Document:

MORTGAGE
      LOAN PURCHASE AGREEMENT

     

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

     

    Preliminary
      Statement

     

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

     

    The
      parties hereto agree as follows:

     

    
      	SECTION
              1.  	
              Agreement
                to Purchase.

            

    

     

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

     

    
      	SECTION
              2.  	
              Mortgage
                Loan Schedule.

            

    

     

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

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              3.  	
              Consideration.

            

    

     

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

     

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

     

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

     

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

            

    

     

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

     

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

     

    
      
        
        

      

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

     

    (ii)  the
      original Mortgage with evidence of recording thereon, and a copy, certified
      by
      the appropriate recording office, of the recorded power of attorney, if the
      Mortgage was executed pursuant to a power of attorney, with evidence of
      recording thereon;

     

    (iii)  an
      original Assignment in blank;

     

    (iv)  the
      original recorded Assignment or Assignments showing a complete chain of
      assignment from the originator to the Person assigning the Mortgage to the
      Trustee or in blank;

     

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

     

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

     

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

     

     

    
      
        
        

      

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

     

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

     

     

    
      
        
        

      

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

     

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

     

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

     

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

            

    

     

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

     

    (i)  The
      Seller is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware and is duly authorized and qualified
      to
      transact any and all business contemplated by this Agreement to be conducted
      by
      the Seller in any state in which a Mortgaged Property is located or is otherwise
      not required under applicable law to effect such qualification and, in any
      event, is in compliance with the doing business laws of any such state, to
      the
      extent necessary to ensure its ability to enforce each Mortgage Loan and to
      service the Mortgage Loans in accordance with the terms of the Pooling and
      Servicing Agreement;

     

    
      
        
        

      

      
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    (ii)  The
      Seller had the full corporate power and authority to originate, hold and sell
      each Mortgage Loan and has the full corporate power and authority to service
      each Mortgage Loan, and to execute, deliver and perform, and to enter into
      and
      consummate the transactions contemplated by this Agreement and has duly
      authorized by all necessary corporate action on the part of the Seller the
      execution, delivery and performance of this Agreement; and this Agreement,
      assuming the due authorization, execution and delivery thereof by the Purchaser,
      constitutes a legal, valid and binding obligation of the Seller, enforceable
      against the Seller in accordance with its terms, except to the extent that
      the
      enforceability thereof may be limited by (a) bankruptcy, insolvency, moratorium,
      receivership, conservatorship, arrangement, moratorium and other similar laws
      relating to creditors’ rights generally and (b) the general principles of
      equity, whether such enforcement is sought in equity or at law;

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

            

    

     

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

     

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

     

    (II)  [reserved];

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (xxv)  [reserved];

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

    (xxxv)  There
      are
      no Mortgage Loans with respect to which the monthly payment due thereon in
      December, 2005 had not been made, none of the Mortgage Loans has been
      contractually delinquent for more than 30 days more than once during the
      preceding twelve months and, no Mortgage Loan has ever experienced a delinquency
      of 60 or more days since the origination thereof;

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (lvii)  [reserved];

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

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

            

    

     

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

     

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

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

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

     

    
      	SECTION
              8.  	
              Closing;
                Payment for the Mortgage Loans.

            

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              9.  	
              Closing
                Documents.

            

    

     

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

     

    (a)  An
      Officers’ Certificate of the Seller, dated the Closing Date, upon which the
      Purchaser, Credit Suisse Securities (USA) LLC (“CSS”) and WaMu Capital Corp.
      (“WCC”, and together with CSS, the “Underwriters”) and the NIMS Insurer, if any,
      may rely and attached thereto copies of the certificate of incorporation, bylaws
      and certificate of good standing of the Seller under the laws of the State
      of
      Delaware;

     

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

     

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

     

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

     

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

     

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

     

    (g)  Letters
      from at least two nationally recognized statistical rating agencies rating
      the
      Offered Certificates (as defined in the Prospectus Supplement); and

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

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

     

    
      	SECTION
              10.  	
              Costs.

            

    

     

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

     

    
      	SECTION
              11.  	
              Servicing.

            

    

     

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

     

    
      	SECTION
              12.  	
              Mandatory
                Delivery; Grant of Security Interest.

            

    

     

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

     

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

     

    
      
        
        

      

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

     

    
      	SECTION
              13.  	
              Notices.

            

    

     

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

     

    
      	SECTION
              14.  	
              Severability
                of Provisions.

            

    

     

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

     

    
      	SECTION
              15.  	
              Agreement
                of Parties.

            

    

     

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

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              16.  	
              Survival.

            

    

     

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

     

    
      	SECTION
              17.  	
              Indemnification,
                Representative.
                

            

    

     

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

     

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

     

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

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

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

     

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

            

    

     

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

     

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

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

    
      	SECTION
              19.  	
              Governing
                Law.

            

    

     

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

     

    
      	SECTION
              20.  	
              Miscellaneous.

            

    

     

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

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Loans
      and the Trust Swap Agreement by the Seller to the Purchaser as provided in
      Section 4 hereof be, and be construed as, a sale of the Mortgage Loans and
      the
      Trust Swap Agreement by the Seller to the Purchaser and not as a pledge of
      the
      Mortgage Loans and the Trust Swap Agreement by the Seller to the Purchaser
      to
      secure a debt or other obligation of the Seller. However, in the event that,
      notwithstanding the aforementioned intent of the parties, the Mortgage Loans
      and
      the Trust Swap Agreement are held to be property of the Seller, then, (a) it
      is
      the express intent of the parties that such conveyance be deemed a pledge of
      the
      Mortgage Loans and the Trust Swap Agreement by the Seller to the Purchaser
      to
      secure a debt or other obligation of the Seller and (b) (1) this Agreement
      shall
      also be deemed to be a security agreement within the meaning of Articles 8
      and 9
      of the New York Uniform Commercial Code; (2) the conveyance provided for in
      Section 4 hereof shall be deemed to be a grant by the Seller to the Purchaser
      of
      a security interest in all of the Seller’s right, title and interest in and to
      the Mortgage Loans, the Trust Swap Agreement and all amounts payable to the
      holders of the Mortgage Loans and the Trust Swap Agreement in accordance with
      the terms thereof and all proceeds of the conversion, voluntary or involuntary,
      of the foregoing into cash, instruments, securities or other property, including
      without limitation all amounts, other than investment earnings, from time to
      time held or invested in the Collection Account whether in the form of cash,
      instruments, securities or other property; (3) the possession by the Purchaser
      or its agent of the Mortgage Notes, the Trust Swap Agreement, the related
      Mortgages and such other items of property that constitute instruments, money,
      negotiable documents or chattel paper shall be deemed to be “possession by the
      secured party” for purposes of perfecting the security interest pursuant to
      Section 9-305 of the New York Uniform Commercial Code; and (4) notifications
      to
      persons holding such property, and acknowledgments, receipts or confirmations
      from persons holding such property, shall be deemed notifications to, or
      acknowledgments, receipts or confirmations from, financial intermediaries,
      bailees or agents (as applicable) of the Purchaser for the purpose of perfecting
      such security interest under applicable law. Any assignment of the interest
      of
      the Purchaser pursuant to Section 4(d) hereof shall also be deemed to be an
      assignment of any security interest created hereby. The Seller and the Purchaser
      shall, to the extent consistent with this Agreement, take such actions as may
      be
      necessary to ensure that, if this Agreement were deemed to create a security
      interest in the Mortgage Loans and the Trust Swap Agreement, such security
      interest would be deemed to be a perfected security interest of first priority
      under applicable law and will be maintained as such throughout the term of
      this
      Agreement and the Pooling and Servicing Agreement.

     

    
      	SECTION
              21.  	
              Third
                Party Beneficiary.

            

    

     

    Each
      of
      the Trustee and the NIMS Insurer, if any, shall be a third-party beneficiary
      hereof (except with respect to Section 17) and shall be entitled to enforce
      the provisions hereof as if a party hereto, except the provisions of
      Section 17 hereof. The Underwriters, shall be third-party beneficiaries
      hereof solely with respect to Section 17 and shall be entitled to enforce the
      provisions of Section 17 as if it were a party hereto.

     

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

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

     

    

    LONG
      BEACH SECURITIES CORP.

    

    

    By: _________________________

    Name: Dave
      Coultas

    Title: Authorized
      Officer

    

    

    LONG
      BEACH MORTGAGE COMPANY

    

    

    By: _________________________

    Name: Dave
      Coultas

    Title: First
      Vice President

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A TO MORTGAGE LOAN PURCHASE AGREEMENT

    

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

    

    As
      of
      February 7, 2006 (Update
      as of the Closing Date)

    

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

    

    REVISED
      January 17, 2006

    

    Standard
      & Poor’s has categorized loans governed by anti-predatory lending laws in
      the Jurisdictions listed below into three categories based upon a combination
      of
      factors that include (a) the risk exposure associated with the assignee
      liability and (b) the tests and thresholds set forth in those laws. Note that
      certain loans classified by the relevant statute as Covered are included in
      Standard & Poor’s High Cost Loan Category because they included thresholds
      and tests that are typical of what is generally considered High Cost by the
      industry. 

    

    
      	
              Standard
                & Poor’s High Cost Loan Categorization

            
	 	 	 
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending Law/Effective Date

            	
              Category
                under Applicable Anti-Predatory Lending Law

            
	
              Arkansas

            	
              Arkansas
                Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et seq.

              Effective
                July 16, 2003

            	
              High
                Cost Home Loan

            
	
              Cleveland
                Heights, OH

            	
              Ordinance
                No. 72-2003 (PSH), Mun. Code §§ 757.01 et seq.

              Effective
                June 2, 2003 

            	
              Covered
                Loan

            
	
              Colorado

            	
              Consumer
                Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et seq.

              Effective
                for covered loans offered or entered into on or after January 1,
                2003.
                Other provisions of the Act took effect on June 7, 2002

            	
              Covered
                Loan

            
	
              Connecticut

            	
              Connecticut
                Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746
                et seq.
                

              Effective
                October 1, 2001

            	
              High
                Cost Home Loan

            
	
              District
                of Columbia

            	
              Home
                Loan Protection Act, D.C. Code §§ 26-1151.01 et seq.

              Effective
                for loans closed on or after January 28, 2003

            	
              Covered
                Loan

            
	
              Florida

            	
              Fair
                Lending Act, Fla. Stat. Ann. §§ 494.0078 et seq.

              Effective
                October 2, 2002

            	
              High
                Cost Home Loan

            

    

     

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    
      	
              Standard
                & Poor’s High Cost Loan Categorization

            
	 	 	 
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending Law/Effective Date

            	
              Category
                under Applicable Anti-Predatory Lending Law

            
	
              Georgia
                (Oct. 1, 2002 - Mar. 6, 2003)

            	
              Georgia
                Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

              Effective
                October 1, 2002 - March 6, 2003

            	
              High
                Cost Home Loan

            
	
              Georgia
                as amended (Mar. 7, 2003 - current)

            	
              Georgia
                Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

              Effective
                for loans closed on or after March 7, 2003

            	
              High
                Cost Home Loan

            
	
              HOEPA
                Section 32

            	
              Home
                Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R.
                §§ 226.32 and 226.34

              Effective
                October 1, 1995, amendments October 1, 2002

            	
              High
                Cost Loan

            
	
              Illinois

            	
              High
                Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et seq.

              Effective
                January 1, 2004 (prior to this date, regulations under Residential
                Mortgage License Act effective from May 14, 2001)

            	
              High
                Risk Home Loan 

            
	
              Kansas

            	
              Consumer
                Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et seq.\

               

              Sections
                16a-1-301 and 16a-3-207 became effective April 14, 1999; Section
                16a-3-308a became effective July 1, 1999 

            	
              High
                Loan to Value Consumer Loan (id.§
                16a-3-207) and;

            
	
              High
                APR Consumer Loan (id.§
                16a-3-308a)

            
	
              Kentucky

            	
              2003
                KY H.B. 287 - High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100
                et seq.

              Effective
                June 24, 2003

            	
              High
                Cost Home Loan

            
	
              Maine

            	
              Truth
                in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et seq.

              Effective
                September 29, 1995 and as amended from time to time

            	
              High
                Rate High Fee Mortgage

            
	
              Massachusetts

            	
              Part
                40 and Part 32, 209 C.M.R. §§ 32.00 et seq.
                and 209 C.M.R. §§ 40.01 et seq.

              Effective
                March 22, 2001 and amended from time to time

            	
              High
                Cost Home Loan

            

    

     

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Standard
                & Poor’s High Cost Loan Categorization

            
	 	 	 
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending Law/Effective Date

            	
              Category
                under Applicable Anti-Predatory Lending Law

            
	
              Nevada

            	
              Assembly
                Bill No. 284, Nev. Rev. Stat. §§ 598D.010 et seq.

              Effective
                October 1, 2003

            	
              Home
                Loan

            
	
              New
                Jersey

            	
              New
                Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                et seq.

              Effective
                for loans closed on or after November 27, 2003

            	
              High
                Cost Home Loan

            
	
              New
                Mexico

            	
              Home
                Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

              Effective
                as of January 1, 2004; Revised as of February 26, 2004

            	
              High
                Cost Home Loan

            
	
              New
                York

            	
              N.Y.
                Banking Law Article 6-l

              Effective
                for applications made on or after April 1, 2003

            	
              High
                Cost Home Loan

            
	
              North
                Carolina

            	
              Restrictions
                and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                et seq.

              Effective
                July 1, 2000; amended October 1, 2003 (adding open-end lines of
                credit)

            	
              High
                Cost Home Loan

            
	
              Ohio

            	
              H.B.
                386 (codified in various sections of the Ohio Code), Ohio Rev. Code
                Ann.
                §§ 1349.25 et seq.

              Effective
                May 24, 2002

            	
              Covered
                Loan

            
	
              Oklahoma

            	
              Consumer
                Credit Code (codified in various sections of Title 14A)

              Effective
                July 1, 2000; amended effective January 1, 2004

            	
              Subsection
                10 Mortgage

            
	
              South
                Carolina

            	
              South
                Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann. §§ 37-23-10
                et seq.

              Effective
                for loans taken on or after January 1, 2004

            	
              High
                Cost Home Loan

            
	
              West
                Virginia 

            	
              West
                Virginia Residential Mortgage Lender, Broker and Servicer Act, W.
                Va. Code
                Ann. §§ 31-17-1 et seq.

              Effective
                June 5, 2002

            	
              West
                Virginia Mortgage Loan Act Loan

            

    

     

    

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    
      	
              Standard
                & Poor’s High Cost Loan Categorization

            
	 	 	 
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending Law/Effective Date

            	
              Category
                under Applicable Anti-Predatory Lending Law

            
	
              Georgia
                (Oct. 1, 2002 - Mar. 6, 2003)

            	
              Georgia
                Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

              Effective
                October 1, 2002 - March 6, 2003

            	
              Covered
                Loan

            
	
              New
                Jersey

            	
              New
                Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                et seq.

              Effective
                November 27, 2003 - July 5, 2004

            	
              Covered
                Home Loan

            

    

     

    

    
      	
              Standard
                & Poor’s Home Loan Categorization

            
	 	 	 
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending Law/Effective Date

            	
              Category
                under Applicable Anti-Predatory Lending Law

            
	
              Georgia
                (Oct. 1, 2002 - Mar. 6, 2003)

            	
              Georgia
                Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

              Effective
                October 1, 2002 - March 6, 2003

            	
              Home
                Loan

            
	
              New
                Jersey

            	
              New
                Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                et seq.

              Effective
                for loans closed on or after November 27, 2003

            	
              Home
                Loan

            
	
              New
                Mexico

            	
              Home
                Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

              Effective
                as of January 1, 2004; Revised as of February 26, 2004

            	
              Home
                Loan

            

    

     

     

    
       

      
        
          
          

        

        
          A-4

          
            

          

        

        
          
          

        

      

       

    

     

     

    
      	Standard
&
Poor's
              Home Loan
              Categorization
	 
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending Law/Effective Date

            	
              Category
                under Applicable Anti-Predatory Lending Law

            
	
              North
                Carolina

            	
              Restrictions
                and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                et seq.

              Effective
                July 1, 2000; amended October 1, 2003 (adding open-end lines of
                credit)

            	
              Consumer
                Home Loan

            
	
              South
                Carolina

            	
              South
                Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann. §§ 37-23-10
                et seq.

              Effective
                for loans taken on or after January 1, 2004

            	
              Consumer
                Home Loan

            

    

    

    

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

    

    Trust
      Swap Agreement

    
      	
              Provider

            	
              Transaction
                Reference

            
	 	 
	
              Credit
                Suisse International

            	
              External
                ID: 53101624N3 / Risk ID: 447390557(Multicurrency—Cross
      Border)

     

     

    ISDAÒ

    International
      Swap Dealers Association, Inc.

     

    MASTER
      AGREEMENT

     

    dated
      as
      of February 7, 2006

     

    
      	
              CREDIT
                SUISSE INTERNATIONAL

              (“Party
                A”)

            	
              And

            	
              Long
                Beach Mortgage Loan Trust 2006-1

              (“Party
                B”)

            

    

    

     

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

     

    Accordingly,
      the parties agree as follows:—

     

    1.  Interpretation

     

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

     

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

     

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

     

    2.  Obligations

     

    (a)  General
      Conditions.

     

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

     

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

     

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

     

    
      
        
          

          
            	
                    Copyright
                      ©
                      1992 by International Swap Dealers Association, Inc.

                  
	 

          

          

        

      

      
        
          

        

      

       

    

    (b)  Change
      of Account.
      Either
      party may change its account for receiving a payment or delivery by giving
      notice to the other party at least five Local Business Days prior to the
      scheduled date for the payment or delivery to which such change applies unless
      such other party gives timely notice of a reasonable objection to such
      change.

     

    (c)  Netting.
      If on
      any date amounts would otherwise be payable:—

     

    (i)  in
      the
      same currency; and

     

    (ii)  in
      respect of the same Transaction,

     

    by
      each
      party to the other, then, on such date, each party’s obligation to make payment
      of any such amount will be automatically satisfied and discharged and, if the
      aggregate amount that would otherwise have been payable by one party exceeds
      the
      aggregate amount that would otherwise have been payable by the other party,
      replaced by an obligation upon the party by whom the larger aggregate amount
      would have been payable to pay to the other party the excess of the larger
      aggregate amount over the smaller aggregate amount.

     

    The
      parties may elect in respect of two or more Transactions that a net amount
      will
      be determined in respect of all amounts payable on the same date in the same
      currency in respect of such Transactions, regardless of whether such amounts
      are
      payable in respect of the same Transaction. The election may be made in the
      Schedule or a Confirmation by specifying that subparagraph (ii) above will
      not
      apply to the Transactions identified as being subject to the election, together
      with the starting date (in which case subparagraph (ii) above will not, or
      will
      cease to, apply to such Transactions from such date). This election may be
      made
      separately for different groups of Transactions and will apply separately to
      each pairing of Offices through which the parties make and receive payments
      or
      deliveries.

     

    (d)  Deduction
      or Withholding for Tax.

     

    (i)  Gross-Up.
      All
      payments under this Agreement will be made without any deduction or withholding
      for or on account of any Tax unless such deduction or withholding is required
      by
      any applicable law, as modified by the practice of any relevant governmental
      revenue authority, then in effect. If a party is so required to deduct or
      withhold, then that party (“X”) will:—

     

    (1)  promptly
      notify the other party (“Y”) of such requirement;

     

    (2)  pay
      to
      the relevant authorities the full amount required to be deducted or withheld
      (including the full amount required to be deducted or withheld from any
      additional amount paid by X to Y under this Section 2(d)) promptly upon the
      earlier of determining that such deduction or withholding is required or
      receiving notice that such amount has been assessed against Y;

     

    (3)  promptly
      forward to Y an official receipt (or a certified copy), or other documentation
      reasonably acceptable to Y, evidencing such payment to such authorities;
      and

     

    (4)  if
      such
      Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which
      Y is
otherwise
      entitled under this Agreement, such additional amount as is necessary to
      ensure that
      the
      net
      amount actually received by Y (free and clear of Indemnifiable Taxes, whether
      assessed against X or Y) will equal the full amount Y would have received had
      no
      such deduction or withholding been required. However, X will not be required
      to
      pay any additional amount to Y to
      the
      extent that it would not be required to be paid but for:—

     

    (A)  the
      failure by Y to comply with or perform any agreement contained in Section
      4(a)(i), 4(a)(iii) or 4(d); or

     

    (B)  the
      failure of a representation made by Y pursuant to Section 3(f) to be accurate
      and true unless such failure would not have occurred but for (I) any action
      taken by a taxing authority, or brought in a court of competent jurisdiction,
      on
      or after the date on which a Transaction is entered into (regardless of whether
      such action is taken or brought with respect to a party to this Agreement)
      or
      (II) a Change in Tax Law.

     

    (ii)  Liability.
      If:—

     

    
      
        ISDA
          ® 1992

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (1)  X
      is
      required by any applicable law, as modified by the practice of any relevant
      governmental revenue authority, to make any deduction or withholding in respect
      of which X would not be required to pay an additional amount to Y under Section
      2(d)(i)(4);

     

    (2)  X
      does
      not so deduct or withhold; and

     

    (3)  a
      liability resulting from such Tax is assessed directly against X,

     

    then,
      except to the extent Y has satisfied or then satisfies the liability resulting
      from such Tax, Y will promptly pay to X the amount of such liability (including
      any related liability for interest, but including any related liability for
      penalties only if Y has failed to comply with or perform any agreement contained
      in Section 4(a)(i), 4(a)(iii) or 4(d)).

     

    (e)  Default
      Interest; Other Amounts.
      Prior
      to the occurrence or effective designation of an Early Termination Date in
      respect of the relevant Transaction, a party that defaults in the performance
      of
      any payment obligation will, to the extent permitted by law and subject to
      Section 6(c), be required to pay interest (before as well as after judgment)
      on
      the overdue amount to the other party on demand in the same currency as such
      overdue amount, for the period from (and including) the original due date for
      payment to (but excluding) the date of actual payment, at the Default Rate.
      Such
      interest will be calculated on the basis of daily compounding and the actual
      number of days elapsed. If, prior to the occurrence or effective designation
      of
      an Early Termination Date in respect of the relevant Transaction, a party
      defaults in the performance of any obligation required to be settled by
      delivery, it will compensate the other party on demand if and to the extent
      provided for in the relevant Confirmation or elsewhere in this
      Agreement.

     

    3.  Representations

     

    Each
      party represents to the other party (which representations will be deemed to
      be
      repeated by each party on each date on which a Transaction is entered into
      and,
      in the case of the representations in Section 3(f), at all times until the
      termination of this Agreement) that:—

     

    (a)  Basic
      Representations.

     

    (i)  Status.
      It is
      duly organised and validly existing under the laws of the jurisdiction of its
      organisation or incorporation and, if relevant under such laws, in good
      standing;

     

    (ii)  Powers.
      It has
      the power to execute this Agreement and any other documentation relating to
      this
      Agreement to which it is a party, to deliver this Agreement and any other
      documentation relating to this Agreement that it is required by this Agreement
      to deliver and to perform its obligations under this Agreement and any
      obligations it has under any Credit Support Document to which it is a party
      and
      has taken all necessary action to authorise such execution, delivery and
      performance;

     

    (iii)  No
      Violation or Conflict.
      Such
      execution, delivery and performance do not violate or conflict with any law
      applicable to it, any provision of its constitutional documents, any order
      or
      judgment of any court or other agency of government applicable to it or any
      of
      its assets or any contractual restriction binding on or affecting it or any
      of
      its assets;

     

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

     

    (v)  Obligations
      Binding.
      Its
      obligations under this Agreement and any Credit Support Document to which it
      is
      a party constitute its legal, valid and binding obligations, enforceable in
      accordance with their respective terms (subject to applicable bankruptcy,
      reorganisation, insolvency, moratorium or similar laws affecting creditors’
rights generally and subject, as to enforceability, to equitable principles
      of
      general application (regardless of whether enforcement is sought in a proceeding
      in equity or at law)).

    
       

      
        
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    (b)  Absence
      of Certain Events.
      No
      Event of Default or Potential Event of Default or, to its knowledge, Termination
      Event with respect to it has occurred and is continuing and no such event or
      circumstance would occur as a result of its entering into or performing its
      obligations under this Agreement or any Credit Support Document to which it
      is a
      party.

     

    (c)  Absence
      of Litigation.
      There
      is not pending or, to its knowledge, threatened against it or any of its
      Affiliates any action, suit or proceeding at law or in equity or before any
      court, tribunal, governmental body, agency or official or any arbitrator that
      is
      likely to affect the legality, validity or enforceability against it of this
      Agreement or any Credit Support Document to which it is a party or its ability
      to perform its obligations under this Agreement or such Credit Support
      Document.

     

    (d)  Accuracy
      of Specified Information.
      All
      applicable information that is furnished in writing by or on behalf of it to
      the
      other party and is identified for the purpose of this Section 3(d) in the
      Schedule is, as of the date of the information, true, accurate and complete
      in
      every material respect.

     

    (e)  Payer
      Tax Representation.
      Each
      representation specified in the Schedule as being made by it for the purpose
      of
      this Section 3(e) is accurate and true.

    
       

    

    (f)  Payee
      Tax Representations.
      Each
      representation specified in the Schedule as being made by it for the purpose
      of
      this Section 3(f) is accurate and true.

     

    4.  Agreements

     

    Each
      party agrees with the other that, so long as either party has or may have any
      obligation under this Agreement or under any Credit Support Document to which
      it
      is a party:—

     

    (a)  Furnish
      Specified Information.
      It will
      deliver to the other party or, in certain cases under subparagraph (iii) below,
      to such government or taxing authority as the other party reasonably
      directs:

     

    (i)  any
      forms, documents or certificates relating to taxation specified in the Schedule
      or any Confirmation;

     

    (ii)  any
      other
      documents specified in the Schedule or any Confirmation; and

     

    (iii)  upon
      reasonable demand by such other party, any form or document that may be required
      or reasonably requested in writing in order to allow such other party or its
      Credit Support Provider to make a payment under this Agreement or any applicable
      Credit Support Document without any deduction or withholding for or on account
      of any Tax or with such deduction or withholding at a reduced rate (so long
      as
      the completion, execution or submission of such form or document would not
      materially prejudice the legal or commercial position of the party in receipt
      of
      such demand), with any such form or document to be accurate and completed in
      a
      manner reasonably satisfactory to such other party and to be executed and to
      be
      delivered with any reasonably required certification,

     

    in
      each
      case by the date specified in the Schedule or such Confirmation or, if none
      is
      specified, as soon as reasonably practicable.

     

    (b)  Maintain
      Authorisations.
      It will
      use all reasonable efforts to maintain in full force and effect all consents
      of
      any governmental or other authority that are required to be obtained by it
      with
      respect to this Agreement or any Credit Support Document to which it is a party
      and will use all reasonable efforts to obtain any that may become necessary
      in
      the future.

     

    (c)  Comply
      with Laws.
      It will
      comply in all material respects with all applicable laws and orders to which
      it
      may be subject if failure so to comply would materially impair its ability
      to
      perform its obligations under this Agreement or any Credit Support Document
      to
      which it is a party.

     

    (d)  Tax
      Agreement.
      It will
      give notice of any failure of a representation made by it under Section 3(f)
      to
      be accurate and true promptly upon learning of such failure.

     

    (e)  Payment
      of Stamp Tax.
      Subject
      to Section 11, it will pay any Stamp Tax levied or imposed upon it or in respect
      of its execution or performance of this Agreement by a jurisdiction in which
      it
      is incorporated, organised, managed and controlled, or considered to have its
      seat, or in which a branch or office through which it is acting for the purpose
      of this Agreement is located (“Stamp Tax Jurisdiction”) and will indemnify the
      other party against any Stamp Tax levied or imposed upon the other party or
      in
      respect of the other party’s execution or performance of this Agreement by any
      such Stamp Tax Jurisdiction which is not also a Stamp Tax Jurisdiction with
      respect to the other party.

    
       

      
        
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    5.  Events
      of Default and Termination Events

     

    (a)  Events
      of Default.
      The
      occurrence at any time with respect to a party or, if applicable, any Credit
      Support Provider of such party or any Specified Entity of such party of any
      of
      the following events constitutes an event of default (an “Event of Default”)
      with respect to such party:—

     

    (i)  Failure
      to Pay or Deliver.
      Failure
      by the party to make, when due, any payment under this Agreement or delivery
      under Section 2(a)(i) or 2(e) required to be made by it if such failure is
      not
      remedied on or before the third Local Business Day after notice of such failure
      is given to the party;

     

    (ii)  Breach
      of Agreement.
      Failure
      by the party to comply with or perform any agreement or obligation (other than
      an obligation to make any payment under this Agreement or delivery under Section
      2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or
      obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or
      performed by the party in accordance with this Agreement if such failure is
      not
      remedied on or before the thirtieth day after notice of such failure is given
      to
      the party;

     

    (iii)  Credit
      Support Default.

     

    (1)  Failure
      by the party or any Credit Support Provider of such party to comply with or
      perform any agreement or obligation to be complied with or performed by it
      in
      accordance with any Credit Support Document if such failure is continuing after
      any applicable grace period has elapsed;

     

    (2)  the
      expiration or termination of such Credit Support Document or the failing or
      ceasing of such Credit Support Document to be in full force and effect for
      the
      purpose of this Agreement (in either case other than in accordance with its
      terms) prior to the satisfaction of all obligations of such party under each
      Transaction to which such Credit Support Document relates without the written
      consent of the other party; or

     

    (3)  the
      party
      or such Credit Support Provider disaffirms, disclaims, repudiates or rejects,
      in
      whole or in part, or challenges the validity of, such Credit Support
      Document;

     

    (iv)  Misrepresentation.
      A
      representation (other than a representation under Section 3(e) or (f)) made
      or
      repeated or deemed to have been made or repeated by the party or any Credit
      Support Provider of such party in this Agreement or any Credit Support Document
      proves to have been incorrect or misleading in any material respect when made
      or
      repeated or deemed to have been made or repeated;

     

    (v)  Default
      under Specified Transaction.
      The
      party, any Credit Support Provider of such party or any applicable Specified
      Entity of such party (1) defaults under a Specified Transaction and, after
      giving effect to any applicable notice requirement or grace period, there occurs
      a liquidation of, an acceleration of obligations under, or an early termination
      of, that Specified Transaction, (2) defaults, after giving effect to any
      applicable notice requirement or grace period, in making any payment or delivery
      due on the last payment, delivery or exchange date of, or any payment on early
      termination of, a Specified Transaction (or such default continues for at least
      three Local Business Days if there is no applicable notice requirement or grace
      period) or (3) disaffirms, disclaims, repudiates or rejects, in whole or in
      part, a Specified Transaction (or such action is taken by any person or entity
      appointed or empowered to operate it or act on its behalf);

    
       

      
        
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    (vi)  Cross
      Default.
      If
“Cross Default” is specified in the Schedule as applying to the party, the
      occurrence or existence of (1) a default, event of default or other similar
      condition or event (however described)
      in respect of such party, any Credit Support Provider of such party or any
      applicable Specified Entity of such party under one or more agreements or
      instruments relating to Specified Indebtedness of any of them (individually
      or
      collectively) in an aggregate amount of not less than the applicable Threshold
      Amount (as specified in the Schedule) which has resulted in such Specified
      Indebtedness becoming, or becoming capable at such time of being declared,
      due
      and payable under such agreements or instruments, before it would otherwise
      have
      been due and payable or (2) a default by such party, such Credit Support
      Provider or such Specified Entity (individually or collectively) in making
      one
      or more payments on the due date thereof in an aggregate amount of not less
      than
      the applicable Threshold Amount under such agreements or instruments (after
      giving effect to any applicable notice requirement or grace
      period);

     

    (vii)  Bankruptcy.
      The
      party, any Credit Support Provider of such party or any applicable Specified
      Entity of such party:—

     

    (1)  is
      dissolved (other than pursuant to a consolidation, amalgamation or merger);
      (2)
      becomes insolvent or is unable to pay its debts or fails or admits in writing
      its inability generally to pay its debts as they become due; (3) makes a general
      assignment, arrangement or composition with or for the benefit of its creditors;
      (4) institutes or has instituted against it a proceeding seeking a judgment
      of
      insolvency or bankruptcy or any other relief under any bankruptcy or insolvency
      law or other similar law affecting creditors’ rights, or a petition is presented
      for its winding-up or liquidation, and, in the case of any such proceeding
      or
      petition instituted or presented against it, such proceeding or petition (A)
      results in a judgment of insolvency or bankruptcy or the entry of an order
      for
      relief or the making of an order for its winding-up or liquidation or (B) is
      not
      dismissed, discharged, stayed or restrained in each case within 30 days of
      the
      institution or presentation thereof; (5) has a resolution passed for its
      winding-up, official management or liquidation (other than pursuant to a
      consolidation, amalgamation or merger); (6) seeks or becomes subject to the
      appointment of an administrator, provisional liquidator, conservator, receiver,
      trustee, custodian or other similar official for it or for all or substantially
      all its assets; (7) has a secured party take possession of all or substantially
      all its assets or has a distress, execution, attachment, sequestration or other
      legal process levied, enforced or sued on or against all or substantially all
      its assets and such secured party maintains possession, or any such process
      is
      not dismissed, discharged, stayed or restrained, in each case within 30 days
      thereafter; (8) causes or is subject to any event with respect to it which,
      under the applicable laws of any jurisdiction, has an analogous effect to any
      of
      the events specified in clauses (1) to (7) (inclusive); or (9) takes any action
      in furtherance of, or indicating its consent to, approval of, or acquiescence
      in, any of the foregoing acts; or

     

    (viii)  Merger
      Without Assumption.
      The
      party or any Credit Support Provider of such party consolidates or amalgamates
      with, or merges with or into, or transfers all or substantially all its assets
      to, another entity and, at the time of such consolidation, amalgamation, merger
      or transfer:—

     

    (1)  the
      resulting, surviving or transferee entity fails to assume all the obligations
      of
      such party or such Credit Support Provider under this Agreement or any Credit
      Support Document to which it or its predecessor was a party by operation of
      law
      or pursuant to an agreement reasonably satisfactory to the other party to this
      Agreement; or

     

    (2)  the
      benefits of any Credit Support Document fail to extend (without the consent
      of
      the other party) to the performance by such resulting, surviving or transferee
      entity of its obligations under this Agreement.

     

    (b)  Termination
      Events.
      The
      occurrence at any time with respect to a party or, if applicable, any Credit
      Support Provider of such party or any Specified Entity of such party of any
      event specified below constitutes an Illegality if the event is specified in
      (i)
      below, a Tax Event if the event is specified in (ii) below or a Tax Event Upon
      Merger if the event is specified in (iii) below, and, if specified to be
      applicable, a Credit Event Upon Merger if the event is specified pursuant to
      (iv) below or an Additional Termination Event if the event is specified pursuant
      to (v) below:—

    
       

      
        
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    (i)  Illegality.
      Due to
      the adoption of, or any change in, any applicable law after the date on which
      a
      Transaction is entered into, or due to the promulgation of, or any change in,
      the interpretation by any court, tribunal or regulatory authority with competent
      jurisdiction of any applicable law after such date, it becomes unlawful (other
      than as a result of a breach by the party of Section 4(b)) for such party (which
      will be the Affected Party):—

     

    (1)  to
      perform any absolute or contingent obligation to make a payment or delivery
      or
      to receive a payment or delivery in respect of such Transaction or to comply
      with any other material provision of this Agreement relating to such
      Transaction; or

     

    (2)  to
      perform, or for any Credit Support Provider of such party to perform, any
      contingent or other obligation which the party (or such Credit Support Provider)
      has under any Credit Support Document relating to such Transaction;

     

    (ii)  Tax
      Event.
      Due to
      (x) any action taken by a taxing authority, or brought in a court of competent
      jurisdiction, on or after the date on which a Transaction is entered into
      (regardless of whether such action is taken or brought with respect to a party
      to this Agreement) or (y) a Change in Tax Law, the party (which will be the
      Affected Party) will, or there is a substantial likelihood that it will, on
      the
      next succeeding Scheduled Payment Date (1) be required to pay to the other
      party
      an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4)
      (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2)
      receive a payment from which an amount is required to be deducted or withheld
      for or on account of a Tax (except in respect of interest under Section 2(e),
      6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect
      of
      such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A)
      or (B));

     

    (iii)  Tax
      Event Upon Merger.
      The
      party (the “Burdened Party”) on the next succeeding Scheduled Payment Date will
      either (1) be required to pay an additional amount in respect of an
      Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under
      Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount
      has been deducted or withheld for or on account of any Indemnifiable Tax in
      respect of which the other party is not required to pay an additional amount
      (other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a
      result of a party consolidating or amalgamating with, or merging with or into,
      or transferring all or substantially all its assets to, another entity (which
      will be the Affected Party) where such action does not constitute an event
      described in Section 5(a)(viii);

     

    (iv)  Credit
      Event Upon Merger.
      If
“Credit Event Upon Merger” is specified in the Schedule as applying to the
      party, such party (“X”), any Credit Support Provider of X or any applicable
      Specified Entity of X consolidates or amalgamates with, or merges with or into,
      or transfers all or substantially all its assets to, another entity and such
      action does not constitute an event described in Section 5(a)(viii) but the
      creditworthiness of the resulting, surviving or transferee entity is materially
      weaker than that of X, such Credit Support Provider or such Specified Entity,
      as
      the case may be, immediately prior to such action (and, in such event, X or
      its
      successor or transferee, as appropriate, will be the Affected Party);
      or

     

    (v)  Additional
      Termination Event.
      If any
“Additional Termination Event” is specified in the Schedule or any Confirmation
      as applying, the occurrence of such event (and, in such event, the Affected
      Party or Affected Parties shall be as specified for such Additional Termination
      Event in the Schedule or such Confirmation).

     

    (c)  Event
      of Default and Illegality.
      If an
      event or circumstance which would otherwise constitute or give rise to an Event
      of Default also constitutes an Illegality, it will be treated as an Illegality
      and will not constitute an Event of Default.

    
       

      
        
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    6.  Early
      Termination

     

    (a)  Right
      to Terminate Following Event of Default.
      If at
      any time an Event of Default with respect to a party (the “Defaulting Party”)
      has occurred and is then continuing, the other party (the “Non-defaulting
      Party”) may, by not more than 20 days notice to the Defaulting Party specifying
      the relevant Event of Default, designate a day not earlier than the day such
      notice is effective as an Early Termination Date in respect of all outstanding
      Transactions. If, however, “Automatic Early Termination” is specified in the
      Schedule as applying to a party, then an Early Termination Date in respect
      of
      all outstanding Transactions will occur immediately upon the occurrence with
      respect to such party of an Event of Default specified in Section 5(a)(vii)(1),
      (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time
      immediately preceding the institution of the relevant proceeding or the
      presentation of the relevant petition upon the occurrence with respect to such
      party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent
      analogous thereto, (8).

     

    (b)  Right
      to Terminate Following Termination Event.

     

    (i)  Notice.
      If a
      Termination Event occurs, an Affected Party will, promptly upon becoming aware
      of it, notify the other party, specifying the nature of that Termination Event
      and each Affected Transaction and will also give such other information about
      that Termination Event as the other party may reasonably require.

     

    (ii)  Transfer
      to Avoid Termination Event.
      If
      either an Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there
      is
      only one Affected Party, or if a Tax Event Upon Merger occurs and the Burdened
      Party is the Affected Party, the Affected Party will, as a condition to its
      right to designate an Early Termination Date under Section 6(b)(iv), use all
      reasonable efforts (which will not require such party to incur a loss, excluding
      immaterial, incidental expenses) to transfer within 20 days after it gives
      notice under Section 6(b)(i) all its rights and obligations under this Agreement
      in respect of the Affected Transactions to another of its Offices or Affiliates
      so that such Termination Event ceases to exist.

     

    If
      the
      Affected Party is not able to make such a transfer it will give notice to the
      other party to that effect within such 20 day period, whereupon the other party
      may effect such a transfer within 30 days after the notice is given under
      Section 6(b)(i).

     

    Any
      such
      transfer by a party under this Section 6(b)(ii) will be subject to and
      conditional upon the prior written consent of the other party, which consent
      will not be withheld if such other party’s policies in effect at such time would
      permit it to enter into transactions with the transferee on the terms
      proposed.

     

    (iii)  Two
      Affected Parties.
      If an
      Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there are two
      Affected Parties, each party will use all reasonable efforts to reach agreement
      within 30 days after notice thereof is given under Section 6(b)(i) on action
      to
      avoid that Termination Event.

     

    (iv)  Right
      to Terminate.
      If:—

     

    (1)  a
      transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as
      the case may be, has not been effected with respect to all Affected Transactions
      within 30 days after an Affected Party gives notice under Section 6(b)(i);
      or

     

    (2)  an
      Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional
      Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened
      Party is not the Affected Party,

     

    either
      party in the case of an Illegality, the Burdened Party in the case of a Tax
      Event Upon Merger, any Affected Party in the case of a Tax Event or an
      Additional Termination Event if there is more than one Affected Party, or the
      party which is not the Affected Party in the case of a Credit Event Upon Merger
      or an Additional Termination Event if there is only one Affected Party may,
      by
      not more
      than
      20 days notice to the other party and provided that the relevant Termination
      Event is then continuing,
      designate a day not earlier than the day such notice is effective as an Early
      Termination Date in respect of all Affected Transactions.

    
      
         

        
          
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    (c)  Effect
      of Designation.

     

    (i)  If
      notice
      designating an Early Termination Date is given under Section 6(a) or (b),
      the Early Termination Date will occur on the date so designated, whether or
      not
      the relevant Event of Default or Termination Event is then
      continuing.

     

    (ii)  Upon
      the
      occurrence or effective designation of an Early Termination Date, no further
      payments or deliveries under Section 2(a)(i) or 2(e) in respect of the
      Terminated Transactions will be required to be made, but without prejudice
      to
      the other provisions of this Agreement. The amount, if any, payable in respect
      of an Early Termination Date shall be determined pursuant to Section
      6(e).

     

    (d)  Calculations.

     

    (i)  Statement.
      On or
      as soon as reasonably practicable following the occurrence of an Early
      Termination Date, each party will make the calculations on its part, if any,
      contemplated by Section 6(e) and will provide to the other party a statement
      (1)
      showing, in reasonable detail, such calculations (including all relevant
      quotations and specifying any amount payable under Section 6(e)) and (2) giving
      details of the relevant account to which any amount payable to it is to be
      paid.
      In the absence of written confirmation from the source of a quotation obtained
      in determining a Market Quotation, the records of the party obtaining such
      quotation will be conclusive evidence of the existence and accuracy of such
      quotation.

     

    (ii)  Payment
      Date.
      An
      amount calculated as being due in respect of any Early Termination Date under
      Section 6(e) will be payable on the day that notice of the amount payable is
      effective (in the case of an Early Termination Date which is designated or
      occurs as a result of an Event of Default) and on the day which is two Local
      Business Days after the day on which notice of the amount payable is effective
      (in the case of an Early Termination Date which is designated as a result of
      a
      Termination Event). Such amount will be paid together with (to the extent
      permitted under applicable law) interest thereon (before as well as after
      judgment) in the Termination Currency, from (and including) the relevant Early
      Termination Date to (but excluding) the date such amount is paid, at the
      Applicable Rate. Such interest will be calculated on the basis of daily
      compounding and the actual number of days elapsed.

     

    (e)  Payments
      on Early Termination.
      If an
      Early Termination Date occurs, the following provisions shall apply based on
      the
      parties’ election in the Schedule of a payment measure, either “Market
      Quotation” or “Loss”, and a payment method, either the “First Method” or the
“Second Method”. If the parties fail to designate a payment measure or payment
      method in the Schedule, it will be deemed that “Market Quotation” or the “Second
      Method”, as the case may be, shall apply. The amount, if any, payable in respect
      of an Early Termination Date and determined pursuant to this Section will be
      subject to any Set-off.

     

    (i)  Events
      of Default.
      If the
      Early Termination Date results from an Event of Default:—

     

    (1)  First
      Method and Market Quotation.
      If the
      First Method and Market Quotation apply, the Defaulting Party will pay to the
      Non-defaulting Party the excess, if a positive number, of (A) the sum of the
      Settlement Amount (determined by the Non-defaulting Party) in respect of the
      Terminated Transactions and the Termination Currency Equivalent of the Unpaid
      Amounts owing to the Non-defaulting Party over (B) the Termination Currency
      Equivalent of the Unpaid Amounts owing to the Defaulting Party.

     

    (2)  First
      Method and Loss.
      If the
      First Method and Loss apply, the Defaulting Party will pay to the Non-defaulting
      Party, if a positive number, the Non-defaulting Party’s Loss in respect of this
      Agreement.

     

    (3)  Second
      Method and Market Quotation.
      If the
      Second Method and Market Quotation apply, an amount will be payable equal to
      (A)
      the sum of the Settlement Amount (determined by
      the

     

    
      
         

        
          
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    Non-defaulting
      Party) in respect of the Terminated Transactions and the Termination Currency
      Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (B)
      the
      Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting
      Party. If that amount is a positive number, the Defaulting Party will pay it
      to
      the Non-defaulting Party; if it is a negative number, the Non-defaulting Party
      will pay the absolute value of that amount to the Defaulting Party.

     

    (4)  Second
      Method and Loss.
      If the
      Second Method and Loss apply, an amount will be payable equal to the
      Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
      positive number, the Defaulting Party will pay it to the Non-defaulting Party;
      if it is a negative number, the Non-defaulting Party will pay the absolute
      value
      of that amount to the Defaulting Party.

     

    (ii)  Termination
      Events.
      If the
      Early Termination Date results from a Termination Event:—

     

    (1)  One
      Affected Party.
      If
      there is one Affected Party, the amount payable will be determined in accordance
      with Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4),
      if
      Loss applies, except that, in either case, references to the Defaulting Party
      and to the Non-defaulting Party will be deemed to be references to the Affected
      Party and the party which is not the Affected Party, respectively, and, if
      Loss
      applies and fewer than all the Transactions are being terminated, Loss shall
      be
      calculated in respect of all Terminated Transactions.

     

    (2)  Two
      Affected Parties.
      If
      there are two Affected Parties:—

     

    (A)  if
      Market
      Quotation applies, each party will determine a Settlement Amount in respect
      of
      the Terminated Transactions, and an amount will be payable equal to (I) the
      sum
      of (a) one-half of the difference between the Settlement Amount of the party
      with the higher Settlement Amount (“X”) and the Settlement Amount of the party
      with the lower Settlement Amount (“Y”) and (b) the Termination Currency
      Equivalent of the Unpaid Amounts owing to X less (II) the Termination Currency
      Equivalent of the Unpaid Amounts owing to Y; and

     

    (B)  if
      Loss
      applies, each party will determine its Loss in respect of this Agreement (or,
      if
      fewer than all the Transactions are being terminated, in respect of all
      Terminated Transactions) and an amount will be payable equal to one-half of
      the
      difference between the Loss of the party with the higher Loss (“X”) and the Loss
      of the party with the lower Loss (“Y”).

     

    If
      the
      amount payable is a positive number, Y will pay it to X; if it is a negative
      number, X will pay the absolute value of that amount to Y.

     

    (iii)  Adjustment
      for Bankruptcy.
      In
      circumstances where an Early Termination Date occurs because “Automatic Early
      Termination” applies in respect of a party, the amount determined under this
      Section 6(e) will be subject to such adjustments as are appropriate and
      permitted by law to reflect any payments or deliveries made by one party to
      the
      other under this Agreement (and retained by such other party) during the period
      from the relevant Early Termination Date to the date for payment determined
      under Section 6(d)(ii).

     

    (iv)  Pre-Estimate.
      The
      parties agree that if Market Quotation applies an amount recoverable under
      this
      Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount
      is payable for the loss of bargain and the loss of protection against future
      risks and except as otherwise provided in this Agreement neither party will
      be
      entitled to recover any additional damages as a consequence of such
      losses.

    
      
         

        
          
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    7.  Transfer

     

    Subject
      to Section 6(b)(ii), neither this Agreement nor any interest or obligation
      in or
      under this Agreement may be transferred (whether by way of security or
      otherwise) by either party without the prior written consent of the other party,
      except that:—

     

    (a)  a
      party
      may make such a transfer of this Agreement pursuant to a consolidation or
      amalgamation with, or merger with or into, or transfer of all or substantially
      all its assets to, another entity (but without prejudice to any other right
      or
      remedy under this Agreement); and

     

    (b)  a
      party
      may make such a transfer of all or any part of its interest in any amount
      payable to it from a Defaulting Party under Section 6(e).

     

    Any
      purported transfer that is not in compliance with this Section will be
      void.

     

    8.  Contractual
      Currency

     

    (a)  Payment
      in the Contractual Currency.
      Each
      payment under this Agreement will be made in the relevant currency specified
      in
      this Agreement for that payment (the “Contractual Currency”). To the extent
      permitted by applicable law, any obligation to make payments under this
      Agreement in the Contractual Currency will not be discharged or satisfied by
      any
      tender in any currency other than the Contractual Currency, except to the extent
      such tender results in the actual receipt by the party to which payment is
      owed,
      acting in a reasonable manner and in good faith in converting the currency
      so
      tendered into the Contractual Currency, of the full amount in the Contractual
      Currency of all amounts payable in respect of this Agreement. If for any reason
      the amount in the Contractual Currency so received falls short of the amount
      in
      the Contractual Currency payable in respect of this Agreement, the party
      required to make the payment will, to the extent permitted by applicable law,
      immediately pay such additional amount in the Contractual Currency as may be
      necessary to compensate for the shortfall. If for any reason the amount in
      the
      Contractual Currency so received exceeds the amount in the Contractual Currency
      payable in respect of this Agreement, the party receiving the payment will
      refund promptly the amount of such excess.

     

    (b)  Judgments.
      To the
      extent permitted by applicable law, if any judgment or order expressed in a
      currency other than the Contractual Currency is rendered (i) for the payment
      of
      any amount owing in respect of this Agreement, (ii) for the payment of any
      amount relating to any early termination in respect of this Agreement or (iii)
      in respect of a judgment or order of another court for the payment of any amount
      described in (i) or (ii) above, the party seeking recovery, after recovery
      in
      full of the aggregate amount to which such party is entitled pursuant to the
      judgment or order, will be entitled to receive immediately from the other party
      the amount of any shortfall of the Contractual Currency received by such party
      as a consequence of sums paid in such other currency and will refund promptly
      to
      the other party any excess of the Contractual Currency received by such party
      as
      a consequence of sums paid in such other currency if such shortfall or such
      excess arises or results from any variation between the rate of exchange at
      which the Contractual Currency is converted into the currency of the judgment
      or
      order for the purposes of such judgment or order and the rate of exchange at
      which such party is able, acting in a reasonable manner and in good faith in
      converting the currency received into the Contractual Currency, to purchase
      the
      Contractual Currency with the amount of the currency of the judgment or order
      actually received by such party. The term “rate of exchange” includes, without
      limitation, any premiums and costs of exchange payable in connection with the
      purchase of or conversion into the Contractual Currency.

     

    (c)  Separate
      Indemnities.
      To the
      extent permitted by applicable law, these indemnities constitute separate and
      independent obligations from the other obligations in this Agreement, will
      be
      enforceable as separate and independent causes of action, will apply
      notwithstanding any indulgence granted by the party to which any payment is
      owed
      and will not be affected by judgment being obtained or claim or proof being
      made
      for any other sums payable in respect of this Agreement.

     

    (d)  Evidence
      of Loss.
      For the
      purpose of this Section 8, it will be sufficient for a party to demonstrate
      that
      it would have suffered a loss had an actual exchange or purchase been
      made.

    
      
         

        
          
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    9.  Miscellaneous

     

    (a)  Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and understanding of the parties
      with
      respect to its subject matter and supersedes all oral communication and prior
      writings with respect thereto.

     

    (b)  Amendments.
      No
      amendment, modification or waiver in respect of this Agreement will be effective
      unless in writing (including a writing evidenced by a facsimile transmission)
      and executed by each of the parties or confirmed by an exchange of telexes
      or
      electronic messages on an electronic messaging system.

     

    (c)  Survival
      of Obligations.
      Without
      prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the parties
      under this Agreement will survive the termination of any
      Transaction.

     

    (d)  Remedies
      Cumulative.
      Except
      as provided in this Agreement, the rights, powers, remedies and privileges
      provided in this Agreement are cumulative and not exclusive of any rights,
      powers, remedies and privileges provided by law.

     

    (e)  Counterparts
      and Confirmations.

     

    (i)  This
      Agreement (and each amendment, modification and waiver in respect of it) may
      be
      executed and delivered in counterparts (including by facsimile transmission),
      each of which will be deemed an original.

     

    (ii)  The
      parties intend that they are legally bound by the terms of each Transaction
      from
      the moment they agree to those terms (whether orally or otherwise). A
      Confirmation shall he entered into as soon as practicable and may he executed
      and delivered in counterparts (including by facsimile transmission) or be
      created by an exchange of telexes or by an exchange of electronic messages
      on an
      electronic messaging system, which in each case will be sufficient for all
      purposes to evidence a binding supplement to this Agreement. The parties will
      specify therein or through another effective means that any such counterpart,
      telex or electronic message constitutes a Confirmation.

     

    (f)  No
      Waiver of Rights.
      A
      failure or delay in exercising any right, power or privilege in respect of
      this
      Agreement will not be presumed to operate as a waiver, and a single or partial
      exercise of any right, power or privilege will not be presumed to preclude
      any
      subsequent or further exercise, of that right, power or privilege or the
      exercise of any other right, power or privilege.

     

    (g)  Headings.
      The
      headings used in this Agreement are for convenience of reference only and are
      not to affect the construction of or to be taken into consideration in
      interpreting this Agreement.

     

    10.  Offices;
      Multibranch Parties

     

    (a)  If
      Section 10(a) is specified in the Schedule as applying, each party that enters
      into a Transaction through an Office other than its head or home office
      represents to the other party that, notwithstanding the place of booking office
      or jurisdiction of incorporation or organisation of such party, the obligations
      of such party are the same as if it had entered into the Transaction through
      its
      head or home office. This representation will be deemed to be repeated by such
      party on each date on which a Transaction is entered into.

     

    (b)  Neither
      party may change the Office through which it makes and receives payments or
      deliveries for the purpose of a Transaction without the prior written consent
      of
      the other party.

     

    (c)  If
      a
      party is specified as a Multibranch Party in the Schedule, such Multibranch
      Party may make and receive payments or deliveries under any Transaction through
      any Office listed in the Schedule, and the Office through which it makes and
      receives payments or deliveries with respect to a Transaction will be specified
      in the relevant Confirmation.

     

    11.  Expenses

     

    A
      Defaulting Party will, on demand, indemnify and hold harmless the other party
      for and against all reasonable out-of-pocket expenses, including legal fees
      and
      Stamp Tax, incurred by such other party by reason of the enforcement and
      protection of its rights under this Agreement or any Credit Support Document
      to
      which the Defaulting Party is a party or by reason of the early termination
      of
      any Transaction, including, but not limited to, costs of
      collection.

    
      
         

        
          
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    12.  Notices

     

    (a)  Effectiveness.
      Any
      notice or other communication in respect of this Agreement may be given in
      any
      manner set forth below (except that a notice or other communication under
      Section 5 or 6 may not be given by facsimile transmission or electronic
      messaging system) to the address or number or in accordance with the electronic
      messaging system details provided (see the Schedule) and will be deemed
      effective as indicated:—

     

    (i)  if
      in
      writing and delivered in person or by courier, on the date it is
      delivered;

     

    (ii)  if
      sent
      by telex, on the date the recipient’s answerback is received;

     

    (iii)  if
      sent
      by facsimile transmission, on the date that transmission is received by a
      responsible employee of the recipient in legible form (it being agreed that
      the
      burden of proving receipt will be on the sender and will not be met by a
      transmission report generated by the sender’s facsimile machine);

     

    (iv)  if
      sent
      by certified or registered mail (airmail, if overseas) or the equivalent (return
      receipt requested), on the date that mail is delivered or its delivery is
      attempted; or

     

    (v)  if
      sent
      by electronic messaging system, on the date that electronic message is
      received,

     

    unless
      the date of that delivery (or attempted delivery) or that receipt, as
      applicable, is not a Local Business Day or that communication is delivered
      (or
      attempted) or received, as applicable, after the close of business on a Local
      Business Day, in which case that communication shall be deemed given and
      effective on the first following day that is a Local Business Day.

     

    (b)  Change
      of Addresses.
      Either
      party may by notice to the other change the address, telex or facsimile number
      or electronic messaging system details at which notices or other communications
      are to be given to it.

     

    13.  Governing
      Law and Jurisdiction

     

    (a)  Governing
      Law.
      This
      Agreement will be governed by and construed in accordance with the law specified
      in the Schedule.

     

    (b)  Jurisdiction.
      With
      respect to any suit, action or proceedings relating to this Agreement
      (“Proceedings”), each party irrevocably:—

     

    (i)  submits
      to the jurisdiction of the English courts, if this Agreement is expressed to
      be
      governed by English law, or to the non-exclusive jurisdiction of the courts
      of
      the State of New York and the United States District Court located in the
      Borough of Manhattan in New York City, if this Agreement is expressed to be
      governed by the laws of the State of New York; and

     

    (ii)  waives
      any objection which it may have at any time to the laying of venue of any
      Proceedings brought in any such court, waives any claim that such Proceedings
      have been brought in an inconvenient forum and further waives the right to
      object, with respect to such Proceedings, that such court does not have any
      jurisdiction over such party.

     

    Nothing
      in this Agreement precludes either party from bringing Proceedings in any other
      jurisdiction (outside, if this Agreement is expressed to be governed by English
      law, the Contracting States, as defined in Section 1(3) of the Civil
      Jurisdiction and Judgments Act 1982 or any modification, extension or
      re-enactment thereof for the time being in force) nor will the bringing of
      Proceedings in any one or more jurisdictions preclude the bringing of
      Proceedings in any other jurisdiction.

     

    (c)  Service
      of Process.
      Each
      party irrevocably appoints the Process Agent (if any) specified opposite its
      name in the Schedule to receive, for it and on its behalf, service of process
      in
      any Proceedings. If for any reason any party’s Process Agent is unable to act as
      such, such party will promptly notify the other party and within 30 days appoint
      a substitute process agent acceptable to the other party. The parties
      irrevocably consent to service of process given in the manner provided for
      notices in Section 12. Nothing in this Agreement will affect the right of either
      party to serve process in any other manner permitted by law.

    
      
         

        
          
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    (d)  Waiver
      of Immunities.
      Each
      party irrevocably waives, to the fullest extent permitted by applicable law,
      with respect to itself and its revenues and assets (irrespective of their use
      or
      intended use), all immunity on the grounds of sovereignty or other similar
      grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief by way
      of
      injunction, order for specific performance or for recovery of property, (iv)
      attachment of its assets (whether before or after judgment) and (v) execution
      or
      enforcement of any judgment to which it or its revenues or assets might
      otherwise be entitled in any Proceedings in the courts of any jurisdiction
      and
      irrevocably agrees, to the extent permitted by applicable law, that it will
      not
      claim any such immunity in any Proceedings.

     

    14.  Definitions

     

    As
      used
      in this Agreement:—

     

    “Additional
      Termination Event”
      has the
      meaning specified in Section 5(b).

     

    “Affected
      Party”
      has the
      meaning specified in Section 5(b).

     

    “Affected
      Transactions”
      means
      (a) with respect to any Termination Event consisting of an Illegality, Tax
      Event
      or Tax Event Upon Merger, all Transactions affected by the occurrence of such
      Termination Event and (b) with respect to any other Termination Event, all
      Transactions.

     

    “Affiliate”
      means,
      subject to the Schedule, in relation to any person, any entity controlled,
      directly or indirectly, by the person, any entity that controls, directly or
      indirectly, the person or any entity directly or indirectly under common control
      with the person. For this purpose, “control” of any entity or person means
      ownership of a majority of the voting power of the entity or
      person.

     

    “Applicable
      Rate”
      means:—

     

    (a)  in
      respect of obligations payable or deliverable (or which would have been but
      for
      Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

     

    (b)  in
      respect of an obligation to pay an amount under Section 6(e) of either party
      from and after the date (determined in accordance with Section 6(d)(ii)) on
      which that amount is payable, the Default Rate;

     

    (c)  in
      respect of all other obligations payable or deliverable (or which would have
      been but for

     

    Section
      2(a)(iii)) by a Non-defaulting Party, the Non-default Rate; and

     

    (d)  in
      all
      other cases, the Termination Rate.

     

    “Burdened
      Party”
      has the
      meaning specified in Section 5(b).

     

    “Change
      in Tax Law”
      means
      the enactment, promulgation, execution or ratification of, or any change in
      or
      amendment to, any law (or in the application or official interpretation of
      any
      law) that occurs on or after the date on which the relevant Transaction is
      entered into.

     

    “consent”
      includes
      a consent, approval, action, authorisation, exemption, notice, filing,
      registration or exchange control consent.

     

    “Credit
      Event Upon Merger”
      has the
      meaning specified in Section 5(b).

     

    “Credit
      Support Document”
      means
      any agreement or instrument that is specified as such in this Agreement.

     

    “Credit
      Support Provider”
      has the
      meaning specified in the Schedule.

     

    “Default
      Rate”
      means a
      rate per annum equal to the cost (without proof or evidence of any actual cost)
      to the relevant payee (as certified by it) if it were to fund or of funding
      the
      relevant amount plus 1% per annum.

    
      
         

        
          
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    “Defaulting
      Party”
      has the
      meaning specified in Section 6(a).

     

    “Early
      Termination Date”
      means
      the date determined in accordance with Section 6(a) or 6(b)(iv).

     

    “Event
      of Default”
      has the
      meaning specified in Section 5(a) and, if applicable, in the
      Schedule.

     

    “Illegality”
      has the
      meaning specified in Section 5(b).

     

    “Indemnifiable
      Tax”
      means
      any Tax other than a Tax that would not be imposed in respect of a payment
      under
      this Agreement but for a present or former connection between the jurisdiction
      of the government or taxation authority imposing such Tax and the recipient
      of
      such payment or a person related to such recipient (including, without
      limitation, a connection arising from such recipient or related person being
      or
      having been a citizen or resident of such jurisdiction, or being or having
      been
      organised, present or engaged in a trade or business in such jurisdiction,
      or
      having or having had a permanent establishment or fixed place of business in
      such jurisdiction, but excluding a connection arising solely from such recipient
      or related person having executed, delivered, performed its obligations or
      received a payment under, or enforced, this Agreement or a Credit Support
      Document).

     

    “law”
      includes
      any treaty, law, rule or regulation (as modified, in the case of tax matters,
      by
      the practice of any relevant governmental revenue authority) and “lawful” and
“unlawful” will be construed accordingly.

     

    “Local
      Business Day”
      means,
      subject to the Schedule, a day on which commercial banks are open for business
      (including dealings in foreign exchange and foreign currency deposits) (a)
      in
      relation to any obligation under Section 2(a)(i), in the place(s) specified
      in
      the relevant Confirmation or, if not so specified, as otherwise agreed by the
      parties in writing or determined pursuant to provisions contained, or
      incorporated by reference, in this Agreement, (b) in relation to any other
      payment, in the place where the relevant account is located and, if different,
      in the principal financial centre, if any, of the currency of such payment,
      (c)
      in relation to any notice or other communication, including notice contemplated
      under Section 5(a)(i), in the city specified in the address for notice provided
      by the recipient and, in the case of a notice contemplated by Section 2(b),
      in
      the place where the relevant new account is to be located and (d) in relation
      to
      Section 5(a)(v)(2), in the relevant locations for performance with respect
      to
      such Specified Transaction.

     

    “Loss”
      means,
      with respect to this Agreement or one or more Terminated Transactions, as the
      case may be, and a party, the Termination Currency Equivalent of an amount
      that
      party reasonably determines in good faith to be its total losses and costs
      (or
      gain, in which case expressed as a negative number) in connection with this
      Agreement or that Terminated Transaction or group of Terminated Transactions,
      as
      the case may be, including any loss of bargain, cost of funding or, at the
      election of such party but without duplication, loss or cost incurred as a
      result of its terminating, liquidating, obtaining or reestablishing any hedge
      or
      related trading position (or any gain resulting from any of them). Loss includes
      losses and costs (or gains) in respect of any payment or delivery required
      to
      have been made (assuming satisfaction of each applicable condition precedent)
      on
      or before the relevant Early Termination Date and not made, except, so as to
      avoid duplication, if Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies.
      Loss
      does not include a party’s legal fees and out-of-pocket expenses referred to
      under Section 11. A party will determine its Loss as of the relevant Early
      Termination Date, or, if that is not reasonably practicable, as of the earliest
      date thereafter as is reasonably practicable. A party may (but need not)
      determine its Loss by reference to quotations of relevant rates or prices from
      one or more leading dealers in the relevant markets.

     

    
      
        
          
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    “Market
      Quotation”
      means,
      with respect to one or more Terminated Transactions and a party making the
      determination, an amount determined on the basis of quotations from Reference
      Market-makers. Each quotation will be for an amount, if any, that would be
      paid
      to such party (expressed as a negative number) or by such party (expressed
      as a
      positive number) in consideration of an agreement between such party (taking
      into account any existing Credit Support Document with respect to the
      obligations of such party) and the quoting Reference Market-maker to enter
      into
      a transaction (the “Replacement Transaction”) that would have the effect of
      preserving for such party the economic equivalent of any payment or delivery
      (whether the underlying obligation was absolute or contingent and assuming
      the
      satisfaction of each applicable condition precedent) by the parties under
      Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
      Transactions that would, but for the occurrence of the relevant Early
      Termination Date, have been
      required after that date. For this purpose, Unpaid Amounts in respect of the
      Terminated Transaction or group of Terminated Transactions are to be excluded
      but, without limitation, any payment or delivery that would, but for the
      relevant Early Termination Date, have been required (assuming satisfaction
      of
      each applicable condition precedent) after that Early Termination Date is to
      be
      included. The Replacement Transaction would be subject to such documentation
      as
      such party and the Reference Market-maker may, in good faith, agree. The party
      making the determination (or its agent) will request each Reference Market-maker
      to provide its quotation to the extent reasonably practicable as of the same
      day
      and time (without regard to different time zones) on or as soon as reasonably
      practicable after the relevant Early Termination Date. The day and time as
      of
      which those quotations are to be obtained will be selected in good faith by
      the
      party obliged to make a determination under Section 6(e), and, if each party
      is
      so obliged, after consultation with the other. If more than three quotations
      are
      provided, the Market Quotation will be the arithmetic mean of the quotations,
      without regard to the quotations having the highest and lowest values. If
      exactly three such quotations are provided, the Market Quotation will be the
      quotation remaining after disregarding the highest and lowest quotations. For
      this purpose, if more than one quotation has the same highest value or lowest
      value, then one of such quotations shall be disregarded. If fewer than three
      quotations are provided, it will be deemed that the Market Quotation in respect
      of such Terminated Transaction or group of Terminated Transactions cannot be
      determined.

     

    “Non-default
      Rate”
      means a
      rate per annum equal to the cost (without proof or evidence of any actual cost)
      to the Non-defaulting Party (as certified by it) if it were to fund the relevant
      amount.

     

    “Non-defaulting
      Party”
      has the
      meaning specified in Section 6(a).

     

    “Office”
      means a
      branch or office of a party, which may be such party’s head or home
      office.

     

    “Potential
      Event of Default”
      means
      any event which, with the giving of notice or the lapse of time or both, would
      constitute an Event of Default.

     

    “Reference
      Market-makers”
      means
      four leading dealers in the relevant market selected by the party determining
      a
      Market Quotation in good faith (a) from among dealers of the highest credit
      standing which satisfy all the criteria that such party applies generally at
      the
      time in deciding whether to offer or to make an extension of credit and (b)
      to
      the extent practicable, from among such dealers having an office in the same
      city.

     

    “Relevant
      Jurisdiction”
      means,
      with respect to a party, the jurisdictions (a) in which the party is
      incorporated, organised, managed and controlled or considered to have its seat,
      (b) where an Office through which the party is acting for purposes of this
      Agreement is located, (c) in which the party executes this Agreement and (d)
      in
      relation to any payment, from or through which such payment is
      made.

     

    “Scheduled
      Payment Date”
      means a
      date on which a payment or delivery is to be made under Section 2(a)(i) with
      respect to a Transaction.

     

    “Set-off”
      means
      set-off, offset, combination of accounts, right of retention or withholding
      or
      similar right or requirement to which the payer of an amount under Section
      6 is
      entitled or subject (whether arising under this Agreement, another contract,
      applicable law or otherwise) that is exercised by, or imposed on, such
      payer.

     

    “Settlement
      Amount”
      means,
      with respect to a party and any Early Termination Date, the sum
      of:—

     

    (a)  the
      Termination Currency Equivalent of the Market Quotations (whether positive
      or
      negative) for each Terminated Transaction or group of Terminated Transactions
      for which a Market Quotation is determined; and

     

    (b)  such
      party’s Loss (whether positive or negative and without reference to any Unpaid
      Amounts) for each Terminated Transaction or group of Terminated Transactions
      for
      which a Market Quotation cannot be determined or would not (in the reasonable
      belief of the party making the determination) produce a commercially reasonable
      result.

     

    “Specified
      Entity”
      has the
      meanings specified in the Schedule. 
      
         

        
          
            ISDA
              ® 1992

          

          
            16

            
              

            

          

          
            
            

          

        

         

      

    

    “Specified
      Indebtedness”
      means,
      subject to the Schedule, any obligation (whether present or future, contingent
      or otherwise, as principal or surety or otherwise) in respect of borrowed
      money.

     

    “Specified
      Transaction”
      means,
      subject to the Schedule, (a) any transaction (including an agreement with
      respect thereto) now existing or hereafter entered into between one party to
      this Agreement (or any Credit Support Provider of such party or any applicable
      Specified Entity of such party) and the other party to this Agreement (or any
      Credit Support Provider of such other party or any applicable Specified Entity
      of such other party) which is a rate swap transaction, basis swap, forward
      rate
      transaction, commodity swap, commodity option, equity or equity index swap,
      equity or equity index option, bond option, interest rate option, foreign
      exchange transaction, cap transaction, floor transaction, collar transaction,
      currency swap transaction, cross-currency rate swap transaction, currency option
      or any other similar transaction (including any option with respect to any
      of
      these transactions), (b) any combination of these transactions and (c) any
      other
      transaction identified as a Specified Transaction in this Agreement or the
      relevant confirmation.

     

    “Stamp
      Tax”
      means
      any stamp, registration, documentation or similar tax.

     

    “Tax”
      means
      any present or future tax, levy, impost, duty, charge, assessment or fee of
      any
      nature (including interest, penalties and additions thereto) that is imposed
      by
      any government or other taxing authority in respect of any payment under this
      Agreement other than a stamp, registration, documentation or similar
      tax.

     

    “Tax
      Event”
      has the
      meaning specified in Section 5(b).

     

    “Tax
      Event Upon Merger”
      has the
      meaning specified in Section 5(b).

     

    “Terminated
      Transactions”
      means
      with respect to any Early Termination Date (a) if resulting from a Termination
      Event, all Affected Transactions and (b) if resulting from an Event of Default,
      all Transactions (in either case) in effect immediately before the effectiveness
      of the notice designating that Early Termination Date (or, if “Automatic Early
      Termination” applies, immediately before that Early Termination
      Date).

     

    “Termination
      Currency”
      has the
      meaning specified in the Schedule.

     

    “Termination
      Currency Equivalent”
      means,
      in respect of any amount denominated in the Termination Currency, such
      Termination Currency amount and, in respect of any amount denominated in a
      currency other than the Termination Currency (the “Other Currency”), the amount
      in the Termination Currency determined by the party making the relevant
      determination as being required to purchase such amount of such Other Currency
      as at the relevant Early Termination Date, or, if the relevant Market Quotation
      or Loss (as the case may be), is determined as of a later date, that later
      date,
      with the Termination Currency at the rate equal to the spot exchange rate of
      the
      foreign exchange agent (selected as provided below) for the purchase of such
      Other Currency with the Termination Currency at or about 11:00 a.m. (in the
      city
      in which such foreign exchange agent is located) on such date as would be
      customary for the determination of such a rate for the purchase of such Other
      Currency for value on the relevant Early Termination Date or that later date.
      The foreign exchange agent will, if only one party is obliged to make a
      determination under Section 6(e), be selected in good faith by that party and
      otherwise will be agreed by the parties.

     

    “Termination
      Event”
      means an
      Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to be
      applicable, a Credit Event Upon Merger or an Additional Termination
      Event.

     

    “Termination
      Rate”
      means a
      rate per annum equal to the arithmetic mean of the cost (without proof or
      evidence of any actual cost) to each party (as certified by such party) if
      it
      were to fund or of funding such amounts.

     

    “Unpaid
      Amounts”
      owing to
      any party means, with respect to an Early Termination Date, the aggregate of
      (a)
      in respect of all Terminated Transactions, the amounts that became payable
      (or
      that would have become payable but for Section 2(a)(iii)) to such party under
      Section 2(a)(i) on or prior to such Early Termination Date and which remain
      unpaid as at such Early Termination Date and (b) in respect of each Terminated
      Transaction, for each obligation under Section 2(a)(i) which was (or would
      have
      been but for Section 2(a)(iii)) required to be settled by delivery to such
      party
      on or prior to such Early Termination Date and which has not been so settled
      as
      at such Early Termination Date, an amount equal to the fair market
      value
      of
      that which was (or would have been) required to be delivered as of the
      originally scheduled date for
      delivery, in each case together with (to the extent permitted under applicable
      law) interest, in the currency, of
      such
      amounts, from (and including) the date such amounts or obligations were or
      would
      have been required to
      have
      been paid or performed to (but excluding) such Early Termination Date, at the
      Applicable Rate. Such

    amounts
      of interest will be calculated on the basis of daily compounding and the actual
      number of days elapsed.
      The fair market value of any obligation referred to in clause (b) above shall
      be
      reasonably determined
      by the party obliged to make the determination under Section 6(e) or, if each
      party is so obliged, it
      shall
      be the average of the Termination Currency Equivalents of the fair market values
      reasonably determined
      by both parties.

     

    
      
         

        
          
            ISDA
              ® 1992

          

          
            17

            
              

            

          

          
            
            

          

        

         

      

    

     

    IN
      WITNESS WHEREOF the parties have executed this document on the respective dates
      specified below

     

    with
      effect from the date specified on the first page of this document.

     

    
      	 	
              CREDIT
                SUISSE
                INTERNATIONAL

            	 	 	
              LONG
                BEACH MORTGAGE LOAN TRUST
                2006-1

            
	 	 	 	 	 
	 	
              (“Party
                A”)

            	 	 	
              (“Party
                B”)

            
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	 	
              

            	 	 	
              

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

            	 	 	
              By:

            	 
	 	
              

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

    

     

     

    
      
        
          
            ISDA
              ® 1992

          

          
            18

            
              

            

          

          
            
            

          

        

        Rate
          Swap CSA

      

    

     

    Elections
      and Variables

    to
      the ISDA Credit Support Annex

    dated
      as of February 7, 2006

    between

     

    
      	Credit Suisse
              International	
              and

            	
              Long
                Beach Mortgage Loan Trust
                2006-1

            
	("Party A")	 	
              ("Party
                B")

            
	 	 	 

    

     

    Paragraph
      13.

    
      

      
        	
                (a)

              	
                Security
                  Interest for "Obligations".

              

      

      
The
        term
"Obligations"
        as used
        in this Annex includes the following additional obligations:

    

    

    With
      respect to Party A: None.

    

    With
      respect to Party B: None.

    

    
      	
              (b)

            	
              Credit
                Support Obligations.

            

    

    

    
      	 	
              (i)

            	
              Delivery
                Amount, Return Amount and Credit Support
                Amount.

            

    

    

    
      	 	 	
              (A)
                "Delivery
                Amount"
                has the meaning specified in Paragraph 3(a), except that the words
                "upon a
                demand made by the Secured Party" shall be deleted and the word "that"
                on
                the second line of Paragraph 3(a) shall be replaced with the word
                "a".
                Paragraph 4(b) is hereby amended by the insertion of the words "(i)
                in
                respect of a Transfer pursuant to Paragraph 3(b)," immediately prior
                to
                the words "if a demand for" and the insertion of the words "; and
                (ii) in
                respect of a Transfer pursuant to Paragraph 3(a), the relevant Transfer
                will be made not later than the close of business on the Local Business
                Day following the Valuation Date" immediately prior to the
                period.

            

    

    

    
      	 	 	
              (B)
                "Return
                Amount"
                has the meaning specified in Paragraph
                3(b).

            

    

    

    
      	(C)  	
              "Credit
                Support Amount"
                for a Valuation Date shall mean one of the following depending on
                whether
                or not the specified events have occurred on such Valuation
                Date:-

            

    

    

    
      	 	
              (i)

            	
              if
                a Collateralization Event has not occurred, or has occurred but is
                not
                continuing, "Credit
                Support Amount"
                shall mean zero (0);

            

    

    

    
      	 	
              (ii)

            	
              if
                a Ratings Event has occurred and is continuing or a Collateralization
                Event has occurred other than pursuant to Part 5(b)(1)(C) and is
                continuing, "Credit
                Support Amount"
                shall mean an amount in USD equal to the greater of (a) the Secured
                Party’s Exposure and (b) an amount equal to the Floating Amount payable
                by
                Party A in respect of the first Floating Rate Payer Payment Date
                scheduled
                to occur on or after the date on which the Delivery Amount as a result
                of
                such Collateralization Event is
                due;

            

    

     

    
      	 	 	
              (iii)

            	
              if
                a Collateralization Event has occurred pursuant to Part 5(b)(1)(C)
                and is
                continuing, "Credit
                Support Amount"
                shall mean an amount in USD equal to the greater of (a) the sum of
                (i)
                Party B's Exposure and (ii) the Notional Volatility Buffer and (b)
                zero.
                "Notional
                Volatility Buffer",
                as determined by the Valuation Agent for any date, means the product
                of
                (i) the Notional Amount of the Transaction on such date, (ii) multiplied
                by the Payment Factor, (iii) multiplied by the Volatility Buffer
                Percentage for such date as set out in the table below on such
                date,

            

    

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
 

    
      	
              Party
                A S&P Rating on such date

            	
              Volatility
                Buffer Percentage

            
	
               

            	 
	
              S&P
                S-T Rating of A-1 or above

            	
              0.00%

            
	
              S&P
                S-T Rating of A-2 

            	
              3.25%

            
	
              S&P
                S-T Rating of A-3 

            	
              4.00%

            
	
              S&P
                L-T Rating of BB+ or lower 

            	
              4.50%

            

    

    

    L-T
      Rating
      means
      with respect to any Person, the unsecured, unguaranteed and otherwise
      unsupported long-term senior debt obligations of such Person. 

    

    S-T
      Rating
      means
      with respect to any Person, the unsecured, unguaranteed and otherwise
      unsupported short-term debt obligations of such Person.

    

    Payment
      Factor
      means
      1.

    

    
      	 	
              (ii)

            	
              Eligible
                Collateral.
                On
                any date, the following items will qualify as "Eligible
                Collateral"
                for Party A:

            

    

     

    
      	 	 	
              Valuation
                Percentage

            	 
	 	 	 	 
	
              (A)

            	
              Cash

            	
              100%

            	 
	
            	
            	 	 
	
              (B)

            	
              negotiable
                debt obligations issued
                after 18 July 1984 by the U.S. Treasury Department having
                a residual maturity on such date of
                less than 1 year 

            	
               98.0%

            	 
	
               

            	 	
               

            	 
	
              (C)

            	 oupon bearing negotiable debt
              obligations issued after
              18 July 1984 by the U.S. Treasury Department having
              a residual maturity on such date equal
              to or greater than 1 year but less than 5 years
              	
              
                93.8%

              

            	 
	 	 	 	 
	
              (D)

            	coupon bearing negotiable debt obligations
              issued after
              18 July 1984 by the U.S. Treasury Department having
              a residual maturity on such date equal
              to or greater than 5 years but less than
              10 years	
              90.3%

            	 
	 	 	 	 

    

     

    
      
        	 	
                (iii)

              	
                
                  Other
                    Eligible Support. 
                    None.

                

              

      

    

    
      
        
        

      

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

    

    
      

      
        	 	
                (iv)

              	
                Thresholds.

              

      

    

    

    
      	 	
              (A)

            	
              "Independent
                Amount"
                means with respect to Party A: Not
                applicable.

            

    

    

    "Independent
      Amount"
      means
      with respect to Party B: Not applicable.

    

    
      	 	
              (B)

            	
              "Threshold"
                means with respect to Party A and Party B: Not
                applicable.

            

    

    

    
      	
            	(C)	
              "Minimum
                Transfer Amount"
                means with respect to Party A:
                USD50,000.

            

    

    

    "Minimum
      Transfer Amount"
      means
      with respect to Party B: Not applicable.

    

    
      	 	
              (D)

            	
              Rounding
                The Delivery Amount and the Return Amount will be rounded up and
                down
                respectively to the nearest integral multiple of USD10,000, provided
                that
                this "Rounding" provision shall not apply in respect of any Return
                Amount
                payable in respect of any date on which Party B's Exposure is less
                than or
                equal to zero.

            

    

     

     

    
      	(c)	 	
              Valuation
                and Timing.

            

    

    

    
      	
            	(i)	
              "Valuation
                Agent"
                means Party A. Calculations by Party A will be made by reference
                to
                commonly accepted market sources.

            

    

    

    
      	
            	(ii)	
              "Valuation
                Date"
                means,

            

    

    

    
      	 	 	
              (A)

            	
              in
                the event that (1) no Collateralization Event has occurred, or has
                occurred but is not continuing, (2) a Collateralization Event has
                occurred
                other than pursuant to Part 5(b)(1)(C) and is continuing, or (3)
                two or
                more Collateralization Events have occurred pursuant to Part 5(b)(1)(C)
                and any other subparagraph of Part 5(b)(1) and are continuing, each
                Local
                Business Day which, if treated as a Valuation Date, would result
                in a
                Delivery Amount or a Return Amount;
                and

            

    

    

    
      	 	 	
              (B)

            	
              in
                the event that a Collateralization Event has occurred solely pursuant
                to
                Part 5(b)(1)(C) and is continuing, or a Ratings Event has occurred
                and
                Party A has not obtained a substitute counterparty as set forth in
                Part
                5(b)(3) the last Local Business Day of each calendar
                week.

            

    

    

    
      	 	
              (iii)

            	
              "Valuation
                Time"
                means the close of business in the city of the Valuation Agent on
                the
                Local Business Day before the Valuation Date or date of calculation,
                as
                applicable, provided that the calculations of Value and Exposure
                will be
                made as of approximately the same time on the same date.
                

            

    

    

    
      	
            	(iv)	
              "Notification
                Time"
                means 4:00 p.m., London time, on a Local Business Day.

            

    

    

    
      	(d)	 	
              Conditions
                Precedent and Secured Party's Rights and
                Remedies. 

            

    

    

    No
      events
      shall constitute a "Specified Condition."

     

    
      	
              (e)

            	
              Substitution.

            

    

    

    
      	 	
              (i)

            	
              "Substitution
                Date"
                has the meaning specified in Paragraph
                4(d)(ii).

            

    

    

    
      	 	
              (ii)

            	
              Consent.
                The Pledgor must obtain the Secured Party's prior consent to any
                substitution pursuant to Paragraph 4(d) and
                shall give to the Secured Party not less than two (2) Local Business
                Days’
                notice thereof specifying the items of Posted Credit Support intended
                for
                substitution.

            

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              (f)

            	
              Dispute
                Resolution.

            

    

    

    
      	 	
              (i)

            	
              "Resolution
                Time"
                means 4:00 p.m. London time on the Local Business Day following the
                date
                on which the notice of the dispute is given under Paragraph
                5.

            

    

    

    
      	 	
              (ii)

            	
              Value.
                For the purpose of Paragraphs 5(i)(C) and 5(ii), on any date, the
                Value of
                Eligible Collateral and Posted Collateral will be calculated as follows:
                

            

    

    

    
      	
            	(A)	
              with
                respect to any Cash; the amount thereof;
                and

            

    

    

    
      	 	 	
              (B)

            	
              with
                respect to any Eligible Collateral comprising securities; the sum
                of
                (a)(x) the last bid price on such date for such securities on the
                principal national securities exchange on which such securities are
                listed, multiplied by the applicable Valuation Percentage or (y)
                where any
                such securities are not listed on a national securities exchange,
                the bid
                price for such securities quoted as at the close of business on such
                date
                by any principal market maker for such securities chosen by the Valuation
                Agent, multiplied by the applicable Valuation Percentage or (z) if
                no such
                bid price is listed or quoted for such date, the last bid price listed
                or
                quoted (as the case may be), as of the day next preceding such date
                on
                which such prices were available; multiplied by the applicable Valuation
                Percentage; plus (b) the accrued interest on such securities (except
                to
                the extent that such interest shall have been paid to the Pledgor
                pursuant
                to Paragraph 6(d)(ii) or included in the applicable price referred
                to in
                subparagraph (a) above) as of such
                date.

            

    

    

    
      	 	
              (iii)

            	
              Alternative.
                The provisions of Paragraph 5 will apply provided the obligation
                of the
                appropriate party to deliver the undisputed amount to the other party
                will
                not arise prior to the time that would otherwise have applied to
                the
                Transfer pursuant to, or deemed made, under Paragraph 3 if no dispute
                had
                arisen.

            

    

    

    
      	
              (g)

            	
              Holding
                and Using Posted
                Collateral.

            

    

    

    
      	 	
              (i)

            	
              Eligibility
                to Hold Posted Collateral; Custodians:

            

    

    

    
      	 	 	
              The
                Trustee (as defined in the PSA) will be entitled to hold Posted Collateral
                pursuant to Paragraph 6(b).

            

    

     

    
      	 	
              (ii)

            	
              Use
                of Posted Collateral.
                The provisions of Paragraph 6(c) will not apply to Party B. Therefore,
                Party B will not have any of the rights specified in Paragraph 6(c)(i)
                or
                6(c)(ii).

            

    

    

    
      	
              (h)

            	
              Distributions
                and Interest Amount.

            

    

    

    
      	 	
              (i)
                 

            	
              Interest
                Rate. 
                The "Interest
                Rate"
                will be the annualized rate of return actually achieved on Posted
                Collateral in the form of Cash during the relevant Interest
                Period.

            

    

    

    
      	 	
              (ii)
                

            	
              Transfer
                of Interest Amount.
                The Transfer of the Interest Amount will be made on any Local Business
                Day
                on which Posted Collateral in the form of Cash is Transferred to
                the
                Pledgor pursuant to Paragraph 3(b), provided that such Interest Amount
                has
                been received prior thereto.

            

    

    

    
      	 	
              (iii)
                 

            	
              Alternative
                to Interest Amount.
                The provisions of Paragraph 6(d)(ii)
                will.

            

    

    

    
      	
              (i)

            	
              Additional
                Representation(s). 

            

    

    

    There
      are
      no additional representations by either party.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	
              (j)

            	
              Demands
                and Notices.

            

    

    

    All
      demands, specifications and notices under this Annex will be made pursuant
      to
      the Notices Section of this Agreement, save that any demand, specification
      or
      notice:

    

    
      	 	
              (i)
                shall be given to or made at the following
                addresses:

            

    

    

    If
      to
      Party A:

    

    
      	 	 	
              Address:

            	 	
              One
                Cabot Square 
                London
                  E14 4QJ

                England

              

            

    

    
      	 	 	
              Telephone:

              Facsimile:

              Attention: 

            	 	
              44
                20 7888 3083

              44
                20 7883 7987

              Collateral
                Management Unit
                

            

    

     

    
      	 	
              If
                to Party B:

            

    

    

    As
      set
      forth in Part 4(a) of the Schedule; 

     

    
      	 	
              or
                at such other address as the relevant party may from time to time
                designate by giving notice (in accordance with the terms of this
                paragraph) to the other party;

            

    

    

    
      	 	
              (ii)

            	
              shall
                (unless otherwise stated in this Annex) be deemed to be effective
                at the
                time such notice is actually received unless such notice is received
                on a
                day which is not a Local Business Day or after the Notification Time
                on
                any Local Business Day in which event such notice shall be deemed
                to be
                effective on the next succeeding Local Business
                Day.

            

    

    

    
      	
              (k)

            	
              Address
                for Transfers.

            

    

    

    
      	 	
              Party
                A: To be notified to Party B by Party A at the time of the request
                for the
                Transfer.

            

    

    

    
      	 	
              Party
                B: To be notified to Party A by Party B at the time of the request
                for the
                Transfer.

            

    

    

    
      	
              (l)

            	
              Other
                Provisions.

            

    

    

    
      	 	
              (i)

            	
              Additional
                Definitions

            

    

    

    As
      used
      in this Annex:

    

    
      	 	 	
              "Equivalent
                Collateral" means,
                with respect to any security constituting Posted Collateral, a security
                of
                the same issuer and, as applicable, representing or having the same
                class,
                series, maturity, interest rate, principal amount or liquidation
                value and
                such other provisions as are necessary for that security and the
                security
                constituting Posted Collateral to be treated as equivalent in the
                market
                for such securities;

            

    

    

    
      	 	 	
              "Local
                Business Day" means:
                (i) any day on which commercial banks are open for business (including
                dealings in foreign exchange and foreign currency deposits) in London,
                and
                (ii) in relation to a Transfer of Eligible Collateral, a day on which
                the
                clearance system agreed between the parties for the delivery of Eligible
                Collateral is open for acceptance and execution of settlement instructions
                (or in the case of a Transfer of Cash or other Eligible Collateral
                for
                which delivery is contemplated by other means, a day on which commercial
                banks are open for business (including dealings for foreign exchange
                and
                foreign currency deposits) in New York and such other places as the
                parties shall agree);

            

    

    
    

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

     

    
      	 	
              (ii)

            	
              Transfer
                Timing

            

    

    

    
      	
            	(a)	
              Paragraph
                4(b) shall be deleted and replaced in its entirety by the following
                paragraph: 

            

    

    

    "Subject
      to Paragraphs 4(a) and 5 and unless otherwise specified, if a demand for the
      Transfer of Eligible Credit Support or Posted Credit Support is made by the
      Notification Time, then the relevant Transfer will be made not later than the
      close of business on the second Local Business Day thereafter; if a demand
      is
      made after the Notification Time then the relevant Transfer will be made not
      later than the close of business on the third Local Business Day
      thereafter."

    

    
      	 	 	
              (b)

            	
              Paragraph
                6(d)(1) shall be amended so that the reference therein to "the following
                Local Business Day" shall be replaced by reference to "the second
                Local
                Business Day thereafter".

            

    

    

    
      	 	
              (iii)

            	
              Events
                of Default 

            

    

    

    
      	 	 	
              Paragraph
                7 shall be deleted and replaced in its entirety by the following
                paragraph:

            

    

    

    "For
      the
      purposes of Section 5(a)(i) of this Agreement, an Event of Default will exist
      with respect to a party if that party fails (or fails to cause its Custodian)
      to
      make, when due, any Transfer of Posted Credit Support or the Interest Amount,
      as
      applicable, required to be made by it and that failure continues for two Local
      Business Days after the notice of that failure is given to that
      party".

    

    
      	 	
              (iv)

            	
              Return
                of Fungible
                Securities

            

    

    

    
      	 	 	
              In
                lieu of returning to the Pledgor pursuant to Paragraphs 3(b), 4(d),
                5 and
                8(d) any Posted Collateral comprising securities the Secured Party
                may
                return Equivalent Collateral.

            

    

     

    
      	 	
              (v)

            	
              Covenants
                of the Pledgor

            

    

    

    
      	 	 	
              So
                long as the Agreement is in effect, the Pledgor covenants that it
                will
                keep the Posted Collateral free from all security interests or other
                encumbrances created by the Pledgor, except the security interest
                created
                hereunder and any security interests or other encumbrances created
                by the
                Secured Party; and will not sell, transfer, assign, deliver or otherwise
                dispose of, or grant any option with respect to any Posted Collateral
                or
                any interest therein, or create, incur or permit to exist any pledge,
                lien, mortgage, hypothecation, security interest, charge, option
                or any
                other encumbrance with respect to any Posted Collateral or any interest
                therein, without the prior written consent of the Secured
                Party.

            

    

    

    
      	 	
              (vi)
                

            	
              No
                Counterclaim

            

    

    

    
      	 	 	
              A
                party's rights to demand and receive the Transfer of Eligible Collateral
                as provided hereunder and its rights as Secured Party against the
                Posted
                Collateral or otherwise shall be absolute and subject to no counterclaim,
                set-off, deduction or defense in favor of the Pledgor except as
                contemplated in Sections 2 and 6 of the Agreement and Paragraph 8
                of this
                Annex.

            

    

    
      
      

       

      
        	
              	(vii)	
                Holding
                  Collateral

              

      

      
 

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
 

    
      	 	 	
              The
                Secured Party shall cause any Custodian appointed hereunder to open
                and
                maintain a segregated account and to hold, record and identify all
                the
                Posted Collateral in such segregated account and, subject to Paragraphs
                6(c) and 8(a), such Posted Collateral shall at all times be and remain
                the
                property of the Pledgor and shall at no time constitute the property
                of,
                or be commingled with the property of, the Secured Party or the
                Custodian.

            

    

    

    
      	
            	(viii)	
              Security
                and Performance

            

    

    

    Eligible
      Collateral Transferred to the Secured Party constitutes security and performance
      assurance without which the Secured Party would not otherwise enter into and
      continue any and all Transactions.

    

    
      	
            	(ix)	
              Agreement
                as to Single Secured Party and
                Pledgor

            

    

     

    
      	 	 	
              Party
                A and Party B agree that, notwithstanding anything to the contrary
                in the
                recital to this Annex, Paragraph 1(b), Paragraph 2 or the definitions
                in
                Paragraph 12, (a) the term "Secured
                Party"
                as
                used in this Annex means only Party B, (b) the term "Pledgor"
                as
                used in this Annex means only Party A, (c) only Party A makes the
                pledge
                and grant in Paragraph 2, the acknowledgment in the final sentence
                of
                Paragraph 8(a) and the representations in Paragraph 9 and (d) only
                Party A
                will be required to make Transfers of Eligible Credit Support
                hereunder.

            

    

    

    
      	
            	(x)	
              External
                Verification of Mark-to-Market
                Valuations.

            

    

    

    Every
      month after a Collateralization Event has occurred pursuant to Part 5(b)(1)(C)
      and is continuing, then, unless otherwise agreed in writing with S&P, Party
      A will verify its determination of Exposure of the Transaction on the next
      Valuation Date by seeking quotations from two (2) Reference Market-makers for
      their determination of Exposure of the Transaction on such Valuation Date and
      the Valuation Agent will use the greater of either (a) its own determination
      or
      (b) the highest quotation for a Reference Market-maker, if applicable, for
      the
      next Valuation Date; provided, that this Paragraph 13(l)(xi) shall only apply
      to
      the extent that the Offered Certificates outstanding at such time (as defined
      in
      the PSA) are rated higher by S&P than the S&P L-T Rating of Party A; and
      provided further, that Party A shall not seek verification of its determination
      of Exposure as described above from the same Reference Market-maker more than
      four times in any twelve-month period. 

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
 

    

    
      	
              CREDIT
                SUISSE INTERNATIONAL

            	
              LONG
                BEACH MORTGAGE LOAN TRUST 2006-

               

              By
                Deutsche Bank National Trust Company, not

               in
                its individual capacity but solely as Trustee on 

              behalf
                of Long Beach Mortgage Loan Trust 2006-1

            
	 	 
	
              By: 

              Name:
                

              Title:
                Authorized Signatory

            	
              By: 

              Name:

              Title:

            
	
              By: 

              Name:
                

              Title:
                Authorized Signatory

            	
              By: 

              Name:

              Title:

            

    

     

    
 

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Rate
      Swap Schedule

    

    

    

    SCHEDULE
      

    to
      the 

    Master
      Agreement

    

    

    dated
      as
      of February
      7, 2006

    

    between

    

    

    

    

    
      	
              CREDIT
                SUISSE INTERNATIONAL

            	
               

               

              and

            	
              LONG
                BEACH MORTGAGE LOAN TRUST 2006-1

               

            
	
              _______________________________________

              ("Party
                A")

            	 	
              _________________________________________

              ("Party
                B")

            

    

    

    

    Part
      1

     

    Termination
      Provisions.

     

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

     

    Section
      5(a)(v), Not
      applicable

    Section
      5(a)(vi), Not
      applicable

    Section
      5(a)(vii), Not
      applicable

    Section
      5(b)(iv), Not
      applicable

     

    and
      in
      relation to Party B for the purpose of:

     

    Section
      5(a)(v), Not
      applicable

    Section
      5(a)(vi), Not
      applicable

    Section
      5(a)(vii), Not
      applicable

    Section
      5(b)(iv), Not
      applicable

     

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

     

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

     

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

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

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

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

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

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

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

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

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

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

     

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

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

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

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

    

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

     

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

     

    
      	 	
              (i)

            	
              Loss
                will apply.

            

    

     

    
      	 	
              (ii)

            	
              The
                Second Method will apply.

            

    

     

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

     

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

     

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

            

    

     

    
      	 	
              (ii)

            	
              The
                Pooling and Servicing Agreement dated
                as of February 1, 2006 among Long Beach Securities Corp. as Depositor,
                Long Beach Mortgage Company as Master Servicer and Deutsche Bank
                National
                Trust Company as Trustee for the Trust (the "Trustee")
                as
                amended and supplemented from time to time (the
                "PSA")
                or
                other transaction document is amended or modified without the prior
                written consent of Party A, where such consent is required under
                the terms
                of the PSA.

            

    

     

    
      	 	
              (iii)

            	
              The
                Trust is terminated pursuant to
                PSA.

            

    

     

    
      	 	
              (iv)

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

            

    

     

    
 

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Part
      2

     

    Tax
      Representations.

     

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

     

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

     

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

     

    
      	(i)  	
              Party
                A makes the following representation to Party
                B:

            

    

    

    
      	(A)  	
              Party
                A is entering into each Transaction in the ordinary course of its
                trade
                as, and is, a recognized UK bank as defined in Section 840A of the
                UK
                Income and Corporation Taxes Act of 1988.

            

    

     

    
      	(B)  	
              Party
                A has been approved as a Withholding Foreign Partnership by the US
                Internal Revenue Service. 

            

    

     

    
      	(C)  	
              Party
                A's Withholding Foreign Partnership Employer Identification Number
                is
                98-0330001. 

            

    

     

    
      	(D)  	
              Party
                A is a partnership that agrees to comply with any withholding obligation
                under Section 1446 of the Internal Revenue
                Code.

            

    

    

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

            

    

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    Part
      3

     

    Agreement
      to Deliver Documents.

     

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

     

    (a) Tax
      forms, documents or certificates to be delivered are:— None

     

    (b)
      Other
      documents to be delivered are:—

     

    

    
      	
              Party
                required to deliver document

            	
              Form/Document/Certificate

            	
              Date
                by which to be delivered

            	
              Covered
                by Section 3(d)
                Representation

            
	
              Party
                A 

            	
              Certified
                copies of the charter and by laws of such party (or a resolution
                containing excerpts of such party’s by laws), and of the resolutions of
                the board of directors of such party, or other applicable document,
                authorizing the execution and delivery of this Agreement and each
                Confirmation by such party.

            	
              At
                or promptly following the execution and delivery of this
                Agreement.

            	
              Yes

            
	 	 	 	 
	
              Party
                A and Party B

            	
              Evidence
                reasonably satisfactory to the other party as to the names, true
                signatures and authority of the officers or officials signing this
                Agreement or any Confirmation on its behalf.

            	
              Upon
                execution of this Agreement.

            	
              Yes

            
	 	 	 	 
	
              Party
                A and B

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

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

            	
              No

            
	 	 	 	 
	
              Party
                B

            	
              An
                executed copy of the PSA.

            	
              Within
                30 days after the date of this Agreement.

            	
              Yes

            

    

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    Part
      4.

     

    Miscellaneous.

     

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

     

    Party
      A:

     

    
      	 	
              (1)

            	
              Address
                for notices or communications to Party A (other than by
                facsimile):-

            

    

     

    
      	Address:	
              One Cabot Square

              London E14 4QJ

              England 

            	Attention:	
              (1) Head
                of Credit Risk Management;

              (2) Managing
                Director - Operations Department;

              (3) Managing
                Director - Legal Department

            
	 	 	 	 
	Telex No.: 	264521	Answerback:	
              CSI
                G

            
	 	 	 	 
	(For all purposes.)	 	 	 
	 	 	 	 

    

     

    
      	
            	(2)	
              For
                the purpose of facsimile notices or communications under this Agreement
                (other than a notice or communication under Section 5 or
                6):-

            

    

    

    
       

      
        	Facsimile No.:	44
                20 7888 2686	 	 
	 	 	 	
                 

              
	 Attention:	Managing Director - Legal
                Department	 

      

       

    

    
      	
            	 	
              Telephone
                number for oral confirmation of receipt of facsimile in legible form:
                44
                20 7888 2028

              Designated
                responsible employee for the purposes of Section 12(a)(iii): Senior
                Legal
                Secretary

            

    

     

    
      	
            	Party
              B:	
              Long
                Beach Mortgage Loan Trust 2006-1

            

    

    

    
      	
            	c/o:	
              Deutsche
                Bank National Trust Company 
                1761
                  East St. Andrew Place, 

                Santa
                  Ana, 

                California
                  92705-4934

                Attention:
                  Long Beach Mortgage Loan Trust
                  2006-1

              

            

    

    

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

     

    Party
      A
      appoints as its Process Agent:

     

    Credit
      Suisse Securities (USA) LLC

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    

    Attention:
       General
      Counsel

                        
      Legal
      and
      Compliance Department

     

    Party
      B
      appoints as its Process Agent: Not applicable.

     

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

     

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

     

    Party
      A
      is not a Multibranch Party. 

    Party
      B
      is not a Multibranch Party.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

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

     

    (f) Credit
      Support Document.
      Credit
      Support Document means 

     

    With
      respect to Party A: The Credit Support Annex.

     

    With
      respect to Party B: The PSA.

     

    (g) Credit
      Support Provider.

     

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

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

     

    (h) Governing
      Law.
      This
      Agreement, and, to the fullest extent permitted by applicable law, all matters
      arising out of or relating in any way to this Agreement will be governed by
      and
      construed in accordance with the laws of the State of New York (without
      reference to choice of law doctrine other than New York General Obligation
      Law
      Sections 5-1401 and 5-1402).

     

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

     

    (j) "Affiliate."
      Affiliate will have the meaning specified in section 14, provided that Party
      B
      shall be deemed to have no Affiliates. 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    Part
      5.

     

    Other
      Provisions.

     

    (a) Definitions. 

     

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

     

    (b) Downgrade
      Provisions. 

     

    
      	 	
              (1)

            	
              It
                shall be a collateralization event (Collateralization
                Event)
                if: 

            

    

     

    (A)
      (i) the unsecured, unguaranteed and otherwise unsupported long-term senior
      debt obligations of Party A are rated below "A1" by Moody's Investors
      Service, Inc. (Moody's)
      or are
      rated "A1" by Moody's and such rating is on watch for possible downgrade (but
      only for so long as it is on watch for possible downgrade) and (ii) the
      unsecured, unguaranteed and otherwise unsupported short-term debt obligations
      of
      Party A are rated below "P-1" by Moody's or are rated "P-1" by Moody's and
      such rating is on watch for possible downgrade (but only for so long as it
      is on
      watch for possible downgrade), 

     

    (B)
      no
      short-term rating is available from Moody’s and the unsecured, unguaranteed and
      otherwise unsupported long-term senior debt obligations of Party A are
      rated below "Aa3" by Moody's or are rated "Aa3" by Moody's and such rating
      is on
      watch for possible downgrade (but only for so long as it is on watch for
      possible downgrade), or 

     

    (C)
      either (i) the unsecured, unguaranteed and otherwise unsupported short-term
      debt
      obligations of Party A are rated below "A-1" by Standard & Poor's
      Rating Services, a division of The McGraw-Hill Companies, Inc. (S&P)
      or (ii)
      if Party A does not have a short-term rating from S&P, the unsecured,
      unguaranteed and otherwise unsupported long-term senior debt obligations of
      Party A are rated below "A+" by S&P. 

     

    During
      any period in which a Collateralization Event is occurring, Party A shall,
      at its own expense and within thirty (30) calendar days of such
      Collateralization Event, either (i) post collateral according to the terms
      of
      the 1994 ISDA Credit Support Annex to this Schedule, including Paragraph 13
      thereof (the "Credit
      Support Annex"),
      (ii)
      furnish a guarantee of Party A's obligations under this Agreement that is
      subject to S&P Approval from a guarantor that satisfies the Hedge
      Counterparty Ratings Requirement (as defined herein), or (iii) obtain a
      substitute counterparty (and provide written notice to each Rating Agency with
      respect thereto) that (a) is reasonably acceptable to Party B, (b)
      satisfies the Hedge Counterparty Ratings Requirement and (c) assumes the
      obligations of Party A under this Agreement (through an assignment and
      assumption agreement in form and substance reasonably satisfactory to
      Party B) or replaces the outstanding Transactions hereunder with
      transactions on identical terms, except that Party A shall be replaced as
      counterparty, provided
      that
      such substitute counterparty, as of the date of such assumption or replacement,
      must not, as a result thereof, be required to withhold or deduct on account
      of
      tax under the Agreement or the new transactions, as applicable, and such
      assumption or replacement must not lead to a termination event or event of
      default occurring in respect of the new transactions, as applicable,
provided further,
      that
      S&P Approval shall be required for any transfer of any Transactions under
      this clause (iii) unless such transfer is in connection with the assignment
      and
      assumption of this Agreement by such substitute counterparty without
      modification of its material terms (in which case, Party A shall provide written
      notice to S&P with respect thereto). To the extent that Party A elects or is
      required to post collateral pursuant to this Part 5(b)(1), Party A shall deliver
      to each Rating Agency within thirty (30) calendar days of the occurrence of
      such
      Collateralization Event an opinion acceptable to S&P as to the
      enforceability of the Credit Support Annex and which confirms that,
      notwithstanding the commencement of a case under the Bankruptcy Code with
      respect to Party A, the collateral will (a) be available to meet swap
      obligations notwithstanding the automatic stay and (b) if delivered
      pre-bankruptcy, will not be subject to recovery as preferences or constructive
      fraudulent conveyances, in each case subject to standard qualifications and
      assumptions. 

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    S&P
      Approval
      shall
      mean prior written confirmation from S&P that a proposed action will not
      cause the downgrade or withdrawal of the then current ratings of any outstanding
      Offered Certificates. 

     

    Rating
      Agency
      shall
      mean each of S&P and Moody's. 

     

    (2) It
      shall
      be a ratings event (Ratings
      Event)
      if at
      any time after the date hereof Party A shall fail to satisfy the Hedge
      Counterparty Ratings Threshold or if at any time after the date hereof S&P
      withdraws all of Party A's ratings and no longer rates Party A. Hedge
      Counterparty Ratings Threshold
      shall
      mean (A) the unsecured, unguaranteed and otherwise unsupported long-term senior
      debt obligations of Party A are rated at least "BBB-" by S&P and (B)
      the unsecured, unguaranteed and otherwise unsupported long-term senior debt
      obligations of Party A are rated at least "A3" by Moody’s (and such rating
      is not on watch for possible downgrade) and the unsecured, unguaranteed and
      otherwise unsupported short-term debt obligations of Party A are rated at
      least "P-2" by Moody’s (and such rating is not on watch for possible
      downgrade),
      and
(C)
      either (i) the unsecured, unguaranteed and otherwise unsupported long-term
      senior debt obligations of Party A are rated at least "BBB+" by Fitch, or
      (ii) the unsecured, unguaranteed and otherwise unsupported short-term debt
      obligations of Party A are rated at least "F-2" by Fitch. 

     

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

     

    (a) Party A,
      at its sole expense, shall (i) commence actively to seek to obtain a substitute
      counterparty and, in the case of a Ratings Event pursuant to subparagraph (A)
      of
      the definition of "Hedge Counterparty Ratings Threshold", Party A shall
      within 10 Business Days (subject to extension upon S&P Approval) of the
      Ratings Event obtain a substitute counterparty (and provide written notice
      to
      each Rating Agency with respect thereto), that (A) satisfies the Hedge
      Counterparty Ratings Requirement and (B) assumes the obligations of Party A
      under this Agreement (through an assignment and assumption agreement in form
      and
      substance reasonably satisfactory to Party B) or replaces the outstanding
      Transactions hereunder with transactions on identical terms, except that
      Party A shall be replaced as counterparty, provided
      that
      such substitute counterparty, as of the date of such assumption or replacement,
      must not, as a result thereof, be required to withhold or deduct on account
      of
      tax under the Agreement or the new transactions, as applicable, and such
      assumption or replacement must not lead to a termination event or event of
      default occurring in respect of the new transactions, as applicable;
provided
      further
      that
      S&P Approval shall be required within such 10 Business Days or longer
      period, as applicable, for any transfer of any Transaction under this clause
      (a)(i) unless such transfer is in connection with the assignment and assumption
      of this Agreement without modification of its material terms by such
      counterparty (in which case, Party A shall provide written notice to S&P
      with respect thereto) and (ii) be required to post collateral as set forth
      in
      (b) below;

     

    (b) in
      the
      case of a Ratings Event pursuant to subparagraph (B) or (C) of the definition
      of
      "Hedge Counterparty Ratings Threshold", if Party A has not obtained a
      substitute counterparty as set forth in (3)(a) above within 30 days of the
      Ratings Event, then Party A shall continue to seek a substitute
      counterparty and, on or prior to the expiration of such period, post collateral
      according to the terms of the Credit Support Annex. Notwithstanding anything
      contained herein to the contrary, if Party A is required to transfer its rights
      and obligations under this Agreement pursuant to this Part 5(b)(3) as a result
      of a rating issued by S&P, Party A shall, at all times prior to such
      transfer, be required to post collateral in accordance with (i) the terms of
      the
      Credit Support Annex or (ii) an agreement with Party B providing for the posting
      of collateral, which agreement shall be subject to Rating Agency Approval and
      will require Party A to post the required collateral. 

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    Rating
      Agency Approval
      shall
      mean prior written confirmation from S&P and Moody's that such amendment
      will not cause them to downgrade or withdraw its then-current ratings of any
      outstanding Offered Certificates.

    

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

    

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    (d) Section
      1(c). For
      purposes of Section 1(c) of the Agreement, the Transaction with External ID:
      9231339N3 shall be the sole Transaction under the Agreement. 

     

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

     

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

     

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

     

    In
      addition, Party A may assign this Agreement without the prior written consent
      of
      the Trustee but with prior written notice to S&P, on behalf of Party B, to
      an affiliated party that satisfies the Hedge Counterparty Rating Requirements
      or
      that has furnished a guarantee, subject to S&P Approval, of the obligations
      under this Agreement from a guarantor that satisfies the Hedge Counterparty
      Rating Requirements.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

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

     

    (g) Additional
      Representations.

     

    Party
      B
      represents that:

     

    
      	 	
              (i)

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

            

    

     

    
      	 	
              (ii)

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

            

    

     

    
      	 	
              (iii)

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

            

    

     

    
      	 	
              (iv)

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

            

    

     

    
      	 	
              (v)

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

            

    

     

    (h) Proceedings.
      Party A
      shall not institute against or cause any other person to institute against,
      or
      join any other person in instituting against the Trust, any bankruptcy,
      reorganization, arrangement, insolvency or liquidation proceedings, or other
      proceedings under any federal or state bankruptcy, dissolution or similar law,
      for a period of one year and one day, or
      if
      longer the applicable preference period then in effect,
      following indefeasible payment in full of the Certificates.
      Nothing
      shall preclude, or be deemed to stop, Party A (i) from taking any action prior
      to the expiration of the aforementioned one year and one day period, or if
      longer the applicable preference period then in effect, in (A) any case or
      proceeding voluntarily filed or commenced by Party B or (B) any involuntary
      insolvency proceeding filed or commenced by a Person other than Party A, (ii)
      from commencing against Party B or any of the Mortgage Loans any legal action
      which is not a bankruptcy, reorganization, arrangement, insolvency, moratorium,
      liquidation or similar proceeding, or (iii) from taking any action (not
      otherwise mentioned in this paragraph) which will prevent an impairment of
      any
      right afforded to it under the PSA as a third party beneficiary.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

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

     

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

    

    (j) 
      Pooling
      and Servicing Agreement.
      Party
      B
      will provide at least ten days' prior written notice to Party A of any proposed
      amendment or modification to the PSA and Party B will
      obtain the prior written consent of Party A to any such amendment or
      modification, where such consent is required under the terms of the
      PSA.

     

    

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

     

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

     

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

     

    (n) 
      Rating
      Agency Approval on Amendment.
      In
      addition to the requirements of Section 9, this Agreement will not be amended
      unless Party B shall have received Rating Agency Approval. 

     

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

     

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

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    (q) 
      Consent
      to Recording.
      Each
      party (i) consents to the recording of the telephone conversations of trading
      and marketing personnel of the parties in connection with this Agreement or
      any
      potential transaction and (ii) if applicable, agrees to obtain any necessary
      consent of, and give notice of such recording to, such personnel. 

     

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

    

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

    

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

     

    (t) Severability.
      If any
      term, provision, covenant, or condition of this Agreement, or the application
      thereof to any party or circumstance, shall be held to be illegal, invalid
      or
      unenforceable (in whole or in part) for any reason, the remaining terms,
      provisions, covenants and conditions hereof shall continue in full force and
      effect as if this Agreement had been executed with the illegal, invalid or
      unenforceable portion eliminated, so long as this Agreement as so modified
      continues to express, without material change, the original intentions of the
      parties as to the subject matter of this Agreement and the deletion of such
      portion of this Agreement will not substantially impair the respective benefits
      or expectations of the parties to this Agreement.

    
 

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

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

     

    
       

      
        	 	
                CREDIT
                  SUISSE
                  INTERNATIONAL

              	 	 	
                LONG
                  BEACH MORTGAGE LOAN TRUST
                  2006-1

              
	 	 	 	 	 
	 	 	 	 	
                By
                  Deutsche Bank National Trust Company, 

                not
                  in
                  its individual capacity but solely as Trustee 

                on
                  behalf
                  of Long Beach Mortgage Loan Trust 2006-1

              
	 	 	 	 	 
	
                By:

              	 	 	
                By:

              	 
	 	
                
Name:
Title:	 	 	
                
Name:
Title:

	 	 	 	 	 
	
                By:

              	 	 	
                By:

              	 
	 	
                
Name:
Title:
	 	 	
                
Name:
Title: 

      

       

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    Facsimile
      Cover Sheet

     

    
      	To:	Long Beach Mortgage Loan Trust 2006-1

              By
                Deutsche Bank National Trust Company, 

              National
                Association not in its individual 

              capacity
                but solely as Trustee on behalf of the Trust 

            	 
	 	 	 
	
              Attention:

            	
              Heakyung
                Chung, CSIN Marketer

            	 
	 	 	 
	Date:	07 February 2006	 
	 	 	 
	Fax number:	To be delivered by Heakyung Chung	 
	 	 	 
	Pages (including cover page):	
              8

            	 

    

     

    Our
      Reference No: External ID: 53101624N3 / Risk ID: 447390557 

    

    Credit
      Suisse International has entered into a transaction with you as attached. Please
      find attached a letter agreement (the "Confirmation") which confirms the terms
      and conditions of the above transaction.

    

    If
      you
      agree with the terms specified therein, please
      arrange for the Confirmation to be signed by your authorised
      signatories
      and
      return a signed copy to this office to the facsimile listed below.

    

    
      	
              For
                Interest Rate Products:

              Telephone
                Numbers: (212) 538-9370

              Facsimile
                number: (917) 326-8603

              Email:
                list.otc-inc-accept-ny@credit-suisse.com

            	
               

            	
              For
                Equity Derivatives:

              Telephone
                numbers: (212) 538-4437 / (212) 538-8297 / (212) 325-5119

              Facsimile
                number: (212) 325-8173

            
	 	 	 
	
              For
                Credit Derivatives:

              Telephone
                Numbers: (212) 538-9370

              Facsimile
                number: (917) 326-8603

              Email:
                list.otc-inc-accept-ny@credit-suisse.com

            	
               

            	 

    

    

    We
      are
      delighted to have entered into this transaction with you.

    

    

    

    CONFIDENTIALITY
      NOTICE: This facsimile is intended only for the use of the individual or entity
      to which it is addressed and may contain information which is privileged and
      confidential. If the reader of this message is not the intended recipient or
      an
      employee or agent responsible for delivering the message to the intended
      recipient, you are hereby notified that any dissemination, distribution or
      copying of this communication is strictly prohibited. If you have received
      this
      communication in error, please notify us immediately by telephone and return
      the
      original message to us by mail. Thank you.

     

     

    
      
        
          Registered
            Office as above

          Registered
            with unlimited liability in England under No. 2500199

          Authorised
            and Regulated by the Financial Services Authority

          VAT
            No:
            GB 447 0737 41

           

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    07
      February 20065

    

    Long
      Beach Mortgage Loan Trust 2006-1 

    By
      Deutsche Bank National Trust Company, 

    National
      Association not in its individual 

    capacity
      but solely as Trustee on behalf of the Trust

    

    External
      ID: 53101624N3

    ______________________________________________________________________________

    

    Dear
      Sir/Madam

    

    The
      purpose of this letter agreement (this "Confirmation") is to confirm the terms
      and conditions of the Transaction entered into between us on the Trade Date
      specified below (the "Transaction"). This Confirmation constitutes a
      "Confirmation" as referred to in the Agreement specified below.

    

    In
      this Confirmation "CSIN" means Credit Suisse International and "Counterparty"
      means Long Beach Mortgage Loan Trust 2006-1, By Deutsche Bank National Trust
      Company, National Association not in its individual capacity but solely as
      Trustee on behalf of the Trust.

    

    
      	
              1.

            	
              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..

            

    

    

    
      	 	
              This
                Confirmation supplements, forms part of, and is subject to, the 1992
                ISDA
                Master Agreement dated as of 07 February 2006 as amended and supplemented
                from time to time (the "Agreement"), between you and us. All provisions
                contained in the Agreement govern this Confirmation except as expressly
                modified below.

            

    

     

    
      	 	
              CSIN
                and Counterparty each represents to the other that it has entered
                into
                this Swap Transaction in reliance upon such tax, accounting, regulatory,
                legal, and financial advice as it deems necessary and not upon any
                view
                expressed by the other.

            

    

     

    
      	
              2.

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

            

    

     

    
      	 	 	
              Notional Amount:     USD
                2,394,694,425.58, subject to 

              amortisation
                as
                set out in the Additional Terms attached hereto.

            
	 	 	 
	 	Trade Date:	23 January 2006 
	 	 	 
	 	Effective Date: 	25 March 2006 
	 	 	 
	 	
              Termination
                Date:

            	
              25
                February 2011, subject to adjustment in accordance

              with
                the Modified Following Business Day Convention

            

    

     

    
      
        
          Registered
            Office as above

          
            Registered
              with unlimited liability in England under No. 2500199

            Authorised
              and Regulated by the Financial Services Authority

            VAT
              No:
              GB 447 0737 41

            External
              ID: 53101624N3

          

        

        
        

      

      
        
        

        
          

        

      

       

    

    
    

     

     

    
      	Fixed Amounts:	 	 
	 	 	 
	
              Fixed
                Rate Payer:

            	 	Counterparty 
	 	 	 
	
              Fixed
                Rate Payer

            	 	 
	
              Payment
                Dates:

            	 	
              The
                25th
                day of each month commencing on 25 April 2006, and ending on the
                Termination Date, inclusive, subject to adjustment in accordance
                with the
                Following Business Day Convention, using No Adjustment of Period
                End Dates
                

            
	 	 	 
	
              Fixed
                Rate Payer initial
                Calculation Period:

            	 	
              From
                and including 25 March 2006 up to but excluding the Payment Date
                scheduled
                to occur on 25 April 2006

            
	 	 	 
	
              Fixed
                Rate:

            	 	4.75
              % 
	 	 	 
	
              Fixed
                Rate

              Day
                Count Fraction:

            	 	30/360 
	 	 	 
	Floating Amounts:	 	 
	 	 	 
	
              Floating
                Rate Payer:

            	 	CSIN
	 	 	 
	
              Floating
                Rate Payer

              Payment
                Dates:

            	 	The 25th
              day of each month commencing on 25 April 2006, and ending on the
              Termination Date, inclusive, subject to adjustment in accordance with
              the
              Modified Following Business Day Convention
	 	 	 
	
              Floating
                Rate Payer 
                initial
                  Calculation Period:

              

            	 	
              From
                and including 27 March 2006 up to but excluding the Payment Date
                scheduled
                to occur on 25 April 2006

            
	 	 	 
	
              Floating
                Rate Option:

            	 	
              USD-LIBOR-BBA
                

            
	 	 	 
	
              Designated
                Maturity: 

            	 	1 month 
	 	 	 
	
              Spread:

            	 	None
	 	 	 
	
              Floating
                Rate

              Day
                Count Fraction:

            	 	Actual/360
	 	 	 
	
              Reset
                Dates:

            	 	
              The
                first day of each Calculation Period 

            
	 	 	 
	
              Compounding:

            	 	Inapplicable

    

     

    Business
      Day: The
      States of California, Delaware, New York and Washington or if the Trustee gives
      CSFBiCSIN notice of the change in the principal corporate trust office of the
      Trustee in accordance with the PSA, the city in which the principal corporate
      trust office of the Trustee is located.

     

     

    
      
        3

      

      
        
          External
            ID: 53101624N3

        

        
          

        

      

      
        
        

      

    

     

    
      	
              Calculation
                Agent:

            	 	CSIN

    

     

    
      	
              3.

            	
              Account
                Details: 

            

    

     

    
      
        	
                Payments
                  to CSIN:

              	 	As advised separately in writing
	 	 	 
	
                Payments
                  to Counterparty:

              	 	As
                advised separately in writing

      

       

    

    Credit
      Suisse International is authorized and regulated by the Financial Services
      Authority and has entered into this transaction as principal. The time at which
      the above transaction was executed will be notified to Counterparty on
      request.

    

    For
      the
      purpose of facilitating this Transaction, an Affiliate of CSIN,
      which
      is organized in the United States of America (the "Agent"), has acted as agent
      for CSIN.
      The
      Agent is not a principal with respect to this Transaction and shall have no
      responsibility or liability to the parties as a principal with respect to this
      Transaction.

     

    
       

      
        
          4

        

        
          
            External
              ID: 53101624N3

          

          
            

          

        

        
          
          

        

      

       

    

    
    

     

    

    ADDITIONAL
      TERMS

    

    
      	
              Period
                up to but excluding the Payment Date scheduled to occur
                on:

            	
              Notional
                Amount:

            
	 	 
	
              25
                April 2006

            	
              USD
                2,394,694,425.58

            
	
              25
                May 2006

            	
              USD
                2,358,563,005.78

            
	
              25
                June 2006

            	
              USD
                2,316,622,433.23

            
	
              25
                July 2006

            	
              USD
                2,268,934,828.97

            
	
              25
                August 2006

            	
              USD
                2,215,666,203.11

            
	
              25
                September 2006

            	
              USD
                2,156,963,954.44

            
	
              25
                October 2006

            	
              USD
                2,091,034,783.88

            
	
              25
                November 2006

            	
              USD
                2,017,927,463.29

            
	
              25
                December 2006

            	
              USD
                1,936,720,423.22

            
	
              25
                January 2007

            	
              USD
                1,845,130,822.02

            
	
              25
                February 2007

            	
              USD
                1,713,692,908.35

            
	
              25
                March 2007

            	
              USD
                1,582,374,654.19

            
	
              25
                April 2007

            	
              USD
                1,457,008,162.07

            
	
              25
                May 2007

            	
              USD
                1,343,366,881.31

            
	
              25
                June 2007

            	
              USD
                1,240,025,629.38

            
	
              25
                July 2007

            	
              USD
                1,145,452,627.61

            
	
              25
                August 2007

            	
              USD
                1,064,273,660.65

            
	
              25
                September 2007

            	
              USD
                991,740,784.56

            
	
              25
                October 2007

            	
              USD
                926,628,325.20

            
	
              25
                November 2007

            	
              USD
                867,991,851.23

            
	
              25
                December 2007

            	
              USD
                814,986,270.35

            
	
              25
                January 2008

            	
              USD
                700,941,106.24

            
	
              25
                February 2008

            	
              USD
                604,329,047.64

            
	
              25
                March 2008

            	
              USD
                521,497,455.33

            
	
              25
                April 2008

            	
              USD
                450,093,984.72

            
	
              25
                May 2008

            	
              USD
                423,750,000.00

            
	
              25
                June 2008

            	
              USD
                385,265,396.58

            
	
              25
                July 2008

            	
              USD
                341,315,702.39

            
	
              25
                August 2008

            	
              USD
                302,980,502.61

            
	
              25
                September 2008

            	
              USD
                273,277,423.82

            
	
              25
                October 2008

            	
              USD
                247,193,522.08

            
	
              25
                November 2008

            	
              USD
                224,102,571.98

            
	
              25
                December 2008

            	
              USD
                203,567,873.65

            
	
              25
                January 2009

            	
              USD
                180,533,582.17

            
	
              25
                February 2009

            	
              USD
                159,111,456.82

            
	
              25
                March 2009

            	
              USD
                140,498,241.29

            
	
              25
                April 2009

            	
              USD
                124,616,058.58

            
	
              25
                May 2009

            	
              USD
                110,327,361.93

            
	
              25
                June 2009

            	
              USD
                97,574,836.16

            
	
              25
                July 2009

            	
              USD
                86,101,566.97

            

    

     

     

    
      
        
          5

        

        
          
            External
              ID: 53101624N3

          

          
            

          

        

        
          
          

        

      

       

    

    
      	
              Period
                up to but excluding the Payment Date scheduled to occur
                on: 

            	
              Notional
                Amount: 

            
	 	 
	
              25
                August 2009

            	
              USD
                75,828,253.82

            
	
              25
                September 2009

            	
              USD
                65,841,175.88

            
	
              25
                October 2009

            	
              USD
                56,331,165.67

            
	
              25
                November 2009

            	
              USD
                47,689,011.82

            
	
              25
                December 2009

            	
              USD
                39,905,572.58

            
	
              25
                January 2010

            	
              USD
                34,808,810.88

            
	
              25
                February 2010

            	
              USD
                30,117,162.93

            
	
              25
                March 2010

            	
              USD
                25,805,555.43

            
	
              25
                April 2010

            	
              USD
                21,916,046.19

            
	
              25
                May 2010

            	
              USD
                18,622,441.27

            
	
              25
                June 2010

            	
              USD
                16,414,840.90

            
	
              25
                July 2010

            	
              USD
                14,451,319.25

            
	
              25
                August 2010

            	
              USD
                12,532,438.93

            
	
              25
                September 2010

            	
              USD
                10,888,830.17

            
	
              25
                October 2010

            	
              USD
                9,504,468.00

            
	
              25
                November 2010

            	
              USD
                8,263,459.93

            
	
              25
                December 2010

            	
              USD
                7,190,008.49

            
	
              25
                January 2011

            	
              USD
                6,296,201.17

            
	
              25
                February 2011

            	
              USD
                5,491,726.90

            

    

    

     

    
      
        
          6

        

        
          
            External
              ID: 53101624N3

          

          
            

          

        

        
          
          

        

      

      
 

    

    Please
      confirm that the foregoing correctly sets forth the terms of our agreement
      by
      executing the copy of this Confirmation enclosed for that purpose and returning
      it to us.

    

     

     

    Yours
      faithfully,

     

    Credit
      Suisse International

     

     

     

    By:_____________________________

    Name:
      

    Title:
      

    

    

    Confirmed
      as of the date first written above:

    

    Long
      Beach Mortgage Loan Trust 2006-1 

    

    By
      Deutsche Bank National Trust Company, 

    National
      Association not in its individual 

    capacity
      but solely as Trustee on behalf of the Trust 

    

    

    

    By:________________________________

    Name:

    Title:
      

    

    

    

    By:________________________________

    Name:

    Title:
      

    

     

    
 

    
      SE
        2144487 v1

      2/16/06
        2:42 PM
        (26425.0073)

    
       

      
        
          7

        

        
          
            External
              ID: 53101624N3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]