Document:

THORNBURG
      MORTGAGE FUNDING, INC.

     

    as
      Purchaser

     

     

    and

     

     

    THORNBURG
      MORTGAGE HOME LOANS, INC.,

     

    as
      Seller

     

    

     

    

     

    TMFI
      MORTGAGE LOAN PURCHASE AGREEMENT

     

    Dated
      as
      of April 1, 2007

     

     

    (Adjustable
      Rate and Hybrid Mortgage Loans)

     

    Thornburg
      Mortgage Securities Trust 2007-2

    Mortgage-Backed
      Notes, Series 2007-2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Table
      of Contents

    Page

    

      
        	
                ARTICLE
                  I. DEFINITIONS AND SCHEDULES

              	
                2

              
	 	 	 
	
                Section
                  1.01.

              	
                Definitions

              	
                2

              
	 	 
	
                ARTICLE
                  II. SALE OF MORTGAGE LOANS AND THE CONTRACTUAL RIGHTS; PAYMENT
                  OF PURCHASE
                  PRICE

              	
                2

              
	 	 	 
	
                Section
                  2.01.

              	
                Sale
                  of Mortgage Loans; Assignment of the Contractual Rights

              	
                2

              
	
                Section
                  2.02.

              	
                Obligations
                  of the Seller Upon Sale

              	
                2

              
	
                Section
                  2.03.

              	
                Payment
                  of Purchase Price for the Mortgage Loans

              	
                3

              
	 	 
	
                ARTICLE
                  III. REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH

              	
                3

              
	 	 	 
	
                Section
                  3.01

              	
                Seller
                  Representations and Warranties Relating to the Mortgage
                  Loans

              	
                3

              
	
                Section
                  3.02.

              	
                Seller’s
                  Representations and Warranties

              	
                4

              
	
                Section
                  3.03

              	
                Remedies
                  for Breach of Representations and Warranties

              	
                5

              
	 	 
	
                ARTICLE
                  IV. SELLER’S COVENANTS

              	
                6

              
	 	 	 
	
                Section
                  4.01.

              	
                Covenants
                  of the Seller

              	
                6

              
	 	 
	
                ARTICLE
                  V. INDEMNIFICATION

              	
                6

              
	 	 	 
	
                Section
                  5.01.

              	
                Indemnification

              	
                6

              
	 	 
	
                ARTICLE
                  VI. TERMINATION

              	
                7

              
	 	 	 
	
                Section
                  6.01.

              	
                Termination

              	
                7

              
	 	 
	
                ARTICLE
                  VII. MISCELLANEOUS PROVISIONS

              	
                7

              
	 	 	 
	
                Section
                  7.01.

              	
                Amendment

              	
                7

              
	
                Section
                  7.02.

              	
                Governing
                  Law

              	
                7

              
	
                Section
                  7.03.

              	
                Notices

              	
                7

              
	
                Section
                  7.04.

              	
                Severability
                  of Provisions

              	
                8

              
	
                Section
                  7.05.

              	
                Counterparts

              	
                8

              
	
                Section
                  7.06.

              	
                Further
                  Agreements

              	
                8

              
	
                Section
                  7.07.

              	
                Intention
                  of the Parties

              	
                9

              
	
                Section
                  7.08.

              	
                Successors
                  and Assigns: Assignment of Purchase Agreement

              	
                9

              

      

    

    

    
      	
              Schedule
                I:

            	
              Mortgage
                Loan Schedule.

            	
              I-1

            
	
              Schedule
                II:

            	
              List
                of Servicers and Servicing Agreements

            	
              II-1

            
	
              Schedule
                III:

            	
              Seller’s
                Representations and Warranties Relating to Mortgage Loans.

            	
              III-1

            

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    THIS
      TMFI
      MORTGAGE LOAN PURCHASE AGREEMENT, dated as of April 1, 2007 (the “Agreement”),
      is
      made and entered into between Thornburg Mortgage Home Loans, Inc., a Delaware
      corporation (the “Seller”)
      and
      Thornburg Mortgage Funding, Inc., a Delaware corporation (the “Purchaser”).

    

    WITNESSETH

    

    WHEREAS,
      the Seller is the owner of the notes or other evidence of indebtedness (the
      “Mortgage
      Notes”)
      so
      indicated on Schedule I hereto referred to below, and the other documents or
      instruments constituting the Mortgage File (collectively, the “Mortgage
      Loans”);
      and

    

    WHEREAS,
      the Seller, as of the date hereof, owns the mortgages or deeds of trust (the
      “Mortgages”)
      on the
      properties (the “Mortgaged
      Properties”)
      securing such Mortgage Loans, including rights to (a) any property acquired
      by
      foreclosure or deed in lieu of foreclosure or otherwise, (b) the proceeds of
      any
      insurance policies covering the Mortgage Loans or the Mortgaged Properties
      or
      the obligors on the Mortgage Loans and (c) the Seller’s security interest in any
      Additional Collateral; and

    

    WHEREAS,
      the Seller is a party to the servicing agreements identified on Schedule II
      (each a “Servicing
      Agreement,”
and
      together the “Servicing
      Agreements”),
      and
      certain of the Mortgage Loans are currently being serviced thereunder by the
      servicers identified therein; and

    

    WHEREAS,
      the parties hereto desire that the Seller sell the Mortgage Loans, the Mortgages
      and the related assets referred to above, and assign the Seller’s rights under
      the Servicing Agreements to the Purchaser, other than any servicing rights
      retained pursuant to the provisions of the Servicing Agreements, but only to
      the
      extent such rights relate to the servicing of the Mortgage Loans (the
“Contractual
      Rights”)
      pursuant to the terms of this Agreement with the understanding that Purchaser
      on
      the Closing Date will in turn assign such Mortgage Loans, the Mortgages and
      the
      related assets and the Contractual Rights to Structured Asset Securities
      Corporation, a Delaware corporation (“SASCO”) pursuant to the terms of the SASCO
      mortgage loan purchase agreement dated as of April 1, 2007 between the Purchaser
      and SASCO (the “SASCO MLPA”); and

    

    WHEREAS,
      pursuant to the terms of that certain Sale and Servicing Agreement dated as
      of
      April 1, 2007 (the “Sale
      and Servicing Agreement”)
      among
      Thornburg Mortgage Securities Trust 2007-2 (the “Trust”),
      as
      issuer (the “Issuer”),
      SASCO, as depositor (the “Depositor”),
      the
      Seller, as initial seller, the Purchaser, as seller, Wells Fargo Bank, N.A.,
      as
      master servicer and securities administrator and LaSalle Bank National
      Association, as indenture trustee (the “Indenture Trustee”),
      SASCO
      will convey the Mortgage Loans, the Mortgages and the related assets, the
      Contractual Rights and rights provided to the Purchaser hereunder on the Closing
      Date to the Issuer; and

    

    WHEREAS
      on the Closing Date, the Issuer will pledge the Mortgage Loans, the Mortgages
      and related assets, the Contractual Rights and certain rights provided to the
      Purchaser hereunder to the Indenture Trustee under an Indenture dated as of
      April 1, 2007 (the “Indenture”)
      between the Issuer and the Indenture Trustee, pursuant to which the Issuer
      shall
      issue its Mortgage-Backed Notes, Series 2007-2 (the “Notes”),
      the
      payment of which is to be secured by such pledged assets.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    

    NOW,
      THEREFORE, in consideration of the mutual covenants herein contained, and other
      good and valuable consideration, the receipt and adequacy of which are hereby
      acknowledged, the parties hereto agree as follows:

    

    ARTICLE
      I.

    

    DEFINITIONS
      AND SCHEDULES

    

    Section
      1.01. Definitions. Any
      capitalized term used but not defined herein shall have the meaning assigned
      thereto in the Sale and Servicing Agreement and the Indenture.

    

    ARTICLE
      II.

    

    SALE
      OF
      MORTGAGE LOANS AND THE CONTRACTUAL RIGHTS; 

    PAYMENT
      OF PURCHASE PRICE

    

    Section
      2.01. Sale
      of Mortgage Loans; Assignment of the Contractual Rights. The
      Seller, concurrently with the execution and delivery of this Agreement, does
      hereby sell, assign, set over, and otherwise convey to the Purchaser, without
      recourse, all of its right, title and interest in, to and under (i) each
      Mortgage Loan, including the related Cut-Off Date Principal Balance, and all
      collections in respect of interest and principal due after the Cut-Off Date
      (and
      all principal received before the Cut-Off Date to the extent such principal
      relates to a Monthly Payment due after the Cut-Off Date); (ii) property which
      secured such Mortgage Loan and which has been acquired by foreclosure or deed
      in
      lieu of foreclosure; (iii) its interest in any insurance policies in respect
      of
      the Mortgage Loans; (iv) any Additional Collateral with respect to the Mortgage
      Loans; and (v) all proceeds of any of the foregoing.

    

    Concurrently
      with the execution and delivery of this Agreement, the Seller hereby assigns
      to
      the Purchaser the Contractual Rights. The Purchaser hereby accepts such
      assignment, and shall be entitled to exercise such Contractual Rights under
      each
      Servicing Agreement as if the Purchaser had been a party to each such
      agreement.

    

    Section
      2.02. Obligations
      of the Seller Upon Sale and Assignment. In
      connection with the transfer and assignment pursuant to Section 2.01 hereof,
      the
      Seller further agrees, at its own expense, on or prior to the Closing Date,
      (a)
      to indicate in its books and records that the Mortgage Loans have been sold
      to
      the Purchaser pursuant to this Agreement and (b) to deliver to the Purchaser
      a
      computer file containing a true and complete list of all such Mortgage Loans
      specifying for each such Mortgage Loan, as of the Cut-Off Date, (i) its account
      number and (ii) the Cut-Off Date Principal Balance and such file, which forms
      a
      part of Schedule A to the Sale and Servicing Agreement, shall also be marked
      as
      Schedule I to this Agreement and is hereby incorporated into and made a part
      of
      this Agreement.

    

    In
      connection with such conveyance by the Seller, the Seller shall on behalf of
      the
      Purchaser, the Depositor and the Issuer deliver to, and deposit with the
      Indenture Trustee (or its custodian), on or before the Closing Date, the
      documents described in Section 2.01 of the Sale and Servicing Agreement
      including, but not limited to, the Mortgage File and the Servicing Agreements.
      In the case of the Mortgage Loans (if any) that have been prepaid in full after
      the Cut-off Date and prior to execution of this Agreement, the Seller, in lieu
      of delivering the related Mortgage Files, shall deliver to the Indenture Trustee
      on behalf of the Purchaser, the Depositor and the Issuer an Officer’s
      Certificate which shall include a statement to the effect that all amounts
      received in connection with such prepayments that are required to be deposited
      in the Collection Account pursuant to Section 2.01 of the Sale and Servicing
      Agreement have been so deposited.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    

    The
      Seller hereby confirms to the Purchaser that it has made the appropriate entries
      in its general accounting records, to indicate that the Mortgage Loans have
      been
      transferred as directed by the Purchaser.

    

    The
      Purchaser hereby acknowledges its acceptance of all rights, title and interests
      in, to and under the Mortgage Loans and other property, and the Contractual
      Rights, now existing or hereafter created, conveyed to it pursuant to Section
      2.01 hereof.

    

    The
      parties hereto intend that the transaction set forth herein be a non-recourse
      sale by the Seller to the Purchaser of all of the Seller’s rights, title and
      interests in, to and under the Mortgage Loans and other property described
      in
      Section 2.01. Nonetheless, in the event the transaction set forth herein is
      deemed not to be a sale, the Seller hereby grants to the Purchaser a security
      interest in all of the Seller’s rights, title and interests in, to and under the
      Mortgage Loans and other property described in Section 2.01, whether now
      existing or hereafter created, to secure all of the Seller’s obligations
      hereunder; and this Agreement shall constitute a security agreement under
      applicable law. The Seller and the Purchaser shall, to the extent consistent
      with this Agreement, take such actions as may be necessary to ensure that,
      if
      this Agreement were deemed to create a security interest in the Mortgage Loans
      and the Contractual Rights, such security interest would be deemed to be a
      perfected security interest of first priority under applicable law and will
      be
      maintained as such throughout the term of the Indenture.

    

    Section
      2.03. Payment
      of Purchase Price for the Mortgage Loans. In
      consideration of the sale of the Mortgage Loans, the related assets and the
      Contractual Rights from the Seller to the Purchaser on the Closing Date, the
      Purchaser agrees to pay to the Seller on the Closing Date by transfer of
      immediately available funds, an amount equal to $1,321,746,471.57 (which amount
      includes accrued interest) (the “Purchase
      Price”)
      minus
      any expenses billed to the Purchaser in connection with the issuance and
      offering of the Notes pursuant to the SASCO Mortgage Loan Purchase
      Agreement.

    

    ARTICLE
      III.

    

    REPRESENTATIONS
      AND WARRANTIES; REMEDIES FOR BREACH

    

    Section
      3.01. Seller
      Representations and Warranties Relating to the Mortgage Loans. The
      Seller hereby makes the representations and warranties set forth in Schedule
      III
      hereto applicable to the Mortgage Loans and by this reference incorporated
      herein, to the Purchaser, as of the Closing Date or, if applicable, such other
      date as may be specified therein, with the understanding that the Purchaser
      pursuant to the terms of the SASCO Mortgage Loan Purchase Agreement will assign
      to the Depositor, which will assign to the Issuer, which will assign to the
      Indenture Trustee any and all rights and remedies the respective party may
      have
      against the Seller arising from a breach of any such representation and
      warranty.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    

    Section
      3.02.  Seller’s
      Representations and Warranties. The
      Seller represents, warrants and covenants to the Purchaser as of the Closing
      Date or as of such other date specifically provided herein:

    

    (i) the
      Seller is duly organized, validly existing and in good standing as a corporation
      under the laws of the State of Delaware and is and will remain in compliance
      with the laws of each state in which any Mortgaged Property is located to the
      extent necessary to fulfill its obligations hereunder;

    

    (ii) the
      Seller has the power and authority to hold each Mortgage Loan, to sell each
      Mortgage Loan, to execute, deliver and perform, and to enter into and
      consummate, all transactions contemplated by this Agreement. 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 other similar laws in relation
      to
      the rights of creditors generally;

    

    (iii) the
      execution and delivery of this Agreement by the Seller and the performance
      of
      and compliance with the terms of this Agreement will not violate the Seller’s
      certificate of incorporation or by-laws or constitute a material default under
      or result in a material breach or acceleration of, any material contract,
      agreement or other instrument to which the Seller is a party or which may be
      applicable to the Seller or its assets;

    

    (iv) 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;

    

    (v) 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;

    

    (vi) the
      Seller has good, marketable and indefeasible title to the Mortgage Loans, free
      and clear of any and all liens, pledges, charges or security interests of any
      nature encumbering the Mortgage Loans;

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    

    (vii) the
      Mortgage Loans are not being transferred by the Seller with any intent to
      hinder, delay or defraud any creditors of the Seller;

    

    (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 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) no
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Seller
      of,
      or compliance by the Seller with, this Agreement or the consummation of the
      transactions contemplated by this Agreement, except for such consents,
      approvals, authorizations or orders, if any, that have been obtained;
      and

    

    (x) 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.

    

    Section
      3.03. Remedies
      for Breach of Representations and Warranties. 
      It is
      understood and agreed that (i) the representations and warranties set forth
      in
      Sections 3.01 and 3.02 and the provisions of Article V, shall survive the
      purchase of the Mortgage Loans and the Contractual Rights hereunder (and in
      the
      case of Section 3.01, shall survive delivery of the respective Mortgage Files
      to
      the Indenture Trustee pursuant to the SASCO Mortgage Loan Purchase Agreement
      and
      the Sale and Servicing Agreement) and shall inure to the benefit of the
      Purchaser and its assigns notwithstanding any restrictive or qualified
      endorsement on any Mortgage Note or Assignment or the examination or lack of
      examination of any Mortgage File and (ii) the remedies for the breach of such
      representations and warranties and for the failure to deliver the documents
      referred to in Section 2.02 hereof shall be as set forth in Section 2.04 of
      the
      Sale and Servicing Agreement.

    

    With
      respect to the representations and warranties numbered (iii), (xiv), (xvii),
      (xviii), (xxix), (xxxii) and (xxxiii) set forth on Schedule III hereto that
      are
      made to the best of the Seller’s knowledge or as to which the Seller has no
      knowledge, if it is discovered by the Depositor, the Master Servicer or the
      Indenture Trustee that the substance of such representation and warranty is
      inaccurate and such inaccuracy materially and adversely affects the value of
      the
      related Mortgage Loan or the interest therein of the Noteholders then,
      notwithstanding the Seller’s lack of knowledge with respect to the substance of
      such representation and warranty being inaccurate at the time the representation
      or warranty was made, such inaccuracy shall be deemed a breach of the applicable
      representation or warranty.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    

    ARTICLE
      IV.

    

    SELLER’S
      COVENANTS

    

    Section
      4.01. Covenants
      of the Seller. 
      The
      Seller hereby covenants that, except for the transfer hereunder, it will not
      sell, pledge, assign or transfer to any other Person, or grant, create, incur,
      assume or suffer to exist any Lien on any Mortgage Loan, or any interest
      therein; it will notify the Purchaser, of the existence of any Lien on any
      Mortgage Loan immediately upon discovery thereof; and it will defend the right,
      title and interest of the Purchaser and its assigns, in, to and under the
      Mortgage Loans, against all claims of third parties claiming through or under
      the Seller; provided,
      however,
      that
      nothing in this Section 4.01 shall prevent or be deemed to prohibit the Seller
      from suffering to exist upon any of the Mortgage Loans any Liens for municipal
      or other local taxes and other governmental charges if such taxes or
      governmental charges shall not at the time be due and payable or if the Seller
      shall currently be contesting the validity thereof in good faith by appropriate
      proceedings and shall have set aside on its books adequate reserves with respect
      thereto.

    

    ARTICLE
      V.

    

    INDEMNIFICATION

    

    Section
      5.01. Indemnification. The
      Seller agrees to indemnify and to hold each of the Purchaser, the Depositor,
      the
      Issuer, the Indenture Trustee, each of the officers and directors of each such
      entity and each person or entity who controls each such entity or person
      harmless against any and all claims, losses, penalties, fines, forfeitures,
      legal fees and related costs, judgments, and any other costs, fees and expenses
      that the Purchaser, the Depositor, the Issuer, the Indenture Trustee, or any
      such person or entity may sustain in any way related to the failure of the
      Seller to perform its duties in compliance with the terms of this Agreement.
      The
      Seller shall immediately notify the Purchaser, the Depositor, the Issuer and
      the
      Indenture Trustee if a claim is made under this provision. The Seller shall
      assume the defense of any such claim and pay all expenses in connection
      therewith, including reasonable counsel fees, and promptly pay, discharge and
      satisfy any judgment or decree which may be entered against the Purchaser,
      the
      Depositor, the Issuer, the Indenture Trustee or any such person or entity in
      respect of such claim.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    

    ARTICLE
      VI.

    

    TERMINATION

    

    Section
      6.01. Termination. 
      The
      respective obligations and responsibilities of the Seller and the Purchaser
      created hereby shall terminate, except for the respective indemnity obligations
      as provided herein, upon the termination of the Sale and Servicing Agreement
      as
      provided in Article X thereof.

    

    ARTICLE
      VII.

    

    MISCELLANEOUS
      PROVISIONS

    

    Section
      7.01. Amendment. This
      Agreement may be amended from time to time by the Seller and the Purchaser
      by
      written agreement signed by the parties hereto.

    

    Section
      7.02. 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 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.

    

    Section
      7.03. Notices. 
      All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given if personally delivered at or mailed by
      registered mail, postage prepaid, addressed as follows:

    

    if
      to the
      Seller:

     

    Thornburg
      Mortgage Home Loans, Inc.

    150
      Washington Avenue, Suite 302

    Santa
      Fe,
      New Mexico 87501

    Attention:
      Deborah Burns

    

    or
      such
      other address as may hereafter be furnished to the Purchaser, the Depositor,
      the
      Issuer and the Indenture Trustee in writing by the Seller.

     

    if
      to the
      Purchaser:

     

    Thornburg
      Mortgage Funding, Inc.

    150
      Washington Avenue, Suite 302

    Santa
      Fe,
      New Mexico 87501

    Attention:
      Deborah Burns

    

    or
      such
      other address as may hereafter be furnished to the Seller, the Depositor, the
      Issuer and the Indenture Trustee in writing by the Purchaser.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

     

    If
      to the
      Depositor:

    

    Structured
      Asset Securities Corporation

    745
      Seventh Avenue, 7th
      Floor

    New
      York,
      New York 10019

    Attention:
      Legal Department (Thornburg 2007-2)

    

    if
      to the
      Issuer:

    

    Thornburg
      Mortgage Securities Trust 2007-2

    c/o
      Wilmington Trust Company 

    1100
      North Market Street

    Wilmington,
      Delaware 19801

    Attention:
      Corporate Trust Administrator (Thornburg 2007-2)

    

    or
      such
      other address as may hereafter be furnished to the Purchaser, the Depositor,
      the
      Indenture Trustee and the Seller in writing by the Issuer.

    

    If
      to the
      Indenture Trustee, its Corporate Trust Office:

    

    or
      such
      other address as may hereafter be furnished to the Seller, the Depositor, the
      Issuer and the Purchaser in writing by the Indenture Trustee.

    

    if
      to the
      Depositor:

    

    Structured
      Asset Securities Corporation

    745
      Seventh Avenue, 7th
      Floor

    New
      York,
      New York 10019

    Attention:
      Legal Department (Thornburg 2007-2)

    

    or
      such
      other address as may hereafter be furnished to the Seller, the Purchaser, the
      Issuer and the Indenture Trustee in writing by the Depositor.

    

    Section
      7.04. Severability
      of Provisions. 
      If any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be held invalid for any reason whatsoever, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity of enforceability of the other provisions of this
      Agreement.

    

    Section
      7.05. Counterparts. 
      This
      Agreement may be executed in one or more counterparts and by the different
      parties hereto on separate counterparts, which may be transmitted by telecopier
      each of which, when so executed, shall be deemed to be an original and such
      counterparts, together, shall constitute one and the same
      agreement.

    

    Section
      7.06. Further
      Agreements. 
      Each
      party hereto agrees to execute and deliver to the other such additional
      documents, instruments or agreements as may be necessary or reasonable and
      appropriate to effectuate the purposes of this Agreement or in connection with
      the issuance of the Notes under the Indenture.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    

    Without
      limiting the generality of the foregoing, as a further inducement for the
      Purchaser to purchase the Mortgage Loans from the Seller, the Seller will
      cooperate with the Purchaser, the Depositor and the Issuer in connection with
      the sale of the Notes. In that connection, the Seller will provide to the
      Purchaser any and all information and appropriate verification of information,
      whether through letters of its auditors and counsel or otherwise, as the
      Purchaser shall reasonably request and will provide to the Purchaser or its
      designee such additional representations and warranties, covenants, opinions
      of
      counsel, letters from auditors, and certificates of public officials or officers
      of the Seller as are reasonably required in connection with the offering of
      the
      Notes.

    

    Section
      7.07. Intention
      of the Parties. It
      is the
      intention of the parties that the Purchaser is purchasing, and the Seller is
      selling, the Mortgage Loans rather than pledging such Mortgage Loans to secure
      a
      loan by the Purchaser to the Seller. Accordingly, the parties hereto each intend
      to treat the transaction as a sale by the Seller, and a purchase by the
      Purchaser, of the Mortgage Loans. The Purchaser will have the right to review
      the Mortgage Loans and the related Mortgage Files to determine the
      characteristics of the Mortgage Loans which will affect the Federal income
      tax
      consequences of owning the Mortgage Loans and the Seller will cooperate with
      all
      reasonable requests made by the Purchaser in the course of such
      review.

    

    Section
      7.08. Successors
      and Assigns: Assignment of Purchase Agreement. 
      This
      Agreement shall bind and inure to the benefit of and be enforceable by the
      Seller and the Purchaser and their respective assigns. The obligations of the
      Seller under this Agreement cannot be assigned or delegated to a third party
      without the consent of the Purchaser which consent shall be at the Purchaser’s
      sole discretion; provided,
      however,
      that
      the Purchaser acknowledges and agrees that the Seller may assign its obligations
      hereunder to any Person into which the Seller is merged or any corporation
      resulting from any merger, conversion or consolidation to which the Seller
      is a
      party or any Person succeeding to the business of the Seller. The parties hereto
      acknowledge that the Purchaser is acquiring the Mortgage Loans and the
      Contractual Rights for the purpose of selling and assigning them to the
      Depositor pursuant to the SASCO Mortgage Loan Purchase Agreement which in turn
      will sell and assign such Mortgage Loans, Contractual Rights and contractual
      rights under the SASCO Mortgage Loan Purchase Agreement to the Issuer which
      will
      pledge them to the Indenture Trustee. As an inducement to the Purchaser to
      purchase the Mortgage Loans, the Seller acknowledges and consents to the
      assignment by the Purchaser to the Depositor, and by the Depositor to the
      Issuer, and the pledge by the Issuer to the Indenture Trustee, of all of the
      Contractual Rights and contractual rights under the SASCO Mortgage Loan Purchase
      Agreement which may be enforced or exercised with the same force and effect
      as
      if they had been enforced or exercised by the Purchaser directly.

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Seller and the Purchaser have caused their names to be
      signed to this Mortgage Loan Purchase Agreement by their respective officers
      thereunto duly authorized as of the day and year first above
      written.

     

    THORNBURG
      MORTGAGE FUNDING, INC., as 
Purchaser

     

    By: 
      /s/
      Nathan Fellers                
Name:
      Nathan Fellers
Title:
      Senior Vice President

     

    THORNBURG
      MORTGAGE HOME LOANS, INC.,
as
      Seller

     

    By: 
      /s/
      Deborah J. Burns              
Name:
      Deborah J. Burns
Title:
      Senior Vice President

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              STATE
                OF NEW MEXICO

            	
              )

            

    

    
      	 	
              )ss.:

            

    

    
      	
              COUNTY
                OF SANTA FE

            	
              )

            

    

     

     

    On
      the
      ____ day of April 2007 before me, a Notary Public in and for said State,
      personally appeared Nathan Fellers, known to me to a Senior Vice President
      of
      THORNBURG MORTGAGE FUNDING, INC., the corporation that executed the within
      instrument, and also known to me to be the person who executed it on behalf
      of
      said corporation, and acknowledged to me that such corporation executed the
      within instrument.

     

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

     

    _______________________

    Notary
      Public

     

    My
      Commission Expires on _______________

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              STATE
                OF NEW MEXICO

            	
              )

            

    

    
      	 	
              )ss.:

            

    

    
      	
              COUNTY
                OF SANTE FE

            	
              )

            

    

     

     

    On
      the
      ____ day of April 2007 before me, a notary public in and for said State,
      personally appeared Deborah J. Burns, known to me to be a Senior Vice President
      of THORNBURG MORTGAGE HOME LOANS, INC., a Delaware corporation that executed
      the
      within instrument, and also known to me to be the person who executed it on
      behalf of said corporation, and acknowledged to me that such corporation
      executed the within instrument.

     

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

     

    _______________________

    Notary
      Public

    

    My
      Commission Expires ______________________

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      I

     

    MORTGAGE
      LOAN SCHEDULE 

     

    [See
      Schedule I of Sale and Servicing Agreement]

     

    
      
         

      

      
        I-1

        
          

        

      

      
         

      

    

    SCHEDULE
      II

     

    LIST
      OF
      SERVICING AGREEMENTS (TMST 2007-2)

     

    
      	 	
              1.

            	
              (a)
                Servicing Agreement, dated as of March 1, 2002, among Thornburg Mortgage
                Home Loans, Inc. (“Thornburg”), as seller and servicer and Wells Fargo
                Bank N.A. (“Wells Fargo”), as master servicer, as amended by the Amendment
                to Servicing Agreement, dated as of December 1, 2002, and as amended
                by
                the Second Amendment to Servicing Agreement, dated as of January
                1, 2006,
                and (b) the Subservicing Acknowledgement Agreement, dated as of March
                1,
                2002, between Thornburg, as servicer, and Cenlar FSB, as sub-servicer
                (“Cenlar”), as amended by the Amendment to Subservicing Acknowledgement
                Agreement, dated as of December 1, 2002, and by the Second Amendment
                to
                Subservicing Acknowledgement Agreement, dated as of January 1, 2006,
                including the related Transfer Notice, dated April 20, 2007, from
                Thornburg, as seller, to Thornburg, as servicer, and Cenlar, as
                sub-servicer.

            

    

     

    
      	 	
              2.

            	
              Amended
                and Restated Correspondent Loan Purchase Agreement, dated as of March
                25,
                2002, between Thornburg Mortgage Home Loans, Inc. (“Thornburg”) and First
                Republic Bank (“First Republic”), including the related Transfer Notice,
                dated April 20, 2007, from Thornburg to First
                Republic.

            

    

     

    
      	 	
              3.

            	
              Amended
                and Restated Correspondent Loan Purchase Agreement, dated as of March
                27,
                2002, between Thornburg Mortgage Loans, Inc. (“Thornburg”) and Colonial
                Savings, F.A. (“Colonial”), including the related Transfer Notice, dated
                April 20, 2007, from Thornburg to
                Colonial.

            

    

     

    
      	 	
              4.

            	
              Correspondent
                Loan Purchase Agreement, dated as of January 31, 2006, between Thornburg
                Mortgage Home Loans, Inc. (“Thornburg”) and Mellon Trust of New England,
                N.A. (“Mellon”), including the related Transfer Notice, dated April 20,
                2007, from Thornburg to Mellon.

            

    

     

    
      	 	
              5.

            	
              Correspondent
                Loan Purchase Agreement, dated as of April 6, 2006, between Thornburg
                Mortgage Home Loans, Inc. (“Thornburg”) and First Horizon Home Loan Corp.
                (“First Horizon”), including the related Transfer Notice, dated April 20,
                2007, from Thornburg to First
                Horizon.

            

    

     

    

     

    

     

    
      
         

      

      
        II-1

        
          

        

      

      
         

      

    

    SCHEDULE
      III

     

    SELLER’S
      REPRESENTATIONS AND 

    WARRANTIES
      RELATING TO

    MORTGAGE
      LOANS

     

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

     

    
      	 	
              (i)

            	
              The
                information set forth in the final Mortgage Loan Schedule is complete,
                true and correct in all material respects and (b) the Mortgage Note
                or an
                affidavit of lost note with respect to each Mortgage Loan has been
                delivered to the Purchaser or its
                designee.

            

    

     

    
      	 	
              (ii)

            	
              As
                of the Cut-off Date, none of the Mortgage Loans (by Scheduled Principal
                Balance) were 30 or more days delinquent in
                payment.

            

    

     

    
      	 	
              (iii)

            	
              To
                the best of Seller’s knowledge, there are no delinquent taxes, ground
                rents, water charges, sewer rents, assessments, insurance premiums,
                leasehold payments, including assessments payable in future installments
                or other outstanding charges affecting the related Mortgaged Property
                or
                escrow funds have been established in an amount sufficient to pay
                for
                every such escrowed item which remains
                unpaid.

            

    

     

    
      	 	
              (iv)

            	
              The
                terms of the Mortgage Note and the Mortgage (including with respect
                to
                provisions relating to any Additional Collateral (if applicable))
                have not
                been impaired, waived, altered or modified in any respect, except
                by
                written instruments which have been recorded, if necessary to protect
                the
                interests of the Trust, and which are included in the Mortgage File,
                the
                substance of which waiver, alteration or modification has been approved
                by
                the primary mortgage guaranty insurer, if any, and by the title insurer,
                in each instance to the extent required by the related policy and
                is
                reflected on the Mortgage Loan Schedule. Except for any modification
                agreement or similar document contained in the Mortgage File permitting
                a
                borrower to modify his Mortgage Loan, no instrument of waiver, alteration
                or modification has been executed, and no Mortgagor has been released,
                in
                whole or in part, except in connection with an assumption agreement
                approved by the primary mortgage insurer, if any, and title insurer,
                in
                each instance to the extent required by the policy, and which assumption
                agreement is part of the Mortgage
                File.

            

    

     

    
      	 	
              (v)

            	
              The
                Mortgage Note and the Mortgage (including with respect to provisions
                relating to any Additional Collateral (if applicable)) are not subject
                to
                any right of rescission, set-off, counterclaim or defense, including
                the
                defense of usury, nor will the operation of any of the terms of the
                Mortgage Note and Mortgage, or the exercise of any right thereunder,
                render the Mortgage unenforceable, in whole or in part, or subject
                to any
                right of rescission, set-off, counterclaim or defense, including
                the
                defense of usury, and to the Seller’s knowledge no such right of
                rescission, set-off, counterclaim or defense has been asserted with
                respect thereto.

            

    

     

    
      
         

      

      
        III-1

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (vi)

            	
              All
                buildings upon the Mortgaged Property are insured by a generally
                acceptable insurer against loss by fire, hazards of extended coverage
                and
                such other hazards as are customary in the area where the Mortgaged
                Property is located. All such insurance policies contain a standard
                mortgagee clause naming the Master Servicer or the applicable Servicer,
                their successors and assigns as mortgagee and to Seller’s knowledge all
                premiums thereon have been paid. If upon origination of the Mortgage
                Loan,
                the Mortgaged Property was in an area identified in the Federal Register
                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. The Mortgage obligates the
                Mortgagor thereunder to maintain all such insurance at the Mortgagor’s
                cost and expense, and on the Mortgagor’s failure to do so, authorizes the
                holder of the Mortgage to maintain such insurance at the Mortgagor’s cost
                and expense and to seek reimbursement therefor from the
                Mortgagor.

            

    

     

    
      	 	
              (vii)

            	
              The
                Mortgage Loan is not a loan (A) subject to 12 CFR Part 226.31, 12
                CFR Part
                226.32 or 12 CFR Part 226.34 of Regulation Z, the regulation implementing
                TILA, which implements the Home Ownership and Equity Protection Act
                of
                1994, as amended, or any comparable state law (B) a “High Cost Loan” or
                “Covered Loan” as applicable, as such terms are defined in the current
                Standard & Poor’s LEVELS® GLOSSARY classified and/or defined as a
                “high cost” loan or “predatory,” “high cost,” “threshold” or “covered”
                lending under any other state, federal or local law. The Mortgage
                Loan at
                the time it was made otherwise complied in all material respects
                with any
                and all requirements of any federal, state or local law including,
                but not
                limited to, all predatory lending laws, usury, truth in lending,
                real
                estate settlement procedures (including the Real Estate Settlement
                Procedures Act of 1974, as amended), consumer credit protection,
                equal
                credit opportunity or disclosure laws applicable to such Mortgage
                Loan.

            

    

     

    
      	 	
              (viii)

            	
              The
                Mortgage has not been satisfied, canceled or subordinated, or rescinded,
                in whole or in part, and the Mortgaged Property has not been released
                from
                the lien of the Mortgage except for a release that does not materially
                impair the security of the Mortgage Loan or is reflected in the
                Loan-to-Value Ratio, in whole or in part, nor has any instrument
                been
                executed that would effect any such release, cancellation, subordination
                or rescission unless payoff funds have been deposited in the custodial
                account.

            

    

     

    
      	 	
              (ix)

            	
              The
                Mortgage is a valid, existing and enforceable first lien on the Mortgaged
                Property, including all improvements on the Mortgaged Property subject
                only to (A) the lien of current real property taxes and assessments
                not
                yet due and payable, (B) covenants, conditions and restrictions,
                rights of
                way, easements and other matters of the public record as of the date
                of
                recording being acceptable to mortgage lending institutions generally
                and
                either (a) specifically referred to in a lender’s title insurance policy
                delivered to the related Originator of the Mortgage Loan or (b) which
                do
                not adversely affect the Appraised Value of the Mortgaged Property,
                and
                (C) other matters to which like properties are commonly subject which
                do
                not materially interfere with the benefits of the security intended
                to be
                provided by the Mortgage or the use, enjoyment, value or marketability
                of
                the related Mortgaged Property; and, further provided, with respect
                to
                Cooperative Loans, the lien of the related cooperative corporation
                for
                unpaid assessments representing the obligor’s pro
                rata
                share of the cooperative corporation’s payments for its blanket mortgage,
                current and future real property taxes, insurance premiums, maintenance
                fees and other assessments to which like collateral is commonly subject.
                Any security agreement, chattel mortgage or equivalent document related
                to
                and delivered in connection with the Mortgage establishes and creates
                a
                valid, existing and enforceable first lien and first priority security
                interest on the property described therein and the Seller has full
                right
                to sell and assign the same to the
                Purchaser.

            

    

     

    
      
         

      

      
        III-2

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (x)

            	
              The
                Mortgage Note and the related mortgage are genuine and each is the
                legal,
                valid and binding obligation of the maker thereof, enforceable in
                accordance with its terms, except as the enforceability thereof may
                be
                limited by bankruptcy, insolvency, or reorganization or other laws
                relating to the rights of creditors and general principles of
                equity.

            

    

     

    
      	 	
              (xi)

            	
              All
                parties to the Mortgage Note and the Mortgage had legal capacity
                to enter
                into the Mortgage Loan and to execute and deliver the Mortgage Note
                and
                the Mortgage, and the Mortgage Note and the Mortgage have been duly
                and
                properly executed by such parties.

            

    

     

    
      	 	
              (xii)

            	
              The
                proceeds of the Mortgage Loan have been fully disbursed, there is
                no
                requirement for future advances thereunder and any and all requirements
                as
                to completion of any on-site or off-site improvements and as to
                disbursements of any escrow funds therefor have been complied with
                (except
                for escrow funds for exterior items which could not be completed
                due to
                weather and escrow funds for the completion of swimming pools); and
                all
                costs, fees and expenses incurred in making, closing or recording
                the
                Mortgage Loan have been paid, except recording fees with respect
                to
                Mortgages not recorded as of the Closing
                Date.

            

    

     

    
      	 	
              (xiii)

            	
              The
                Seller has acquired its ownership of each Mortgage Loan in good faith
                without notice of any adverse claim, and as of the Closing Date,
                the
                Mortgage Note and the Mortgage are not assigned or pledged, and
                immediately prior to the sale of the Mortgage Loan to the Purchaser,
                the
                Seller was the sole owner thereof and with full right to transfer
                and sell
                the Mortgage Loan to the Purchaser free and clear of any encumbrance,
                equity, lien, pledge, charge, claim or security interest and with
                full
                right and authority subject to no interest or participation of, or
                agreement with, any other party, to sell and assign each Mortgage
                Loan
                pursuant to this Agreement.

            

    

     

    
      
         

      

      
        III-3

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (xiv)

            	
              To
                the Seller’s best knowledge, the Seller or,
                if the Mortgage Loan was not originated by the Seller, the related
                originator is or was (or, during the period in which they held and
                disposed of such interest, were) (A) in compliance with any and all
                applicable licensing requirements of the laws of the state wherein
                the
                Mortgaged Property is located, and (B) either (i) organized under
                the laws
                of such state, or (ii) qualified to do business in such state, or
                (iii) a
                federal savings and loan association or national bank or subsidiary
                having
                preemptive authority under federal law or under applicable state
                law to
                engage in business in such state without qualification, or (iv) not
                doing
                business in such state.

            

    

     

    
      	 	
              (xv)

            	
              The
                Mortgage Loan is covered by an ALTA lender’s title insurance policy or
                other form acceptable to Fannie Mae or Freddie Mac, issued by a title
                insurer acceptable to Fannie Mae or Freddie Mac and qualified to
                do
                business in the jurisdiction where the Mortgaged Property is located,
                insuring (subject to the exceptions contained in (ix)(A) through
                (C)
                above) the related originator or the Seller, their respective successors
                and assigns as to the first priority lien of the Mortgage in the
                original
                principal balance of the Mortgage Loan. The Seller is
                the sole insured of such lender’s title insurance policy, and such
                lender’s title insurance policy is in full force and effect and will be
                in
                full force and effect upon the consummation of the transactions
                contemplated by this Agreement. No claims have been made under such
                lender’s title insurance policy, and no prior holder of the related
                Mortgage, including the Seller, has done, by act or omission, anything
                which would impair the coverage of such lender’s title insurance
                policy.

            

    

     

    
      	 	
              (xvi)

            	
              There
                is no default, breach, violation or event of acceleration existing
                under
                the Mortgage or the Mortgage Note and no event which, with the passage
                of
                time or with notice and the expiration of any grace or cure period,
                would
                constitute a default, breach, violation or event of acceleration,
                and the
                Seller has not waived any default, breach, violation or event of
                acceleration.

            

    

     

    
      	 	
              (xvii)

            	
              To
                the best of the Seller’s knowledge, there are no mechanics’ or similar
                liens or claims which have been filed for work, labor or material
                (and no
                rights are outstanding that under law could give rise to such lien)
                affecting the related Mortgaged Property which are or may be liens
                prior
                to, or equal or on parity with, the lien of the related
                Mortgage.

            

    

     

    
      	 	
              (xviii)

            	
              To
                the best of the Seller’s knowledge, all improvements which were considered
                in determining the Appraised Value of the related Mortgaged Property
                lay
                wholly within the boundaries and building restriction lines of the
                Mortgaged Property, and no improvements on adjoining properties encroach
                upon the Mortgaged Property.

            

    

     

    
      	 	
              (xix)

            	
              The
                Mortgage Loan was originated by the Seller or was purchased by the
                Seller
                from a third party and the related originator of each Mortgage Loan,
                was,
                at the time of origination, (A) (1) a Fannie Mae-approved or Freddie
                Mac-approved Seller/Servicer and (2) a U.S. Department of Housing
                and
                Urban Development approved mortgage banker, or a savings and loan
                association, a savings bank, a commercial bank or similar banking
                institution which is supervised and examined by a federal or state
                authority or (B) closed in the name of a loan broker under the
                circumstances described in the following sentence. If such Mortgage
                Loan
                was originated through a loan broker, the related originator qualifies
                under clause (A) above, such Mortgage Loan met such originator’s
                underwriting criteria at the time of origination and was originated
                in
                accordance with such originator’s polices and procedures and such
                originator acquired such Mortgage Loan from the loan broker
                contemporaneously with the origination thereof. Each Mortgage Note
                has a
                Mortgage Rate that adjusts periodically (not always in correlation
                to the
                Index calculation term), based on the 1-month LIBOR, 6-month LIBOR,
                12-month LIBOR or 1-year CMT Index, as each is defined in the Sale
                and
                Servicing Agreement, except that some Mortgage Loans first adjust
                after an
                initial period of one or six months or one, three, five, seven or
                ten
                years following origination.

            

    

     

    
      
         

      

      
        III-4

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (xx)

            	
              The
                origination practices used by the Seller or the related originator
                of the
                Mortgage Loan and the collection practices used by the Master Servicer
                or
                the applicable Servicer with respect to each Mortgage Note and Mortgage
                have been in all respects legal, proper, prudent and customary in
                the
                mortgage origination and servicing business. With respect to escrow
                deposits and escrow payments, if any, all such payments are in the
                possession of, or under the control of, the applicable Servicer and
                there
                exist no deficiencies in connection therewith for which customary
                arrangements for repayment thereof have not been made.
                

            

    

     

    
      	 	
              (xxi)

            	
              The
                Mortgaged Property is undamaged by waste, fire, earthquake or earth
                movement, windstorm, flood, tornado or other casualty, so as to have
                a
                material adverse effect on the value of the related Mortgaged Property
                as
                security for the related Mortgage Loan or the use for which the premises
                were intended and there is no proceeding pending for the total or
                partial
                condemnation thereof.

            

    

     

    
      	 	
              (xxii)

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

            

    

     

    
      	 	
              (xxiii)

            	
              The
                Mortgage Loan was underwritten generally in accordance with either
                (A) the
                Seller’s underwriting standards described in the Preliminary Prospectus
                Supplement and the Final Prospectus Supplement, (B) in the case of
                a
                Mortgage Loan originated by First Republic Bank, the underwriting
                standards of First Republic Bank or (C) in the case of a Mortgage
                Loan acquired from a bulk seller, the underwriting standards of the
                related bulk seller or a third party originator’s underwriting
                guidelines.

            

    

     

    
      	 	
              (xxiv)

            	
              The
                Mortgage File in possession of the related Servicer contains an appraisal
                of the related Mortgaged Property by a qualified appraiser, duly
                appointed
                by the related originator of the Mortgage Loan, who had no interest,
                direct or indirect in the Mortgaged Property or in any loan made
                on the
                security thereof, and whose compensation is not affected by the approval
                or disapproval of the Mortgage Loan or, in accordance with certain
                specified programs of the related originator of the Mortgage Loan
                an
                approved AVM in lieu of the
                appraisal.

            

    

     

    
      
         

      

      
        III-5

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (xxv)

            	
              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 or any
                of its
                successors to the trustee under the deed of trust, except, in connection
                with a trustee’s sale after default by the
                Mortgagor.

            

    

     

    
      	 	
              (xxvi)

            	
              No
                Mortgage Loan (A) contains provisions pursuant to which Monthly Payments
                are paid or partially paid with funds deposited in any separate account
                established by the Seller, the Mortgagor, or anyone on behalf of
                the
                Mortgagor or paid by any source other than the Mortgagor or (B) contains
                any provision permitting a temporary “buydown” of the related Mortgage
                Rate. No Mortgage Loan was a graduated payment mortgage loan as of
                the
                date of its origination. No Mortgage Loan has a shared appreciation
                or
                other contingent interest feature.

            

    

     

    
      	 	
              (xxvii)

            	
              No
                Mortgage Loan had a Loan-to-Value Ratio in excess of 100%. The portion
                of
                the unpaid principal balance of each Mortgage Loan which is in excess
                of
                80% of the original Loan-to-Value Ratio either (a) has Additional
                Collateral or (b) is and will be insured as to payment defaults under
                a
                Primary Mortgage Insurance Policy issued by primary mortgage insurer
                licensed to do business in the state in which the Mortgaged Property
                is
                located and acceptable to Fannie Mae or Freddie Mac as of the Closing
                Date, so as to reduce the Mortgagee’s exposure in accordance with the
                standards of Fannie Mae or Freddie Mac and applicable law. All provisions
                of such Primary Mortgage Insurance Policy have been and are being
                complied
                with; such policy is valid and in full force and effect and all premiums
                due thereunder have been paid. 

            

    

     

    
      	 	
              (xxviii)

            	
              Except
                for any Additional Collateral Mortgage Loans, the Mortgage Note is
                not and
                has not been secured by any collateral, pledged account, or other
                security
                except the lien of the Mortgage, and the security interest of any
                applicable security agreement or chattel mortgage referred to
                above.

            

    

     

    
      	 	
              (xxix)

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

            

    

     

    
      	 	
              (xxx)

            	
              Each
                Assignment is in recordable form, is acceptable for recording under
                the
                laws of the jurisdiction in which the Mortgaged Property is
                located.

            

    

     

    
      
         

      

      
        III-6

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (xxxi)

            	
              If
                the Mortgaged Property is a condominium unit or a planned unit development
                (other than a de
                minimis
                planned unit development) such condominium or planned unit development
                project meets Fannie Mae or Freddie Mac or the originator’s eligibility
                requirements.

            

    

     

    
      	 	
              (xxxii)

            	
              To
                the best of the Seller’s knowledge, no fraud was committed by the related
                originator of the Mortgage Loan and the Seller is not aware of any
                fact
                that would reasonably lead the Seller to believe that any Mortgagor
                had
                committed fraud in connection with the origination of such Mortgage
                Loan.

            

    

     

    
      	 	
              (xxxiii)

            	
              The
                Mortgagor has not notified the Seller, and the Seller has no knowledge
                of
                any relief requested by the Mortgagor under the Servicemembers Civil
                Relief Act.

            

    

     

    
      	 	
              (xxxiv)

            	
              As
                to any Additional Collateral Mortgage Loan, such Mortgage Loan is
                secured
                by a perfected first priority security interest in the related Additional
                Collateral.

            

    

     

    
      	 	
              (xxxv)

            	
              As
                to any Additional Collateral Mortgage Loan, the applicable pledge
                agreement is in place, is genuine and is the legal, valid and binding
                obligation of the maker thereof, enforceable in accordance with its
                terms
                subject to bankruptcy, insolvency and other laws of general application
                affecting the rights of creditors and general principles of
                equity.

            

    

     

    
      	 	
              (xxxvi)

            	
              With
                respect to each Cooperative Loan (i) there is no provision in the
                related
                proprietary lease which requires the related Mortgagor to offer for
                sale
                the shares owned by such Mortgagor first to the Cooperative Corporation
                for a price less than the outstanding amount of the Cooperative Loan,
                (ii)
                there is no prohibition in the related proprietary lease against
                pledging
                such shares or assigning the proprietary lease that has been violated
                in
                connection with the origination of the Cooperative
                Loan.

            

    

     

    
      	 	
              (xxxvii)

            	
              With
                respect to each Cooperative Loan, such Cooperative Loan is secured
                by
                shares held by a “tenant-stockholder” of a corporation that qualifies as a
                “cooperative housing corporation” as such terms are defined in Section
                216(b)(1) of the Code.

            

    

     

    
      	 	
              (xxxviii)

            	
              With
                respect to each Cooperative Loan, the related Mortgage and related
                UCC
                financing statement creates a first-priority security interest in
                the
                stock in the Cooperative Corporation and the related proprietary
                lease of
                the related Cooperative Unit which were pledged to secure such Cooperative
                Loan, and the Cooperative Corporation owns the Cooperative Corporation
                as
                an estate in fee simple in real property or pursuant to a leasehold
                acceptable to Fannie Mae.

            

    

     

    
      	 	
              (xxxix)

            	
              No
                Mortgage Loan originated on or after October 1, 2002 through March
                6, 2003
                is governed by the Georgia Fair Lending
                Act.

            

    

     

    
      
         

      

      
        III-7Exhibit
        10.2

      

      THIRD
        AMENDMENT

      TO
        AMENDED AND RESTATED CREDIT AGREEMENT

      

      THIS
        THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
        ("Third
        Amendment"), dated as of May 7, 2007 is made and entered into by and between
        DIODES
        INCORPORATED,
        a
        Delaware corporation ("Borrower"), and UNION
        BANK OF CALIFORNIA, N.A.,
        a
        national banking association ("Bank").

      

      RECITALS:

      

      Borrower
        and Bank are parties to that certain Amended and Restated Credit Agreement
        dated
        as of February 27, 2003, as amended by (i) that certain First Amendment dated
        as
        of July 6, 2004, (ii) that certain extension letter dated May 26, 2005 and
        that
        certain Second Amendment dated as of August 29, 2005 (as so amended, the
        "Agreement"), pursuant to which Bank agreed to extend various credit facilities
        to Borrower in the amounts provided for therein.

      

      AGREEMENT:

      

      In
        consideration of the above recitals and of the mutual covenants and conditions
        contained herein, Borrower and Bank agree as follows:

      

      1. Defined
        Terms.
        Initially capitalized terms used herein which are not otherwise defined shall
        have the meanings assigned thereto in the Agreement.

      

      2. Amendment. Section
        6.5 of the Agreement is hereby amended in full as follows:

      

      “6.5
        Leverage Ratio.
        Borrower and its Subsidiaries shall maintain a Leverage Ratio of not greater
        than 3.25 to 1.0 as of the last day of each fiscal quarter.”

      

      3. Effectiveness
        of this Third Amendment.
        This
        Third Amendment shall become effective as of the date hereof when, and only
        when, Bank shall have received all of the following, in form and substance
        satisfactory to Bank: 

      

      (a) A
        counterpart of this Third Amendment, duly executed by Borrower and acknowledged
        by Guarantor where indicated hereinbelow;  

      

      (b) Such
        other documents, instruments or agreements as Bank may reasonably deem
        necessary.

      

      7. Ratification.

      

      (a) Except
        as
        specifically amended hereinabove, the Agreement shall remain in full force
        and
        effect and is hereby ratified and confirmed; and

      

      (b) Upon
        the
        effectiveness of this Third Amendment, each reference in the Agreement to
        "this
        Agreement", "hereunder", "herein", "hereof" or words of like import referring
        to
        the Agreement shall mean and be a reference to the Agreement as amended by
        this
        Third Amendment, and each reference in the Agreement to the “Revolving Note” or
        words of like import referring to the Revolving Note shall mean and be a
        reference to the replacement Revolving Note issued by Borrower in favor of
        Bank
        pursuant to this Third Amendment.

      

      8. Representations
        and Warranties.
        Borrower represents and warrants as follows:

      

      (a) Each
        of
        the representations and warranties contained in Section 5 of the Agreement,
        as
        amended hereby, is hereby reaffirmed as of the date hereof, each as if set
        forth
        herein;

      

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      (b) The
        execution, delivery and performance of this Third Amendment provided for
        herein
        are within Borrower's corporate powers, have been duly authorized by all
        necessary corporate action, have received all necessary approvals, if any,
        and
        do not contravene any law or any contractual restriction binding on
        Borrower;

      

      (c) This
        Third Amendment is the legal, valid and binding obligations of Borrower,
        enforceable against Borrower in accordance with their terms; and

      

      (d) No
        event
        has occurred and is continuing or would result from this Third Amendment
        which
        constitutes an Event of Default under the Agreement, or would constitute
        an
        Event of Default but for the requirement that notice be given or time elapse
        or
        both.

      

      9. Governing
        Law.
        This
        Third Amendment shall be deemed a contract under and subject to, and shall
        be
        construed for all purposes and in accordance with, the laws of the State
        of
        California.

      

      10. Counterparts.
        This
        Third Amendment may be executed in two or more counterparts, each of which
        shall
        be deemed an original and all of which together shall constitute one and
        the
        same instrument.

      

      WITNESS
        the due
        execution hereof as of the date first above written.

      

      “Borrower”

      

      DIODES
        INCORPORATED

      

      By:
        /s/
        Carl Wertz

      Carl
        Wertz

      Chief
        Financial Officer

      

      

      “Bank”

      

      UNION
        BANK OF CALIFORNIA, N.A.

      

      By:
        John
        Kase

      John
        C.
        Kase

      Vice
        President

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