be entitled
        to
        retain any interest paid by the depository institution on funds deposited
        in the
        Escrow Account except interest on escrowed funds required by law to be paid
        to
        the Mortgagor. Countrywide shall pay Mortgagor interest on the escrowed funds
        at
        the rate required by law notwithstanding that the Escrow Account is non-interest
        bearing or the interest paid by the depository institution thereon is
        insufficient to pay the Mortgagor interest at the rate required by
        law.

       

      Section
        4.07 Permitted
        Withdrawals From Escrow Account. 

       

      Countrywide
        may, from time to time, withdraw funds from the Escrow Account(s) for the
        following purposes: (a) to effect timely payments of ground rents, taxes,
        assessments, water rates, mortgage insurance premiums, and comparable items;
        (b)
        to reimburse Countrywide for any Servicing Advance made by Countrywide with
        respect to a related Mortgage Loan; provided, however, that such reimbursement
        shall only be made from amounts received on the related Mortgage Loan that
        represent late payments or collections of Escrow Payments thereunder; (c)
        to
        refund to the Mortgagor any funds as may be determined to be overages; (d)
        for
        transfer to the Custodial Account in accordance with the terms of this
        Agreement; (e) for application to restoration or repair of the Mortgaged
        Property; (f) to pay to Countrywide, or to the Mortgagors to the extent required
        by law, any interest paid on the funds deposited in the Escrow Account; (g)
        to
        reimburse itself for any amounts deposited in the Escrow Account in error;
        or
        (h) to clear and terminate the Escrow Account on the termination of this
        Agreement. 

       

      Section
        4.08 Transfer
        of Accounts. 

       

      Countrywide
        may transfer the Custodial Account or the Escrow Account to a different
        depository institution from time to time provided that such Custodial Account
        and Escrow Account shall at all times be Eligible Accounts. Countrywide shall
        provide prompt written notice of such transfer to the Purchaser.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        4.09 Payment
        of Taxes, Insurance and Other Charges; Collections Thereunder. 

       

      With
        respect to each Mortgage Loan, Countrywide shall maintain accurate records
        reflecting the status of (a) ground rents, taxes, assessments, water rates
        and
        other charges that are or may become a lien upon the Mortgaged Property;
        (b)
        primary mortgage insurance premiums; and (c) fire and hazard insurance premiums.
        Countrywide 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 using Escrow Payments which shall have
        been
        estimated and accumulated by Countrywide in amounts sufficient for such
        purposes. To the extent that the Mortgage does not provide for Escrow Payments,
        Countrywide shall determine that any such payments are made by the Mortgagor
        at
        the time they first become due. Countrywide 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.

       

      Unless
        otherwise provided in the related Purchase Confirmation, no Mortgage Loan
        has in
        effect as of the Closing Date any mortgage pool insurance policy or other
        credit
        enhancement and the insurance or guarantee relating thereto, as applicable
        (excluding such exception, the “Credit Enhancement”), and Countrywide shall not
        be required to take into consideration the existence of any such Credit
        Enhancement for the purposes of performing its servicing obligations hereunder.
        If the Purchaser shall at any time after the related Closing Date notify
        Countrywide in writing of its desire to obtain any such Credit Enhancement,
        the
        Purchaser and Countrywide shall thereafter negotiate in good faith for the
        procurement and servicing of such Credit Enhancement. Countrywide shall service
        LPMI Loans in accordance with the same procedures required with respect to
        PMI
        Policies, except as provided in such LPMI Policy.

       

      Section
        4.10 Maintenance
        of Hazard Insurance. 

       

      Countrywide
        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 that is equal to the lesser of (a) the maximum insurable
        value of the improvements securing such Mortgage Loan or (b) the greater
        of (i)
        the unpaid principal balance of the Mortgage Loan, and (ii) 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 Flood Emergency Management
        Agency
        as having special flood hazards and such flood insurance has been made
        available, Countrywide shall cause to be maintained a flood insurance policy
        meeting the requirements of the current guidelines of the National Flood
        Insurance Administration program (or any successor thereto) with a generally
        acceptable insurance carrier and with coverage in an amount not less than
        the
        lesser of (x) the unpaid principal balance of the Mortgage Loan; (y) the
        maximum
        insurable value of the improvements securing such Mortgage Loan; or (z) the
        maximum amount of insurance which is available under the National Flood
        Insurance Reform Act of 1994. Countrywide shall also maintain on REO Property,
        (1) fire and hazard insurance with extended coverage in an amount that is
        not
        less than the maximum insurable value of the improvements that are a part
        of
        such property; (2) liability insurance; and (3) to the extent required and
        available under the National Flood Insurance Reform Act of 1994, flood insurance
        in an amount as provided above. Countrywide shall deposit in the Custodial
        Account all amounts collected under any such policies except (A) amounts
        to be
        deposited in the Escrow Account and applied to the restoration or repair
        of the
        Mortgaged Property or REO Property and (B) amounts to be released to the
        Mortgagor in accordance with Countrywide’s normal servicing procedures. The
        Purchaser understands and agrees that no earthquake or other additional
        insurance on property acquired in respect of the Mortgage Loan shall be
        maintained by Countrywide or Mortgagor. All such policies shall be endorsed
        with
        standard mortgagee clauses with loss payable to Countrywide and shall provide
        for at least thirty (30) days prior written notice to Countrywide of any
        cancellation, reduction in the amount of coverage or material change in
        coverage. Countrywide shall not interfere with the Mortgagor’s freedom of choice
        in selecting either the insurance carrier or agent; provided, however, that
        Countrywide shall only accept insurance policies from insurance companies
        acceptable to an Agency and licensed to do business in the state wherein
        the
        property subject to the policy is located.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        4.11 [Reserved].

       

      Section
        4.12 Fidelity
        Bond; Errors and Omissions Insurance. 

       

      Countrywide
        shall maintain, at its own expense, a blanket Fidelity Bond and an errors
        and
        omissions insurance policy with responsible companies, with broad coverage
        of
        all officers, employees or other persons acting in any capacity with regard
        to
        the Mortgage Loan who handle funds, money, documents or papers relating to
        the
        Mortgage Loan. 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
        Countrywide against losses, including forgery, theft, embezzlement, fraud,
        errors and omissions and negligent acts of its officers, employees and agents.
        Such Fidelity Bond shall also protect and insure Countrywide 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 shall diminish or relieve Countrywide from
        its
        duties and obligations as set forth in this Agreement. The minimum coverage
        under any such Fidelity Bond and errors and omissions insurance policy shall
        be
        at least equal to the corresponding amounts required by an Agency for an
        approved seller/servicer. Upon request of the Purchaser, Countrywide shall
        cause
        to be delivered to the Purchaser a certified true copy of the Fidelity Bond
        and
        insurance policy and shall use its best efforts to 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 (30) days’ prior
        written notice to the Purchaser. 

       

      Section
        4.13 Title,
        Management and Disposition of REO Property. 

       

      (a) Title.
        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 Countrywide for the benefit 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(s) as shall
        be
        consistent with an Opinion of Counsel obtained by Countrywide from an attorney
        duly licensed to practice law in the state where the REO Property is located.
        Any Person(s) 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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b) Management.
        Countrywide shall either itself or through an agent selected by Countrywide,
        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. If a REMIC election is or is to be made with respect to the
        arrangement under which the Mortgage Loans and any REO Property are held,
        Countrywide shall manage, conserve, protect and operate each REO Property
        in a
        manner which does not cause such REO Property to fail to qualify as “foreclosure
        property” within the meaning of Section 860G(a)(8) of the Code or result in the
        receipt by such REMIC of any “income from non permitted assets” within the
        meaning of Section 860F(a)(2)(B) of the Code or any “net income from foreclosure
        property” within the meaning of Section 860G(c)(2) of the Code. Countrywide
        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
        annually thereafter or more frequently as required by the circumstances.
        Countrywide shall make or cause to be made a written report of each such
        inspection. Such reports shall be retained in the Credit File and copies
        thereof
        shall be forwarded by Countrywide to the Purchaser within five (5) days of
        the
        Purchaser’s request therefor. Countrywide shall attempt to sell the REO Property
        (and may temporarily rent the same) on such terms and conditions as Countrywide
        deems to be in the best interest of the Purchaser. Countrywide shall deposit,
        or
        cause to be deposited, within two (2) Business Days of receipt, in the Custodial
        Account all revenues received with respect to each REO Property and shall
        withdraw therefrom funds necessary for the proper operation, management and
        maintenance of each REO Property, including the cost of maintaining any hazard
        insurance pursuant to Section 4.10 hereof and the fees of any managing agent
        acting on behalf of Countrywide. Notwithstanding anything contained in this
        Agreement to the contrary, upon written notice to Countrywide, the Purchaser
        may
        elect to assume the management and control of any REO Property; provided,
        however, that prior to giving effect to such election, the Purchaser shall
        reimburse Countrywide for all previously unreimbursed or unpaid Monthly
        Advances, Servicing Advances and Servicing Fees related to such REO
        Property.

       

      (c) Disposition.
        Subject to the following paragraph, Countrywide shall use reasonable efforts
        to
        dispose of each REO Property as soon as possible and shall sell each REO
        Property no later than one (1) year after title to such REO Property has
        been
        obtained, unless Countrywide determines, and gives an appropriate notice
        to the
        Purchaser, that a longer period is necessary for the orderly disposition
        of any
        REO Property. If a period longer than one (1) year is necessary to sell any
        REO
        Property, Countrywide shall, if requested by the Purchaser, report monthly
        to
        the Purchaser as to the progress being made in selling such REO Property.
        Notwithstanding the foregoing, if a REMIC election is made with respect to
        the
        arrangement under which the Mortgage Loans and the REO Property are held, such
        REO Property shall be disposed of within three (3) years or such other period
        as
        may be permitted under Section 860G(a)(8) of the Code.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      With
        respect to each REO Property, Countrywide shall segregate and hold all funds
        collected and received in connection with the operation of the REO Property
        separate and apart from its own funds or general assets and shall establish
        and
        maintain a separate REO account for each REO Property in the form of a
        non-interest bearing demand account (each, a “REO Account”), unless an Opinion
        of Counsel is obtained by Countrywide to the effect that the classification
        as a
        grantor trust or REMIC for federal income tax purposes of the arrangement
        under
        which the Mortgage Loans and the REO Property is held will not be adversely
        affected by holding such funds in another manner. Each REO Account shall
        be
        established with Countrywide or, with the prior consent of the Purchaser,
        with a
        commercial bank, a mutual savings bank or a savings association. The creation
        of
        any REO Account shall be evidenced by a letter agreement substantially in
        the
        form of the Custodial Account Letter Agreement attached as Exhibit F hereto.
        A
        Copy of such letter agreement shall be furnished to the Purchaser upon
        request.

       

      Countrywide
        shall deposit or cause to be deposited, within two (2) Business Days in each
        REO
        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 11.10 hereof and the fees of any managing agent
        acting on behalf of Countrywide. Countrywide shall be entitled to retain
        interest paid or other earnings, if any, on funds deposited in such REO Account.
        On or before each Determination Date, Countrywide shall withdraw from each
        REO
        Account and deposit into the Custodial Account the net income from the REO
        Property on deposit in the REO Account.

       

      Each
        REO
        Disposition shall be carried out by Countrywide at such price and upon such
        terms and conditions as Countrywide deems to be in a manner that maximizes
        the
        net present value of the recovery to the Purchaser. If, as of the date title
        to
        any REO Property was acquired by Countrywide, there were outstanding
        unreimbursed Servicing Advances, Monthly Advances or Servicing Fees with
        respect
        to the REO Property or the related Mortgage Loan, Countrywide, upon an REO
        Disposition of such REO Property, shall be entitled to reimbursement for
        any
        related unreimbursed Servicing Advances, Monthly Advances and Servicing Fees
        from proceeds received in connection with such REO Disposition. The proceeds
        from the REO Disposition, net of any payment to Countrywide as provided above,
        shall be deposited in the related REO Account and shall be transferred to
        the
        Custodial Account on the Determination Date in the month following receipt
        thereof for distribution on the succeeding Remittance Date to the Purchaser
        in
        accordance with Section 5.01.

       

      Section
        4.14 Notification
        of Adjustments. 

       

      With
        respect to each Adjustable Rate Mortgage Loan, Countrywide shall adjust the
        Mortgage Interest Rate on the related Interest Adjustment Date and shall
        adjust
        the Monthly Payment on the related Payment Adjustment Date in compliance
        with
        the requirements of applicable law and the related Mortgage and Mortgage
        Note.
        If, pursuant to the terms of the Mortgage Note, another index is selected
        for
        determining the Mortgage Interest Rate because the original index is no longer
        available, the same index will be used with respect to each Mortgage Note
        which
        requires a new index to be selected, provided that such selection does not
        conflict with the terms of the related Mortgage Note. Countrywide 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 and the Monthly Payment adjustments. Countrywide shall promptly, upon
        written request therefor, deliver to the Purchaser such notifications and
        any
        additional applicable data regarding such adjustments and the methods used
        to
        calculate and implement such adjustments. Upon the discovery by Countrywide
        or
        the Purchaser that Countrywide has failed to adjust a Mortgage Interest Rate
        or
        a Monthly Payment pursuant to the terms of the related Mortgage Note and
        Mortgage, Countrywide shall immediately deposit in the Custodial Account,
        from
        its own funds, the amount of any interest loss caused the Purchaser thereby
        without reimbursement therefor.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        4.15 Notification
        of Maturity Date. 

       

      With
        respect to each Balloon Mortgage Loan, Countrywide 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
        and final balloon payment.

       

      Section
        4.16 Assumption
        Agreements. 

       

      Countrywide
        shall, 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 Countrywide
        shall
        not exercise any such right if prohibited from doing so by law or the terms
        of
        the Mortgage Note. If Countrywide reasonably believes it is unable under
        applicable law to enforce such “due-on-sale” clause, Countrywide shall 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 4.16, the Purchaser authorizes Countrywide
        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, Countrywide
        shall follow the underwriting practices and procedures employed by Countrywide
        for mortgage loans originated by Countrywide for its own account in effect
        at
        the time such assumption or substitution is made. With respect to an assumption
        or substitution of liability, the Mortgage Interest Rate borne by the related
        Mortgage Note, the term of the Mortgage Loan and the outstanding principal
        amount of the Mortgage Loan shall not be changed. Countrywide shall notify
        the
        Purchaser that any such substitution of liability or assumption agreement
        has
        been completed by forwarding to the Purchaser or its designee the original
        of
        any such substitution of liability or assumption agreement, which document
        shall
        be added to the related Collateral File and shall, for all purposes, be
        considered a part of such Collateral File to the same extent as all other
        documents and instruments constituting a part thereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Notwithstanding
        anything to the contrary contained herein, Countrywide 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
        that
        Countrywide may be restricted by law from preventing, for any reason whatsoever.
        For purposes of this Section 4.16, 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
        4.17 Satisfaction
        of Mortgages and Release of Collateral Files. 

       

      Upon
        the
        payment in full of any Mortgage Loan, or the receipt by Countrywide of a
        notification that payment in full will be escrowed in a manner customary
        for
        such purposes, Countrywide shall immediately provide written notice to the
        Purchaser or the Custodian. Such notice 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 and shall request delivery to it
        of the
        portion of the Collateral File held by the Purchaser. Upon receipt of such
        notice and request, the Purchaser, or its designee, shall within five (5)
        Business Days release or cause to be released to Countrywide the related
        Collateral Documents and Countrywide shall prepare and process any satisfaction
        or release. In the event that the Purchaser fails to release or cause to
        be
        released to Countrywide the related Collateral Documents within five (5)
        Business Days of Countrywide’s request therefor, the Purchaser shall be liable
        to Countrywide for any additional expenses or costs, including, but not limited
        to, outsourcing fees and penalties, incurred by Countrywide resulting from
        such
        failure. No expense incurred in connection with any instrument of satisfaction
        or deed of reconveyance shall be chargeable to the Purchaser or the Custodial
        Account.

       

      In
        the
        event Countrywide 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, Countrywide, upon written demand, shall remit to the Purchaser
        the
        then unpaid principal balance of the related Mortgage Loan by deposit thereof
        in
        the Custodial Account. Countrywide shall maintain the Fidelity Bond insuring
        Countrywide 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 service or foreclosure of a Mortgage Loan,
        the Purchaser shall, within five (5) Business Days of Countrywide’s request and
        delivery to the Purchaser, or the Custodian, of a servicing receipt signed
        by a
        Servicing Officer, release or cause to be released to Countrywide the portion
        of
        the Collateral File held by the Purchaser or the Custodian. Pursuant to the
        servicing receipt, Countrywide shall be obligated to return to the Purchaser
        the
        related Collateral File when Countrywide no longer needs such file, 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 Collateral
        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. In the event that the Purchaser
        fails to release or cause to be released to Countrywide the portion of the
        Collateral File held by the Purchaser or its designee within five (5) Business
        Days of Countrywide’s request therefor, the Purchaser shall be liable to
        Countrywide for any additional expenses or costs, including, but not limited
        to,
        outsourcing fees and penalties, incurred by Countrywide resulting from such
        failure. Upon receipt of notice from Countrywide stating that such Mortgage
        Loan
        was liquidated, the Purchaser shall release Countrywide from its obligations
        under the related servicing receipt.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        4.18 Servicing
        Compensation. 

       

      As
        compensation for its services hereunder, Countrywide shall be entitled to
        withdraw from the Custodial Account, or to retain from interest payments
        on the
        Mortgage Loans, the amounts provided for as Servicing Fees. Additional servicing
        compensation in the form of assumption fees (as provided in Section 4.16),
        Prepayment Interest Excess amounts due Countrywide, late payment charges
        or
        otherwise shall be retained by Countrywide to the extent not required to
        be
        deposited in the Custodial Account. Countrywide 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 herein.

       

      Section
        4.19 Superior
        Liens.

       

      In
        the
        event that Countrywide has reasonable cause to believe or has been notified
        that
        either a senior or junior lien is in default, Countrywide shall attempt to
        determine the status of the related senior lien, if applicable.

       

      If
        Countrywide discovers, upon investigation of the status of the senior lien
        pursuant to the previous paragraph, that any superior lienholder has accelerated
        or intends to accelerate the obligations secured by the first lien, or has
        declared or intends to declare a default under the mortgage or promissory
        note
        secured thereby, or has filed or intends to file an election to have the
        related
        Mortgaged Property sold or foreclosed, Countrywide shall take, on behalf
        of the
        Purchaser, whatever actions are necessary to protect the interests of the
        Purchaser in accordance with accepted servicing practices, including advancing
        an amount that is greater than the then outstanding principal balance of
        the
        related Second Lien Mortgage Loan. Notwithstanding anything to the contrary
        set
        forth herein, Countrywide shall not be required to make any Servicing Advance
        (including those contemplated in this Section 4.19) if it determines in its
        reasonable good faith judgment that such Servicing Advance would not be
        recoverable pursuant to the Agreement.

       

      If
        the
        Mortgage relating to a Mortgage Loan had a lien senior to the Mortgage Loan
        on
        the related Mortgaged Property as of the related Cut-off Date, then Countrywide,
        in its capacity as servicer, may consent to the refinancing of the prior
        senior
        lien, provided that such consent shall be in accordance with accepted servicing
        practices and provided further that such refinancing of such prior senior
        lien
        does not adversely affect the Purchaser’s interest as the owner of such Mortgage
        Loan.

       

      Section
        4.20 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, Countrywide 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 “contributions” to a REMIC set forth in Section 860G(d) of
        the Code) unless Countrywide 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
        V.

       

      PROVISIONS
        OF PAYMENTS AND REPORTS TO PURCHASER

       

      Section
        5.01 Distributions.
        

       

      On
        each
        Remittance Date, Countrywide shall distribute to the Purchaser (a) 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 (b) all Monthly Advances, if any,
        that
        Countrywide is obligated to distribute pursuant to Section 5.03; minus (c)
        any
        amounts attributable to Principal Prepayments received after the related
        Principal Prepayment Period; minus (d) any amounts attributable to Monthly
        Payments collected but due on a Due Date or Dates subsequent to the preceding
        Determination Date. It is understood that, by operation of Section 4.04,
        the
        remittance on the first Remittance Date is to include principal collected
        after
        the 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 Cut-off Date, with the adjustments specified in (b), (c) and
        (d)
        above.

       

      All
        remittances made to the Purchaser on each Remittance Date will be made to
        the
        Purchaser, and shall be based on the Mortgage Loans owned and held by the
        Purchaser, and shall be made by wire transfer of immediately available funds
        in
        accordance with the following wire transfer instructions:

       

      DB
        STRUCTURED PRODUCTS

       

      BANK:
        BANK OF NEW YORK

       

      
        
          	
                  BANK:
                    

                	 	BANK
                  OF NEW
                  YORK
	
                  ABA:
                    

                	 	
                  021000018

                
	
                  ACCT
                    #: 

                	 	
                  GLA/111569

                
	
                  ACCT
                    NAME: 

                	 	
                  DPX

                
	
                  ATTN:
                    

                	 	
                  Rob
                    Barreto

                
	
                  RE:
                    

                	 	
                  COUNTRYWIDE
                    HOME LOANS, INC.

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      With
        respect to any remittance received by the Purchaser on or after the second
        Business Day following the Business Day on which such payment was due,
        Countrywide shall pay to the Purchaser interest on any such late payment
        at an
        annual rate equal to the rate of interest as is publicly announced from time
        to
        time at its principal office by JPMorgan Chase Bank, New York, New York,
        as its
        prime lending rate, adjusted as of the date of each change, plus one percentage
        point, but in no event greater than the maximum amount permitted by applicable
        law. Such interest shall be paid by Countrywide to the Purchaser on the date
        such late payment is made and shall cover the period commencing with the
        day
        following such second Business Day and ending with the Business Day on which
        such payment is made, both inclusive. Such interest shall be remitted along
        with
        such late payment. The payment by Countrywide of any such interest shall
        not be
        deemed an extension of time for payment or a waiver of any Event of Default
        by
        Countrywide.

       

      Section
        5.02 Periodic
        Reports to the Purchaser. 

       

      (a) Monthly
        Reports. Not later than the sixteenth (16th) day of each month or if such
        day is
        not a Business Day, the first Business Day immediately following, Countrywide
        shall furnish to the Purchaser in Excel format, and delivered via email to
        DBWholeLoanOps@List.DB.com, a monthly report containing all of the data fields
        listed on Exhibit L attached hereto, which report shall include with respect
        to
        each Mortgage Loan the following loan-level information: (i) the scheduled
        balance as of the last day of the related Due Period, (ii) all Principal
        Prepayments applied to the Mortgagor’s account during the related Principal
        Prepayment Period, and (iii) the delinquency and bankruptcy status of the
        Mortgage Loan, if applicable.

       

      (b) Miscellaneous
        Reports. Upon the foreclosure sale of any Mortgaged Property or the acquisition
        thereof by the Purchaser pursuant to a deed-in-lieu of foreclosure, Countrywide
        shall submit to the Purchaser a liquidation report with respect to such
        Mortgaged Property, which report may be included with any other reports prepared
        by Countrywide and delivered to the Purchaser pursuant to the terms and
        conditions of this Agreement. With respect to any REO Property, and upon
        the
        request of the Purchaser, Countrywide shall furnish to the Purchaser a statement
        describing Countrywide’s efforts during the previous month in connection with
        the sale of such REO Property, including any rental of such REO Property
        incidental to the sale thereof and, on each Remittance Date, an operating
        statement relating thereto. Countrywide shall also provide the Purchaser
        with
        such information concerning the Mortgage Loans as is necessary for the Purchaser
        to prepare its federal income tax return and as the Purchaser may reasonably
        request from time to time. Countrywide shall provide the Purchaser with
        information required in order to file information reports with respect to
        the
        receipt of mortgage interest received in a trade or business, reports of
        foreclosures and abandonments of any Mortgaged Property, and information
        relating to cancellation of indebtedness income with respect to any Mortgaged
        Property. The Purchaser agrees to pay for all reasonable out-of-pocket expenses
        incurred by Countrywide in connection with complying with any request made
        by
        the Purchaser hereunder if such information is not customarily provided by
        Countrywide in the ordinary course of servicing mortgage loans similar to
        the
        Mortgage Loans; Countrywide shall provide a written estimate of any such
        expenses.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        5.03 Monthly
        Advances by Countrywide. 

       

      Not
        later
        than the close of business on the Determination Date preceding each Remittance
        Date, Countrywide shall deposit in the Custodial Account an amount equal
        to all
        payments not previously advanced by Countrywide, whether or not deferred
        pursuant to Section 5.01, 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 as
        of the
        close of business on the Business Day prior to the related Determination
        Date.
        Notwithstanding anything to the contrary herein, Countrywide may use amounts
        on
        deposit in the Custodial Account for future distribution to the Purchaser
        to
        satisfy its obligation, if any, to deposit delinquent amounts pursuant to
        the
        preceding sentence. To the extent Countrywide uses any funds being held for
        future distribution to the Purchaser to satisfy its obligations under this
        Section 5.03, Countrywide shall deposit in the Custodial Account an amount
        equal
        to such used funds no later than the Determination Date prior to the following
        Remittance Date to the extent that funds in the Custodial Account on such
        Remittance Date are less than the amounts to be remitted to the Purchaser
        pursuant to Section 5.01.

       

      Countrywide’s
        obligation to make such advances as to any Mortgage Loan will continue through
        the earliest of: (a) the last Monthly Payment due prior to the payment in
        full
        of the Mortgage Loan; or (b) the Remittance Date prior to the Remittance
        Date
        for the distribution of any Liquidation Proceeds, Other Insurance Proceeds
        or
        Condemnation Proceeds which, in the case of Other Insurance Proceeds and
        Condemnation Proceeds, satisfy in full the indebtedness of such Mortgage
        Loan.
        In no event shall Countrywide be obligated to make an advance under this
        Section
        5.03 if at the time of such advance it reasonably determines that such advance
        will be unrecoverable. The determination by Countrywide that it has made
        an
        unrecoverable Monthly Advance or that any proposed Monthly Advance, if made,
        would constitute an unrecoverable Monthly Advance, shall be evidenced by
        an
        Officers’ Certificate delivered to the Purchaser.

       

      Section
        5.04 Annual
        Statement as to Compliance. 

       

      Countrywide
        shall deliver to the Purchaser on or before March 15th of each year, beginning
        in the year following the Closing Date, an officer’s certificate, signed by a
        senior officer of Countrywide, stating that (i) a review of the activities
        of
        Countrywide during the preceding fiscal year and of performance under this
        Agreement has been made under such officer’s supervision, (ii) based on such
        review, Countrywide has fulfilled all of its obligations under this Agreement
        throughout such fiscal 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 actions being taken by Countrywide
        to cure
        such default, and (iii) all reports and information provided to the Purchaser
        by
        Countrywide, pursuant to Countrywide’s reporting requirements under the
        Agreement, are accurate and complete in all material respects. Copies of
        such
        statement may be provided by the Purchaser to any Person identified as a
        prospective purchaser of the Mortgage Loans.

       

      Section
        5.05 Annual
        Independent Certified Public Accountants’ Servicing Report. 

       

      Countrywide
        shall, on or before March 15th of each year, beginning in the year following
        the
        related Closing Date, cause, at its sole cost and expense, 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 and performed certain
        other
        procedures relating to the servicing of the Mortgage Loans during the
        immediately preceding fiscal year of Countrywide and that such firm is of
        the
        opinion that, on the basis of such examination conducted substantially in
        accordance with the Uniform Single Attestation Program for Mortgage Bankers,
        such servicing has been conducted in compliance therewith, except for such
        exceptions as shall be set forth in such statement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        5.06 Annual
        Sarbanes-Oxley Act Certification.

       

      (a) For
        so
        long as a Person is required by Section 302 of the Sarbanes Oxley Act of
        2002
        (the “Act”) to provide an annual certification, by March 15th of each year,
        beginning in the year following the related Closing Date, an officer of
        Countrywide shall execute and deliver an officer’s certificate to such Person
        (hereafter, the “Beneficiary”) for the benefit of the Beneficiary and its
        officers, directors and affiliates, pursuant to which such officer shall
        certify
        to those matters substantially as set forth in Exhibit E.

       

      (b) Countrywide
        shall indemnify and hold harmless the Beneficiary 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 Countrywide or any
        of its
        officers, directors, agents or affiliates of its obligations under this Section
        5.06 or the negligence, bad faith or willful misconduct of Countrywide in
        connection therewith. If the indemnification provided for herein is unavailable
        or insufficient to hold harmless the Beneficiary, then Countrywide agrees
        that
        it shall contribute to the amount paid or payable by the Beneficiary as a
        result
        of the losses, claims, damages or liabilities of the Beneficiary in such
        proportion as is appropriate to reflect the relative fault of the Beneficiary
        on
        the one hand and Countrywide on the other in connection with a breach of
        Countrywide’s obligations under this Section 5.06 or Countrywide’s negligence,
        bad faith or willful misconduct in connection therewith.

       

      (c) For
        the
        purposes of this Section 5.06 only, the Beneficiary shall be considered a
        third
        party beneficiary and shall be entitled to the rights accruing thereunder
        and
        shall be entitled to enforce such obligation against Countrywide.

       

      Section
        5.07 The
        Purchaser’s Access to Countrywide’s Records. 

       

      The
        Purchaser shall have access upon reasonable notice to Countrywide, during
        regular business hours or at such other times as might be reasonable under
        applicable circumstances, to any and all of the books and records of Countrywide
        that relate to the performance or observance by Countrywide of the terms,
        covenants or conditions of this Agreement. Further, Countrywide hereby
        authorizes the Purchaser, in connection with a sale of the Mortgage Loans,
        to
        make available to prospective purchasers a Consolidated Statement of Operations
        of Countrywide, or its parent company, prepared by or at the request of
        Countrywide for the most recently completed three (3) fiscal years for 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. Countrywide also agrees to make available to any
        prospective purchaser, upon reasonable notice and during normal business
        hours,
        a knowledgeable financial or accounting officer for the purpose of answering
        questions respecting Countrywide’s ability to perform under this Agreement. The
        Purchaser agrees to reimburse Countrywide for any out-of-pocket costs incurred
        by Countrywide in connection with its obligations under this Section
        5.07.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        VI.

       

      COVENANTS
        BY COUNTRYWIDE

       

      Section
        6.01 Indemnification
        by Countrywide. 

       

      Countrywide
        shall indemnify the Purchaser and hold it harmless against any and all claims,
        losses, damages, penalties, fines, forfeitures, reasonable and necessary
        attorneys’ 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
        Countrywide to perform its obligations under this Agreement, including, but
        not
        limited to, its obligations to service and administer the Mortgage Loans
        in
        strict compliance with the terms of this Agreement. Notwithstanding the
        foregoing, the Purchaser shall indemnify Countrywide 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 Countrywide may sustain in any way related
        to (a)
        actions or inactions of Countrywide which were taken or omitted upon the
        instruction or direction of the Purchaser, or (b) the failure of the Purchaser
        to perform its obligations in strict compliance with the terms of this
        Agreement, including subsections (i) and (ii) in Section 6.04.

       

      Section
        6.02 Third
        Party Claims. 

       

      Countrywide
        and the Purchaser shall immediately notify the other if a claim is made upon
        such party by a third party with respect to this Agreement or the Mortgage
        Loans. Upon the prior written consent of the Purchaser, which consent shall
        not
        be unreasonably withheld, Countrywide shall assume the defense of any such
        claim
        and pay all expenses in connection therewith, including attorneys’ 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 Purchaser shall
        promptly reimburse Countrywide for all amounts advanced by it pursuant to
        the
        preceding sentence except when as a result of such claim Countrywide is
        otherwise required to indemnify the Purchaser pursuant to Section 6.01 hereof.
        

       

      Section
        6.03 Merger
        or
        Consolidation of Countrywide. 

       

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

       

      Notwithstanding
        anything to the contrary contained herein, any Person into which Countrywide
        may
        be merged or consolidated, or any corporation resulting from any merger,
        conversion or consolidation to which Countrywide shall be a party, or any
        Person
        succeeding to the business of Countrywide, shall be the successor of Countrywide
        hereunder, without the execution or filing of any paper or any further act
        on
        the part of any of the parties hereto; provided, however, that the successor
        or
        surviving Person shall be an institution whose deposits are insured by FDIC
        or a
        company whose business is the origination and servicing of mortgage loans,
        unless otherwise consented to by the Purchaser, which consent shall not be
        unreasonably withheld, and shall be qualified to service mortgage loans on
        behalf of an Agency and shall satisfy any requirements of Section 8.13 with
        respect to the qualifications of a successor to Countrywide.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        6.04 Limitation
        on Liability of Countrywide and Others. 

       

      Neither
        Countrywide nor any of the officers, employees or agents of Countrywide shall
        be
        under any liability to the Purchaser for any action taken, 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
        Countrywide or any such person against any breach of warranties or
        representations made herein, or the 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 any breach of the
        terms
        and conditions of this Agreement. Countrywide and any officer, employee or
        agent
        of Countrywide 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. Notwithstanding anything to the contrary contained in this Agreement,
        unless one or more Event of Default by Countrywide shall occur and shall
        not
        have been remedied within the time limits set forth in Section 7.01(a) of
        this
        Agreement, the Purchaser shall not record or cause to be recorded an Assignment
        of Mortgage with the recording office. To the extent the Purchaser records
        with
        the recording office as permitted herein an Assignment of Mortgage which
        designates the Purchaser as the holder of record of the Mortgage, the Purchaser
        agrees that it shall (i) provide Countrywide with immediate notice, pursuant
        to
        Section 8.01, of any action with respect to the Mortgage or the related
        Mortgaged Property; and (ii) immediately complete, sign and return to
        Countrywide any document reasonably requested by Countywide to comply with
        its
        servicing obligations, including without limitation, any instrument required
        to
        release the Mortgage upon payment in full of the obligation or take any other
        action reasonably required by Countrywide. The Purchaser further agrees that
        Countrywide shall have no liability for the Purchaser’s failure to comply with
        the subsections (i) or (ii) in the foregoing sentence. Countrywide shall
        have no
        liability to the Purchaser and 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
        Countrywide may, with the consent of the Purchaser, undertake any such action
        which it may deem necessary or desirable to protect the Purchaser’s interests in
        the Mortgage Loans. In such event, the 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 Countrywide shall be entitled
        to be
        reimbursed herefore from the Purchaser upon written demand except when such
        expenses, costs and liabilities are subject to Countrywide’s indemnification
        under Section 6.01.

       

      Section
        6.05 No
        Transfer of Servicing. 

       

      Countrywide
        acknowledges that the Purchaser acts in reliance upon Countrywide’s independent
        status, the adequacy of its servicing facilities, plant, personnel, records
        and
        procedures, its integrity, reputation and financial standing and the continuance
        thereof. Without in any way limiting the generality of this Section, Countrywide
        shall not assign this Agreement or the servicing rights hereunder, without
        the
        prior written consent of the Purchaser, which consent may not be unreasonably
        withheld. No such assignment shall become effective until a successor shall
        have
        assumed Countrywide’s servicing responsibilities and obligations hereunder in
        the manner provided in Section 8.13. Notwithstanding the foregoing or any
        other
        provision in this Agreement, nothing shall limit the right of Countrywide
        to
        assign the servicing rights hereunder to Servicing LP.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        VII.

       

      TERMINATION
        OF COUNTRYWIDE AS SERVICER

       

      Section
        7.01 Termination
        Due to an Event of Default.

       

      (a) Each
        of
        the following shall be an Event of Default by Countrywide if it shall occur
        and,
        if applicable, be continuing for the period of time set forth
        therein:

       

      (i) any
        failure by Countrywide to remit to the Purchaser any payment required to
        be made
        under the terms of this Agreement which such failure continues unremedied
        for a
        period of one (1) Business Day after the date upon which written notice of
        such
        failure, requiring the same to be remedied, shall have been given to Countrywide
        by the Purchaser; or

       

      (ii) any
        failure on the part of Countrywide to duly observe or perform in any material
        respect any of the covenants or agreements on the part of Countrywide set
        forth
        in this Agreement or in the Bailee Letter, if any, which continues unremedied
        for a period of thirty (30) days (except that such number of days shall be
        fifteen (15) 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 Countrywide 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, marshaling of assets and liabilities or
        similar proceedings, or for the winding-up or liquidation of its affairs,
        shall
        have been entered against Countrywide and such decree or order shall have
        remained in force undischarged or unstayed for a period of sixty (60) days;
        or

       

      (iv) Countrywide
        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 Countrywide or of or
        relating to all or substantially all of its property;

       

      (v) Countrywide
        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; 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (vi) failure
        by Countrywide to duly perform, within the required time period, its obligations
        under Sections 5.04, 5.05 or 5.06 which failure continues unremedied for
        a
        period of ten (10) days after the date on which written notice of such failure,
        requiring the same to be remedied, shall have been given to Countrywide by
        the
        Purchaser or by any master servicer responsible for master servicing the
        Mortgage Loans pursuant to a securitization of such Mortgage Loans;

       

      (vi) Countrywide
        ceases to meet the qualifications of an Agency to be an approved
        seller/servicer;

       

      (vii) Countrywide
        fails to be in compliance with the “doing business” or licensing laws of any
        jurisdiction which noncompliance materially and adversely affects Countrywide’s
        ability to service the Mortgage Loans in compliance with the terms of this
        Agreement; or

       

      (viii) Notwithstanding
        any assignment or transfer of servicing to Servicing LP, Countrywide assigns
        its
        right to servicing compensation hereunder, or Countrywide, without the consent
        of the Purchaser, sells or otherwise disposes 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, other
        than to Servicing LP, and such sale, disposition, or assignment of this
        Agreement materially and adversely affects Countrywide’s ability to service the
        Mortgage Loans in compliance with the terms of this Agreement.

       

      In
        case
        one or more Events of Default by Countrywide shall occur and shall not have
        been
        remedied, the Purchaser, by notice in writing to Countrywide may, in addition
        to
        whatever rights the Purchaser may have at law or equity to damages, including
        injunctive relief and specific performance, terminate all the rights and
        obligations of Countrywide under this Agreement and in and to the Mortgage
        Loans
        and the proceeds thereof. On or after the receipt by Countrywide of such
        written
        notice, all authority and power of Countrywide under this Agreement, whether
        with respect to the Mortgage Loans or otherwise, shall pass to and be vested
        in
        the Purchaser or such other successor appointed pursuant to Section 8.13.
        Upon
        written request from the Purchaser, Countrywide shall prepare, execute and
        deliver, any and all documents and other instruments 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
        Countrywide’s sole expense. Countrywide agrees to cooperate with the Purchaser
        in effecting the termination of Countrywide’s responsibilities and rights
        hereunder, including the transfer to the Purchaser or such other successor
        appointed pursuant to Section 8.13, for administration by it, of all cash
        amounts which shall at the time be credited by Countrywide to the Custodial
        Account or Escrow Account or thereafter received with respect to the Mortgage
        Loans.

       

      (b) Waiver
        of
        Event of Default. The Purchaser may waive any default by Countrywide in the
        performance of Countrywide’s obligations hereunder and its consequences. Upon
        any such waiver of a past default, such default shall cease to exist, and
        any
        Events 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 thereto except to the extent
        expressly so waived.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        7.02 Termination
        by Other Means. 

       

      The
        respective obligations and responsibilities of Countrywide as servicer shall
        terminate with respect to any Mortgage Loan Package upon the first to occur
        of:
        (a) 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 in such Mortgage Loan Package and the remittance of all funds due
        hereunder; or (b) by mutual consent of Countrywide and the Purchaser in writing.
        Upon written request from the Purchaser in connection with any termination
        pursuant to (b) above, Countrywide shall prepare, execute and deliver any
        and
        all documents and other instruments, place in the Purchaser’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. The costs and expenses incurred with respect
        to
        the preceding sentence shall be allocated as mutually agreed between Countrywide
        and the Purchaser. Countrywide agrees to cooperate with the Purchaser and
        such
        successor in effecting the termination of Countrywide’s responsibilities and
        rights hereunder as servicer, including, without limitation, the transfer
        to
        such successor for administration by it of all cash amounts which shall at
        the
        time be credited by Countrywide to the related Custodial Account or Escrow
        Account or thereafter received with respect to the Mortgage Loans.

       

      Section
        7.03 Countrywide
        Not to Resign. 

       

      Countrywide
        shall not resign from the obligations and duties hereby imposed on it except
        by
        mutual consent of Countrywide and the Purchaser or upon the determination
        that
        its servicing duties hereunder are no longer permissible under applicable
        law
        and such incapacity cannot be cured by Countrywide, in which event Countrywide
        may resign as servicer. Any such determination permitting the resignation
        of
        Countrywide as servicer 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 reasonably acceptable to the Purchaser and which shall be provided
        at
        the cost of Countrywide. No such resignation shall become effective until
        a
        successor shall have assumed Countrywide’s responsibilities and obligations
        hereunder in the manner provided in Section 8.13.

       

      ARTICLE
        VII.

       

      MISCELLANEOUS

       

      Section
        8.13 Successor
        to Countrywide.

       

      Prior
        to
        termination of Countrywide’s responsibilities and duties under this Agreement
        pursuant to Section 7.01 or 7.02(b), the Purchaser shall (i) succeed to and
        assume all of Countrywide’s responsibilities, rights, duties and obligations
        under this Agreement, or (ii) appoint a successor which shall succeed to
        all
        rights and assume all of the responsibilities, duties and liabilities of
        Countrywide as servicer under this Agreement. In connection with such
        appointment and assumption, the Purchaser may make such arrangements for
        the
        reasonable compensation of such successor out of payments on Mortgage Loans
        as
        it and such successor shall agree. In the event that Countrywide’s duties,
        responsibilities and liabilities as servicer under this Agreement should
        be
        terminated pursuant to the aforementioned Sections, Countrywide 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 the Purchaser or such successor. The
        termination of Countrywide as servicer pursuant to the aforementioned Section
        shall not become effective until a successor shall be appointed pursuant
        to this
        Section 8.13 and shall in no event relieve Countrywide 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, 3.04 or 6.01, it being understood
        and agreed that the provisions of such Sections 3.01, 3.02, 3.03, 3.04 and
        6.01
        shall be applicable to Countrywide notwithstanding any such resignation or
        termination of Countrywide, or the termination of this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Any
        successor appointed as provided herein shall execute, acknowledge and deliver
        to
        Countrywide 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 Countrywide, with
        like
        effect as if originally named as a party to this Agreement provided, however,
        that such successor shall not assume, and Countrywide shall indemnify such
        successor for, any and all liabilities arising out of Countrywide’s acts as
        servicer. Any termination of Countrywide as servicer pursuant to Section
        7.01 or
        7.02(b) shall not affect any claims that the Purchaser may have against
        Countrywide arising prior to any such termination or resignation or remedies
        with respect to such claims.

       

      Countrywide
        shall timely deliver to the successor the funds in the related Custodial
        Account, REO Account and the related Escrow Account and the Mortgage Files
        and
        related documents and statements held by it hereunder and Countrywide shall
        account for all funds. Countrywide 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 Countrywide as servicer.
        The
        successor shall reimburse Countrywide for amounts Countrywide actually expended
        as servicer pursuant to this Agreement which the successor is entitled to
        retain
        hereunder and which would otherwise have been recovered by Countrywide pursuant
        to this Agreement but for the appointment of the successor
        servicer.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ATTACHMENT
        3

       

      EXHIBIT
        L

       

      REPORTING
        DATA FOR DEFAULTED LOANS 

       

      Data
        must
        be submitted to Wells Fargo Bank in an Excel
        spreadsheet format with fixed field names and data type. The Excel
        spreadsheet should be used as a template consistently every month when
        submitting data. 

       

      
        Table:
          Delinquency 

         

      

      
        	
                Name
                  

              	 	
                Type
                  

              	 	
                Size

              
	
                Servicer
                  Loan # 

              	 	
                Number
                  

              	 	
                8
                  

              
	 	 	
                (Double)
                  

              	 	 
	
                Investor
                  Loan # 

              	 	
                Number
                  

              	 	
                8
                  

              
	 	 	
                (Double)
                  

              	 	 
	
                Borrower
                  Name 

              	 	
                Text
                  

              	 	
                20
                  

              
	
                Address
                  

              	 	
                Text
                  

              	 	
                30
                  

              
	
                State
                  

              	 	
                Text
                  

              	 	
                2
                  

              
	
                Due
                  Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Action
                  Code 

              	 	
                Text
                  

              	 	
                2
                  

              
	
                FC
                  Received 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                File
                  Referred to Atty 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                NOD
                  

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Complaint
                  Filed 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Sale
                  Published 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Target
                  Sale Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Actual
                  Sale Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Loss
                  Mit Approval Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Loss
                  Mit Type 

              	 	
                Text
                  

              	 	
                5
                  

              
	
                Loss
                  Mit Estimated Completion 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Date
                  

              	 	 	 	 
	
                Loss
                  Mit Actual Completion Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Loss
                  Mit Broken Plan Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                BK
                  Chapter 

              	 	
                Text
                  

              	 	
                6
                  

              
	
                BK
                  Filed Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Post
                  Petition Due 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Motion
                  for Relief 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Lift
                  of Stay 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                RFD
                  

              	 	
                Text
                  

              	 	
                10
                  

              
	
                Occupant
                  Code 

              	 	
                Text
                  

              	 	
                10
                  

              
	
                Eviction
                  Start Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Eviction
                  Completed Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                List
                  Price 

              	 	
                Currency
                  

              	 	
                8
                  

              
	
                List
                  Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Accepted
                  Offer Price 

              	 	
                Currency
                  

              	 	
                8
                  

              
	
                Accepted
                  Offer Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Estimated
                  REO Closing Date 

              	 	
                Date/Time
                  

              	 	
                8
                  

              
	
                Actual
                  REO Sale Date

              	 	
                Date/Time

              	 	
                8

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      • Items
        in bold are MANDATORY FIELDS. We must receive information in those fields
        every
        month in order for your file to be accepted.
        

       

      The
        Action Code Field should show the applicable numeric code to indicate that
        a
        special action is being taken. The Action Codes are the following: 

       

      12-Relief
        Provisions 

      15-Bankruptcy/Litigation
        

      20-Referred
        for Deed-in-Lieu 

      30-Referred
        fore Foreclosure 

      60-Payoff
        

      65-Repurchase
        

      70-REO-Held
        for Sale 

      71-Third
        Party Sale/Condemnation 

      72-REO-Pending
        Conveyance-Pool Insurance claim filed 

       

      Wells
        Fargo Bank will accept alternative Action Codes to those above, provided
        that
        the Codes are consistent with industry standards. If Action Codes other than
        those above are used, the Servicer must supply Wells Fargo Bank with a
        description of each of the Action Codes prior to sending the file. 

       

      Description
        of Action Codes: 

       

      Action
        Code 12
        - To
        report a Mortgage Loan for which the Borrower has been granted relief for
        curing
        a delinquency. The Action Date is the date the relief is expected to end.
        For
        military indulgence, it will be three months after the Borrower’s discharge from
        military service. 

       

      Action
        Code 15
        - To
        report the Borrower’s filing for bankruptcy or instituting some other type of
        litigation that will prevent or delay liquidation of the Mortgage Loan. The
        Action Date will be either the date that any repayment plan (or forbearance)
        instituted by the bankruptcy court will expire or an additional date by which
        the litigation should be resolved. 

       

      Action
        Code 20
        - To
        report that the Borrower has agreed to a deed-in-lieu or an assignment of
        the
        property. The Action Date is the date the Servicer decided to pursue a
        deed-in-lieu or the assignment. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Action
        Code 30
        - To
        report that the decision has been made to foreclose the Mortgage Loan. The
        Action Date is the date the Servicer referred the case to the foreclosure
        attorney.

      

      Action
        Code 60
        - To
        report that a Mortgage Loan has been paid in full either at, or prior to,
        maturity. The Action Date is the date the pay-off funds were remitted to
        the
        Master Servicer. 

       

      Action
        Code 65
        - To
        report that the Servicer is repurchasing the Mortgage Loan. The Action Date
        is
        the date the repurchase proceeds were remitted to the Master Servicer.

       

      Action
        Code 70
        - To
        report that a Mortgage Loan has been foreclosed or a deed-in-lieu of foreclosure
        has been accepted, and the Servicer, on behalf of the owner of the Mortgage
        Loan, has acquired the property and may dispose of it. The Action Date is
        the
        date of the foreclosure sale or, for deeds-in-lieu, the date the deed is
        recorded on behalf of the owner of the Mortgage Loan. 

       

      Action
        Code 71
        - To
        report that a Mortgage Loan has been foreclosed and a third party acquired
        the
        property, or a total condemnation of the property has occurred. The Action
        Date
        is the date of the foreclosure sale or the date the condemnation award was
        received. 

       

      Action
        Code 72
        - To
        report that a Mortgage Loan has been foreclosed, or a deed-in-lieu has been
        accepted, and the property may be conveyed to the mortgage insurer and the
        pool
        insurance claim has been filed. The Action Date is the date of the foreclosure
        sale, or, for deeds-in-lieu, the date of the deed for conventional mortgages.
        

       

      The
        Loss
        Mit Type field should show the approved Loss Mitigation arrangement. The
        following are acceptable: 

       

      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 

       

      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. The
        acceptable codes are: 

       

      Mortgagor
        

      Tenant
        

      Unknown
        

      Vacant
        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      REALIZED
        LOSS CALCULATION INFORMATION 

       

      WELLS
        FARGO BANK, N.A. Form 332

       

      

      Calculation
        of Realized Loss 

       

      Purpose
        

       

      To
        provide the Servicer with a form for the calculation of any Realized Loss
        (or
        gain) as a result of a Mortgage Loan having been foreclosed and Liquidated.
        

       

      Distribution
        

       

      The
        Servicer will prepare the form in duplicate and send the original together
        with
        evidence of conveyance of title and appropriate supporting documentation
        to the
        Master Servicer with the Monthly Accounting Reports which supports the Mortgage
        Loan’s removal from the Mortgage Loan Activity Report. The Servicer will retain
        the duplicate for its own records. 

       

      Due
        Date 

       

      With
        respect to any liquidated Mortgage Loan, the form will be submitted to the
        Master Servicer no later than the date on which statements are due to the
        Master
        Servicer under Section 4.02 of this Agreement (the “Statement Date”) in the
        month following receipt of final liquidation proceeds and supporting
        documentation relating to such liquidated Mortgage Loan; provided, that if
        such
        Statement Date is not at least 30 days after receipt of final liquidation
        proceeds and supporting documentation relating to such liquidated Mortgage
        Loan,
        then the form will be submitted on the first Statement Date occurring after
        the
        30th
        day
        following receipt of final liquidation proceeds and supporting documentation.
        

       

      Preparation
        Instructions 

       

      The
        numbers on the form correspond with the numbers listed below. 

       

      
        	1.	
                The
                  actual Unpaid Principal Balance of the Mortgage Loan.
                  

              

      

       

      
        	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.
                  

              

      

      

      
        	
                3-7.
                  

              	
                Complete
                  as necessary. All line entries must be supported by copies of appropriate
                  statements, vouchers,
                  receipts, canceled checks, etc., to document the expense. Entries
                  not
                  properly documented
                  will not be reimbursed to the Servicer.

              

      

       

      
        	
                8.
                  

              	
                Accrued
                  Servicing Fees based upon the Scheduled Principal Balance of the
                  Mortgage
                  Loan as calculated on a monthly basis.

              

      

      
        	 	 

        	
                10.
                  

              	
                The
                  total of lines 1 through 9. 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Credits
        

       

      
        	
                11-17.
                  

              	
                Complete
                  as necessary. All line entries must be supported by copies of the
                  appropriate claims forms, statements, payment checks, etc. to document
                  the
                  credit. If the Mortgage Loan is subject to a Bankruptcy Deficiency,
                  the
                  difference between the Unpaid Principal Balance of the Note prior
                  to the
                  Bankruptcy Deficiency and the Unpaid Principal Balance as reduced
                  by the
                  Bankruptcy Deficiency should be input on line 16.
                  

              

      

       

      
        	
                18.

              	
                The
                  total of lines 11 through 17. 

              

      

       

      Total
        Realized Loss (or Amount of Any Gain) 

       

      
        	
                19.
                  

              	
                The
                  total derived from subtracting line 18 from 10. If the amount represents
                  a
                  realized gain, show the amount in parenthesis ( ).
                  

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      WELLS
        FARGO BANK, N.A. 

       

      CALCULATION
        OF REALIZED LOSS

       

      WELLS
        FARGO BANK, N.A. Trust: ___________________________

       

      Prepared
        by: __________________ Date: _______________ 

       

      Phone:
        ______________________ 

       

      
        	
                Servicer
                  Loan No. 

              	
                   Servicer
                  Name  

              	
                 Servicer
                  Address
                  

              

      

       

      WELLS
        FARGO BANK, N.A. 

      Loan
        No._____________________________ 

      Borrower’s
        Name:________________________________________________________ 

      Property

      Address:________________________________________________________________
        

      

      
        	
                Liquidation
                  and Acquisition Expenses: 

              	 	 
	
                Actual
                  Unpaid Principal Balance of Mortgage Loan 

              	 	
                $
                  _______________(1) 

              
	
                Interest
                  accrued at Net Rate 

              	 	
                ________________(2)
                  

              
	
                Attorney’s
                  Fees 

              	 	
                ________________(3)
                  

              
	
                Taxes
                  

              	 	
                ________________(4)
                  

              
	
                Property
                  Maintenance 

              	 	
                ________________(5)
                  

              
	
                MI/Hazard
                  Insurance Premiums 

              	 	
                ________________(6)
                  

              
	
                Hazard
                  Loss Expenses 

              	 	
                ________________(7)
                  

              
	
                Accrued
                  Servicing Fees 

              	 	
                ________________(8)
                  

              
	
                Other
                  (itemize) 

              	 	
                ________________(9)
                  

              
	 	 	
                $
                  _________________ 

              
	 	 	 
	
                Total
                  Expenses

              	 	
                $
                  ______________(10) 

              
	
                Credits:
                  

              	 	 
	
                Escrow
                  Balance 

              	 	
                $
                  ______________(11) 

              
	
                HIP
                  Refund 

              	 	
                ________________(12)
                  

              
	
                Rental
                  Receipts 

              	 	
                ________________(13)
                  

              
	
                Hazard
                  Loss Proceeds 

              	 	
                ________________(14)
                  

              
	
                Primary
                  Mortgage Insurance Proceeds 

              	 	
                ________________(15)
                  

              
	
                Proceeds
                  from Sale of Acquired Property 

              	 	
                ________________(16)
                  

              
	
                Other
                  (itemize) 

              	 	
                ________________(17)
                  

              
	 	 	
                ________________       
                  

              
	 	 	
                ________________
                         

              
	
                Total
                  Credits

              	 	
                $________________(18)
                  

              

      

      

      Total
        Realized Loss (or Amount
        of Gain)
        $________________ 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        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

              	 	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              	 	 	 	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO 

              	
                2

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                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

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ATTACHMENT
        4

       

      AMENDMENT
        ONE

      TO
        THE
        MASTER MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT

       

      This
        is
        Amendment One (“Amendment
        One”),
        dated
        as of May 31, 2006, by and between DB Structured Products, Inc. (the
“Purchaser”), and
        Countrywide Home Loans, Inc. (the “Company”)
        to
        that certain Master Mortgage Loan Purchase and Servicing Agreement dated
        as of
        September 1, 2005 by and between the Company and the Purchaser (as amended,
        modified or supplemented, the “Existing
        Agreement”).

       

      WITNESSETH

       

      WHEREAS,
        the Company and the Purchaser have agreed, subject to the terms and conditions
        of this Amendment One that the Existing Agreement be amended to reflect agreed
        upon revisions to the terms of the Existing Agreement.

       

      Accordingly,
        the Company and the Purchaser hereby agree, in consideration of the mutual
        premises and mutual obligations set forth herein, that the Existing Agreement
        is
        hereby amended as follows:

       

      1. Capitalized
        terms used herein but not otherwise defined shall have the meanings set forth
        in
        the Existing Agreement. The Existing Agreement is hereby amended by adding
        the
        following definitions in their proper alphabetical order:

       

      Commission:
        The
        United States Securities and Exchange Commission.

       

      Company
        Information:
        As
        defined in Section 9.07(i)(A)(1).

       

      Depositor:
        The
        depositor, as such term is defined in Regulation AB, with respect to any
        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.

       

      Qualified
        Correspondent:
        Any
        Person from which Countrywide purchased Mortgage Loans, provided that the
        following conditions are satisfied: (i) such Mortgage Loans were either (x)
        originated pursuant to an agreement between Countrywide and such Person that
        contemplated that such Person would underwrite mortgage loans from time to
        time,
        for sale to Countrywide, in accordance with underwriting guidelines designated
        by Countrywide (“Designated Guidelines”) or guidelines that do not vary
        materially from such Designated Guidelines or (y) individually re-underwritten
        by Countrywide to the Designated Guidelines at the time such Mortgage Loans
        were
        acquired by Countrywide; (ii) either (x) the Designated Guidelines were,
        at the
        time such Mortgage Loans were originated, used by Countrywide in origination
        of
        mortgage loans of the same type as the Mortgage Loans for Countrywide’s own
        account or (y) the Designated Guidelines were, at the time such Mortgage
        Loans
        were underwritten, designated by Countrywide on a consistent basis for use
        by
        lenders in originating mortgage loans to be purchased by Countrywide; and (iii)
        Countrywide employed, at the time such Mortgage Loans were acquired by
        Countrywide, 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 either Persons from which it purchased mortgage loans properly
        applied the underwriting criteria designated by Countrywide or the Mortgage
        Loans purchased by Countrywide substantially comply with the Designated
        Guidelines.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Reconstitution:
        Any
        Securitization Transaction or Whole Loan Transfer.

       

      Reconstitution
        Agreement:
        An
        agreement or agreements entered into by Countrywide and the Purchaser and/or
        certain third parties in connection with a Reconstitution with respect to
        any or
        all of the Mortgage Loans serviced under the Agreement.

       

      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.

       

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

       

      Securitization
        Transaction:
        Any
        transaction subject to Regulation AB 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, rated
        mortgage-backed securities or (2) an issuance of publicly offered, rated
        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 9.03(iii).

       

      Servicing
        Criteria:
        The
“servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be
        amended from time to time.

       

      Static
        Pool Information:
        Static
        pool information as described in Item 1105.

       

      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 Countrywide or a
        Subservicer.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Subservicer:
        Any
        Person that services Mortgage Loans on behalf of Countrywide 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 Countrywide 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.

       

      Third-Party
        Originator:
        Each
        Person, other than a Qualified Correspondent, that originated Mortgage Loans
        acquired by Countrywide.

       

      Whole
        Loan Transfer:
        Any
        sale or transfer of some or all of the Mortgage Loans, other than a
        Securitization Transaction.

       

      2. The
        Purchaser and the Company agree that the Existing Agreement is hereby amended
        by
        adding the following provisions as Article IX to the Existing
        Agreement:

       

      Section
        9.01 Intent
        of the Parties; Reasonableness.

       

      The
        Purchaser and Countrywide acknowledge and agree that the purpose of Article
        IX
        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. 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. Countrywide 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, and agrees to negotiate in good
        faith
        with the Purchaser or any Depositor with regard to any reasonable requests
        for
        delivery of information under these provisions on the basis of evolving
        interpretations of Regulation AB. In connection with any Securitization
        Transaction, Countrywide 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 to permit the Purchaser or such Depositor to comply
        with
        the provisions of Regulation AB, together with such disclosures relating
        to
        Countrywide, and any parties or items identified in writing by the Purchaser,
        including, any Subservicer, any Third-Party Originator and the Mortgage Loans,
        or the servicing of the Mortgage Loans necessary in order to effect such
        compliance.

       

      The
        Purchaser agrees that it will cooperate with Countrywide and provide sufficient
        and timely notice of any information requirements pertaining to a Securitization
        Transaction. The Purchaser will make all reasonable efforts to contain requests
        for information, reports or any other materials to items required for compliance
        with Regulation AB, and shall not request information which is not required
        for
        such compliance.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      Section
        9.02 Additional
        Representations and Warranties of Countrywide.

       

      (i) Countrywide
        shall be deemed to represent to the Purchaser and to any Depositor, as of
        the
        date on which information is first provided to the Purchaser or any Depositor
        under Section 9.03 that, except as disclosed in writing to the Purchaser
        or such
        Depositor prior to such date: (i) Countrywide 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 Countrywide; (ii) Countrywide 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; (iii) no material
        noncompliance with the applicable servicing criteria with respect to other
        securitizations of residential mortgage loans involving Countrywide as servicer
        has been disclosed or reported by Countrywide; (iv) no material changes to
        Countrywide’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;
        (v) there are no aspects of Countrywide’s financial condition that could have a
        material adverse effect on the performance by Countrywide of its servicing
        obligations under this Agreement or any Reconstitution Agreement; (vi) there
        are
        no material legal or governmental proceedings pending (or known to be
        contemplated) against Countrywide, any Subservicer or any Third-Party
        Originator; and (vii) there
        are
        no affiliations, relationships or transactions required to be disclosed under
        Item 1119 between Countrywide and any of the parties listed in 9.03(i)(D)(4)-(9)
        which are identified in writing by the Purchaser or Depositor in advance
        of the
        Securitization Transaction pursuant to 9.03(i)(D) of this
        Agreement.

       

      (ii) If
        so
        requested by the Purchaser or any Depositor on any date following the date
        on
        which information is first provided to the Purchaser or any Depositor under
        Section 9.03, Countrywide shall, within ten Business Days following such
        request, confirm in writing the accuracy of the representations and warranties
        set forth in paragraph (i) of this Section or, if any such representation
        and
        warranty is not accurate as of the date of such request, provide reasonably
        adequate disclosure of the pertinent facts, in writing, to the requesting
        party.

       

      Section
        9.03 Information
        to Be Provided by Countrywide.

       

      In
        connection with any Securitization Transaction Countrywide shall (1) within
        ten
        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 reasonably required
        for
        compliance with Regulation AB, the information and materials specified in
        paragraphs (i), (ii), (iii) and (vi) of this Section 9.03, and (2) as promptly
        as practicable following notice to or discovery by Countrywide, provide to
        the
        Purchaser and any Depositor (as required by Regulation AB) the information
        specified in paragraph (iv) of this Section.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (i) If
        so
        requested by the Purchaser or any Depositor, Countrywide shall provide such
        information regarding (x) Countrywide, as originator of the Mortgage Loans
        (including as an acquirer of Mortgage Loans from a Qualified Correspondent,
        if
        applicable), or (y) as applicable, each Third-Party Originator, and (z) as
        applicable, each Subservicer, as is requested for the purpose of compliance
        with
        Items 1103(a)(1), 1105 (subject to paragraph (b) below), 1110, 1117 and 1119
        of
        Regulation AB. Such information shall include, at a minimum:

       

      (A) the
        originator’s form of organization;

       

      (B) to
        the
        extent material, 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; if material,
        information regarding the size and composition of the originator’s origination
        portfolio; and information that may be material 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
        brief
        description of any material legal or governmental proceedings pending (or
        known
        to be contemplated by a governmental authority) against Countrywide, each
        Third-Party Originator, if applicable, and each Subservicer; and 

       

      (D) a
        description of any affiliation or relationship between Countrywide, each
        Third-Party Originator, if applicable, each Subservicer and any of the following
        parties to a Securitization Transaction, as such parties are identified to
        Countrywide by the Purchaser or any Depositor in writing within ten days
        in
        advance of such Securitization Transaction:

       

      (1) the
        sponsor;

       

      (2) the
        depositor;

       

      (3) the
        issuing entity;

       

      (4) any
        servicer;

       

      (5) any
        trustee;

       

      
        
          
          

        

        
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      (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, and required by Regulation AB,
        Countrywide 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 (a) Countrywide, if Countrywide is an originator
        of Mortgage Loans (including as an acquirer of Mortgage Loans from a Qualified
        Correspondent, if applicable), and/or (b) as applicable, each Third-Party
        Originator. Such Static Pool Information shall be prepared by Countrywide
        (or,
        if applicable, the 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 Countrywide (or
        Third-Party Originator, as applicable) 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 Countrywide, 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.

       

      Promptly
        following notice or discovery of a material error, as determined in
        Countrywide’s judgment, in Static Pool Information provided pursuant to the
        immediately preceding paragraph (including an omission to include therein
        information required to be provided pursuant to such paragraph) during the
        applicable offering period for the securities, Countrywide shall provide
        corrected Static Pool Information to the Purchaser or any Depositor, as
        applicable, in the same format in which Static Pool Information was previously
        provided to such party by Countrywide.

       

      If
        so
        requested by the Purchaser or any Depositor, Countrywide 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), procedures letters of certified
        public accountants 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 Countrywide’s or, if
        applicable, 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 shall be limited to any Sponsor, any Depositor, any broker dealer acting
        as underwriter, placement agent or initial purchaser with respect to a
        Securitization Transaction or any other party that is reasonably and customarily
        entitled to receive such statements and letters in 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.

       

      
        
          
          

        

        
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      (iii) If
        reasonably requested by the Purchaser or any Depositor, Countrywide shall
        provide such information regarding Countrywide, as servicer of the Mortgage
        Loans, and each Subservicer (each of Countrywide and each Subservicer, for
        purposes of this paragraph, a “Servicer”), as is reasonably 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 reasonable determination 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

       

      
        
          
          

        

        
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      (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 Countrywide
        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) For
        the
        purpose of satisfying its reporting obligation under the Exchange Act with
        respect to any class of asset-backed securities, Countrywide shall (or shall
        cause each Subservicer and, if applicable, any Third-Party Originator to)
        (a)
        provide prompt notice to the Purchaser, any Master Servicer and any Depositor
        in
        writing of (1) any merger, consolidation or sale of substantially all of
        the
        assets of Countrywide, (2) Countrywide’s entry into an agreement with a
        Subservicer to perform or assist in the performance of any of Countrywide’s
        obligations under the Agreement or any Reconstitution Agreement, (3) any
        Event
        of Default under the terms of the Agreement or any Reconstitution Agreement,
        and
        (4) any material litigation or governmental proceedings involving Countrywide,
        any Subservicer or any Third Party Originator.

       

      
        
          
          

        

        
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      (v) As
        a
        condition to the succession to Countrywide or any Subservicer as servicer
        or
        subservicer under this Agreement or any applicable Reconstitution Agreement
        related thereto by any Person (i) into which Countrywide or such Subservicer
        may
        be merged or consolidated, or (ii) which may be appointed as a successor
        to
        Countrywide or any Subservicer, Countrywide shall provide to the Purchaser,
        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
        Purchaser and any Depositor of such succession or appointment and (y) in
        writing, 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.

       

      (vi) Countrywide
        shall provide to the Purchaser, the Master Servicer and any Depositor a
        description of any affiliation or relationship required to be disclosed under
        Item 1119 between Countrywide and any of the parties listed in Items 1119
        (a)(1)-(6) of Regulation AB that develops following the closing date of a
        Securitization Transaction (other than an affiliation or relationship that
        the
        Purchaser, the Depositor or the issuing entity is required to disclose under
        Item 1119 of Regulation AB) no later than 15 calendar days prior to the date
        the
        Depositor is required to file its Form 10-K disclosing such affiliation or
        relationship. For purposes of the foregoing, Countrywide (1) shall be entitled
        to assume that the parties to the Securitization Transaction with whom
        affiliations or relations must be disclosed are the same as on the closing
        date
        if it provides a written request (which may be by e-mail) to the Depositor
        or
        Master Servicer, as applicable, requesting such confirmation and either obtains
        such confirmation or receives no response within three (3) Business Days,
        (2)
        shall not be obligated to disclose any affiliations or relationships that
        may
        develop after the closing date for the Securitization Transaction with any
        parties not identified to Countrywide pursuant to clause (D) of paragraph
        (i) of
        this Section 9.03, and (3) shall be entitled to rely upon any written
        identification of parties provided by the Depositor, the Purchaser or any
        master
        servicer.

       

      (vii) 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 Countrywide or any Subservicer, Countrywide or
        such
        Subservicer, as applicable, shall, to the extent Countrywide 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):

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (a) any
        material modifications, extensions or waivers of Mortgage Loan 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 Mortgage Loan representations or warranties or transaction covenants
        under the Existing Agreement, as amended herein (Item 1121(a)(12) of Regulation
        AB); and 

       

      (c) information
        regarding any Mortgage Loan 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).

       

      Section
        9.04 Servicer
        Compliance Statement.

       

      On
        or
        before March 5 of each calendar year, commencing in 2007, Countrywide shall
        deliver to the Purchaser, the Master Servicer and the Depositor a statement
        of
        compliance addressed to the Purchaser and such Depositor and signed by an
        authorized officer of Countrywide, to the effect that (i) a review of
        Countrywide’s servicing activities during the immediately preceding calendar
        year (or applicable portion thereof) and of its performance under the servicing
        provisions of this Agreement and any applicable Reconstitution Agreement
        during
        such period has been made under such officer’s supervision, and (ii) to the best
        of such officers’ knowledge, based on such review, Countrywide has fulfilled all
        of its servicing 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
        9.05 Report
        on Assessment of Compliance and Attestation.

       

      (i) On
        or
        before March 5 of each calendar year, commencing in 2007, Countrywide
        shall:

       

      (A) deliver
        to the Purchaser, the Master Servicer and the Depositor a report regarding
        Countrywide’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 Countrywide, and shall address each of the applicable Servicing
        Criteria specified on Exhibit A hereto (wherein “Investor” shall be deemed to
        mean the Master Servicer on behalf of the trust);

       

      
        
          
          

        

        
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      (B) deliver
        to the Purchaser, the Master Servicer and the Depositor a report of a registered
        public accounting firm that attests to, and reports on, the assessment of
        compliance made by Countrywide 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;

       

      (C) if
        required by Regulation AB, cause each Subservicer and each Subcontractor
        determined by Countrywide pursuant to 9.06(ii) to be “participating in the
        servicing function” within the meaning of Item 1122 of Regulation AB (each, a
“Participating Entity”), to deliver to the Purchaser, the Master Servicer and
        any Depositor an assessment of compliance and accountants’ attestation as and
        when provided in paragraphs (i) and (ii) of this Section 9.05; and

       

      (D) deliver
        and, if required by Regulation AB, cause each Subservicer and Subcontractor
        described in Section 9.05(i)(C) above to deliver to the Purchaser, the Master
        Servicer, Depositor or 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 of Exhibit B hereto
        signed by an appropriate officer of Countrywide or such Subservicer or
        Subcontractor described in Section 9.05(i)(C), as applicable; provided that
        such
        certification delivered by Countrywide may not be filed as an exhibit to,
        or
        included in, any filing with the Commission.

       

      Countrywide
        acknowledges that the party identified in clause (i)(D) above may rely on
        the
        certification provided by Countrywide pursuant to such clause in signing
        a
        Sarbanes Certification and filing such with the Commission. 

       

      (ii) Each
        assessment of compliance provided by a Subservicer pursuant to Section
        9.05(i)(A) shall address each of the applicable Servicing Criteria specified
        on
        a certification substantially in the form of Exhibit A hereto delivered to
        the
        Purchaser concurrently with the execution of this Agreement or, in the case
        of a
        Subservicer subsequently appointed as such, on or prior to the date of such
        appointment. An assessment of compliance provided by a Participating Entity
        pursuant to Section 9.05 (i)(C) need not address any elements of the Servicing
        Criteria other than those specified by Countrywide pursuant to Section
        9.06.

       

      If
        reasonably requested by the Purchaser or the Master Servicer, Countrywide
        shall
        provide to the Purchaser or the Master Servicer, evidence of the authorization
        of the person signing any certification or statement provided pursuant to
        Sections 9.04 and 9.05 of this Agreement.

       

      
        
          
          

        

        
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      Section
        9.06 Use
        of
        Subservicers and Subcontractors.

       

      Countrywide
        shall not hire or otherwise utilize the services of any Subservicer to fulfill
        any of the obligations of Countrywide as servicer under this Agreement or
        any
        related Reconstitution Agreement unless Countrywide complies with the provisions
        of paragraph (i) of this Subsection (f). Countrywide 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 Countrywide as servicer under this Agreement or any
        related Reconstitution Agreement unless Countrywide complies with the provisions
        of paragraph (ii) of this Subsection (f).

       

      (i) It
        shall
        not be necessary for Countrywide to seek the consent of the Purchaser, the
        Master Servicer or any Depositor to the utilization of any Subservicer. If
        required by Regulation AB, Countrywide shall cause any Subservicer used by
        Countrywide (or by any Subservicer) for the benefit of the Purchaser and
        any
        Depositor to comply with the provisions of this Section and with Sections
        2(b),
        2(c)(iii), 2(c)(v), 2(d), and 2(e) of this Agreement , and to provide the
        information required with respect to such Subservicer under Section 9.03(iv)
        of
        this Agreement. Countrywide 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
        9.04, any assessment of compliance and attestation required to be delivered
        by
        such Subservicer under Section 9.05 and any certification required to be
        delivered to the Person that will be responsible for signing the Sarbanes
        Certification under Section 9.05 as and when required to be
        delivered.

       

      (ii) It
        shall
        not be necessary for Countrywide to seek the consent of the Purchaser or
        any
        Depositor to the utilization of any Subcontractor. If required by Regulation
        AB,
        Countrywide 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 of the role and function of each
        Subcontractor utilized by Countrywide or any Subservicer, specifying (A)
        the
        identity of each such Subcontractor, (B) which (if any) of such Subcontractors
        are Participating Entities, and (C) which elements of the Servicing Criteria
        will be addressed in assessments of compliance provided by each Participating
        Entity identified pursuant to clause (B) of this paragraph.

       

      Countrywide
        shall cause any such Participating Entity used by Countrywide (or by any
        Subservicer) for the benefit of the Purchaser and any Depositor to comply
        with
        the provisions of Section 9.05 of this Agreement. Countrywide shall be
        responsible for obtaining from each Participating Entity and delivering to
        the
        Purchaser, the Master Servicer and the Depositor any assessment of compliance
        and attestation and certificate required to be delivered by such Participating
        Entity under Section 9.05, in each case as and when required to be
        delivered.

       

      
        
          
          

        

        
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      Section
        9.07 Indemnification;
        Remedies.
        

       

      (i) Countrywide
        shall indemnify the Purchaser and each of the following parties participating
        in a Securitization Transaction: each
        sponsor and issuing entity; each Person responsible for the 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 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 and employees 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:

       

      (A)(1) any
        untrue statement of a material fact contained or alleged to be contained
        in
any
        written information, written report, certification or other material
        provided
under
        this Agreement
        by or on
        behalf of Countrywide,
        or
        provided under this Agreement by or on behalf of any Subservicer, Participating
        Entity or, if applicable, Third-Party Originator (collectively, the “Company
        Information”),
        or (2)
        the omission or alleged omission to state in Countrywide Information a material
        fact required to be stated in Countrywide 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 (2) of this paragraph shall be construed solely by reference to
        Countrywide Information and not to any other information communicated in
        connection with a sale or purchase of securities, without regard to whether
        Countrywide Information or any portion thereof is presented together with
        or
        separately from such other information;

       

      (B) any
        failure by Countrywide, any Subservicer, any Participating Entity or any
        Third-Party
        Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Agreement, including
        any failure by Countrywide to identify pursuant to Section 9.06(ii) any
        Participating Entity; or

       

      (C) any
        breach by Countrywide of a representation or warranty set forth in Section
        9.02(i) or in a writing furnished pursuant to Section 9.02(ii) 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
        Countrywide of a representation or warranty in a writing furnished pursuant
        to
        Section 9.02(ii) to the extent made as of a date subsequent to such closing
        date.

       

      If
        the
        indemnification provided for herein is unavailable or insufficient to hold
        harmless the parties set forth in Section 9.07(i), then Countrywide 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 Countrywide on the
        other.

       

      
        
          
          

        

        
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      In
        the
        case of any failure of performance described in clause (i)(B) of this Section,
        Countrywide shall promptly reimburse the Purchaser, any Depositor, as
        applicable, and each Person responsible for the 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 Countrywide, any
        Subservicer, any Participating Entity or any Third-Party
        Originator.

       

      (ii) (A) Any
        failure by Countrywide, any Subservicer, any Participating Entity or any
        Third-Party
        Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Agreement, which
        continues unremedied for three Business Days after receipt by Countrywide
        and
        the applicable Subservicer, Subcontractor, or Third-Party Originator of written
        notice of such failure from the Purchaser or Depositor shall, except as provided
        in clause (B) of this paragraph, constitute an Event of Default with respect
        to
        Countrywide 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 Countrywide as servicer
        under this Agreement and/or any applicable Reconstitution Agreement related
        thereto without payment (notwithstanding anything in this Agreement or any
        applicable Reconstitution Agreement related thereto to the contrary) of any
        compensation to Countrywide (and if Countrywide 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);
provided,
        however
        it is
        understood that Countrywide shall remain entitled to receive reimbursement
        for
        all unreimbursed Monthly Advances and Servicing Advances made by Countrywide
        under this Agreement and/or any applicable Reconstitution Agreement.
        Notwithstanding anything to the contrary set forth herein, 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 Countrywide as servicer, such provision shall be given
        effect.

       

      (B) Any
        failure by Countrywide, any Subservicer or any Participating Entity to
        deliver any information, report, certification or accountants’ letter required
        under Regulation AB when and as required under Section 9.04 or 9.05, including
        any failure by Countrywide to identify a Participating Entity, which continues
        unremedied for ten 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 Countrywide 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 Countrywide as servicer under this Agreement and/or any
        applicable Reconstitution Agreement without payment (notwithstanding anything
        in
        this Agreement to the contrary) of any compensation to Countrywide; provided, however
        it is
        understood that Countrywide shall remain entitled to receive reimbursement
        for
        all unreimbursed Monthly Advances and Servicing Advances made by Countrywide
        under this Agreement and/or any applicable Reconstitution Agreement.
        Notwithstanding anything to the contrary set forth herein, 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 Countrywide as servicer, such provision shall be given
        effect.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      (C) Countrywide
        shall promptly reimburse the Purchaser (or any affected 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
        Countrywide 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 Countrywide, 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.

       

      (iii) The
        Purchaser agrees to indemnify and hold harmless Countrywide, any Subservicer,
        any Participating Entity, and, if applicable, any Third-Party Originator,
        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 and employees of each of
        the
        foregoing 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
any
        untrue statement or alleged untrue statement of any material fact contained
        in
        any filing with the Commission or the omission or alleged omission to state
        in
        any filing with the Commission a
        material fact required to be stated or necessary to be stated in order to
        make
        the statements therein, in the light of the circumstances under which they
        were
        made, not misleading,
        in each
        case to the extent, but only to the extent, that such untrue statement, alleged
        untrue statement, omission, or alleged omission relates to any filing with
        the
        Commission other than Countrywide Information.

       

      (iv) If
        the
        indemnification provided for herein is unavailable or insufficient to hold
        harmless the indemnified party, then the indemnifying party 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 uncured 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 indemnifying party on the
        other.

       

      (v) The
        indemnifications provided for in Section 9.07 shall survive the termination
        of
        this Agreement or the termination of any party to this Agreement.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      3.
        Notwithstanding
        any other provision of this Amendment One, the Company shall notify the
        Purchaser in writing of the Company’s utilization of all Subservicers and
        Participating Entities, when required by and in accordance with the terms
        of the
        Existing Agreement.

       

      4.
        The
        Existing Agreement is hereby amended by adding the Exhibits attached hereto
        as
        Exhibit A and Exhibit B to the end thereto. References in this Amendment
        One to
“this Agreement” or words of similar import (including indirect references to
        the Agreement) shall be deemed to be references to the Existing Agreement
        as
        amended by this Amendment One. Except as expressly amended and modified by
        this
        Amendment One, the Agreement shall continue to be, and shall remain, in full
        force and effect in accordance with its terms. In the event of a conflict
        between this Amendment One and any other document or agreement, including
        without limitation the Existing Agreement, this Amendment One shall
        control.

       

      5.
        This
        Amendment One may be executed in one or more counterparts and by different
        parties hereto on separate counterparts, each of which, when so executed,
        shall
        constitute one and the same agreement. This Amendment One will become effective
        as of the date first mentioned above. This Amendment One shall bind and inure
        to
        the benefit of and be enforceable by the Company and the Purchaser and the
        respective permitted successors and assigns of the Company and the successors
        and assigns of the Purchaser.

       

      [Signature
        Page Follows]

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the 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.

       

      
        	 	 	 
	 	
                DB
                  STRUCTURED PRODUCTS, INC.

              
	 	 
	 	Purchaser
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                
Name:
	 	
                
                  

                
Title: 
	 	
                
                  

                

              

      

      
         

        
          	 	 	 
	 	
                  COUNTRYWIDE
                    HOME LOANS, INC.

                
	 	 
	 	Company
	 
 	 
 	 
 
	
                	By:  	
                
	 	
                  
Name:
	 	
                  
                    

                  
Title: 
	 	
                  
                    

                  

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      EXHIBIT
        A

       

      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 applicable 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.

              	 	
                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

              

      

       

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  Servicing
                    Criteria 

                	 	
                  Applicable
                    Servicing Criteria

                
	 	 	 	 	 
	
                  Reference

                	 	
                  Criteria

                	 	
                   

                
	 	 	 	 	 

        

      

      
        	 	 	 	 	 
	
                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

              

      

       

      
        
          
          

        

        
          A-2

          
            

          

        

        
          
          

        

      

      
         

        
          	
                  Servicing
                    Criteria 

                	 	
                  Applicable
                    Servicing Criteria

                
	 	 	 	 	 
	
                  Reference

                	 	
                  Criteria

                	 	
                   

                
	 	 	 	 	 

        

      

      
        	 	 	 	 	 
	
                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

              

      

       

      
        
          
          

        

        
          A-3

          
            

          

        

        
          
          

        

      

      
         

        
          	
                  Servicing
                    Criteria 

                	 	
                  Applicable
                    Servicing Criteria

                
	 	 	 	 	 
	
                  Reference

                	 	
                  Criteria

                	 	
                   

                
	 	 	 	 	 

        

      

      
        	 	 	 	 	 
	
                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.

                	 	 

        

      

       

      
         

        
          
            
            

          

          
            A-4

            
              

            

          

          
            
            

          

        

        
           

           

        

      

      
        
          	 	 	 
	 	
                  [NAME
                    OF COMPANY] [NAME OF SUBSERVICER]

                
	 	 
	 	Date: ___________________
	 
 	 
 	 
 
	
                	By:  	
                
	 	
                  
Name:
	 	
                  
                    

                  
Title: 
	 	
                  
                    

                  

                

        

         

        
          
            
            

          

          
            A-5

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        B

       

      FORM
        OF
        ANNUAL CERTIFICATION

       

      Re:  The
        [                  
] agreement dated as of [        
],
        200[ ]
        (the “Agreement”), among [IDENTIFY PARTIES]

       

      I,
        ________________________________, the _______________________ of Countrywide
        Home Loans, Inc., certify to [the Purchaser], [the Depositor], [Master
        Servicer], [Securities Administrator] or [Trustee], and its officers, with
        the
        knowledge and intent that they will rely upon this certification,
        that:

       

      (1) I
        have
        reviewed the servicer compliance statement of the Company provided in accordance
        with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
        assessment of the Company’s compliance with the servicing criteria set forth in
        Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance
        with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended
        (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing
        Assessment”), the registered public accounting firm’s attestation report
        provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act
        and
        Section 1122(b) of Regulation AB (the “Attestation
        Report”), and all servicing reports, officer’s certificates and other
        information relating to the servicing of the Mortgage Loans by the Company
        during 200[ ] that were delivered by the Company to the [Depositor] [Master
        Servicer] [Securities Administrator] or [Trustee] pursuant to the Agreement
        (collectively, the “Company Servicing Information”);

       

      (2) Based
        on
        my knowledge, the Company Servicing Information, taken as a whole, does not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Company Servicing Information;

       

      (3) Based
        on
        my knowledge, all of the Company Servicing Information required to be provided
        by the Company under the Agreement has been provided to the [Depositor] [Master
        Servicer] [Securities Administrator] or [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

       

      [Intentionally
        Left Blank]

       

      
        
          
          

        

        
          A-6

          
            

          

        

        
          
          

        

      

       

      (5) 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 each Subservicer and Participating Entity
        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: 
	 	
                  
                    

                  

                

        

         

        
          
            
            

          

          
            A-7

            
              

            

          

          
            
            

          

        

      

    

    SCHEDULE
      1

    

    MORTGAGE
      LOAN SCHEDULE

    

    [PROVIDED
      UPON REQUEST]

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    SCHEDULE
      2

    

    PREPAYMENT
      CHARGE SCHEDULE

    

    [PROVIDED
      UPON REQUEST]

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    SCHEDULE
      3

    

    [RESERVED]

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    SCHEDULE
      4

    

    STANDARD
      FILE LAYOUT- DELINQUENCY REPORTING

    

    Exhibit
      : 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 ($)

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Column/Header
                  Name

              	 	
                Description

              	 	
                Decimal

              	 	
                Format
                  Comment

              
	
                OFFER_DATE_TIME

              	 	
                The
                  date an offer is received by DA Admin or by the Servicer.

              	 	 	 	
                MM/DD/YYYY

              
	
                REO_CLOSING_DATE

              	 	
                The
                  date the REO sale of the property is scheduled to close.

              	 	 	 	
                MM/DD/YYYY

              
	
                REO_ACTUAL_CLOSING_DATE

              	 	
                Actual
                  Date Of REO Sale

              	 	 	 	
                MM/DD/YYYY

              
	
                OCCUPANT_CODE

              	 	
                Classification
                  of how the property is occupied.

              	 	 	 	
                 

              
	
                PROP_CONDITION_CODE

              	 	
                A
                  code that indicates the condition of the property.

              	 	 	 	
                 

              
	
                PROP_INSPECTION_DATE

              	 	
                The
                  date a property inspection is performed.

              	 	 	 	
                MM/DD/YYYY

              
	
                APPRAISAL_DATE

              	 	
                The
                  date the appraisal was done.

              	 	 	 	
                MM/DD/YYYY

              
	
                CURR_PROP_VAL

              	 	
                 The
                  current "as is" value of the property based on brokers price opinion
                  or
                  appraisal.

              	 	
                2

              	 	
                 

              
	
                REPAIRED_PROP_VAL

              	 	
                The
                  amount the property would be worth if repairs are completed pursuant
                  to a
                  broker's price opinion or appraisal.

              	 	
                2

              	 	
                 

              
	
                If
                  applicable:

              	 	
                 

              	 	 	 	
                 

              
	
                DELINQ_STATUS_CODE

              	 	
                FNMA
                  Code Describing Status of Loan

              	 	 	 	 
	
                DELINQ_REASON_CODE

              	 	
                The
                  circumstances which caused a borrower to stop paying on a loan.
                  Code
                  indicates the reason why the loan is in default for this
                  cycle.

              	 	 	 	 
	
                MI_CLAIM_FILED_DATE

              	 	
                Date
                  Mortgage Insurance Claim Was Filed With Mortgage Insurance
                  Company.

              	 	 	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT

              	 	
                Amount
                  of Mortgage Insurance Claim Filed

              	 	 	 	
                No
                  commas(,) or dollar signs ($)

              
	
                MI_CLAIM_PAID_DATE

              	 	
                Date
                  Mortgage Insurance Company Disbursed Claim Payment

              	 	 	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT_PAID

              	 	
                Amount
                  Mortgage Insurance Company Paid On Claim

              	 	
                2

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_FILED_DATE

              	 	
                Date
                  Claim Was Filed With Pool Insurance Company

              	 	 	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT

              	 	
                Amount
                  of Claim Filed With Pool Insurance Company

              	 	
                2

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_PAID_DATE

              	 	
                Date
                  Claim Was Settled and The Check Was Issued By The Pool
                  Insurer

              	 	 	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT_PAID

              	 	
                Amount
                  Paid On Claim By Pool Insurance Company

              	 	
                2

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_FILED_DATE

              	 	
                 Date
                  FHA Part A Claim Was Filed With HUD

              	 	 	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_AMT

              	 	
                 Amount
                  of FHA Part A Claim Filed

              	 	
                2

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_PAID_DATE

              	 	
                 Date
                  HUD Disbursed Part A Claim Payment

              	 	 	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_PAID_AMT

              	 	
                 Amount
                  HUD Paid on Part A Claim

              	 	
                2

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_FILED_DATE

              	 	
                  Date
                  FHA Part B Claim Was Filed With HUD

              	 	 	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_AMT

              	 	
                  Amount
                  of FHA Part B Claim Filed

              	 	
                2

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_PAID_DATE

              	 	
                   Date
                  HUD Disbursed Part B Claim Payment

              	 	 	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_PAID_AMT

              	 	
                 Amount
                  HUD Paid on Part B Claim

              	 	
                2

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                VA_CLAIM_FILED_DATE

              	 	
                 Date
                  VA Claim Was Filed With the Veterans Admin

              	 	 	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_DATE

              	 	
                 Date
                  Veterans Admin. Disbursed VA Claim Payment

              	 	 	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_AMT

              	 	
                 Amount
                  Veterans Admin. Paid on VA Claim

              	 	
                2

              	 	
                No
                  commas(,) or dollar signs ($)

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      2: Standard
      File Codes - Delinquency Reporting

     

    The
      Loss
      Mit Type
      field
      should show the approved Loss Mitigation Code as follows: 

     

    
      	·  	
              ASUM-Approved
                Assumption

            

    

    
      	·  	
              BAP-Borrower
                Assistance Program

            

    

    
      	·  	
              CO-
                Charge Off

            

    

    
      	·  	
              DIL-
                Deed-in-Lieu

            

    

    
      	·  	
              FFA-
                Formal Forbearance Agreement

            

    

    
      	·  	
              MOD-
                Loan Modification

            

    

    
      	·  	
              PRE-
                Pre-Sale

            

    

    
      	·  	
              SS-
                Short Sale

            

    

    
      	·  	
              MISC-Anything
                else approved by the PMI or Pool
                Insurer

            

    

     

    NOTE:
      Wells
      Fargo Bank will accept alternative Loss Mitigation Types to those above,
      provided that they are consistent with industry standards. If Loss Mitigation
      Types other than those above are used, the Servicer must supply Wells Fargo
      Bank
      with a description of each of the Loss Mitigation Types prior to sending the
      file.

     

    The
      Occupant
      Code
      field
      should show the current status of the property code as follows:

     

    
      	·  	
              Mortgagor

            

    

    
      	·  	
              Tenant

            

    

    
      	·  	
              Unknown
                

            

    

    
      	·  	
              Vacant

            

    

     

    The
      Property
      Condition
      field
      should show the last reported condition of the property as follows:

     

    
      	·  	
              Damaged

            

    

    
      	·  	
              Excellent

            

    

    
      	·  	
              Fair

            

    

    
      	·  	
              Gone

            

    

    
      	·  	
              Good

            

    

    
      	·  	
              Poor

            

    

    
      	·  	
              Special
                Hazard

            

    

    
      	·  	
              Unknown

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      2: Standard
      File Codes - Delinquency Reporting, Continued

     

    The
      FNMA
      Delinquent Reason Code
      field
      should show the Reason for Delinquency as follows: 

    

      
        	
                Delinquency
                  Code

              	 	
                Delinquency
                  Description

              
	
                001

              	 	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	 	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	 	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	 	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	 	
                FNMA-Marital
                  difficulties

              
	
                006

              	 	
                FNMA-Curtailment
                  of income

              
	
                007

              	 	
                FNMA-Excessive
                  Obligation

              
	
                008

              	 	
                FNMA-Abandonment
                  of property

              
	
                009

              	 	
                FNMA-Distant
                  employee transfer

              
	
                011

              	 	
                FNMA-Property
                  problem

              
	
                012

              	 	
                FNMA-Inability
                  to sell property

              
	
                013

              	 	
                FNMA-Inability
                  to rent property

              
	
                014

              	 	
                FNMA-Military
                  Service

              
	
                015

              	 	
                FNMA-Other

              
	
                016

              	 	
                FNMA-Unemployment

              
	
                017

              	 	
                FNMA-Business
                  failure

              
	
                019

              	 	
                FNMA-Casualty
                  loss

              
	
                022

              	 	
                FNMA-Energy
                  environment costs

              
	
                023

              	 	
                FNMA-Servicing
                  problems

              
	
                026

              	 	
                FNMA-Payment
                  adjustment

              
	
                027

              	 	
                FNMA-Payment
                  dispute

              
	
                029

              	 	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	 	
                FNMA-Fraud

              
	
                031

              	 	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	 	
                FNMA-Incarceration

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
      2: Standard
      File Codes - Delinquency Reporting, Continued

     

    The
      FNMA
      Delinquent Status Code
      field
      should show the Status of Default as follows: 

    

      
        	
                Status
                  Code

              	 	
                Status
                  Description

              
	
                09

              	 	
                Forbearance

              
	
                17

              	 	
                Pre-foreclosure
                  Sale Closing Plan Accepted

              
	
                24

              	 	
                Government
                  Seizure

              
	
                26

              	 	
                Refinance

              
	
                27

              	 	
                Assumption

              
	
                28

              	 	
                Modification

              
	
                29

              	 	
                Charge-Off

              
	
                30

              	 	
                Third
                  Party Sale

              
	
                31

              	 	
                Probate

              
	
                32

              	 	
                Military
                  Indulgence

              
	
                43

              	 	
                Foreclosure
                  Started

              
	
                44

              	 	
                Deed-in-Lieu
                  Started

              
	
                49

              	 	
                Assignment
                  Completed

              
	
                61

              	 	
                Second
                  Lien Considerations

              
	
                62

              	 	
                Veteran’s
                  Affairs-No Bid

              
	
                63

              	 	
                Veteran’s
                  Affairs-Refund

              
	
                64

              	 	
                Veteran’s
                  Affairs-Buydown

              
	
                65

              	 	
                Chapter
                  7 Bankruptcy

              
	
                66

              	 	
                Chapter
                  11 Bankruptcy

              
	
                67

              	 	
                Chapter
                  13 Bankruptcy

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      : 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 ( ). 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      3A: 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

              
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      5

    

    STANDARD
      FILE LAYOUT- MASTER SERVICING

    

      
        	
                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

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        Standard
          File Layout - Master Servicing 
 

      
        	
                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

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Standard
        File Layout - Master Servicing 

       

      
        	
                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

              
	 	 	 	 	 	 	 	 	 

      

    

    
      

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

    

    SCHEDULE
      6

    

    DATA
      REQUIREMENTS OF SERVICING ADVANCES INCURRED PRIOR TO CUT-OFF DATE

    

      
        	
                [LOAN
                  NUMBER]

              	 	
                [PRE-CUT-OFF
                  DATE ADVANCE AMOUNT]

              

      

    

    

    [PROVIDED
      UPON REQUEST]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]