Document:

Assignment and Recognition Agreement

 Exhibit 10.3 
 EXECUTION COPY 

 ASSIGNMENT AND RECOGNITION AGREEMENT

 dated as of December 14, 2006 
 among 
 SG MORTGAGE SECURITIES, LLC, 
 as Assignor 
 HSBC BANK USA, NATIONAL ASSOCIATION, 
 not in its individual capacity, but solely as trustee, 
 as Assignee or Trustee

 OPTION ONE MORTGAGE CORPORATION, 
 as Responsible Party and as Servicer 
 and 
 SG MORTGAGE FINANCE CORP., 
 as Seller 
 and acknowledged and agreed by 
 WELLS FARGO BANK, N.A. 
 as Master Servicer 
  

 ASSIGNMENT AND RECOGNITION AGREEMENT 
 This ASSIGNMENT AND RECOGNITION AGREEMENT, dated as of December 14, 2006 (this “Assignment Agreement”), is among SG MORTGAGE
SECURITIES, LLC, as assignor (the “Assignor”), HSBC BANK USA, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee on behalf of SG Mortgage Securities Trust 2006-OPT2 (the “Assignee” or
“Trustee”), OPTION ONE MORTGAGE CORPORATION, as servicer (the “Servicer”) and as responsible party (the “Responsible Party”), and SG MORTGAGE FINANCE CORP., as seller (the
“Seller”). 
 WHEREAS, the Responsible Party, the Seller and the Assignor have entered into the Mortgage Loan Purchase
Agreement, dated as of November 13, 2006 (the “Mortgage Loan Purchase Agreement”), pursuant to which the Seller will sell and the Assignor will purchase certain mortgage loans (the “Mortgage Loans”) listed on
the Mortgage Loan Schedule attached as an exhibit to the Mortgage Loan Purchase Agreement and attached hereto as Exhibit 1; 
 WHEREAS, Wells Fargo Bank, N.A., as master servicer, securities administrator and custodian (the “Master Servicer”), the Assignor, as depositor, the Servicer and the Trustee, are entering into the Pooling and Servicing
Agreement, dated as December 1, 2006 (the “Pooling and Servicing Agreement”), pursuant to which the Assignor will transfer the Mortgage Loans to the Assignee, and the Servicer will be responsible for the servicing of the
Mortgage Loans; and 
 WHEREAS, the Pooling and Servicing Agreement sets forth the servicing provisions, pursuant to which the Servicer will
agree to service the Mortgage Loans; 
 NOW THEREFORE, in consideration of the mutual agreements contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Assignment.
(a) The Assignor hereby assigns to the Assignee, as of the date hereof, all of its rights, privileges and powers under the Mortgage Loan Purchase Agreement (including, without limitation, (i) the Assignor’s rights with respect to the
representations and warranties made by the Responsible Party pursuant to Sections 5(a) and 6 thereof and by the Seller in Section 5(c) thereof, (ii) the Assignor’s rights with respect to the repurchase obligations
of the Seller and the Responsible Party under Section 7 thereof and (iii) all right to indemnification under Section 11 thereof). 
 (b) The Assignor represents and warrants to the Assignee that the Assignor has not taken any action which would operate to impair or encumber the Assignor’s ownership interest in the Mortgage Loans since the date
of the Mortgage Loan Purchase Agreement. 
 2. Recognition of Assignee. 
 (a) From and after December 14, 2006 (the “Closing Date”), both the Assignor and the Servicer shall note the transfer of the
Mortgage Loans to the Assignee in their respective books and records, and shall recognize the Assignee as the owner of the Mortgage Loans. 

 (b) Each of the Servicer and the Seller acknowledges that, from and after the Closing Date, the Servicer
will service the Mortgage Loans for the benefit of the Trustee as the owner of the Mortgage Loans and the Master Servicer will monitor, oversee and supervise such servicing. 
 (c) All documents, reports and other data required to be delivered by the Seller to the Assignor, as “Purchaser” under the Mortgage Loan
Purchase Agreement, shall be delivered to the Master Servicer, Securities Administrator or Custodian, as applicable, at the address set forth in Section 6 hereof or to any designee of the Master Servicer, Securities Administrator or
Custodian, as applicable, as such party may instruct. 
 3. Representations and Warranties of the Assignee. The Assignee hereby
represents and warrants to the Assignor and the Servicer as follows: 
 (a) Authority. The Assignee hereto represents and warrants that
it is duly and legally authorized to enter into this Assignment Agreement and to perform its obligations hereunder. 
 (b) Enforceability.
The Assignee hereto represents and warrants that this Assignment Agreement has been duly authorized, executed and delivered by it and, assuming due authorization, execution and delivery thereof by each of the other parties hereto, constitutes
its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and to general
principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law. 
 4. Representations and
Warranties of the Assignor. The Assignor hereby represents and warrants to the Assignee as follows: 
 (a) Organization. The
Assignor has been duly organized and is validly existing as a limited liability company in good standing under the laws of the State of Delaware with full limited liability company power and authority to enter into and perform its obligations under
this Assignment Agreement. 
 (b) Enforceability. This Assignment Agreement has been duly executed and delivered by the Assignor, and,
assuming due authorization, execution and delivery by each of the other parties hereto, constitutes its legal, valid, and binding agreement, enforceable against it in accordance with its terms, subject to bankruptcy, insolvency, reorganization, or
other similar laws affecting the enforcement of creditors’ rights generally and to general principles of equity regardless of whether enforcement is sought in a proceeding in equity or at law. 
 (c) No Consent. The execution, delivery and performance by the Assignor of this Assignment Agreement and the consummation of the transactions
contemplated hereby do not require the consent or approval of, the giving of notice to, the registration with, or the taking of any other action in respect of, any state, federal or other governmental authority or agency, except such as has been
obtained, given, effected or taken prior to the date hereof. 
  

 3 

 (d) Authorization; No Breach. The execution and delivery of this Assignment Agreement has been
duly authorized by all necessary limited liability company action on the part of the Assignor, and neither the execution and delivery by the Assignor of this Assignment Agreement, nor the consummation by the Assignor of the transactions herein
contemplated, nor compliance by the Assignor with the provisions hereof, will conflict with or result in a breach of, or constitute a default under, any of the provisions of the governing documents of the Assignor or any law, governmental rule or
regulation or any material judgment, decree or order binding on the Assignor or any of its properties, or any of the provisions of any material indenture, mortgage, deed of trust, contract or other instrument to which the Assignor is a party or by
which it is bound. 
 (e) Actions; Proceedings. There are no actions, suits or proceedings pending or, to the knowledge of the
Assignor, threatened, before or by any court, administrative agency, arbitrator or governmental body (A) with respect to any of the transactions contemplated by this Assignment Agreement or (B) with respect to any other matter that in the
judgment of the Assignor will be determined adversely to the Assignor and will, if determined adversely to the Assignor, materially adversely affect its ability to perform its obligations under this Assignment Agreement. 
 5. Governing Law. 
 THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 EACH PARTY HERETO HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY OTHER DOCUMENTS AND INSTRUMENTS EXECUTED IN CONNECTION HEREWITH, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF SUCH PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS AGREEMENT. 
 6. Notices. Any notices or other communications permitted or required hereunder or under the Mortgage Loan Purchase Agreement shall be in writing
and shall be deemed conclusively to have been given if personally delivered at or mailed by registered mail, postage prepaid, and return receipt requested or transmitted by telex, telegraph or telecopier and confirmed by a similar mailed writing,
to: 
  

 4 

  

			
	 (a)    in the case of the Servicer,

	
	Option One Mortgage Corporation
	Address:	 	3 Ada, Irvine, CA 92618
	Attention:	 	Debbie Lonergan
	Telephone:	 	(949) 790-3600
	Facsimile:	 	(949) 790-7514

 or such other address as may hereafter be furnished by the Servicer; 
  

			
	(b) in the case of the Master Servicer,
	
	Wells Fargo Bank, N.A.
	Address:	 	9062 Old Annapolis Road
		 	Columbia, MD 21045
	Attention:	 	Corporate Trust Services – SGMS 2006-OPT2
	Telephone:	 	(410) 884-2000
	Facsimile:	 	(410) 715-2380

 or such other address as may be hereafter furnished by the Master Servicer; 
  

			
	 (c) in the case of the Assignee,

	
	 HSBC Bank USA, National Association

	Address:	 	 452 Fifth Avenue

		 	 New York, New York 10018

	 Attention:
	 	Corporate Trust
	 Telephone:
	 	(212) 525-1367
	 Facsimile:
	 	(212) 525-1300

 or such other address as may be hereafter furnished by the Assignee; 
  

			
	 (d)    in the case of the Assignor,

	
	 SG Mortgage Securities, LLC

	 Address:
	 	1221 Avenue of the Americas
		 	New York, NY 10020
	 Attention:
	 	Arnaud Denis
	 Telephone:
	 	(212) 278-4430
	 Facsimile:
	 	(212) 278-7320

 or such other address as may be hereafter furnished by the Assignor; and 
  

 5 

  

			
	 (e)    in the case of the Seller,

	
	 SG Mortgage Finance Corp.

	 Address:
	  	1221 Avenue of the Americas
		  	New York, NY 10020
	 Attention:
	  	Carole Mortensen
	 Telephone:
	  	(212) 278-6228
	 Facsimile:
	  	(212) 278-7320

 or such other address as may be hereafter furnished by the Assignor. 
 7. Counterparts. This Assignment Agreement may be executed in counterparts, each of which when so executed shall be deemed to be an original and
all of which when taken together shall constitute one and the same instrument. 
 8. Definitions. Any capitalized term used but not
defined in this Assignment Agreement has the meaning assigned thereto in the Mortgage Loan Purchase Agreement, and if not defined therein, has the meaning assigned thereto in the Pooling and Servicing Agreement. 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have executed this Assignment Agreement the day and year first
above written. 
  

			
	SG MORTGAGE SECURITIES, LLC, as Assignor
		
	By:	 	 /s/ Abner Figueroa

	Name:	 	Abner Figueroa
	Title:	 	Director

  

					
		  	S-1	  	Assignment & Recognition Agreement

			
	 HSBC BANK USA, NATIONAL ASSOCIATION, not in its individual capacity, but solely as trustee,
 as Assignee

		
	By:	 	 /s/ Elena Zheng

	Name:	 	Elena Zheng
	Title:	 	Assistant Vice President HSBC Bank USA, N.A.

  

					
		  	S-2	  	Assignment & Recognition Agreement

			
	OPTION ONE MORTGAGE CORPORATION, as Servicer
		
	By:	 	 /s/ Charles R. Fulton

	Name:	 	Charles R. Fulton
	Title:	 	Vice President

  

					
		  	S-3	  	Assignment & Recognition Agreement

			
	SG MORTGAGE FINANCE CORP., as Seller
		
	By:	 	 /s/ Carole A. Mortensen

	Name:	 	Carole A. Mortensen
	Title:	 	Director

  

					
		  	S-4	  	Assignment & Recognition Agreement

 Acknowledged and Accepted by: 
  

			
	WELLS FARGO BANK, N.A., as Master Servicer
		
	By:	 	 /s/ Raymond Delli Colli

	Name:	 	Raymond Delli Colli
	Title:	 	Vice President

  

					
		  	S-5	  	Assignment & Recognition Agreement

 EXHIBIT 1 
 Mortgage Loan Schedule 
 (Please refer to the Mortgage Loan Schedule filed as a free writing
prospectus on November 13, 2006.) 
  

 Ex.1-1Interest Rate Swap Agreement and Cap Agreement

 Exhibit 10.4 
 

 
 Dated: November 8, 2006 
 Rate Swap Transaction 
 Re: BNY Reference No. 38548 
 Ladies and Gentlemen: 
 The purpose of this letter agreement is to confirm
the terms and conditions of the rate swap Transaction entered into on the Trade Date specified below (the “Transaction”) between The Bank of New York (“BNY”), a trust company duly organized and existing under the laws of the
State of New York and Wells Fargo Bank, N.A., not individually, but solely as securities administrator on behalf of SG Mortgage Securities Trust 2006-OPT2 (the “Counterparty”). The definitions and provisions contained in the 2000 ISDA
Definitions, as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will
govern. 
 1. This Confirmation constitutes a “Confirmation” as referred to in and supplements, forms part of and is subject to, the ISDA Master
Agreement dated as of December 14, 2006, as amended and supplemented from time to time (the “Agreement”), between The Bank of New York and Counterparty. All provisions contained in the Agreement govern this Confirmation except as
expressly modified below. 
 2. The terms of the particular Transaction to which this Confirmation relates are as follows: 
  

			
	Type of Transaction:	  	Rate Swap
		
	Notional Amount:	  	With respect to any Calculation Period the amount set forth for such period on Schedule I attached.
		
	Trade Date:	  	November 8, 2006
		
	Effective Date:	  	December 14, 2006
		
	Termination Date:	  	December 25, 2011, subject to adjustment in accordance with the Modified Following Business Day Convention

 Ref No. 38548 

 Page 1 of 8 

 Fixed Amounts: 
  

			
	 Fixed Rate Payer:
	  	Counterparty
		
	 Fixed Rate:
	  	5.32%
		
	Fixed Rate Payer Period End Dates:	  	The 25th calendar day of each month during the Term of
this Transaction, commencing January 25, 2007, and ending on December 25, 2011 with No Adjustments.
		
	Fixed Rate Payer Payment Dates:	  	Early Payment shall be applicable. The Floating Rate Payer Payment Date shall be one (1) Business Days preceding each Floating Rate Payer Period End Date.
		
	 Fixed Rate Day
	  	
	 Count Fraction:
	  	30/360

 Floating Amounts: 
  

			
	Floating Rate Payer:	  	BNY
		
	Floating Rate Payer Period End Dates:	  	The 25th calendar day of each month during the Term of
this Transaction, commencing January 25, 2006, and ending on the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.
		
	Floating Rate Payer Payment Dates:	  	Early Payment shall be applicable. The Floating Rate Payer Payment Date shall be one (1) Business Days preceding each Floating Rate Payer Period End Date.
		
	Floating Rate Option:	  	USD-LIBOR-BBA
		
	Designated Maturity:	  	One month, except for the initial Calculation Period which shall be Interpolated between one month and two month
		
	Floating Rate Day Count Fraction:	  	Actual/360
		
	Reset Dates:	  	The first day of each Calculation Period
		
	Compounding:	  	Inapplicable

 Ref No. 38548 
  

 Page 2 of 8 

 Additional Terms: 
  

			
	Additional Payments:	  	Counterparty represents and warrants that it has directed The Bank of New York to make payment of USD 3,282,000.00 to Societe Generale for value December 14, 2006 on its
behalf.
		
	Business Days:	  	New York and London
		
	Calculation Agent:	  	BNY

  

			
	Account Details and Settlement Information:	  	Payments to BNY:
		  	The Bank of New York
		  	Derivative Products Support Department
		  	32 Old Slip, 16th Floor
		  	New York, New York 10286
		  	Attention: Renee Etheart
		  	ABA #021000018
		  	Account #890-0068-175
		  	Reference: Interest Rate Swaps/Caps
		
		  	Payments to Counterparty:
		
		  	Wells Fargo Bank, N.A.
		  	San Francisco, CA
		  	ABA # 121-000-248
		  	Acct. # 3970771416
		  	Acct. Name: SAS Clearing
		  	FFC: 50971902 - Swap Account

 Ref No. 38548 
  

 Page 3 of 8 

 Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this agreement and
returning it via facsimile to Derivative Products Support Dept., Attn: Eugene Chun/Kenny Au-Yeung at 212-804-5818/5837. Once we receive this we will send you two original confirmations for execution. 
 Ref No. 38548 
  

 Page 4 of 8 

 We are very pleased to have executed this Transaction with you and we look forward to completing other transactions with
you in the near future. 
  

			
	Very truly yours,
	
	THE BANK OF NEW YORK
		
	By:	 	 /s/ Stephen M. Lawler

	Name:	 	Stephen M. Lawler
	Title:	 	Managing Director

 Ref No. 38548 
  

 Page 5 of 8 

 Counterparty, acting through its duly authorized signatory, hereby agrees to, accepts and confirms the terms of the
foregoing as of the Trade Date. 
 WELLS FARGO BANK, N.A., NOT INDIVIDUALLY, BUT SOLELY AS SECURITIES ADMINISTRATOR ON BEHALF OF SG MORTGAGE SECURITIES
TRUST 2006-OPT2. 
  

			
	By:	 	 /s/ Raymond Delli Colli

	Name:	 	Raymond Delli Colli
	Title:	 	Vice President

 Ref No. 38548 
  

 Page 6 of 8 

 SCHEDULE I 
 (With respect to each Fixed Rate Payer Period End Date, all such dates are with No Adjustment, 
 and with
respect to each Floating Rate Payer Period End Date, all such dates are subject to 
 adjustment in accordance with the Following Business Day
Convention) 
  

					
	 Accrual Start Date
	  	 Accrual End Date
	  	Notional Amount (USD)
	14-Dec-06	  	25-Jan-07	  	422,192,999.00
	25-Jan-07	  	25-Feb-07	  	416,722,054.00
	25-Feb-07	  	25-Mar-07	  	410,185,152.00
	25-Mar-07	  	25-Apr-07	  	402,962,206.00
	25-Apr-07	  	25-May-07	  	394,912,839.00
	25-May-07	  	25-Jun-07	  	385,900,702.00
	25-Jun-07	  	25-Jul-07	  	751,747,804.00
	25-Jul-07	  	25-Aug-07	  	728,753,381.00
	25-Aug-07	  	25-Sep-07	  	704,706,980.00
	25-Sep-07	  	25-Oct-07	  	680,497,302.00
	25-Oct-07	  	25-Nov-07	  	656,589,966.00
	25-Nov-07	  	25-Dec-07	  	633,176,563.00
	25-Dec-07	  	25-Jan-08	  	610,749,383.00
	25-Jan-08	  	25-Feb-08	  	588,834,716.00
	25-Feb-08	  	25-Mar-08	  	565,714,320.00
	25-Mar-08	  	25-Apr-08	  	538,823,412.00
	25-Apr-08	  	25-May-08	  	505,829,167.00
	25-May-08	  	25-Jun-08	  	474,930,999.00
	25-Jun-08	  	25-Jul-08	  	445,989,993.00
	25-Jul-08	  	25-Aug-08	  	418,861,880.00
	25-Aug-08	  	25-Sep-08	  	393,389,577.00
	25-Sep-08	  	25-Oct-08	  	369,473,823.00
	25-Oct-08	  	25-Nov-08	  	347,049,605.00
	25-Nov-08	  	25-Dec-08	  	326,022,530.00
	25-Dec-08	  	25-Jan-09	  	183,782,536.00
	25-Jan-09	  	25-Feb-09	  	172,647,409.00
	25-Feb-09	  	25-Mar-09	  	163,425,466.00
	25-Mar-09	  	25-Apr-09	  	157,486,243.00

 Ref No. 38548 
  

 Page 7 of 8 

					
	25-Apr-09	  	25-May-09	  	151,767,377.00
	25-May-09	  	25-Jun-09	  	146,260,400.00
	25-Jun-09	  	25-Jul-09	  	140,957,189.00
	25-Jul-09	  	25-Aug-09	  	135,847,228.00
	25-Aug-09	  	25-Sep-09	  	130,907,056.00
	25-Sep-09	  	25-Oct-09	  	126,132,045.00
	25-Oct-09	  	25-Nov-09	  	121,516,048.00
	25-Nov-09	  	25-Dec-09	  	117,056,649.00
	25-Dec-09	  	25-Jan-10	  	75,192,230.00
	25-Jan-10	  	25-Feb-10	  	72,492,358.00
	25-Feb-10	  	25-Mar-10	  	69,889,640.00
	25-Mar-10	  	25-Apr-10	  	67,380,639.00
	25-Apr-10	  	25-May-10	  	64,961,874.00
	25-May-10	  	25-Jun-10	  	62,630,091.00
	25-Jun-10	  	25-Jul-10	  	60,382,154.00
	25-Jul-10	  	25-Aug-10	  	58,215,039.00
	25-Aug-10	  	25-Sep-10	  	56,125,863.00
	25-Sep-10	  	25-Oct-10	  	54,111,962.00
	25-Oct-10	  	25-Nov-10	  	52,170,443.00
	25-Nov-10	  	25-Dec-10	  	50,298,698.00
	25-Dec-10	  	25-Jan-11	  	48,494,214.00
	25-Jan-11	  	25-Feb-11	  	46,754,568.00
	25-Feb-11	  	25-Mar-11	  	45,077,452.00
	25-Mar-11	  	25-Apr-11	  	43,460,672.00
	25-Apr-11	  	25-May-11	  	41,901,968.00
	25-May-11	  	25-Jun-11	  	40,399,247.00
	25-Jun-11	  	25-Jul-11	  	38,950,494.00
	25-Jul-11	  	25-Aug-11	  	37,552,142.00
	25-Aug-11	  	25-Sep-11	  	36,184,091.00
	25-Sep-11	  	25-Oct-11	  	34,815,525.00
	25-Oct-11	  	25-Nov-11	  	33,486,343.00
	25-Nov-11	  	25-Dec-11	  	32,230,707.00

 Ref No. 38548 
  

 Page 8 of 8 

 

 
 Dated: November 8, 2006 
 Rate Cap Transaction 
 Re: BNY Reference No. 38549 
 Ladies and Gentlemen: 
 The purpose of this letter agreement is to confirm
the terms and conditions of the rate cap Transaction entered into on the Trade Date specified below (the “Transaction”) between The Bank of New York (“BNY”), a trust company duly organized and existing under the laws of the State
of New York and Wells Fargo Bank, N.A., not individually, but solely as securities administrator on behalf of SG Mortgage Securities Trust 2006-OPT2 (the “Counterparty”). The definitions and provisions contained in the 2000 ISDA
Definitions, as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will
govern. 
 1. This Confirmation constitutes a “Confirmation” as referred to in and supplements, forms part of and is subject to, the ISDA Master
Agreement dated as of December 14, 2006, as amended and supplemented from time to time (the “Agreement”), between The Bank of New York and Counterparty. All provisions contained in the Agreement govern this Confirmation except as
expressly modified below. 
 2. The terms of the particular Transaction to which this Confirmation relates are as follows: 
  

			
	Type of Transaction:	  	Rate Cap
		
	Notional Amount:	  	With respect to any Calculation Period the amount set forth for such period on Schedule I attached.
		
	Trade Date:	  	November 8, 2006
		
	Effective Date:	  	December 14, 2006
		
	Termination Date:	  	June 25, 2007, subject to adjustment in accordance with the Modified Following Business Day Convention

 Ref No.38549 
  

 Page 1 of 7 

 Fixed Amounts: 
  

					
		 	Fixed Amount Payer:	 	Counterparty represents and warrants that it has directed Societe Generale to make payment of the Fixed Amount on its behalf.
			
		 	Fixed Amount:	 	USD 5,000
			
		 	 Fixed Amount Payment
 Date:
	 	December 14, 2006
		
	Floating Amounts:	 	
			
		 	Floating Rate Payer:	 	BNY
			
		 	Cap Rate:	 	7.5%
			
		 	Floating Rate Payer Period End Dates:	 	The 25th calendar day of each month during the Term of this
Transaction, commencing January 25, 2007, and ending on the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.
			
		 	Floating Rate Payer Payment Dates:	 	Early Payment shall be applicable. The Floating Rate Payer Payment Date shall be one (1) Business Day preceding each Floating Rate Payer Period End Date.
			
		 	Floating Rate Option:	 	USD-LIBOR-BBA
			
		 	Designated Maturity:	 	One month
			
		 	Floating Rate Day Count Fraction:	 	Actual/360
			
		 	Reset Dates:	 	The first day of each Calculation Period
			
		 	Compounding:	 	Inapplicable

 Ref No.38549 
  

 Page 2 of 7 

					
	Additional Terms:	 	
			
		 	Business Days:	 	New York and London
			
		 	Calculation Agent:	 	BNY

 Limitation on Events of Default. Notwithstanding the terms of Sections 5 and 6 of the
Agreement, if at any time and so long as the Counterparty has satisfied in full all its payment obligations under Section 2 hereof and has at the time no future payment obligations, whether absolute or contingent, under such Section, then
unless BNY is required pursuant to appropriate proceedings to return to the Counterparty or otherwise returns to the Counterparty upon demand of the Counterparty any portion of any such payment, (a) the occurrence of an event described in
Section 5(a) of the Agreement with respect to the Counterparty shall not constitute an Event of Default or Potential Event of Default with respect to the Counterparty as Defaulting Party and (b) BNY shall be entitled to designate an Early
Termination Date pursuant to Section 6 of the Agreement only as a result of the occurrence of a Termination Event set forth in Section 5(b)(i) with respect to either BNY as the Affected Party. For purposes of the Transaction to which this
Agreement relates, the Counterparty’s only obligation under Section 2 hereof is to pay the Fixed Amount on the Fixed Amount Payment Date. 
  

			
	Account Details and Settlement Information:	  	 Payments to BNY:
  
 The Bank of New York

		  	Derivative Products Support Department
		  	32 Old Slip, 16th Floor
		  	New York, New York 10286
		  	Attention: Renee Etheart
		  	ABA #021000018
		  	Account #890-0068-175
		  	Reference: Interest Rate Swaps/Caps
		
		  	Payments to Counterparty:
		
		  	Wells Fargo Bank, N.A.
		  	San Francisco, CA
		  	ABA # 121-000-248
		  	Acct. # 3970771416
		  	Acct. Name: SAS Clearing
		  	FFC: 50971901 - Reserve Fund

 Ref No.38549 
  

 Page 3 of 7 

 Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this agreement and
returning it via facsimile to Derivative Products Support Dept., Attn: Eugene Chun/Kenny Au-Yeung at 212-804-5818/5837. Once we receive this we will send you two original confirmations for execution. 
 Ref No.38549 
  

 Page 4 of 7 

 We are very pleased to have executed this Transaction with you and we look forward to completing other transactions with
you in the near future. 
  

			
	Very truly yours,
	
	THE BANK OF NEW YORK
		
	By:	 	 /s/ Stephen M. Lawler

	Name:	 	Stephen M. Lawler
	Title:	 	Managing Director

 Ref No.38549 
  

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 Counterparty, acting through its duly authorized signatory, hereby agrees to, accepts and confirms the terms of the
foregoing as of the Trade Date. 
 WELLS FARGO BANK, N.A., NOT INDIVIDUALLY, BUT SOLELY AS SECURITIES ADMINISTRATOR ON BEHALF OF SG MORTGAGE SECURITIES
TRUST 2006-OPT2. 
  

			
	By:	 	 /s/ Raymond Delli Colli

	Name:	 	Raymond Delli Colli
	Title:	 	Vice President

 Ref No.38549 
  

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 SCHEDULE I 
 (all dates subject to adjustment in accordance with the Modified Following Business Day 
 Convention)

  

					
	 Accrual Start Date
	  	 Accrual End Date
	  	Notional Amount (USD)
	 14-Dec-06
	  	25-Jan-07	  	379,358,001.00
	 25-Jan-07
	  	25-Feb-07	  	373,948,142.00
	 25-Feb-07
	  	25-Mar-07	  	367,693,669.00
	 25-Mar-07
	  	25-Apr-07	  	360,800,832.00
	 25-Apr-07
	  	25-May-07	  	353,023,455.00
	 25-May-07
	  	25-Jun-07	  	344,483,454.00

 Ref No.38549 
  

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