Document:

MORTGAGE LOAN SALE AND SERVICING AGREEMENT

EXECUTION COPY

MORTGAGE LOAN PURCHASE AGREEMENT

among

MOREQUITY, INC.,

as a Seller,

AMERICAN GENERAL FINANCIAL SERVICES OF ARKANSAS, INC.,

as a Seller,

AMERICAN GENERAL HOME EQUITY, INC.,

as a Seller,

AMERICAN GENERAL FINANCE CORPORATION,

as Guarantor pursuant to Section 6.03

and

THIRD STREET FUNDING LLC,

as Purchaser

Dated July 30, 2009

Fixed Rate Mortgage Loans

TABLE OF CONTENTS

Page

SECTION 1.  Definitions.

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Section 1.01.  Definitions.

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SECTION 2.  Purchase and Conveyance.

 &nbsp3

SECTION 3.  Mortgage Loan Schedule.

 &nbsp3

SECTION 4.  Purchase Price.

 &nbsp3

SECTION 5.  Examination of Mortgage Files.

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SECTION 6.  Representations, Warranties and Covenants; Remedies for Breach.

 &nbsp4

Section 6.01.  Representations and Warranties Regarding Individual Mortgage Loans.

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Section 6.02.  Seller Representations.

10

Section 6.03.  Remedies for Breach of Representations and Warranties.

12

SECTION 7.  Costs.

13

SECTION 8.  Notices.

13

SECTION 9.  Severability Clause.

14

SECTION 10.  No Partnership.

14

SECTION 11.  Counterparts.

15

SECTION 12.  Governing Law.

15

SECTION 13.  Intention of the Parties.

15

SECTION 14.  Waivers.

15

SECTION 15.  Exhibits.

16

SECTION 16.  General Interpretive Principles.

16

SECTION 17.  Reproduction of Documents.

16

SECTION 18.  Amendment.

16

SECTION 19.  Confidentiality.

17

SECTION 20.  Entire Agreement.

17

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SECTION 21.  Further Agreements.

17

SECTION 22.  Trustee Assignee.

17

EXHIBITS

EXHIBIT 1

MORTGAGE LOAN SCHEDULE

EXHIBIT 2

CONTENTS OF EACH MORTGAGE FILE

EXHIBIT 3

MORTGAGE LOAN DOCUMENTS

EXHIBIT 4

UNDERWRITING GUIDELINES

EXHIBIT 5

BROKERS PRICE OPINIONS

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MORTGAGE LOAN PURCHASE AGREEMENT

THIS MORTGAGE LOAN PURCHASE AGREEMENT (the “Agreement”), dated July 30, 2009, is hereby executed by and among Third Street Funding LLC, a Delaware limited liability company, as purchaser (the “Purchaser”), MorEquity, Inc., a Nevada corporation, American General Financial Services of Arkansas, Inc., a Delaware corporation, and American General Home Equity, Inc., a Delaware corporation, each in its respective capacity as a seller (each, a “Seller,” and collectively, the “Sellers”), and American General Finance Corporation, an Indiana corporation (the “Guarantor”).

W I T N E S S E T H

WHEREAS, each Seller desires to sell to the Purchaser, and the Purchaser desires to purchase from each Seller, certain conventional, fixed rate, residential, first-lien mortgage loans (the “Mortgage Loans”), as described herein, and which shall be delivered as whole loans as provided herein;

WHEREAS, each Mortgage Loan is secured by a mortgage, deed of trust or other security instrument creating a first lien on a residential dwelling located in the jurisdiction indicated on the Mortgage Loan Schedule which is annexed hereto as Exhibit 1; 

WHEREAS, the Purchaser and the Sellers wish to prescribe the manner of the sale and transfer of the Mortgage Loans; and

WHEREAS, pursuant to the terms of a Pooling and Servicing Agreement, dated July 30, 2009 (the “Pooling and Servicing Agreement”), among the Purchaser, as depositor, MorEquity, Inc., as interim subservicer, PennyMac Loan Services, LLC, as servicer, Select Portfolio Servicing, Inc., as back-up servicer, Wells Fargo Bank, N.A., as master servicer and as securities administrator, The Bank of New York Mellon Trust Company, N.A., as custodian, and U.S. Bank National Association, as trustee (the “Trustee”), the Purchaser will convey the Mortgage Loans to American General Mortgage Loan Trust 2009-1 (the “Trust”).

NOW, THEREFORE, in consideration of the premises and mutual agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Purchaser, the Sellers and the Guarantor agree as follows:

SECTION 1.

DEFINITIONS.

Section 1.01.

Definitions.

For purposes of this Agreement, the following capitalized terms shall have the respective meanings set forth below.  Terms used without definition herein shall have the respective meanings assigned to them in the Pooling and Servicing Agreement.

Agreement:  This Mortgage Loan Purchase Agreement including all exhibits, schedules, amendments and supplements hereto.

ALTA:  The American Land Title Association or any successor in interest thereto.

Closing Date:  July 30, 2009.

Covered Home Loan:  A Mortgage Loan categorized as Covered pursuant to Appendix E of the Standard & Poor’s Glossary.

Credit Score:  The credit score for each Mortgage Loan shall be a credit bureau score obtained at origination or such other time by the applicable Seller.

Cut-off Date:  The close of business on June 30, 2009.

Deleted Mortgage Loan:  A Mortgage Loan replaced or to be replaced with an Eligible Substitute Mortgage Loan in accordance with this Agreement.

High Cost Loan:  A Mortgage Loan classified as (a) a “high cost” loan under the Home Ownership and Equity Protection Act of 1994 (b) a “high cost home,” “threshold,” “covered,” “high risk home” or “predatory” or similar loan under any other applicable state, federal or local law (or a similarly classified loan using different terminology under a law, regulation or ordinance imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees), or (c) a Mortgage Loan categorized as a Covered Home Loan.

Mortgage File:  The items listed in Exhibit 2 hereto and any additional documents required to be added to the Mortgage File pursuant to this Agreement.

Mortgage Loan:  Each mortgage loan identified on the Mortgage Loan Schedule, including, without limitation, the Mortgage File, the Monthly Payments, Principal Prepayments, Liquidation Proceeds, REO Proceeds, Insurance Proceeds and all other rights, benefits, proceeds and obligations arising from or in connection with such mortgage loan.

Mortgage Loan Documents:  With respect to any Mortgage Loan, the documents listed in Exhibit 3 hereto.

Mortgagee:  The mortgagee or beneficiary named in the Mortgage and the successors and assigns of such mortgagee or beneficiary.

Opinion of Counsel:  A written opinion of counsel, who may be an employee of a Seller, reasonably acceptable to the Purchaser.

Primary Mortgage Insurance Policy or PMI Policy:  A policy of primary mortgage guaranty insurance issued by an insurer.

Purchase Price:  The price paid on the Closing Date by the Purchaser to the Sellers pursuant to this Agreement in exchange for the Mortgage Loans as set forth in Section 4 hereto.

Reimbursement Amount: As defined in Section 6.03.

Standard & Poor’s Glossary:  The Standard & Poor’s LEVELS® Glossary, as may be in effect from time to time.

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Underwriting Guidelines:  The underwriting guidelines applicable to the Mortgage Loans attached as Exhibit 4 hereto.

SECTION 2.

PURCHASE AND CONVEYANCE.

Each Seller, in exchange for the receipt of its portion of the Purchase Price from the Purchaser on the Closing Date, hereby sells, transfers, assigns, sets over and conveys to the Purchaser, without recourse, but subject to the terms of this Agreement, all of its rights, title and interest in and to the Mortgage Loans sold by it on the Closing Date, together with the related Mortgage Files and all rights and obligations arising under the documents contained therein.

With respect to each Mortgage Loan purchased, the Purchaser shall own and be entitled to receive:  (a) each Mortgage Loan identified on the Mortgage Loan Schedule to the Pooling and Servicing Agreement, including the related Cut-off Date Principal Balance, all interest accruing thereon after the Cut-off Date and all collections in respect of interest and principal due after the Cut-off Date, (b) property which secured each such Mortgage Loan and which has been acquired by foreclosure or deed in lieu of foreclosure; and (c) such Seller’s interest in any insurance policies in respect of the Mortgage Loans.

SECTION 3.

MORTGAGE LOAN SCHEDULE.

The Sellers shall deliver the Mortgage Loan Schedule to the Purchaser on the Closing Date.

SECTION 4.

PURCHASE PRICE.

The aggregate Purchase Price for the Mortgage Loans shall be as follows:

			
	Seller

	Immediately Available Funds

	Intercompany Note

	MorEquity, Inc.

	$933,608,895.87

	$174,853,674.29

	American General Home Equity, Inc.

	6,032,278.84

	1,129,773.00

	American General Financial Services of Arkansas, Inc.

	27,569,155.70

	5,163,370.01

	Total:

	$967,210,330.41

	$181,146,817.30

Subject to the conditions set forth herein, the Purchaser shall pay the Purchase Price to the Sellers by 4:00 p.m. Eastern Time on the Closing Date.  The portion of the Purchase Price payable in immediately available funds shall be made by wire transfer of immediately available funds to the account or accounts designated by each Seller.

SECTION 5.

EXAMINATION OF MORTGAGE FILES.

In addition to any rights granted to the Purchaser hereunder to underwrite the Mortgage Loans and review the Mortgage Loan Documents prior to the Closing Date, the Sellers shall, prior to the Closing Date, make the Mortgage Files available to the Purchaser for examination and the Purchaser shall have the right to conduct property inspections, and obtain appraisal recertifications, drive-by appraisals, or brokers price opinions.  Such underwriting by the 

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Purchaser or its designee shall not impair or diminish the rights of the Purchaser or any of its successors under this Agreement with respect to a breach of the representations and warranties contained in this Agreement.  The fact that the Purchaser or its designee has conducted or has failed to conduct any partial or complete examination of the Mortgage Files shall not affect the Purchaser’s or any of its successors’ rights to demand repurchase or other relief or remedy provided for in this Agreement.

Upon discovery or receipt of notice of any materially defective document in, or that a document is missing from, a Mortgage File, the related Seller shall have 120 days to cure such defect or deliver such missing document to the Purchaser (or its designee or assignee).  If a Seller does not cure such defect or deliver such missing document within such time period, such Seller shall either repurchase or substitute for such Mortgage Loan in accordance with Section 6.03 if such defect or missing document prevents or materially delays the Trust from (a) realizing against the related Mortgaged Property through foreclosure or similar loss mitigation activity or (b) processing any title claim under the related title insurance policy (unless such Seller provides appropriate recourse pursuant to the representation and warranty relating to good title set forth in Section 6.01(b)).

SECTION 6.

REPRESENTATIONS, WARRANTIES AND COVENANTS; REMEDIES FOR BREACH.

Section 6.01.

Representations and Warranties Regarding Individual Mortgage Loans.

Each Seller hereby represents and warrants, severally and not jointly, to the Purchaser as of the date hereof and on the Closing Date with respect to each Mortgage Loan sold by it and listed on the Mortgage Loan Schedule:

(a)

The information and descriptions concerning the Mortgage Loans contained in Exhibit 1 are complete, true and correct in all material respects as of the date or dates respecting which such information is given.

(b)

Seller is the sole and lawful owner of each Mortgage Loan and the servicing rights related thereto, and has good and marketable title to the Mortgage Loans and the servicing rights, free and clear of all pledges, encumbrances, security interests and liens having priority over the lien of the Mortgage except for (A) rights arising under this Agreement, (B) liens for real estate taxes and special assessments not yet due and payable, (C) covenants, conditions and restrictions, rights of way, easements and other matters of public record as of the date of recording of the 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 Mortgage Loan and (D) other matters to which like properties are commonly subject which do not, individually or in the aggregate, materially interfere with the benefits of the security intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property; and has the full right and authority to assign and transfer each Mortgage Loan, including the servicing rights.

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(c)

The Mortgage Note (and any applicable lost note affidavit) and the related Mortgage are original and genuine and each is the legal, valid and binding obligation of the maker thereof; each is free from all claims, defenses, rights of rescission, any discount, allowance, set-off, counterclaim, bankruptcy or other defenses or contingent liability which could adversely affect the collectability of any Mortgage Loan; and is enforceable in all respects in accordance with its terms except as enforceability may be limited by (i) bankruptcy, insolvency, liquidation, receivership, moratorium or other similar laws affecting the enforcement of the rights of creditors and (ii) general principles of equity, whether enforcement is sought in a proceeding in equity or at law.  The Mortgage is a valid, subsisting and enforceable first lien and first priority security interest on the Mortgaged Property, subject to (h)(1) and (2) below.  The Mortgage Notes, Mortgages, Mortgage Files, all magnetic or computer tapes, all exhibits and schedules delivered by Seller to Purchaser in connection with the transactions contemplated herein accurately and fairly reflect in all material respects the facts stated therein, including, without limitation, the outstanding principal balances or other charges or payment due under the Mortgage Loans.

(d)

Any and all requirements of any applicable federal, state or local law including, without limitation, usury, truth in lending, real estate settlement procedures, consumer credit protection, predatory and abusive lending laws, equal credit opportunity, fair housing and disclosure laws or unfair and deceptive practices laws applicable to the origination and servicing of mortgage loans of a type similar to the Mortgage Loan including, without limitation, any provisions relating to prepayment penalties, have been complied with in all material respects and the consummation of the transactions contemplated hereby will not involve the violation of any such laws or regulations in any material respect.  Each Mortgage Loan at the time it was made complied in all material respects with applicable local, state, and federal laws, including, but not limited to, all applicable predatory and abusive lending laws.

(e)

Except as indicated in the related Mortgage File or in connection with a deferment of a Monthly Payment, there is no material agreement or arrangement as to any Mortgage Loans with any Mortgagor regarding any variation of monthly payments, of the finance charges, schedules of payment, or other charges due under any Mortgage Loan, and no Mortgagor has been released from liability or obligations under any Mortgage Loan, in whole or in part, and no Mortgaged Property has been released from any Mortgage Loan; none of the terms of any of the Mortgage Loans have been otherwise impaired, amended, altered or modified in any way, except as reflected by a writing signed by the Mortgagor in the Mortgage File (other than any payment deferrals) and not inconsistent with Sellers’ representations and warranties contained in this Section 6.01 and is reflected in Exhibit 1.

(f)

No Mortgage Loan has been satisfied, cancelled, subordinated or rescinded in whole or in part.

(g)

The proceeds of each Mortgage Loan have been fully disbursed to or for the account of the related Mortgagor, and there is no requirement for future advances thereunder.

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(h)

Each Mortgage Loan is secured by a first lien in the Mortgaged Property free and clear of all prior encumbrances, evidenced by a Mortgage which has been duly executed by the Mortgagor and properly acknowledged and filed or recorded in the appropriate office for public recordation, subject to Section 2.01 of the Pooling and Servicing Agreement, or otherwise perfected in accordance with applicable law and, to the best of Seller’s knowledge, all applicable fees relating thereto have been paid, and said lien is subject only to (1) the following: (a) the liens of current real property taxes and assessments, not yet due and payable, (b) covenants, conditions, restrictions, rights-of-way, easements and such exceptions appearing of record as of the date of recording of the Mortgage and being acceptable to mortgage lending institutions generally or (c) other matters to which like properties are commonly subject which do not individually or in the aggregate materially interfere with the benefits of the security intended to be provided by the Mortgage, and (2) other exceptions that are customarily acceptable to lending institutions generally and do not affect the value or marketability of the Mortgaged Property or otherwise materially impair the Mortgage Loan.  

(i)

No instruments other than those to be delivered pursuant hereto are required in order to evidence the indebtedness, or any modification thereof, represented by the Mortgage Loans or the first lien of Seller or to transfer and assign the first lien to Purchaser.

(j)

The servicing and collection procedures of MorEquity, Inc. used with respect to each Mortgage Loan have been in all material respects legal, proper, prudent and customary in the mortgage servicing business and with respect to escrow deposits, there exist no deficiencies in connection therewith for which customary arrangements for repayment thereof have not been made.  All related escrow accounts are being maintained in accordance with applicable federal and state laws and in accordance with any and all servicing agreements applicable thereto and the terms of the Mortgages related thereto.

(k)

The Mortgaged Property, and all buildings upon any Mortgaged Property, are insured by an insurer generally acceptable in the industry against loss by fire, theft, vandalism and hazards as are customary in the area in which the Mortgaged Property is located, in an amount which is at least equal to the outstanding principal balance of the related Mortgage Loan.  All insurance policies contain a standard mortgagee clause naming the Seller, its successors and assigns as mortgagee, and a provision for notice to mortgagee in the event of cancellation of the policy.  Each Mortgage obligates the Mortgagor thereunder to maintain all such insurance at Mortgagor’s cost and expense and on the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from the Mortgagor.  If the Mortgaged Property is in an area identified on a flood hazard map or flood insurance rate map issued by the Federal Emergency Management Agency as having special flood hazards (and such flood insurance has been made available), a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration is in effect.

(l)

All hazard insurance premiums which are due as of the date of the Cut-off Date have been paid.

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(m)

The appraisal contained in each Mortgage File was made and signed, prior to the approval of the Mortgage Loan application, by a duly licensed or certified appraiser who had experience in appraising property similar to the related Mortgaged Property.

(n)

Other than with respect to any balloon loans, the related Mortgage Note is payable in monthly installments so as to result in complete amortization of the Mortgage Loan over the stated term.  

(o)

To the best of Seller’s knowledge, all of the improvements which were included for the purpose of determining the appraised value of the related Mortgaged Property at the time of the origination of the Mortgage Loan lie wholly within the boundaries and building restriction lines of such property, and no improvements on adjoining properties materially encroach upon such Mortgaged Property, except those which are insured against by the title insurance policy referred to in Section 6.01(s) below.

(p)

The Mortgaged Property consists of parcels of real property with residences thereon which, when the Mortgage Loan was originated, were one-to-four family residences.

(q)

There is no proceeding pending or, to the best of the Seller’s knowledge, threatened for the total or partial condemnation of the related Mortgaged Property and  the Mortgaged Property is in good repair and free and clear of any damage or waste that would affect materially and adversely the value of the Mortgaged Property as security for the Mortgage Loan or the use for which the Mortgaged Property was intended, unless specified in the related Brokers Price Opinion collected in connection with due diligence and set forth on Exhibit 5 hereto.

(r)

As of the date of origination of the Mortgage Loan, there had been no mechanics' or similar liens or claims filed for work, labor or material (and no rights are outstanding that under law could give rise to such lien) affecting the related Mortgaged Property which are or may be liens prior to, or equal or coordinate with, the lien of the related Mortgage.

(s)

Each Mortgage Loan is insured by either (1) an ALTA Mortgage Title Insurance Policy, valid and binding in the jurisdiction where the related Mortgaged Property is located, insuring the Seller, its successors and assigns, as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Loan, and subject only to (a) the lien of current real property taxes and assessments not yet due and payable, and (b) covenants, conditions and restrictions, rights-of-way, easements and such exceptions appearing of record as of the date of recording of the Mortgage and being acceptable to mortgage lending institutions generally; or (2) in the case of any Mortgage Loan secured by a Mortgaged Property located in a jurisdiction where such policies are generally not available, an opinion of counsel of the type customarily rendered in such jurisdiction in lieu of title insurance.

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(t)

Other than with respect to the Mortgage Loans that are greater than 30 days Delinquent, there is no default, breach, violation or event of acceleration existing under the related Mortgage Note or Mortgage, and no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration, and the Seller has not waived any default, breach, violation or event of acceleration that the related Mortgagor did not cure.  None of the Mortgage Loans is in foreclosure and foreclosure is not imminent with respect to any Mortgage Loan.

(u)

No Monthly Payment was made by the Seller during the twelve (12) month period prior to the Closing Date.

(v)

Except for expenditures made in the ordinary course of business to protect Seller's rights in the Mortgage Loans or the Mortgaged Property, which shall have been disclosed in writing to Purchaser prior to Closing Date, including without limitation force-placed insurance premiums and amounts capitalized in connection with modifications, no amounts have been added to the indebtedness.

(w)

No Mortgage Loan is a “high cost” loan as defined under any federal, state or local law applicable to such Mortgage Loan at the time of its origination.  No Mortgage Loan is a High Cost Loan or Covered Home Loan (as such terms are defined in the current Standard & Poor’s LEVELS® Glossary Revised, Appendix E).  There is no Mortgage Loan that was originated on or after October 1, 2002 and on or prior to March 7, 2003, which is secured by property located in the State of Georgia.

(x)

Each Mortgage Loan that was originated or acquired by Seller after October 26, 2001 complies with the applicable requirements of the USA Patriot Act in all material respects.

(y)

In the event the Mortgage constitutes a deed of trust, a trustee, duly qualified under applicable law to serve as such, has been properly designated and currently so serves and is named in the Mortgage, and except in connection with a trustee’s sale after default by a Mortgagor, no fees or expenses are payable by the Seller to the trustee under any Mortgage that constitutes a deed of trust.

(z)

No Mortgage Loan is a graduated payment mortgage loan and no Mortgage Loan has a shared appreciation or other contingent interest feature, nor does any Mortgage Loan contain any “buydown” provision which is currently in effect.

(aa)

Each Mortgage Loan was underwritten in accordance with the Underwriting Guidelines of the Seller in effect at the time of acquisition, subject to reasonable exceptions thereto.

(bb)

Each Mortgage Loan is a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code.

(cc)

No fraud has taken place with respect to any Mortgage Loan on the part of the Seller, or to the Seller’s knowledge, the Mortgagor, any third party originator of any 

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Mortgage Loan, any appraiser, any builder or developer, any party involved in the application of any insurance to the Mortgage Loan or any other party involved in the origination of the Mortgage Loan.

(dd)

Each primary mortgage insurance policy to which any Mortgage Loan is subject is in full force and effect and all premiums due thereunder have been paid.

(ee)

There is no delinquent tax or assessment lien against any Mortgaged Property.

(ff)

Each Mortgage contains customary and enforceable provisions which render the rights and remedies of the holder adequate to realize the benefits of the security against the Mortgaged Property, including (i) in the case of a Mortgage that is a deed of trust, by trustee’s sale, (ii) by summary foreclosure, if available under applicable law, and (iii) otherwise by foreclosure, and there is no homestead or other exemption available to the Mortgagor that would interfere with such right to sell at a trustee’s sale or right to foreclosure, subject in each case to applicable federal and state laws and judicial precedents with respect to bankruptcy and right of redemption.

(gg)

With respect to each Mortgage Loan, either (i) the Mortgage Loan is assumable pursuant to the terms of the Mortgage Note, or (ii) the Mortgage Loan contains a customary provision for the acceleration of the payment of the unpaid principal balance of the Mortgage Loan in the event the related Mortgaged Property is sold without the prior consent of the mortgagee thereunder.

(hh)

If the Mortgage Loan is secured by a long-term residential lease, (1) the lessor under the lease holds a fee simple interest in the land; (2) the terms of such lease expressly permit the mortgaging of the leasehold estate, the assignment of the lease without the lessor’s consent and the acquisition by the holder of the Mortgage of the rights of the lessee upon foreclosure or assignment in lieu of foreclosure or provide the holder of the Mortgage with substantially similar protections; (3) the terms of such lease do not (a) allow the termination thereof upon the lessee’s default without the holder of the Mortgage being entitled to receive written notice of, and opportunity to cure, such default, (b) allow the termination of the lease in the event of damage or destruction as long as the Mortgage is in existence, (c) prohibit the holder of the Mortgage from being insured (or receiving proceeds of insurance) under the hazard insurance policy or policies relating to the Mortgaged Property or (d) permit any increase in rent other than pre-established increases set forth in the lease; (4) the original term of such lease is not less than 15 years; (5) the term of such lease does not terminate earlier than five years after the maturity date of the Mortgage Note; and (6) the Mortgaged Property is located in a jurisdiction in which the use of leasehold estates in transferring ownership in residential properties is a widely accepted practice.

(ii)

None of the Mortgage Loans are subject to the Home Ownership and Equity Protection Act of 1994.

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(jj)

Each Mortgage Loan had a loan to value ratio of 100% or less as of origination.

(kk)

To the best of Seller’s knowledge, the Mortgaged Property is in compliance with all applicable environmental laws pertaining to environmental hazards including, without limitation, asbestos, and neither the Seller nor, to the best of the Seller’s knowledge, the related Mortgagor, has received any notice of any violation or potential violation of such law.

(ll)

The Seller has fully furnished, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (e.g., favorable and unfavorable) on its Mortgagor credit files to Equifax, Experian and Trans Union Credit Information Company, on a monthly basis.

(mm)

No Mortgage Loan was 60 or more days Delinquent as of the Cut-off Date and no Mortgage Loan was 60 or more days Delinquent as of the last day of any of the 12 months preceding the Closing Date, in each case other than as set forth on the Mortgage Loan Schedule.

(nn)

No Mortgage Loan is subject to the Supervisory Agreement, dated June 7, 2007, by and among AIG Federal Savings Bank, Wilmington Finance, Inc., American General Finance, Inc. and the Office of Thrift Supervision.

(oo)

Each Prepayment Charge with respect to any Mortgage Loan has customary terms and is permissible and enforceable in accordance with its terms under applicable law.

Section 6.02.

Seller Representations.

Each Seller hereby represents and warrants severally, and not jointly, to the Purchaser as of the date hereof and on the Closing Date as follows:

(a)

Seller is a corporation organized, validly existing and in good standing under the laws of the state of its incorporation and is duly licensed or qualified to conduct its business as currently conducted in all jurisdictions where a Mortgaged Property is located except where the failure to be so licensed or qualified would not have a material adverse effect on its business or operations;

(b)

Seller has full power and authority to execute, deliver and perform this Agreement, and to enter into and consummate all transactions contemplated herein, including authority to sell, transfer and repurchase the Mortgage Loans.  All necessary corporate, regulatory, or other similar action has been taken to authorize and empower Seller and the officers or representatives acting on Seller’s behalf to execute, deliver and perform this Agreement;

(c)

The execution and delivery of this Agreement by Seller and the performance of or compliance with the terms and conditions hereof by Seller will not result in a material breach of any term or provision of its charter or by laws or result in 

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the material breach of any term or provision of, or conflict with or constitute a material default under or result in the acceleration of any obligation under, any agreement, indenture or loan or credit agreement or other instrument to which it is a party or its property is subject, or result in the violation in any material respect of any law, rule, regulation, order, judgment or decree to which it or its property is subject as any such law, rule, regulation, order, judgment or decree exists on the Closing Date;

(d)

The transfer, assignment and conveyance of the Mortgage Notes and the Mortgages pursuant to this Agreement are not subject to the bulk transfer or any similar statutory provisions in effect in any applicable jurisdiction;

(e)

Seller has duly authorized the execution, delivery and performance of this Agreement, has duly executed and delivered this Agreement, and this Agreement, assuming due authorization, execution and delivery by the Purchaser, constitutes a legal, valid and binding obligation of Seller enforceable against Seller according to its terms and conditions set forth herein, except as such enforcement may be limited by bankruptcy, reorganization, insolvency, receivership, moratorium or other laws relating to the rights of creditors generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law);

(f)

Seller has retained no broker or finder in connection with this transaction or the transactions contemplated hereby except for Morgan Stanley & Co. Incorporated who is acting as Seller’s financial advisor, and Seller shall be solely responsible for any fees and expenses owed or payable to Morgan Stanley & Co. Incorporated with respect to the transactions contemplated hereby;

(g)

MorEquity, Inc. and American General Financial Services of Arkansas, Inc. are members of MERS in good standing;

(h)

No consent, approval, authorization or order of any court or government body is required for the execution, delivery and performance by Seller of or compliance by Seller with this Agreement, the sale of the Mortgage Loans to the Purchaser or the consummation of the transactions contemplated by this Agreement or if required, such consent, authorization, order or approval shall have been obtained prior to the Closing Date; and

(i)

There are no actions or proceedings against, or investigations of, Seller before any court, administrative agency or other tribunal (A) that prohibit it from entering into this Agreement, (B) that are reasonably likely to prohibit or materially and adversely affect the performance by Seller of its obligations under, or the validity or enforceability of, this Agreement or (C) that are reasonably likely to have a material adverse effect on the financial condition of Seller.  The Seller is not in default with respect to any order of any court, administrative agency, arbitrator or governmental body so as to materially and adversely affect the transactions contemplated by this Agreement.

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Section 6.03.

Remedies for Breach of Representations and Warranties.

It is understood and agreed that the representations and warranties set forth in Sections 6.01 and 6.02 shall survive the sale of the Mortgage Loans to the Purchaser and shall inure to the benefit of the Purchaser, notwithstanding any restrictive or qualified endorsement on any Mortgage Note or Assignment (except with respect to each MERS Mortgage Loan) or the examination or lack of examination of any Mortgage File.  Upon discovery by a Seller or the Purchaser of a breach of any of the foregoing representations and warranties which materially and adversely affects the value of the Mortgage Loans or the interest of the Purchaser therein (or which materially and adversely affects the interest of the Purchaser in or the value of the related Mortgage Loan in the case of a representation and warranty relating to a particular Mortgage Loan), the party discovering such breach shall give prompt written notice to the other parties to this Agreement.

Within ninety (90) days of the earlier of either discovery by or notice to a Seller of any breach of a representation or warranty which materially and adversely affects the value of a Mortgage Loan or the Mortgage Loans or the interest of the Purchaser therein, such Seller shall use its best efforts promptly to cure such breach in all material respects and, if such breach cannot be cured, such Seller shall repurchase such Mortgage Loan or Mortgage Loans in accordance with the provisions of Section 2.03 of the Pooling and Servicing Agreement.  However, a Seller may, rather than repurchase the Mortgage Loan as provided above, remove such Mortgage Loan and substitute in its place an Eligible Substitute Mortgage Loan or Loans; provided, however, that any such substitution shall be effected within two (2) years of the Closing Date and shall be subject the conditions in Section 2.03 of the Pooling and Servicing Agreement.  If the Seller has no Eligible Substitute Mortgage Loan, it shall repurchase the deficient Mortgage Loan.  

Upon discovery by or notice to a Seller that any Mortgage Loan does not constitute a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code, the applicable Seller shall repurchase or, subject to the limitations set forth in Section 2.03 of the Pooling and Servicing Agreement, such Seller may substitute one or more Eligible Substitute Mortgage Loans for the affected Mortgage Loan within 90 days of the earlier of discovery or receipt of such notice with respect to such affected Mortgage Loan.  Any repurchase or substitution of a Mortgage Loan pursuant to the foregoing sentence shall occur in accordance with the provisions of Section 2.03 of the Pooling and Servicing Agreement

In addition to such cure, repurchase and substitution obligations, each Seller shall indemnify the Purchaser and its assigns and hold it harmless against any out-of-pocket losses, penalties, fines, forfeitures, reasonable and necessary legal fees (including, without limitation, legal fees incurred in connection with the enforcement of such Seller’s indemnification obligation under this Section 6.03) and related costs, judgments, and other costs and expenses resulting from any claim, demand, defense or assertion arising from or relating to, a breach of such Seller’s representations and warranties contained in this Agreement.  Without limiting the generality of the foregoing, if a breach of the representation set forth in Sections 6.01(d) or (w) occurs as a result of a violation of the applicable predatory or abusive lending law, the applicable Seller shall reimburse the Purchaser for all costs and damages incurred by the Purchaser and its assigns as a result of the violation of such law (such amount, the “Reimbursement Amount”).  

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Further, each Seller hereby covenants to forward promptly to the Servicer a copy of each legal notice it receives with respect to any Mortgage Loan.

It is understood and agreed that the obligations of the Sellers set forth in this Section 6.03 to cure, repurchase or substitute for a defective Mortgage Loan and/or to indemnify the Purchaser and its assigns constitute the sole remedies of the Purchaser respecting a breach of the representations and warranties set forth in Sections 6.01 and 6.02.  In addition, if a Seller fails to cure any materially defective or missing document in a Mortgage File within the time period set forth in Section 5, the Seller shall either repurchase or substitute for such Mortgage Loan as set forth above.

Notwithstanding the immediately preceding paragraph, to the extent a Seller fails to repurchase a deficient Mortgage Loan or substitute for a Deleted Mortgage Loan as required by this Section 6.03, the Guarantor shall repurchase such deficient Mortgage Loan or substitute a Eligible Substitute Mortgage Loan for such Deleted Mortgage Loan pursuant to the same terms and conditions set forth in this Section 6.03.

SECTION 7.

COSTS.

The Sellers shall pay any commissions due its salesmen and financial advisors and the legal fees and expenses of its attorneys.  All other costs and expenses incurred in connection with the sale of the Mortgage Loans by the Sellers to the Purchaser, including without limitation the Purchaser’s attorneys’ fees, shall be paid by the Purchaser.

SECTION 8.

NOTICES.

All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if mailed, by registered or certified mail, return receipt requested, or, if by other means, when received by the other party at the address as follows:

(a)

if to the Purchaser:

Third Street Funding LLC

601 N.W. Second Street

Evansville, Indiana 47708

Attn: Treasurer

(b)

if to MorEquity, Inc.:

MorEquity, Inc.

7116 Eaglecrest Boulevard

Evansville, Indiana  47715

Attention: 

Treasurer

(c)

if to American General Financial Services of Arkansas, Inc.:

American General Financial Services of Arkansas, Inc.

601 N.W. Second Street

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Evansville, Indiana 47708

Attn: Treasurer

(d)

if to American General Home Equity, Inc.:

American General Home Equity, Inc.

601 N.W. Second Street

Evansville, Indiana 47708

Attn: Treasurer

(e)

if to American General Finance Corporation:

American General Finance Corporation

601 N.W. Second Street

Evansville, Indiana 47708

Attn: Treasurer

or such other address as may hereafter be furnished to the other party by like notice.  Any such demand, notice or communication hereunder shall be deemed to have been received on the date delivered to or received at the premises of the addressee (as evidenced, in the case of registered or certified mail, by the date noted on the return receipt).

SECTION 9.

SEVERABILITY CLAUSE.

Any part, provision, representation or warranty of this Agreement which is prohibited or which is held to be void or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.  Any part, provision, representation or warranty of this Agreement which is prohibited or unenforceable or is held to be void or unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction, to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the extent permitted by applicable law, the parties hereto waive any provision of law which prohibits or renders void or unenforceable any provision hereof.  If the invalidity of any part, provision, representation or warranty of this Agreement shall deprive any party of the economic benefit intended to be conferred by this Agreement, the parties shall negotiate, in good-faith, to develop a structure the economic effect of which is nearly as possible the same as the economic effect of this Agreement without regard to such invalidity.

SECTION 10.

NO PARTNERSHIP.

Nothing herein contained shall be deemed or construed to create a co-partnership or joint venture between the parties hereto.

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SECTION 11.

COUNTERPARTS.

This Agreement may be executed simultaneously in any number of counterparts.  Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument.

SECTION 12.

GOVERNING LAW.

EXCEPT TO THE EXTENT PREEMPTED BY FEDERAL LAW, THE AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS OF NEW YORK OR ANY OTHER JURISDICTION.

SECTION 13.

INTENTION OF THE PARTIES.

It is the intention of the parties that the Purchaser is purchasing, and the Sellers are selling, the Mortgage Loans and not a debt instrument of the Sellers or another security.  Accordingly, the parties hereto each intend to treat the transaction for federal income tax purposes as a sale by the Sellers, and a purchase by the Purchaser, of the Mortgage Loans.  The Purchaser shall have the right to review the Mortgage Loans and the related Mortgage Files to determine the characteristics of the Mortgage Loans which shall affect the federal income tax consequences of owning the Mortgage Loans and each Seller shall cooperate with all reasonable requests made by the Purchaser in the course of such review.

The parties hereto intend that the transfer by each Seller to the Purchaser of the Mortgage Loans pursuant to this Agreement shall be, and be construed as, a sale of the Mortgage Loans by such Seller to the Purchaser. It is not intended that such transfer be deemed to be the grant of a security interest in the Mortgage Loans by any Seller to the Purchaser to secure a debt or other obligation of any Seller. However, in the event that the Mortgage Loans are held to be property of any Seller, or if for any reason this Agreement is held or deemed to create a security interest in the Mortgage Loans, then (a) this Agreement shall constitute a security agreement; and (b) the transfers provided for in this Agreement shall be deemed to be a grant by each Seller to the Purchaser of, and each Seller hereby grants to the Purchaser, to secure all of such Seller’s obligations hereunder, a security interest in all of such Seller’s right, title, and interest, whether now owned or hereafter acquired, in, to, and under the Mortgage Loans and all proceeds thereof

SECTION 14.

WAIVERS.

No term or provision of this Agreement may be waived or modified unless such waiver or modification is in writing and signed by the party against whom such waiver or modification is sought to be enforced.

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SECTION 15.

EXHIBITS.

The exhibits to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement.

SECTION 16.

GENERAL INTERPRETIVE PRINCIPLES.

For purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires:

(a)

the terms defined in this Agreement have the meanings assigned to them in this Agreement and include the plural as well as the singular, and the use of any gender herein shall be deemed to include the other gender;

(b)

accounting terms not otherwise defined herein have the meanings assigned to them in accordance with accounting principles generally accepted in the United States;

(c)

references herein to “Articles,” “Sections,” “Paragraphs” and other subdivisions without reference to a document are to designated Articles, Sections, Paragraphs and other subdivisions of this Agreement;

(d)

reference to a Section without further reference to a Section is a reference to such Section as contained in the same Section in which the reference appears, and this rule shall also apply to Paragraphs and other subdivisions;

(e)

the words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular provision; and

(f)

the term “include” or “including” shall mean without limitation by reason of enumeration.

SECTION 17.

REPRODUCTION OF DOCUMENTS.

This Agreement and all documents relating thereto, including, without limitation (a) consents, waivers and modifications which may hereafter be executed, (b) documents received by any party at the closing and (c) financial statements, certificates and other information previously or hereafter furnished, may be reproduced by any photographic, photostatic, microfilm, micro-card, miniature photographic or other similar process.  The parties hereto agree that any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding, whether or not the original is in existence and whether or not such reproduction was made by a party hereto in the regular course of business, and that any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.

SECTION 18.

AMENDMENT.

This Agreement may be amended from time to time by the Purchaser and the Sellers by written agreement signed by the parties hereto.  

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SECTION 19.

CONFIDENTIALITY.

Each of the Purchaser, the Guarantor and the Sellers shall employ proper procedures and standards designed to maintain the confidential nature of the terms of this Agreement, except to the extent (a) the disclosure of which is reasonably believed by such party to be required in connection with regulatory requirements or other legal requirements relating to its affairs; (b) disclosed to any one or more of such party’s employees, officers, directors, agents, attorneys or accountants who would have access to the contents of this Agreement and such data and information in the normal course of the performance of such Person’s duties for such party, to the extent such party has procedures in effect to inform such Person of the confidential nature thereof; (c)  disclosed in an offering memorandum relating to a securitization of the Mortgage Loans by the Purchaser or to any or other Person in connection with the resale or proposed resale of all or a portion of the Mortgage Loans by such party in accordance with the terms of this Agreement; and (d) that is reasonably believed by such party to be necessary for the enforcement of such party’s rights under this Agreement.

SECTION 20.

ENTIRE AGREEMENT.

This Agreement constitutes the entire agreement and understanding relating to the subject matter hereof between the parties hereto and any prior oral or written agreements between them shall be deemed to have merged herewith.

SECTION 21.

FURTHER AGREEMENTS.

Each of the Sellers, the Guarantor and the Purchaser agree to execute and deliver to the other such reasonable and appropriate additional documents, instruments or agreements as may be necessary or appropriate to effectuate the purposes of this Agreement.

SECTION 22.

TRUSTEE ASSIGNEE.

Each Seller and the Guarantor acknowledge the assignment of the Purchaser’s rights hereunder to the Trustee on behalf of the Trust and that the representations, warranties and agreements made by the Sellers and the Guarantor in this Agreement may be enforced by the Trustee, on behalf of the Trust, against the Sellers and the Guarantor.

SECTION 23.

NO PROCEEDINGS.

Notwithstanding any prior termination of this Agreement, no Seller shall, prior to the date which is one year and one day after the termination of the Pooling and Servicing Agreement, acquiesce, petition or otherwise invoke or cause any Person to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Purchaser under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Purchaser or any substantial part of their respective property, or ordering the winding up or liquidation of the affairs of the Purchaser.

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IN WITNESS WHEREOF, the Purchaser, the Guarantor and the Sellers have caused their names to be signed hereto by their respective officers thereunto duly authorized on the date first above written.

THIRD STREET FUNDING LLC,

as Purchaser

By:  

/s/ Kevin J. Small

Name:  Kevin J. Small

Title:    President

MOREQUITY, INC.,

as a Seller 

By:  

/s/ Kevin J. Small

Name:  Kevin J. Small

Title:    President

AMERICAN GENERAL FINANCIAL SERVICES OF ARKANSAS, INC.,

as a Seller 

By:  

/s/ Kevin J. Small

Name:  Kevin J. Small

Title:    Senior Vice President

AMERICAN GENERAL HOME EQUITY, INC.,

as a Seller 

By:  

/s/ Kevin J. Small

Name:  Kevin J. Small

Title:    Senior Vice President

Solely for purposes of Section 6.03 of this Agreement:

AMERICAN GENERAL FINANCE CORPORATION,

as Guarantor

By:  

/s/ Frederick J. Sujat

Name:  Frederick J. Sujat

Title:    SecretaryEXECUTION COPY

EXECUTION COPY

THIRD STREET FUNDING LLC

American General Mortgage Loan Trust 2009-1,

American General Mortgage Pass-Through Certificates, Series 2009-1

PURCHASE AGREEMENT

July 30, 2009

Credit Suisse Securities (USA) LLC

Eleven Madison Avenue

New York, New York 10010-3629

Ladies and Gentlemen:

Third Street Funding LLC, as depositor (the “Depositor”), proposes to sell to you (the “Purchaser”) the American General Mortgage Loan Trust 2009-1, American General Mortgage Pass-Through Certificates, Series 2009-1, Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9 and Class A-10 (the “Offered Certificates”).  The Offered Certificates are to be issued pursuant to a Pooling and Servicing Agreement, dated July 30, 2009 (the “Pooling and Servicing Agreement”) among the Depositor, Wells Fargo Bank, N.A., as master servicer (in such capacity, the “Master Servicer”) and securities administrator (in such capacity, the “Securities Administrator”), PennyMac Loan Services, LLC, as servicer (the “Servicer”), MorEquity, Inc., as interim subservicer (the “Interim Subservicer”), The Bank of New York Mellon Trust Company, National Association, as custodian (the “Custodian”), Select Portfolio Servicing, Inc., as back-up servicer (the “Back-up Servicer”), and U.S. Bank National Association, as trustee (the “Trustee”).  The Offered Certificates will evidence beneficial ownership interests in the Trust Fund (as defined in the Pooling and Servicing Agreement) consisting primarily of fixed-rate, one- to four-family residential mortgage loans (the “Mortgage Loans”).  One or more elections will be made to treat certain assets of the Trust as real estate mortgage investment conduits (“REMICs”) for federal income tax purposes.

Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Pooling and Servicing Agreement.

SECTION 1.

Representations and Warranties of the Depositor.  The Depositor represents and warrants to, and agrees with, the Purchaser as follows:

(a)

The Depositor has been duly organized and is validly existing and in good standing under the laws of its state of organization, with full power and authority to own its assets and conduct its business as presently conducted and as proposed to be conducted, is duly qualified as a foreign company in good standing in all jurisdictions in which the ownership or lease of its property or the conduct of its business requires such qualification, except where the failure to be so qualified would not have a material adverse effect on the Depositor, and is 

OHS West:260691610.8 

conducting its business so as to comply in all material respects with the applicable statutes, ordinances, rules and regulations of the jurisdictions in which it is conducting business;

(b)

As of the Closing Date, the Offered Certificates will be duly and validly authorized and, when such Offered Certificates are duly and validly executed by the Securities Administrator and authenticated by the Certificate Registrar and issued and delivered in accordance with the Pooling and Servicing Agreement and delivered and paid for as provided herein, will be validly issued and outstanding and entitled to the benefits and security afforded by the Pooling and Servicing Agreement;

(c)

The execution and delivery by the Depositor of this Agreement and the Pooling and Servicing Agreement, and the issuance, sale and delivery of the Offered Certificates, are within the power of the Depositor and have been, or will have been, duly authorized by all necessary action on the part of the Depositor; and neither the execution and delivery by the Depositor of such instruments, nor the consummation by the Depositor of the transactions herein or therein contemplated, nor the compliance by the Depositor with the provisions hereof or thereof, will (i) conflict with or result in a breach of, or constitute a default under, any of the provisions of its organizational documents, (ii) conflict with any of the provisions of any law, governmental rule, regulation, judgment, decree or order binding on the Depositor or its properties, (iii) conflict with any of the provisions of any indenture, mortgage, contract or other instrument to which the Depositor is a party or by which it is bound, except such conflicts that would not materially and adversely affect such execution and delivery, consummation or compliance by the Depositor, or (iv) result in the creation or imposition of any lien, charge or encumbrance upon any of its property pursuant to the terms of any such indenture, mortgage, contract or other instrument;

(d)

This Agreement has been duly executed and delivered by the Depositor;

(e)

As of the date hereof, the Pooling and Servicing Agreement and this Agreement will constitute legal, valid and binding obligations of the Depositor, enforceable against the Depositor in accordance with their terms, subject, as to enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, moratorium and other similar laws affecting creditors’ rights generally from time to time in effect, and to general principles of equity;

(f)

To the best of the Depositor’s knowledge, no consent, approval, authorization, order, registration, license, permit or qualification of or with any court or governmental agency or body of the United States or any other jurisdiction is required for the issuance of the Offered Certificates, or the consummation by the Depositor of other transactions contemplated by this Agreement, except such consents, approvals, authorizations, registrations or qualifications as (a) have been previously obtained or (b) the failure to which to obtain would not have a material adverse effect on the performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement;

(g)

The Depositor has not offered or sold or solicited any offer to buy, and will not offer or sell or solicit any offer to buy, directly or indirectly, any Offered Certificates or any other security in any manner that would render the issuance and sale of such Offered Certificates under this Agreement, or the reoffer and resale of such Offered Certificates as 

OHS West:260691610.8

2

contemplated by Section 3 hereof, a violation of the Securities Act of 1933, as amended (the “Act”);

(h)

Assuming the truth and accuracy of the representations and warranties made by the Purchaser herein, the offer or sale of the Offered Certificates to the Purchaser in the manner contemplated herein is exempt from registration under the Act; and the Pooling and Servicing Agreement is not required to be qualified under the Trust Indenture Act of 1939, as amended;

(i)

The Trust is not (and after the offering of the Offered Certificates will not be) an investment company subject to registration under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not under the control of an investment company;

(j)

At the Closing Date the representations and warranties made by the Depositor in the Pooling and Servicing Agreement are true and correct.

(k)

At the time of the execution and delivery of the Pooling and Servicing Agreement, (i) the Depositor will be the beneficial owner of the Mortgage Loans being transferred to the Trustee pursuant to the Pooling and Servicing Agreement, free and clear of any lien or other encumbrance and (ii) the Depositor will not have assigned to any person any of its right, title or interest in the Mortgage Loans or in the Pooling and Servicing Agreement or the Offered Certificates;

(l)

At the time of the execution and delivery of the Pooling and Servicing Agreement, the Depositor will have the power and authority to transfer the Mortgage Loans to the Trustee and to transfer the Offered Certificates to the Purchaser and, upon execution and delivery to the Trustee of the Pooling and Servicing Agreement and delivery to the Purchaser of the Offered Certificates and payment therefor, the Mortgage Loans will have been duly and validly assigned to the Trustee in accordance with the terms of the Pooling and Servicing Agreement;

(m)

Any taxes, fees and other governmental charges in connection with the execution and delivery of this Agreement and the Pooling and Servicing Agreement, and the execution, delivery and issuance of the Offered Certificates have been or will be paid at or prior to the Closing Date;

(n)

The Offered Certificates and the Pooling and Servicing Agreement will conform in all material respects to the descriptions thereof contained in the Memorandum (as defined below); 

(o)

As of the date hereof, the information provided to the Purchaser (in writing or via electronic transmission) concerning the characteristics of the Mortgage Loans is true and correct in all material respects, except for errors the Depositor or a Seller has provided corrected information to the Purchaser prior to the date hereof;

(p)

As of the date thereof and as of the Closing Date, the Memorandum will not contain any untrue statement of fact or omit to state a material fact necessary in order to 

OHS West:260691610.8

3

make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that the Depositor make no representation or warranty as to the Initial Purchaser Information (as defined in the Indemnification Agreement);

(q)

There are no actions, proceedings or investigations pending with respect to which the Depositor has received service of process or, to the knowledge of the Depositor, threatened by or before any court, administrative agency or other tribunal to which the Depositor is a party or of which any of its properties is the subject (i) which if determined adversely to the Depositor would (A) have a material adverse effect on the business or financial condition of the Depositor or (B) have a material adverse effect on the Mortgage Loans, (ii) asserting the invalidity of any of the Pooling and Servicing Agreement and the Mortgage Loan Purchase Agreement (collectively, the “Operative Documents”), (iii) seeking to prevent the issuance of the Offered Certificates or the consummation by the Depositor of any of the transactions contemplated by the Operative Documents or (iv) which would be reasonably likely to materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, the Operative Documents.

SECTION 2.

Sale and Delivery to the Purchaser; Closing.  On the basis of the representations and warranties herein contained and subject to the terms and conditions herein set forth, the Depositor agrees to sell to the Purchaser, and the Purchaser agrees to purchase from the Depositor, the Offered Certificates at the purchase price set forth in Schedule I hereto (the “Purchase Price”).

Delivery of and payment for the Offered Certificates will be made at the office of the Purchaser located at Eleven Madison Avenue, New York, New York, 10010, at such time as shall be on Schedule I hereto or at such other time thereafter as the Purchaser and the Depositor shall agree upon, each such time being herein referred to as a “Closing Date.”  Delivery of such Offered Certificates shall be made by the Depositor to the Purchaser against payment of the Purchase Price in immediately available funds wired to such bank as may be designated by the Depositor, or paid by such other manner as may be agreed upon by the Depositor and the Purchaser.

The parties hereto agree that settlement for all securities sold pursuant to this Agreement shall take place on the terms set forth herein as permitted under Rule 15c6-1(d) under the Exchange Act.

SECTION 3.

Resale of Offered Certificates.  The Purchaser understands that the Offered Certificates have not been registered under the Act in reliance upon the exemption provided in Section 4(2) of the Act, and it agrees that it will not sell or otherwise transfer any of the Offered Certificates except upon compliance with the provisions of this Agreement and the Pooling and Servicing Agreement.  The Purchaser represents and warrants that it will make sales of the Offered Certificates to institutional purchasers that the Purchaser reasonably believes are “qualified institutional buyers” as provided by Rule 144A of the rules and regulations promulgated under the Act and otherwise in compliance with Rule 144A.

Prior to the resale by the Purchaser of any Offered Certificates, the Depositor will provide the Purchaser with a supplemental memorandum and a base memorandum (collectively, 

OHS West:260691610.8

4

together with any exhibits or supplements thereto, the “Memorandum”), for purposes of resales of the Offered Certificates to qualified institutional buyers in transactions not involving a public offering.  Upon the Purchaser’s approval of the final Memorandum and prior to the delivery of the Memorandum to an investor, the Depositor and the Sellers shall execute and deliver to the Purchaser, and the Purchaser shall execute and deliver to the Depositor and the Sellers, an indemnification and contribution agreement in substantially the form attached hereto as Exhibit A (the “Indemnification Agreement”).

The Memorandum shall contain, among other things, information concerning the Pooling and Servicing Agreement, the Mortgage Loans and the Offered Certificates.  Upon the completion but prior to any distribution of the Memorandum, the Depositor shall deliver to the Purchaser, at the Depositor’s sole expense, a letter from PricewaterhouseCoopers LLP (“PwC”), dated on or prior to the date of the Memorandum and satisfactory in form and substance to the Depositor and the Purchaser to the effect that (A) any decrement tables, yield tables and any related statistical data relating to the Offered Certificates or the Mortgage Loans contained in or incorporated by reference in the Memorandum are accurate based upon the modeling assumptions set forth therein, and (B) covering such other matters relating to the Memorandum as the Purchaser or the Depositor may reasonably request.

The Depositor authorizes the Purchaser to deliver to investors purchasing from the Purchaser copies of the Pooling and Servicing Agreement, the Memorandum, and any information required to be delivered to prospective transferees in accordance with Rule 144A (“Rule 144A Information”).

If, at any time prior to three (3) months following the Closing Date, any event occurs as a result of which the Memorandum (as then amended or supplemented) would include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the Depositor shall promptly notify the Purchaser and prepare and furnish to the Purchaser an amendment or supplement to the Memorandum reasonably satisfactory to the Purchaser that will correct such statement or omission; provided, however, that after the expiration of such 3 month period, the Depositor shall use commercially reasonable efforts to assist the Purchaser (at the Purchaser’s cost) in updating the Memorandum.  Notwithstanding the foregoing, the Depositor will not be required to prepare any amendments or supplements to the Memorandum to reflect any reductions in the principal balances of the Offered Certificates occurring subsequent to the date of the initial Memorandum (or any information based on such reduced principal balances, including any hypothetical payment scenarios), nor will the Depositor be required to reflect any such reductions or information in any amendment or supplement to the Memorandum.

SECTION 4.

Representations, Warranties and Covenants of the Purchaser.  The Purchaser represents and warrants to, and agrees with, the Depositor that:

(a)

The Purchaser is duly authorized to enter into and has duly executed and delivered this Agreement.

(b)

The Purchaser understands that the Offered Certificates have not been registered or qualified under the Act or the securities laws of any state and, therefore, cannot be 

OHS West:260691610.8

5

resold unless they are registered or qualified thereunder or unless an exemption from registration or qualification is available.

(c)

The Purchaser is acquiring the Offered Certificates for its own account and not with a view to the public offering thereof in violation of the Act (subject, nevertheless, to the understanding that disposition of the Purchaser’s property shall at all times be and remain within the Purchaser’s control).

(d)

The Purchaser is a sophisticated institutional investor having such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of investment in the Offered Certificates, and is an “accredited investor” within the meaning of Rule 501(a)(1), (2) or (3) of Regulation D promulgated under the Act.

(e)

The Purchaser shall not solicit any offer to buy or to sell, or offer to sell, any of the Offered Certificates to any investor unless (i) the Purchaser has provided to such prospective investor a copy of the Memorandum and (ii) the Purchaser reasonably believes such investor is a qualified institutional buyer.

(f)

Neither the Purchaser nor anyone acting on its behalf has offered, transferred, pledged, sold or otherwise disposed of any Offered Certificate, any interest in any Offered Certificate or any other similar security to, or solicited any offer to buy or accept a transfer, pledge or other disposition of any Offered Certificate, any interest in any Offered Certificate or any other similar security from, or otherwise approached or negotiated with respect to any Offered Certificate, any interest in any Offered Certificate or any other similar security with, any person in any manner, or made any general solicitation by means of general advertising or in any other manner, which would constitute a distribution of the Offered Certificates under the Act or which would require registration pursuant to the Act nor will the Purchaser act, nor has it authorized or will authorize any person to act, in such manner with respect to any Offered Certificate.  The Purchaser will not sell or otherwise transfer any of the Offered Certificates, except in compliance with the provisions of the Pooling and Servicing Agreement.

SECTION 5.

Agreements.  The Depositor agrees with the Purchaser that:

(a)

The Depositor will (i) furnish the Purchaser with copies of the Memorandum for a particular offering of Offered Certificates in such quantities as the Purchaser may from time to time reasonably request (such period not to exceed three (3) months from the Closing Date), and (ii) if prior to the completion of the resale of such Offered Certificates by the Purchaser (but not to exceed three (3) months from the Closing Date) any event shall have occurred as a result of which such Memorandum as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made when such Memorandum is delivered, not misleading, notify the Purchaser and upon request of the Purchaser prepare and furnish without charge to the Purchaser an amended Memorandum or a supplement to such Memorandum which will correct such statement or omission; provided, however, that after the expiration of such 3 month period, the Depositor shall use commercially reasonable efforts to assist the Purchaser (at the Purchaser’s cost) in updating the Memorandum.  Notwithstanding the foregoing, the Depositor will not be required to prepare any amendments or 

OHS West:260691610.8

6

supplements to the Memorandum to reflect any reductions in the principal balances of the Offered Certificates occurring subsequent to the date of the initial Memorandum (or any information based on such reduced principal balances, including any hypothetical payment scenarios), nor will the Depositor be required to reflect any such reductions or information in any amendment or supplement to the Memorandum.

(b)

The Depositor will furnish such information, execute such instruments and take such actions as may be reasonably requested by the Purchaser to qualify the Offered Certificates for sale pursuant to an exemption under the state securities or Blue Sky Laws of any state as the Purchaser may designate and to determine the legality of such Offered Certificates for purchase by institutional investors; provided, however, that the Depositor shall not be required to qualify to do business in any jurisdiction where it is not qualified on the date hereof or to take any action which would subject it to general or unlimited service of process in any jurisdiction in which it is not now subject to such service of process.

(c)

So long as the Offered Certificates are outstanding, the Depositor will cause the Securities Administrator to furnish to the Purchaser (and any subsequent beneficial owner of an Offered Certificate) (i) copies of the annual independent public accountants’ servicing report furnished to the Trustee pursuant to the Pooling and Servicing Agreement, (ii) in connection with any transfer made pursuant to Rule 144A under the Act, any Rule 144A Information and (iii) within a reasonable time after the end of each calendar year, such information as is necessary and desirable to assist such Certificateholder in preparing federal income tax returns.

SECTION 6.

Payment of Expenses.  The Depositor will be responsible for, and shall pay, all costs and expenses incident to the performance of its obligations under this Agreement including, without limitation, those related to: (i) the printing or other reproduction and delivery to the Purchaser, in such quantities as the Purchaser may reasonably request, of copies of this Agreement, (ii) the preparation, printing, registration, issuance and delivery of the Offered Certificates to the Purchaser, (iii) the fees and disbursements of the Depositor’s accountants and counsel, if any, rendering a closing opinion, (iv) the preparation, reproduction and delivery to the Purchaser, in such quantities as the Purchaser may reasonably request, of copies of the Memorandum and all amendments and supplements thereto, and (v) the reproduction and delivery to the Purchaser, in such quantities as the Purchaser may reasonably request, of copies of the Pooling and Servicing Agreement.

SECTION 7.

Conditions to Purchaser’s Obligations.  The obligations of the Purchaser hereunder are subject to the accuracy at and as of the Closing Date of the representations and warranties of the Depositor herein contained, to the accuracy at and as of the Closing Date of the statements of officers of the Depositor made pursuant hereto, to the performance by the Depositor of its obligations hereunder and to compliance at and as of the Closing Date by the Depositor with its covenants and agreements herein contained including the following:

(a)

Hunton & Williams LLP (“Hunton”) counsel for the Depositor, shall have furnished to the Purchaser opinions, dated the Closing Date, as the Purchaser may reasonably request, in form and substance satisfactory to the Purchaser.

OHS West:260691610.8

7

(b)

The Purchaser shall have received from Orrick, Herrington & Sutcliffe LLP, counsel for the Purchaser, such opinion or opinions, dated the Closing Date, with respect to the issuance and sale of the Offered Certificates and such other related matters, as the Purchaser may reasonably require, and the Depositor shall have furnished to such counsel such documents as the Purchaser may reasonably request for the purpose of enabling them to pass upon such matters.

(c)

The Depositor shall have furnished to the Purchaser a certificate of the Depositor, signed by the President or any Vice President, dated the Closing Date, to the effect that the signers of such certificate have carefully examined this Agreement, and that the representations and warranties of the Depositor in this Agreement are true and correct in all material respects on and as of the Closing Date, and the Depositor has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to such Closing Date.

(d)

Counsel for the Sellers, the Securities Administrator, the Master Servicer, the Servicer, the Custodian, the Back-up Servicer and the Trustee, shall have furnished to the Purchaser opinions, dated the Closing Date, in form and substance satisfactory to the Purchaser.

(e)

PwC shall have furnished to the Purchaser a letter or letters, in form and substance satisfactory to the Purchaser, stating in effect that they have performed certain specified procedures as a result of which they have determined that such information as the Purchaser may reasonably request of an accounting, financial or statistical nature (which is limited to accounting, financial or statistical information derived from the general accounting records of the Depositor) set forth in, or included in an exhibit to, the Memorandum or any related materials or documents agrees with the accounting records of the Depositor, excluding any questions of legal interpretation.

(f)

The Purchaser shall have received an officer’s certificate or certificates (as the Purchaser may request) signed by such of the principal executive, financial and accounting officers of each Seller and the Depositor, dated as of the Closing Date, in which such officers, to the best of their knowledge after reasonable investigation, shall state that with respect to each such party, as applicable, (i) the representations and warranties of such party in this Agreement or in any applicable Operative Documents are true and correct in all material respects; (ii) such party has complied with all agreements and satisfied all conditions on its part to be complied with or satisfied at or prior to the Closing Date; (iii) the information contained in the Memorandum relating to the Sellers and the Depositor, as applicable, and relating to the Mortgage Loans, is true and accurate in all material respects and nothing has come to his or her attention that would lead such officer to believe that the Memorandum contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements made therein not misleading; (iv) subsequent to the respective dates as of which information is given in the Memorandum, and except as otherwise set forth in or contemplated by the Memorandum, there has not been any material adverse change in the general affairs, capitalization, financial condition or results of operations of such party and (v) except as otherwise stated in the Memorandum, there are no material actions, suits or proceedings pending before any court or governmental agency, authority or body or, to their knowledge, threatened, affecting such party or the transactions contemplated by this Agreement.

OHS West:260691610.8

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(g)

The Purchaser shall have received a certificate from the Master Servicer, dated as of the Closing Date, signed by one or more duly authorized officers of the Master Servicer, to the effect that the signer of such certificate has carefully examined the Pooling and Servicing Agreement and that, to the best of his or her knowledge, the Master Servicer’s representations and warranties in the Pooling and Servicing Agreement are true and correct in all material respects.

(h)

The Purchaser shall have received a certificate from the Servicer, dated as of the Closing Date, signed by one or more duly authorized officers of the Servicer, to the effect that the signer of such certificate has carefully examined the Pooling and Servicing Agreement and that, to the best of his or her knowledge, the Servicer’s representations and warranties in the Pooling and Servicing Agreement are true and correct.

(i)

The Purchaser shall have received a certificate from the Securities Administrator, dated as of the Closing Date, signed by one or more duly authorized officers of the Securities Administrator, to the effect that (i) the Operative Documents to which the Securities Administrator is a party have been duly, authorized, executed and delivered by the Securities Administrator and (ii) the Offered Certificates have been duly authenticated and delivered in accordance with the terms of the Pooling and Servicing Agreement.

(j)

The Purchaser shall have received a certificate from the Trustee, dated as of the Closing Date, signed by one or more duly authorized officers of the Trustee, to the effect that the Operative Documents to which the Trustee is a party have been duly, authorized, executed and delivered by the Trustee.

(k)

There shall not have occurred any change, or any development involving a prospective change, in the condition, financial or otherwise, or in the earnings, business or operations, subsequent to the execution and delivery of this Agreement, of a Seller, that is in the reasonable judgment of the Purchaser material and adverse and that makes it in the reasonable judgment of the Purchaser impracticable to market the Offered Certificates on the terms and in the manner contemplated in the Memorandum.

(l)

Subsequent to the execution and delivery of this Agreement, none of the following shall have occurred (i) trading in securities generally on the New York Stock Exchange, the American Stock Exchange or the over-the-counter market shall have been suspended or minimum prices shall have been established on either of such exchanges or such market by the Securities and Exchange Commission, by such exchange or by any other regulatory body or governmental authority having jurisdiction, (ii) a banking moratorium shall have been declared by federal or New York state authorities, (iii) the United States shall have become engaged in material hostilities, there shall have been an escalation of such hostilities involving the United States or there shall have been a declaration of war by the United States, or (iv) there shall have occurred such a material adverse change in general economic, political or financial conditions (or the effect of international conditions on the financial markets of the United States shall be such), and in the case of any of the events specified in clauses (i) through (iv), such event makes it, in the reasonable judgment of the Purchaser, impractical to market the Offered Certificates.

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(m)

Prior to the Closing Date, the Depositor, the Sellers, the Master Servicer, the Servicer and the Trustee shall have furnished to the Purchaser such further information, certificates, opinions and documents as the Purchaser or its counsel may reasonably request.

SECTION 8.

Termination of Obligations of the Purchaser.  The obligations of the Purchaser to purchase the Offered Certificates on the Closing Date shall be terminable by the Purchaser if at any time on or prior to the Closing Date (i) any of the conditions set forth in Section 7 are not satisfied when and as provided therein; (ii) there shall have been the entry of a decree or order by a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings of or relating to a Seller or the Depositor, or for the winding up or liquidation of the affairs of a Seller or the Depositor; or (iii) there shall have been the consent by a Seller or the Depositor to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings of or relating to a Seller or a Depositor or of or relating to substantially all of the property of a Seller or the Depositor.  The termination of the Purchaser’s obligations hereunder shall not terminate the Purchaser’s rights hereunder or its right to exercise any remedy available to it at law or in equity.  

SECTION 9.

No Fiduciary Duty.  The Depositor acknowledges and agrees that the Purchaser is acting solely in the capacity of an arm’s length contractual counterparty to the Depositor with respect to the offering of the Offered Certificates (including in connection with determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Depositor or any other person.  In addition, the Purchaser is not advising the Depositor or any other person as to any legal, tax, investment,  accounting or regulatory matters in any jurisdiction.  The Depositor shall consult with its own advisors concerning such matters, and the Purchaser shall have no responsibility or liability to the Depositor with respect thereto.  Any review by the Purchaser of the Depositor, the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Purchaser and shall not be on behalf of the Depositor.

SECTION 10.

Representations, Warranties, Covenants and Indemnities to Survive Delivery.  All representations, warranties, covenants and indemnities contained in this Agreement shall remain operative and in full force and effect, regardless of any investigation made by or on behalf of the Purchaser or controlling Person, or by or on behalf of the Depositor, and shall survive delivery of any Offered Certificates to the Purchaser or termination or cancellation of this Agreement.

SECTION 11.

Notices.  All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard form of written telecommunication.  Notices to the Purchaser shall be directed to the address set forth on the first page hereof.  Notices to the Depositor shall be directed to it at 601 N.W. Second Street, Evansville, Indiana 47708, Attention: Treasurer.

SECTION 12.

Parties.  This Agreement shall inure to the benefit of and be binding upon the Purchaser, the Depositor, and the controlling Persons referred to in Section 10 hereof and their respective successors.

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SECTION 13.

Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES APPLIED IN NEW YORK.

* * * * * * *

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If the foregoing is in accordance with your understanding of our agreement, please sign and return to us a counterpart hereof, whereupon this instrument along with all counterparts will become a binding agreement between the Depositor and the Purchaser in accordance with its terms.

Very truly yours,

THIRD STREET FUNDING LLC

By:      /s/ Kevin J. Small

Name:  Kevin J. Small

Title:    President

The foregoing Agreement is

hereby confirmed and accepted as

of the date first above written:

CREDIT SUISSE SECURITIES (USA) LLC

By:         /s/ Peter J. Sack

Name:  Peter J. Sack

Title:    Managing Director

OHS West:260691610.8 

SCHEDULE I

TITLE, PURCHASE PRICE AND DESCRIPTION OF CERTIFICATES

Title:

Third Street Funding LLC, American General Mortgage Loan Trust 2009-1, American General Mortgage Pass-Through Certificates, Series 2009-1

Aggregate Stated Principal Balance

of the Mortgage Loans on the Closing Date:  

$1,965,855,379

Closing Date: 

July 30, 2009, at the offices of Credit Suisse Securities (USA) LLC, at 10:00 a.m.

		
	Designation

	Initial 

Certificate Principal Balance

	Class A-1

	$544,657,000

	Class A-2

	$634,856,000

	Class A-3

	$126,971,000

	Class A-4

	$126,971,000

	Class A-5

	$126,971,000

	Class A-6

	$126,971,000

	Class A-7

	$126,972,000

	Class A-8

	$253,942,000

	Class A-9

	$380,913,000

	Class A-10

	$507,884,000

Purchase Price: $967,319,430.41 (which is inclusive of accrued interest)

OHS West:260691610.8

I-1

EXHIBIT A

INDEMNIFICATION

AND

CONTRIBUTION AGREEMENT

THIS INDEMNIFICATION AND CONTRIBUTION AGREEMENT, dated July 29, 2009 (the “Agreement”), is among Third Street Funding LLC, a Delaware limited liability company (the “Depositor”), Credit Suisse Securities (USA) LLC, a Delaware limited liability company (the “Initial Purchaser”), and MorEquity, Inc., a Nevada corporation (“MorEquity”).

W I T N E S S E T H:

WHEREAS, the Initial Purchaser and the Depositor have entered into a Certificate Purchase Agreement (as defined herein) pursuant to which the Initial Purchaser has agreed to purchase the Offered Certificates (as defined herein); 

WHEREAS, as an inducement to the Initial Purchaser to enter into the Certificate Purchase Agreement, the Depositor wishes to provide indemnification and contribution to the Initial Purchaser on the terms and conditions hereinafter set forth.

WHEREAS, as an inducement to the Depositor to enter into the Certificate Purchase Agreement, the Initial Purchaser wishes to provide indemnification and contribution to the Depositor on the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the foregoing and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

DEFINITIONS

Certain Defined Terms.

The following terms shall have the meanings set forth below, unless the context clearly indicates otherwise:

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

Base Memorandum:  The Base Memorandum, dated July 29, 2009, of the Depositor.

Certificate Purchase Agreement:  The Certificate Purchase Agreement, dated July 30, 2009, among the Initial Purchaser, the Depositor and MorEquity, Inc., relating to the Offered 

Certificates.

Certificates:  American General Mortgage Pass-Through Certificates, Series 2009-1, Class A-1, A-2, A-3, A-4, A-5, A-6, A-7, A-8, A-9, A-10, B-1, B-2, CE, P and R Certificates issued pursuant to the Pooling and Servicing Agreement.

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

Initial Purchaser Information:  The information in the Supplemental Memorandum contained under the heading “PRIVATE PLACEMENT” other than the first, third and fifth paragraphs therein.

Memorandum:  The Base Memorandum, as supplemented by the Supplemental Memorandum.

Offered Certificates:  American General Mortgage Pass-Through Certificates, Series 2009-1, Class A-1, A-2, A-3, A-4, A-5, A-6, A-7, A-8, A-9 and A-10 Certificates issued pursuant to the Pooling and Servicing Agreement.

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

Pooling and Servicing Agreement:  The Pooling and Servicing Agreement, to be dated July 30, 2009, among the Depositor, Wells Fargo Bank, as master servicer and as securities administrator, PennyMac, as servicer, MorEquity, as interim subservicer, SPS, as back-up servicer, U.S. Bank, as trustee, and The Bank of New York Mellon Trust Company, National Association, as custodian.

Supplemental Memorandum:  The Supplemental Memorandum, dated July 29, 2009, relating to the Offered Certificates. 

Other Terms.

Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Certificate Purchase Agreement.

REPRESENTATIONS AND WARRANTIES

Each party hereto represents that:

it has all requisite power and authority to execute, deliver and perform its obligations under this Agreement;

this Agreement has been duly authorized, executed and delivered by such party; and

assuming the due authorization, execution and delivery by each other party hereto, this Agreement constitutes the legal, valid and binding obligation of such party except to the extent that enforceability thereof may be subject to (a) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, receivership or other similar laws now or hereinafter in effect relating to creditors’ rights generally, (b) general principles of equity (regardless of whether enforceability is considered in a proceeding at law or in equity) and (c) possible limitations in certain circumstances of provisions indemnifying a party against liability where such indemnification is contrary to public policy.

INDEMNIFICATION

Indemnification by the Depositor.

The Depositor shall indemnify and hold harmless the Initial Purchaser, each of its directors, officers and each Person, if any, that controls the Initial Purchaser within the meaning of either the 1933 Act or the Exchange Act, against any and all losses, claims, damages, penalties, fines, forfeitures or liabilities to which such party or any such director, officer or controlling Person may become subject, under the 1933 Act, the Exchange Act or otherwise, to the extent that such losses, claims, damages, penalties, fines, forfeitures or liabilities (or actions in respect thereof) (i) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Memorandum, or in any amendment or supplement thereto, relating to the offering of the Offered Certificates or (ii) arise out of or are based upon the omission or alleged omission to state in the foregoing a material fact necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, to the extent, and only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission does not relate to the Initial Purchaser Information, and the Depositor shall reimburse the Initial Purchaser and each such director, officer or controlling Person for any legal or other expenses reasonably incurred by the Initial Purchaser and each such director, officer or controlling Person, in connection with investigating or defending any such loss, claim, damage, liability, penalty, fine, forfeiture or action.  The Depositor’s liability under this Section 3.1 shall be in addition to any other liability that the Depositor may otherwise have.

The Initial Purchaser shall indemnify and hold harmless the Depositor, its directors and officers, and each Person, if any, that controls the Depositor within the meaning of either the 1933 Act or the Exchange Act, against any and all losses, claims, damages, penalties, fines, forfeitures or liabilities to which such party or any such director, officer or controlling Person may become subject, under the 1933 Act, the Exchange Act or otherwise, to the extent that such losses, claims, damages, penalties, fines, forfeitures or liabilities (or actions in respect thereof) (i) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Supplemental Memorandum, or in any amendment or supplement thereto, relating to the offering of the Offered Certificates or (ii) arise out of or are based upon the omission or alleged omission to state in the foregoing a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, to the extent that such untrue statement or alleged untrue statement 

or omission or alleged omission relates to the Initial Purchaser Information, and the Initial Purchaser shall reimburse the Depositor and each such director, officer or controlling Person for any legal or other expenses reasonably incurred by the Depositor and each such director, officer or controlling Person, in connection with investigating or defending any such loss, claim, damage, liability, penalty, fine, forfeiture or action.  The Initial Purchaser’s liability under this Section 3.1 shall be in addition to any other liability that the Initial Purchaser may otherwise have.  

If the indemnification provided for in this Section 3.1 shall for any reason be unavailable to an indemnified party under this Section 3.1, then the party which would otherwise be obligated to indemnify with respect thereto, on the one hand, and the parties which would otherwise be entitled to be indemnified, on the other hand, shall contribute to the aggregate losses, liabilities, claims, damages, penalties, fines, forfeitures and expenses of the nature contemplated herein and incurred by the parties hereto in such proportions that are appropriate to reflect the relative benefit to the Depositor and the Initial Purchaser from the issuance and sale of the Certificates or, if such allocation is not permitted by a court of competent jurisdiction, then on a basis appropriate to also recognize the relative fault of the Depositor and the Initial Purchaser in connection with the applicable misstatements or omissions as well as any other relevant equitable considerations, which may include the Depositor’s and the Initial Purchaser’s relative knowledge and access to information concerning the matter with respect to which the claim was asserted, the opportunity to correct and prevent any statement or omission, and any other equitable considerations appropriate under the circumstances; provided, however, that the Initial Purchaser’s total contribution shall not exceed its net proceeds from the sale of the Offered Certificates.  Notwithstanding the foregoing, 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 that was not guilty of such fraudulent misrepresentation.  For purposes of this Section 3.1, each director of a party to this Agreement and each Person, if any, that controls a party to this Agreement within the meaning of Section 15 of the 1933 Act shall have the same rights to contribution as such party.

MorEquity, Inc. agrees with the Initial Purchaser, for the sole and exclusive benefit of the Initial Purchaser and each person who controls the Initial Purchaser within the meaning of either the 1933 Act or the Exchange Act and not for the benefit of any assignee thereof or any other person or persons dealing with the Initial Purchaser, in consideration of and as an inducement to its agreement to enter into the transactions contemplated herein, to indemnify and hold harmless the Initial Purchaser against any failure by the Depositor to perform its obligations to the Initial Purchaser pursuant to Section 3.1(a) hereof; provided, however, that the Initial Purchaser shall exhaust any and all remedies against the Depositor prior to seeking enforcement of this Section 3.1(d) against MorEquity, Inc.

Notification; Procedural Matters.

Promptly after receipt by an indemnified party under Section 3.1 of notice of any claim or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party (or if a claim for contribution is to be made against another party) under Section 3.1 hereof, notify the indemnifying party (or other contributing party) in writing of the claim or the commencement thereof; but the omission to so notify the 

indemnifying party (or other contributing party) shall not relieve it from any liability it may have to any indemnified party (or to the party requesting contribution) otherwise than under Section 3.1 hereof.  In case any such action is brought against any indemnified party and it notifies the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that, by written notice delivered to each indemnified party promptly after receiving the aforesaid notice from an indemnified party, the indemnifying party elects to assume the defense thereof, it may participate (jointly with any other indemnifying party similarly notified) with counsel satisfactory to each indemnified party; provided, however, that if the defendants in any such action include both an indemnified party and the indemnifying party and the indemnified party or parties shall reasonably have concluded that there may be legal defenses available to it or them and/or other indemnified parties that are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties.  Upon receipt of notice from the indemnifying party to such indemnified party of its election so to assume the defense of such action and approval by the indemnified party of such counsel, the indemnifying party shall not be liable to such indemnified party under this paragraph for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof, unless (i) such indemnified party shall have employed separate counsel (plus any local counsel) in connection with the assertion of legal defenses in accordance with the proviso to the immediately preceding sentence, (ii) the indemnifying party shall not have employed counsel satisfactory to such indemnified party to represent such indemnified party within a reasonable time after notice of commencement of the action or (iii) such indemnifying party shall have authorized the employment of counsel for such indemnified party at the expense of the indemnifying party.  No party shall be liable for contribution with respect to any action or claim settled without its consent, which consent shall not be unreasonably withheld.  In no event shall any indemnifying party be liable for the fees and expenses of more than one counsel (in addition to any local counsel) separate from its own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances.

GENERAL

Survival.

This Agreement and the obligations of the parties hereunder shall survive the purchase and sale of the Certificates.

Successors.

This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and the officers, directors and controlling Persons referred to in Article III hereof and their respective successors and assigns, and no other Person shall have any right or obligation hereunder.

Applicable Law.

This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to principles of conflict of laws.

Miscellaneous.

Neither this Agreement nor any term hereof may be changed, waived, discharged or terminated except by a writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought.  This Agreement may be signed in any number of counterparts, each of which shall be deemed an original, which taken together shall constitute one and the same instrument.

Notices.

All communications hereunder shall be in writing and shall be deemed to have been duly given when delivered to (a) in the case of the Depositor, Third Street Funding LLC, 601 N.W. Second Street, Evansville, Indiana 47708 Attn: Treasurer; (b) in the case of the Initial Purchaser, Credit Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, New York  10010, Attention:  General Counsel; and (c) in the case of MorEquity, Inc., MorEquity, Inc., 601 N.W. Second Street, Evansville, Indiana 47708 Attn: Treasurer.

Submission To Jurisdiction; Waivers.  

Each of the parties hereto hereby irrevocably and unconditionally:

(A)

SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND THE APPELLATE COURTS;

(B)

CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

(C)

AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH HEREIN OR AT SUCH OTHER ADDRESS OF WHICH THE DEPOSITOR  SHALL HAVE BEEN NOTIFIED; AND

(D)

AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR 

SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized officers as of the date first above written.  

THIRD STREET FUNDING LLC

By:  

/s/ Kevin J. Small

Name:  Kevin J. Small

Title:    President

CREDIT SUISSE SECURITIES (USA) LLC

By:  

/s/ Peter J. Sack

Name: 

Peter J. Sack

Title:   Managing Director

Solely for purposes of Section 3.1(d):

MOREQUITY, INC.

By:  

/s/ Kevin J. Small

Name:  Kevin J. Small

Title:    President

[AGF 2009-1 -- ICA (Credit Suisse)]

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